Warning-Ramping can damage your16 Aug 2016 09:36
wealth.
Canaccord Genuity: First Gold Pour now Imminent
Canaccord Genuity (Australia) Limited was the Lead Manager to the Placement of 45
million shares at A$0.45 per share to raise ~A$20.3 million in March 2016.
BLK has provided a commissioning update for its Matilda gold project, highlighting that
first production is expected within 3 weeks. BLK has previously guided production of
~25koz for the DecQ’16, marking a rapid transition to a forecast ~100kozpa run-rate. In
parallel, BLK has also commenced an expansion study, looking at the best development
plan for its 3.5Moz sulphide resource, noting that it isn’t in the current mine plan until
2020. BLK has highlighted the potential to double production by leveraging off the
existing resource base and milling infrastructure, with outcomes of the study expected
in late 2016. With production now imminent, we have adopted a 5% (previously 10%)
discount rate, in line with peer producers, and our valuation has increased to A$1.20/sh
(previously A$1.05/sh). Our SPEC BUY recommendation is maintained.