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Revised 2018 Model on Gold Producer Reflects 'Better Costs, Upward Earnings'
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A CIBC report reviewed the miner's recently announced Q4/18 production and cost figures.

Los Filos Mine

In a Jan. 4 research note, CIBC analyst Bryce Adams reported that Leagold Mining Corp. (LMC:TSX.V; LMCNF:OTCQX) met its revised full-year 2018 production guidance of 295–305 Koz with actual production of 302.6 Koz.

Q4/18 production alone, of 93.8 Koz, was consistent with CIBC's estimate of 93.7 Koz.

Specifically, the Los Filos mine outperformed in Q4/18, producing 58.2 Koz versus CIBC's forecasted 55.3 Koz. Fazenda delivered 19 Koz and Pilar, 11.6 Koz, generally in line with CIBC's projections. RDM's production of 4.9 Koz, however, came in lower than the expected 7.4 Koz.

Looking forward, Leagold is expected to announce results of a technical study of a possible carbon-in-leach plant for the underground ore at Los Filos.

As for costs, Leagold reported the all-in sustaining cost (AISC) for full-year 2018 will be around $979 per ounce. Accordingly, CIBC revised its AISC estimates on the company, to $986 per ounce for full-year 2018 and $1,008 per ounce for Q4/18.

Having updated its model to reflect new Q4/18 production and cost figures from Leagold, CIBC now projects for Q4/18 an earnings per share of $0.00 and a cash flow per share of $0.06, both up by $0.05 per share.

CIBC has an Outperformer rating and a CA$3.50 per share price target on Leagold, whose current share price is CA$1.92.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Leagold Mining. Click here for important disclosures about sponsor fees.
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Disclosures from CIBC, Leagold Mining Corp., January 4, 2019

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Leagold Mining Corporation (LMC)

· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Leagold Mining Corporation in the next 3 months.

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