There's more than plenty left in this, according to Bell Potter. With or without brokers' commendations, however, one must allow a combination of their eyes, intellect, and gut instincts to be the ultimate judge. Mine are telling me (and have told me) - including in a broader macroeconomic/geopolitical context - that Gold Road is a solid place in which to be.
Next target: 10 million ounces.
Base case valuation lifted to $0.47 with exploration upside We believe the full significance of the Gruyere Resource is yet to be recognized by the market and that the company is trading at a discounted valuation to its peers. Gold Road is a highly speculative investment. We have raised our equity adjusted base case valuation by a net 9% to $0.47 per share and our upside valuation by a net 5% to $0.91 per share from the net effect of: the higher than expected Maiden Resource at Gruyere; a 4% decrease in our forecast $A gold prices (from slightly higher $US gold prices offset by higher $US/$A exchange rate forecasts); and lower dilution from using a slightly higher share price for potential additional shares issued in FY15 and FY16. We see upside from ongoing exploration and de-risking at Gruyere and the Yamarna Gold Project generally as active follow-up and regional exploration programs continue to expand the potential gold endowment at Yamarna. We retain our Speculative Buy recommendation for Gold Road.
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