Dacian: Emerging as a standout at a time of M&A
Stockbroker
In an environment where corporate interest in quality gold assets is highly competitive, Dacian Gold's un-developed Mt Morgans gold project is emerging as a standout in the Australian gold space. The Westralia underground (9.2Mt at 5.1g/t for 1.5Moz) and Jupiter open pits (24Mt at 1.3g/t for 1Moz) comprise the bulk of the project's resource base and, in our view, are of adequate size and quality to support a development scenario. On the back of a diligent exploration program, project resources have increased to +3Moz, which provides the critical mass to support the development of a standalone gold operation. We have assumed development funding of $150m (+$30m for declines) which compares favourably to comparable ASX-listed pre-production peers. Australian dollar gold, which is now within 2.3% of a three-year high, and within 12.5% of an all-time high, provides a good tailwind. The investment proposition is further strengthened by a quality management team with a proven development, operational and corporate track record. We initiate with a Speculative Buy recommendation, $0.95/sh price target. Click here to see our initiation report: (VIEW LINK)
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Canaccord Genuity Group is a leading independent, full-service financial services firm. Canaccord Genuity has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual,...
Expertise
No areas of expertise