Canaccord Remains Cautious on Midway Gold Corp (USA) Following First Gold Pour
Canaccord Genuity analyst Joe Mazumdar came out with a few insights on Midway Gold Corp (USA) (NYSE MKT:MDW), after the company announced the first gold pour (100 oz) from their Pan open pit heap leach gold project in central Nevada. The analyst reiterated a Hold rating on the stock, without suggesting price target.
Mazumdar noted, "Although a positive with respect to meeting guidance, the first pour remains within our forecast. MDW continue to guide to their first commercial production scale pour on March 30th when they will also provide the market their much anticipated 2015 guidance for the Pan project. We maintain our target price (C$0.70) and Hold rating as our concern about the company's capacity to fund our estimated working capital shortfalls in 2015 has yet to be assuaged. We detailed our concerns in our March 17, 2015 research note after the independent auditors commented that ‘material uncertainties exist which cast doubt about (the company’s) ability to continue as a going concern’. Guidance (tonnage placed, head grade, lagged recoveries, operating costs) would provide more certainty on the amount of potential cash flow sourced from operations."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Joe Mazumdar has a total average return of 8.0% and a 53.8% success rate. Mazumdar has an 8.3% average return when recommending MDW, and is ranked #1488 out of 3558 analysts.