Haywood Securities last week initiated coverage on Red Pine Exploration (TSXV: RPX) with a buy rating and an C$1.40 price target, showing 97% upside to the current price. They are initiating coverage after the company consolidated 100% ownership of its Wawa Gold Project, saying that, “now the ownership of the Wawa gold project is consolidated under Red Pine, shareholders can benefit from the full upside of the project.”
They believe that the Wawa project will grow as it has an indicated resource of 230k ounces grading 5.47g/t gold and an inferred resource of 471k ounces grading 5.39 g/t gold. Haywood says, “This project offers good expansion potential and is open at depth and along strike.”
Haywood says this company has an attractive valuation, as if the long term gold price stays at U$1,800 then the NAV would be $1.56, and would go up to $1.75 if the long term gold price would rise $68.
Below you can see the assumptions for Wawa Project, which reflects a 1,000 tonnes per day operation with an average annual production of 51,000 ounces of gold.
Haywood adds that the company has a solid list of institutional investors, which make up 54% of the total shares outstanding.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
