Guy S. Ortmann, CMT | Nov 04, 2020 10:01AM ET
Update Report rating buy increasing the price target: C$0.89
Northern Vertex Mining (TSXV:NEE)’s gold production in October exceeded our expectations. We are maintaining our Buy rating and are increasing our price target to C$0.89 per share.
Northern Vertex’s 100% owned Moss Gold Project is located near Bullhead City, in northwest Arizona, in the historic Oatman Gold District, which has produced about 2.5 million ounces of gold. The BLM recently approved an MPO allowing Northern Vertex (NASDAQ:VRTX) to expand exploration and operations onto leased land, which should increase production and exploration to extend mine life.
Realizing record gold production in October 2020:
Accomplishments and initiatives:
Drill program focused on increasing mineable resources:
Production in October, on a 12-month run rate, exceeded our assumptions for our valuation conclusion. We believe that this is sufficient for us to revise our price target. This emphasizes the need to increase resources. We believe the expanded drill program should increase resources leading to higher production and longer mine life, important to increase the cash flow multiple. We retain our Buy rating and are increasing our price target to C$0.89 per share.
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