Broker comment. Believe they have a 80c price target:
The Cue Gold Project has the hallmarks of an excellent emerging development with simple metallurgy, low development capex and opex combined with a shallow and very high grade open pit gold operation. On-going drilling has continued to build on the N-S structural control that effectively ‘underwrites’ the tenor of Break of Day, noting regional drilling has delivered economic intercepts at 20 of the 24 targets in the current campaign. The Company is funded for and continues to work towards a PFS for the 600koz Lena & Break of Day Resources in mid FY’22. The current share price compares well to the implied value of the 10g/t grade 260koz open pit Break of Day deposit applying the RMS-SPX transaction multiple affected in Feb 2020. Further, the recently updated Resource presents high confidence, highly economic open pit-able ounces within 35km of a hungry mill. Wemaintain that the market will pay a premium for high grade gold discoveries, particularly in WA: Speculative Buy retained.
MGV Price at posting:
42.0¢ Sentiment: Hold Disclosure: Held
