March 2019

North American Palladium Ltd. (TSX:PDL)- Site Visit: Q1 FCF May Warrant a Dividend Increase

Impact: Positive Based on the recent analyst day and site visit, along with QTD palladium price, we believe North American Palladium is poised to generate significant FCF in Q1 which may justify a quarterly dividend increase. Additionally, we believe the company is carrying strong financial and operational momentum into Q2/19. We continue to believe that North American Palladium’s improved operations and deliverable expansion plans have it poised for a share price re-rating. In addition, its leverage to a strong palladium market provides additional torque.

SolGold Plc. (TSX:SOLG; LON:SOLG) – Important Catalysts Coming Soon

Impact: Neutral A recent update on SolGold’s activities concerning its upcoming PEA, Cornerstone bid and exploration activities, reinforce our view that the company is still inexpensive ahead of a number of major catalysts. We continue to view Alpala as a world-class copper-gold deposit and believe that ongoing de-risking and growth of the project should make it an attractive target for major mining companies.

Mawson Resources Ltd. (TSX:MAW) – Mawson Gets Government Support

Impact: Positive Mawson has announced an important endorsement from Finland’s BATCircle consortium which will aim focus on the development of Mawson’s strategic gold-cobalt resource via funding and technical support. We estimate a fair value of C$0.79/sh for Mawson’s shares and we believe the company is on track to deliver a sizeable gold-cobalt resource in a secure jurisdiction.

FireFox Gold Corp. (TSXV:FFOX) – Another Target on Large Prospective Property

Impact: Mildly Positive Ground magnetic results from FireFox’s Jeesiö project continue to suggest the presence of a large mineralized structural continuation of the Sirkka Shear Zone. We expect systematic drilling at Mustajärvi could initiate a chain of potential discoveries across FireFox’s large, prospective land package.

Coro Mining Corp (TSX:COP) – Big Project, Small Capex

Coro Mining is in the process of re-rating as the market begins to recognize the resource growth potential on a low capital intensity copper heap leach project in Chile. We estimate the fair value of Coro’s shares to be C$0.21/sh, with further upside should regional exploration targets pan out. Coro is backed by an economic copper oxide heap leach project with excellent access to infrastructure in mining friendly Chile. The combination of i) our expected doubling of the resource in the near-term, ii) our heap leach valuation and iii) the regional exploration potential, should drive Coro’s share price higher over the near and medium-term.

De Grey Mining Ltd. (ASX:DEG) – More High-Grade Hits from Withnell

Impact: Mildly Positive Results from De Grey’s larger Withnell deposit suggest high grade lodes are coming down the pipeline as the company pursues an aggressive exploration target across its entire project. These and other recent drill results support our fair value estimate for De Grey of A$0.30/sh and we believe the stock should re-rate as the company demonstrates the scale potential and exploration upside of the Pilbara Gold project.

Chalice Gold Mines Ltd. (TSXV:CXN; ASX:CHN) – Recon Drilling Smoke A Good Sign

Impact: Mildly Positive Chalice has released encouraging results from its Pyramid Hill project where it just completed a 19,500m air-core and reverse-circulation (AC/RC) reconnaissance drill program. Chalice is on the hunt for quality deposits at Pyramid Hill in the prolific Victorian Goldfields of Australia while also advancing East Cadillac, within the Abitibi of Quebec, where exploration work is ticking the boxes for another Canadian Malartic. Chalice’s discounted EV doesn’t reflect that this is a cashed-up junior on the hunt in two major gold camps.

Aurion Resources Ltd. (TSXV:AU) – Aamurusko Expands and Early Hits at Notches

Impact: Mildly Positive Aurion’s recent drilling results were successful in growing a coherent high-grade mineralized zone at its Aamurusko Main Zone and in uncovering sandstone and conglomerate hosted mineralization through first pass drilling at its Notches target. These positive results continue to support our fair value estimate C$2.29/sh with upside potential to C$5.57/sh and we expect ongoing exploration to continue to demonstrate this potential.