TD Equity Research is out with an update on Continental Gold this morning entitled “CNL:Time to Buy is Now”. The two main kickers in this research report are as follows:
- TD expects an updated resource estimate in June with an upgrade in both the grade and size (to over 8 million ounces of gold) of the Buriticá resource.
- Despite the recent 35%+ rally in CNL shares TD still sees CNL as undervalued relative to its peer group (CNL trades at .45x NAV relative to an average of .57x NAV for its peer group).
Continental is an exceptional company with one of the largest, high grade, undeveloped gold assets in the world. Moreover, the company has enough cash to at least make it deep into 2016 without having to do another financing. Hopefully by that time CNL will be preparing a feasibility study for Buriticá which it could then use to get financing for the final build-out of the project.
CNL Anticipated Timeline
-Updated Resource Estimate — Mid-2015E
-Completion of Permitting — Mid-2015E
-Updated PEA — H2/2015E
-Feasibility Study — H2/2016E
The firm maintained its C$5 price target on CNL shares