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Coverage Initiated on Gold Producer with 'Strong Growth on the Horizon'

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Source: Streetwise Reports   08/21/2019

The investment thesis on this Canadian company is delivered in a BMO Capital Markets report.

Analyst Ryan Thompson wrote in an Aug. 13 research note that his firm BMO Capital Markets initiated coverage on Leagold Mining Corp. (LMC:TSX.V; LMCNF:OTCQX) with an Outperform rating and a CA$4 per share target price. With The company is currently trading at around CA$2.34 per share.

“Our Outperform rating is underpinned by Leagold’s attractive relative valuation and peer-leading per share growth profile,” he added.

Thompson expanded on those key points.

  • The gold miner is about to kick off its aggressive growth plan with the phased expansion of the Los Filos mine in Mexico. There, the company will develop the Bermejal underground mine starting in Q3/19 then launch the Guadalupe open pit in Q4/19 and lastly, build a carbon-in-leach plant, beginning in mid-2020, to accommodate bigger recoveries.
  • Once Los Filos is completed, Leagold will turn its attention, likely in early 2021, to restarting the Santa Luz mine in Brazil. That will require about 10 months of construction first.
  • The producer has the capital to carry it all out due to the $400 million financing package it secured earlier this year.
  • Further, Leagold has a management team that, with its experience and impressive history, could make it all happen. CEO Neil Woodyer, for instance, developed Endeavour Mining into one of the largest gold producers in West Africa.

    Thompson highlighted that Leagold is currently attractively valued considering it is about to “deliver more than 650,000 ounces of gold production by 2021.” Recent share price weakness created “a buying opportunity for investors with a longer-term view on the growth potential.”

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    Disclosure:
    1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
    2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
    3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
    4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
    5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

    Disclosures from BMO Capital Markets, Leagold Corp., August 13, 2019

    IMPORTANT DISCLOSURES

    Analyst’s Certification
    I, Ryan Thompson, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

    Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

    Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

    Company Specific Disclosures
    Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months from Leagold Mining.
    Disclosure 6C: Leagold Mining is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: C) Non-Securities Related Services.
    Disclosure 16: A research analyst has extensively viewed the material operations of Leagold Mining.
    Disclosure 17: Leagold Mining has paid or reimbursed some or all of the research analyst’s travel expenses.

    For Important Disclosures on the stocks discussed in this report, please click here.

    ( Companies Mentioned: LMC:TSX.V; LMCNF:OTCQX, )


  • Source: https://www.streetwisereports.com/article/2019/08/21/coverage-initiated-on-gold-producer-with-strong-growth-on-the-horizon.html


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