Western Australia-based gold exploration company Auric Mining (ASX:AWJ) presents a “compelling investment case with significant upside,” according to a report by Canary Capital, citing its ongoing and upcoming projects, upcoming catalysts, a strong management team, and the fact the company has no debt.
“Despite the significant cash flow potential of the company’s projects, the current market capitalisation is just $8.8m. We view this as presenting investors with an opportunity to invest in AWJ at a fraction of the real intrinsic value of the company.
Auric Mining’s portfolio of high-quality gold assets are located in the gold-rich region of Widgiemooltha-Norseman in Western Australia. The company’s flagship Munda gold deposit hosts a mineral resource of 198,700 ounces of gold at 1.38 grams per ton. It holds a projected cash flow of $76.9 million over a mine life of about three years or 13 quarters based on AU$2,600-per-ounce gold price assumption.
“AWJ is our preferred ASX listed company to participate in the current favourable macro environment for gold,” wrote the analyst report’s co-authors Paul Hart and Arun Sengupta.
The Canary Capital report highlighted Auric’s key achievements:
- Auric’s notable accomplishments over just under three years, where it has progressed from tenement acquisition and ASX listing to mining and cash generation.
- With 9,741 ounces of gold mined and sold from stage 1 of its Jeffreys Find gold project, Auric has banked $4.77 million in cash.
- The Munda gold project’s scoping study has shown strong economic potential and a potential to generate nearly $77 million in profits.
Click here for the full report.
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