Updated Bell Potter research report dated 16/01/2014.
Extract of Recommendation
GOR is an attractive and well funded gold exploration and development company with proven technical capability. We estimate that the company’s resource base has increased significantly from exploration success at several locations in the company’s large Yamarna Gold Project. GOR is targeting the announcement of a Maiden Resource for the exciting Gruyere discovery by about the end of Q1 2014 which we expect could see the company’s total resource base increased significantly to over 2Mozs at that time.
We believe there continues to be good potential for the Gruyere deposit to become the catalyst for the relatively rapid large scale sequential development of GOR’s substantial and increasing Yamarna gold deposits into successful mines.
We believe GOR still has good potential to discover additional gold deposits within its extensive Yamarna Gold Project by successfully applying its proven targeting methodology to the various high priority targets at Yamarna.
We have used NPV-based methodology to derive upwardly revised base case and upside valuations of $0.28 per share and $0.52 per share respectively. We have applied a significant discount to the base case valuation for uncertainty until Gruyere is better defined (such as by a Maiden Resource estimate) to give an increased 12-month target price for GOR of $0.21 per share.
**A full copy of the Bell Potter report can be found on GOR's website under research reports, also Bell Potter makes comment on an estimated Gruyere deposit resource size.
Happy reading
Cheers Aussie
GOR Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
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