Cormark Securities Mining Analyst, Richard Gray has resumed the firm’s coverage of Thesis Gold in a report titled “A Clear And Convincing Thesis”. The intro outlines the analyst’s thought process towards the new Thesis Gold and the opportunity it presents for investors.
“Thesis Gold, following its strategic merger with Benchmark Metals, is unlocking the combined potential of the Ranch and Lawyers gold-silver projects in the Toodoggone mining district of British Columbia. After placing both Thesis and Benchmark Under Review following an analyst departure, we are resuming coverage on the combined company with a Buy (S) rating and C$2.00 target. The next 12-15 months will be transformative for Thesis with plans to complete 50,000 [meters] of resource growth and discovery-focused drilling (ongoing), release an updated resource estimate for the Lawyers project and a maiden resource estimate for the Ranch project (Q2/24), and an updated PEA for the combined projects (Q3/24).”
Mr. Gray continued.
“The major milestones on the horizon have the potential to unlock significant value, with a substantial re-rating in the cards if Thesis can successfully demonstrate the world-class nature of the joint development scenario. Thesis trades at a current EV/oz of $24/oz, well below the explorer/developer average of $33/oz, well below the average of $92/oz for advanced-stage developers in relatively lower-risk jurisdictions, and well below the average EV/oz of $119/oz for the mid-tier producers that will likely to be watching the de-risking of the Lawyers/Ranch project very closely. Thesis shares remain extremely undervalued, and we believe the current level is an excellent opportunity to accumulate this attractively priced explorer ahead of derisking and value accretive catalysts over the next 12-15 months.”
To learn more about Thesis Gold, please click HERE.