Grandich Client Wits Gold

The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio!
March 12, 2012 08:42 AM


In a report titled “WITS GOLD: Migrating from Explorers to Producer,” analyst Percy Takunda of IMARA Investing in Africa, said:
“Our sum of the parts calculation values Wits Gold at 6944cps (as per table) but we believe the pending feasibility study of DBM will enhance the project’s economics and warrant a better discount. This value evolution should place the true value of DBM alone to 4350cps. At Bloemhoek, key to unlocking value in this project will be establishing strategic partnerships with other players in the region, potentially Beatrix or a new uranium player. Bloemhoek can warrant a valuation of up to 4200cps. Evander transforms Wits Gold into a producer and profitable numbers could show a relatively cheap PE rating on current shareholding. We believe the lower end of our valuation to be 6900cps with potential upside of up to 10253cps at a long-term gold price of R400,000/kg making it a favourable option on an improving rand gold price. BUY short-term price target 6900cps.
Click here to read the full report.




http://www.grandich.com/
grandich.com