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What to do with the securities of IAMGOLD, Integra Resources and Brookfield Asset Management? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed.
IAMGOLD (IMG, $ 2.88): Gosselin zone could create significant value, believes National Bank analyst
Yesterday morning, the Toronto mining company announced the results of testing its resource delineation program at its Gosselin satellite site, right next to its Cote development project northeast of Sudbury.
Mike Parkin, analyst at the National Bank, indicates that the results of this young resource are interesting and consistent with previous drilling, which adds to the confidence of the quality of the resource which will be confirmed in the 4th quarter.
The average grade of the 31 holes announced yesterday continues to be comparable to that of Project Cote, notes the analyst. He estimates the value of Project Cote’s reserves at $ 258 / ounce. For the Gosselin zone, the analyst applies a conservative discount of 50% to this value on a target of 4 million ounces.
Although the analyst recognizes that there are still many execution risks associated with construction at the Cote Project, he believes that the Gosselin zone could add significant value to the project given that it is immediately adjacent to the project, and that the investment is therefore minimal compared to the initial development of Project Cote.
The analyst estimates the value of the Gosselin Zone at 334 million, or $ 0.70 per share, which is about 11.5% of IAMGOLD’s net asset value.
The analyst gives the mining company an “outperform” recommendation, and its target price is $ 3.75. However, it recognizes the speculative nature of the investment.
Integra Resources (ITR, $ 3.15): The entry point now is interesting, according to Desjardins analyst
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