Heiko Ihle, an analyst from H.C. Wainwright, has initiated a new Buy rating on GoldMining (GLDG).
Heiko Ihle has given his Buy rating to GoldMining based on a combination of factors. The key aspect of this rating is the leverage of the company’s La Mina project to higher gold prices, which are currently stabilizing near historical highs of $1,900 per ounce. This advantageous market condition, in Ihle’s view, should allow for profitable metal extraction at La Mina and other similar projects. The La Mina project has also demonstrated its potential value following a recent Preliminary Economic Assessment, with a post-tax NPV of $279.5M at a base case price of $1,750 per ounce, rising to $442.2M when the gold price is $1,975 per ounce. Furthermore, Ihle believes that La Mina’s prospective land package offers additional opportunities.
Heiko Ihle also highlights the geographically favorable position of GoldMining’s São Jorge project in Brazil. Located in a significant gold district, São Jorge lies along a trend that has yielded an estimated 30.0Moz of gold production over four decades. Additionally, new assets are being developed in the region, reinforcing its value. Given its favorable location, existing resource base, and solid economics, Ihle believes that São Jorge could offer strong potential to materialize value for GoldMining. The Buy rating is reiterated despite a lowered price target due to a recent market sell-off affecting the value of GoldMining’s equity positions. The valuation still considers a DCF of operations at São Jorge, with additional value attributed to the company’s other advanced assets.
According to TipRanks, Ihle is an analyst with an average return of -17.1% and a 23.65% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Hecla Mining Company, EMX Royalty, and Avino Silver & Gold.
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GoldMining (GLDG) Company Description:
GoldMining, Inc. engages in the acquisition, exploration, and development of mineral properties. The company operates through the following geographical segments: Canada, Brazil, United States, Paraguay, Colombia, and Peru. Its project portfolio includes Sao Jorge, Cachoeira, Boa Vista, Surubim, Batistao, Montes Aureos, Trinta, Whistler, Yellowknife Gold, Rea, La Mina, Titiribi, and Crucero. The company was founded by Amir Adnani on September 9, 2009 and is headquartered in Vancouver, Canada.
