In a July 13 research note, analyst Heiko Ihle reported that H.C. Wainwright & Co. increased its target price on GoldMining Inc. (GOLD:TSX; GLDLF:OTCQX) to CA$7 per share from CA$6.50 after upwardly revising its precious metals price forecasts. GoldMining's current share price is about CA$2.26.
Based on macroeconomic improvements in the market, H.C. Wainwright increased its long-term gold price projection to $1,700 per ounce ($1,700/oz) from $1,575/oz and its silver price forecast to $18/oz from $17.50/oz. These estimates are below the current spot prices for gold at $1,800/oz and silver at $18.70/oz, Ihle pointed out, "as we acknowledge the possibility for short and midterm metal price fluctuations."
Also, Ihle highlighted that GoldMining is "boosting [its] global resource base through meaningful acquisitions." Most recently, the junior resource company purchased the Almaden gold project in Idaho and quickly thereafter, in June, announced a resource estimate for it.
It "outlined Almaden's near surface characteristics, which could facilitate favorable economics given the reduced need for resource conversion infill drilling programs," Ihle noted.
Before preparing a preliminary economic assessment of Almaden, however, the Vancouver mining firm intends to conduct metallurgical and other work assessing various processing scenarios.
Ihle noted, "Following the recent creation of its new gold streaming and royalty subsidiary, GoldMIning could benefit from a re-rating as royalty companies tend to trade at a premium to producing or exploration firms." H.C. Wainwright rates GoldMining a Buy.
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Disclosures from H.C. Wainwright & Co., GoldMining Inc., Company Update, July 13, 2020
I, Heiko F. Ihle, CFA, Tyler Bisset and Marcus Giannini, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of GoldMining, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of June 30, 2020, neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of GoldMining, Inc.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.The firm or its affiliates received compensation from GoldMining, Inc. for non-investment banking services in the previous 12 months.
The Firm or its affiliates did not receive compensation from GoldMining, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in GoldMining, Inc. as of the date of this research report.
H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.