In a new note to investors today, an analyst has provided a rating update for the Materials sector company, GoGold Resources (GGD). H.C. Wainwright’s analyst Heiko Ihle reiterates their Buy rating on the shares, with a C$0.90 price target.
Ihle wrote:
“We note the asset was sold for C$95 million after purchasing it for C$11 million in 2014. The deal for Los Ricos includes an upfront payment of C$70,000, followed by C$750,000 over five years, with a 2% net smelter return on five of the concessions. GoGold may negotiate acquiring the asset earlier at any time, though we note that management has a contractually agreed upon maximum price of C$11 million anytime during the six-year option period. GoGold now has exclusive rights to explore the property for five years. Historic drilling at Los Ricos has intercepted high-grade gold and silver near the surface. Previous exploration work at Los Ricos consisted of 65 drill holes, detailed and regional mapping, as well as extensive surface and underground sampling.”
According to TipRanks.com, Ihle is a 3-star analyst with an average return of 1.5% and a 48.1% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Golden Star Resources Ltd, and Northern Dynasty Minerals.
GoGold Resources has an analyst consensus of Moderate Buy, with a price target consensus of C$0.90.
GoGold Resources’ market cap is currently C$54.11M and has a P/E ratio of 0. The company has a Price to Book ratio of 0.60.
Gogold Resources, Inc. engages in the exploration, development, and production of gold and silver. Its projects include Parral Tailings and Santa Gertrudis. The company was founded on January 18, 2008 and is headquartered in Halifax, Canada.
The company’s shares closed on Tuesday at C$0.32.
