Impact: Mildly Positive Results from FireFox’s 2018 fieldwork has surfaced several new gold targets allowing the company to close-in on potential drill prospects for 2019. We believe FireFox is a mispriced gold explorer, advancing multiple targets over a significant land package in one of the best mining jurisdictions in the world.
Impact: Mildly Positive Aquila released a positive permitting update, as one of the legal challenges for its permits was dismissed. While the legal challenge of permits is normal course in the U.S., this result acts as another positive step to advancing Back Forty towards production. We view Aquila as an undervalued take-out candidate on the verge of a re-rating through the development of the high-margin Back- Forty polymetallic project; the backdrop of a tightening commodities market should underpin the strategic value.
Impact: MilldlyPositive Results from Novo’s ongoing efforts at Egina and Karratha continue to advance these projects and demonstrate each projects potential. We believe the market is undervaluing the company’s other assets, and steady news flow in 2019 should change this. Despite a significant share price increase today, we believe the market is continuing to undervalue the company’s Karratha, Egina and wider Pilbara projects, with much of the current value underpinned by an improving Beatons Creek project.
Impact: Mildly Positive Seabridge’s summer drill program at it’s Iskut Property has identified another porphyry target close to surface. Iskut is only 30 km east of Seabridge’s KSM Project which hosts four porphyry deposits with P&P Reserves of 39Moz of gold + 10Blbs of copper. These latest results support our view that Seabridge is positioning itself as a gold-copper developer to watch in a premier jurisdiction - we believe majors are taking notice.
Impact: Mildly Positive NxGold’s exploration efforts at Mt. Roe, continue to highlight the potential for this company to make both hardrock and conglomerate gold discoveries. While recent results continue to suggest the project has value, the current enterprise value (EV) implies shell value. With funding in-place to advance this project through initial drilling, we believe the market is providing investors an opportunity, as this is the type of company that should see a strong rally, in January.
Impact: Positive Newcrest has again increased its interest in SolGold by purchasing 27.87M shares from two third parties. Newcrest now owns 15.3% of SolGold, cementing its position as the largest strategic shareholder ahead of BHP at 11.1% ownership. This update aligns with our thesis that SolGold is in possession of a world-class copper project that is continuing to grow and receive increasing interest from major miners looking to bolster future production.
Impact: Mildly Positive Seabridge has announced that it has once again extended the Iron Cap mineralization down plunge to the northwest, which is already defined a 49Moz AuEq deposit within the wider KSM property in BC. Results align with our thesis that Seabridge is in possession of a major-scale gold-copper project in a premier jurisdiction that we expect to attract major partners.
We are publishing our initial estimates on Rockcliff Metals with a valuation of C$0.32 per RCLF share, a 190% premium to the current share price. The company has consolidated a massive ≈200,000 ha portfolio of base metal and gold assets in the Snow Lake Mining Camp in Manitoba. We like Rockcliff’s balanced risk/reward profile with high probability that 2019 drilling is likely to expand resources combined with exciting “Blue Sky” potential at the Snow Lake South (SLS) #1&2 projects.
Impact: Neutral Mawson released drill results from both its Finnish and US assets. Results from the US look promising and while drilling was unsuccessful at the company’s secondary Finnish targets where further work is needed. Our thesis that the Rompas-Rajapalot project hosts a sizeable high-grade mineralized system remains unchanged and we are awaiting assay result from the US assets to understand that project’s potential.
Impact: Mildly Positive We recently had the opportunity to visit Beta Hunt in West Australia and our overall impression was positive, as the company shifts focus to defining higher grade resources (both bulk and selectively mineable). Importantly, the company has a credible thesis as to why higher grades zones of both types occur and where they should occur, so the next step is drilling to prove it out. With the balance sheet repaired, we expect ongoing exploration and development work to be the key catalysts for demonstrating the potential that we see at Beta Hunt.