Stifel GMP retained its conservative short-term outlook on Pure Gold Mining Inc (TSX-V:PGM, LSE:PUR, OTC:LRTNF), but thinks the life of mine plan and pre-feasibility studies due in quarter four will provide clarity on its long-term valuation.
The comments came as Pure Gold posted record monthly production of 4.59 koz (thousand ounces) on the back of improved throughput, of 813 tonnes per day (tpd), and higher grades of 5.9 grams per tonne (g/t).
While the higher grades were driven by ore sourced from high-grade stopes, the higher throughput resulted from an improvement in short range mine planning process, execution and mill availability, the broker said, adding the company anticipates continuing its operational improvements and guided towards a 1,000 tpd near-term target.
READ: Pure Gold Mining reaffirms third quarter 2022 guidance, says gold production at mine set a new monthly record in August
Pure Gold reiterated its 3Q guidance of 8.7-12.3 koz of gold resulting from a throughput and grade guidance of 775-875 tpd and 4.0-5.0 g/t, respectively, which compares to Stifel GMP’s forecasts of 9.5 koz with a conservative grade of 4.2 g/t.
Monthly cost guidance was also maintained, and the broker noted Pure Gold expects to continue on its pace of improvements, specifically in terms of grades as mining continues to transition into the higher-grade Austin and South Austin zones.
Retaining a 'Speculative Buy' rating, Stifel said: “With a cash balance of $6M (as of August 15), we continue to maintain our conservative near term outlook as we expect to see more operational improvements ultimately leading to stable production costs and sustained positive cash flow generation.”
Based in Red Lake, Ontario, Pure Gold Mining is a gold mining company that owns the operates the Pure Gold mine.
Contact Jeremy at jeremy@proactiveinvestors.com
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September 15, 2022 at 02:44AM
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Stifel GMP retains a conservative short-term view on Pure Gold Mining Inc but believes the life of mine plan and pre-feasibility studies due in 4Q will provide clarity on its long-term valuation - Proactive Investors USA
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