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TICKERS: TLG; CHXMF

Development-Stage Company Offers 'Exceptional Torque to a Rising Gold Price'
Research Report

Source:

Troilus Gold's valuation and similarities to Detour Gold are discussed in a Stifel report.

In a July 7 research report, Stifel GMP stated that Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) is one of its "best ideas that offer exceptional torque to a rising gold price," and the "asset offers one of the best potential replacement vehicles for gold torque since Kirkland Lake Gold's acquisition of Detour Gold."

Stifel noted that whereas a $2,000 per ounce ($2K/oz) gold price seemed implausible a year ago, now it is possible. Already gold futures broke through $1,800, and the COVID-19-caused backdrop that is supporting gold, cheap money and extreme liquidity, is expected to remain constant for some time. One of the companies that Stifel believes is "primed to execute on $2,000/oz Au" is Troilus Gold.

When Stifel revised the assumed gold price in its Troilus Gold model to $2K/oz from $1,600/oz, it boosted the Toronto-based mining company's net asset value (NAV) "by a whopping 49%." Stifel's NAV at "$2,000/oz is C$5.78 on a fully funded and diluted basis (conservatively assumes capex is 50% equity funded at C$1.00/sh)."

Currently, Troilus Gold is trading at a significant discount to its peers in Stifel's coverage universe. This, however, is a gap that Stifel believes will shrink as the development-stage firm "tackles technical questions around geotech, metallurgy, etc.," the investment banking company wrote.

It pointed out that the similarities between Troilus Gold and Detour Gold include a past producing deposit, a large underexplored existing resource base and a management team that has a fresh exploration plan. Further, just like the design rate for Detour Gold increased to about 55,000 tons per day (50 Ktpd) from 30 Ktpd, Stifel is bumping up Troilus Gold's projected milling rate to 25 Ktpd from consensus' estimated 20 Ktpd.

Stifel's noted that "as a single asset, multimillion ounce Canadian operation with a low permitting hurdle, Troilus Gold is a favorite under $2,000 Au."

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Disclosure:
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 billboard sponsors of Streetwise Reports: Troilus Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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Disclosures from Stifel GMP, Precious Metals, July 7, 2020

Important Disclosures and Certifications
Each research analyst and associate research analyst who authored this document and whose name appears herein certifies that: (1) the recommendations and opinions expressed in the research report accurately reflect their personal views about any and all of the securities or issuers discussed herein that are within their coverage universe; and (2) no part of their compensation was, is or will be, directly or indirectly, related to the provision of specific recommendations or views expressed herein.

Company-Specific Disclosures:
1. Stifel Canada or an affiliate has, within the previous 12 months, provided paid investment banking services to the issuer.
2. Stifel or an affiliate act as corporate broker and/or adviser to the Company.
11. Stifel Canada or an affiliate managed or co-managed a public offering of securities for the subject company in the past 12 months.




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