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a 100% interest in 74,000 hectares of land in the historic Rouyn-Noranda Mining Camp
Message: BMO coverage...target $1.90 FS Q2
RE:BMO Coverage
According to the Globe and Mail:
http://www.theglobeandmail.com/globe-investor/inside-the-market/mondays-analyst-upgrades-and-downgrades/article34559432/
Calling its Horne 5 project "an overlooked" gold development, BMO Nesbitt Burns analyst Andrew Mikitchook initiated coverage of Falco Resources Ltd. (FPC-X) with an "outperform" rating.
"Falco Resources' 100-per-cent-owned Horne 5 deposit, located in Quebec, is one of the few 200,000 ounce-plus per year gold development assets in North America, and is fast tracking toward a construction decision and targeting potential commercial production in 2021," he said. "The Horne 5 PEA (2016) showed average gold production of 236,000 ounces (Peak of 274,000 ounces per year) at a low US$427/oz by-product AISC due to significant by-products with a capex of $905-million. The company is preparing to deliver a feasibility study in Q2 to define reserves and initiate the permitting process as well as pre construction activities. With the appointment of Osisko-related management in 2014 and 2015, Falco gained a team with a track record of engineering, permitting, financing, and construction with recent success at the Malartic mine 67 kilometres to the east of the Horne 5 project. In our opinion, navigating community relations in Quebec to gain social license and support for development is among the team's key strengths. While the Horne 5 project is within Rouyn-Noranda city limits, its location within an industrial part of the town and smaller footprint should be a simpler challenge than the partial town relocation managed for Canadian Malartic."
Called its current valuation "compelling" while waiting for "derisking," Mr. Mikitchook set a price target of $1.90. The average is $1.83.
"We have chosen a 0.6 times P/NAV [price-to-net asset value] target-setting multiple to reflect development risks, primarily in terms of scale and financing the Horne 5 project," he said. "This multiple would be toward the lower end used in the BMO coverage universe for advanced projects at or approaching a feasibility stage. We would look to increase our target-setting multiple as Falco delivers a feasibility study in Q2 and secures financing to carry out dewatering and headframe construction, which are expected to start in Q4/17."
http://www.theglobeandmail.com/globe-investor/inside-the-market/mondays-analyst-upgrades-and-downgrades/article34559432/
Calling its Horne 5 project "an overlooked" gold development, BMO Nesbitt Burns analyst Andrew Mikitchook initiated coverage of Falco Resources Ltd. (FPC-X) with an "outperform" rating.
"Falco Resources' 100-per-cent-owned Horne 5 deposit, located in Quebec, is one of the few 200,000 ounce-plus per year gold development assets in North America, and is fast tracking toward a construction decision and targeting potential commercial production in 2021," he said. "The Horne 5 PEA (2016) showed average gold production of 236,000 ounces (Peak of 274,000 ounces per year) at a low US$427/oz by-product AISC due to significant by-products with a capex of $905-million. The company is preparing to deliver a feasibility study in Q2 to define reserves and initiate the permitting process as well as pre construction activities. With the appointment of Osisko-related management in 2014 and 2015, Falco gained a team with a track record of engineering, permitting, financing, and construction with recent success at the Malartic mine 67 kilometres to the east of the Horne 5 project. In our opinion, navigating community relations in Quebec to gain social license and support for development is among the team's key strengths. While the Horne 5 project is within Rouyn-Noranda city limits, its location within an industrial part of the town and smaller footprint should be a simpler challenge than the partial town relocation managed for Canadian Malartic."
Called its current valuation "compelling" while waiting for "derisking," Mr. Mikitchook set a price target of $1.90. The average is $1.83.
"We have chosen a 0.6 times P/NAV [price-to-net asset value] target-setting multiple to reflect development risks, primarily in terms of scale and financing the Horne 5 project," he said. "This multiple would be toward the lower end used in the BMO coverage universe for advanced projects at or approaching a feasibility stage. We would look to increase our target-setting multiple as Falco delivers a feasibility study in Q2 and secures financing to carry out dewatering and headframe construction, which are expected to start in Q4/17."
Read more at http://www.stockhouse.com/companies/bullboard?symbol=v.fpc&postid=26093671#fh0PWU16kVMj19AA.99
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