“We believe that Pershing’s position as a single asset developer and current precious metals market conditions made it more difficult than expected for the firm to secure project financing at favorable terms. In our opinion, the combined firm should be able to secure financing for a lower cost of capital aided by Americas Silver’s strong financial position and cash flow generating assets. In short, we think that a financing package for the project could be finalized in 1Q19, which would allow construction at Relief Canyon to begin shortly after and initial production as early as 1H20. Transaction priced below our NAV for the firm. We note that the announced transaction price from Pershing’s point of view was substantially below our estimated NAV and price target for the firm.”
According to TipRanks.com, Ihle has currently no stars on a ranking scale of 0-5 stars, with an average return of -2.7% and a 32.9% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Americas Silver Corporation, and Golden Star Resources Ltd.
Currently, the analyst consensus on Pershing Gold Corp is a Moderate Buy with an average price target of $3.63.
The company has a one-year high of $3.23 and a one-year low of $0.80. Currently, Pershing Gold Corp has an average volume of 103.9K.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PGLC in relation to earlier this year.
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Pershing Gold Corp. is a gold and precious metals exploration company, which engages in exploration, development and mining opportunities in Nevada. It focuses on exploration at Relief Canyon properties in Pershing County in northwestern Nevada. The company was founded on August 2, 2007 and is headquartered in Lakewood, CO.