Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating on First Mining Gold and keeping the price target at C$0.45.
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Heiko Ihle has given his Buy rating due to a combination of factors, primarily centered around the promising results of the updated Pre-Feasibility Study (PFS) for First Mining Gold’s Springpole Gold Project in Ontario, Canada. The PFS indicates that the project is expected to produce a substantial 2.6 million ounces of gold and 13.8 million ounces of silver over its 9.4-year mine life, with a particularly strong production profile in the first five years. The study also highlights Proven and Probable Mineral Reserves of 102 million tonnes of ore, translating to 3.1 million ounces of contained gold and 16.1 million ounces of contained silver.
The economic metrics further bolster the Buy rating, with the project projected to deliver a post-tax Net Present Value (NPV) of $2.1 billion and an Internal Rate of Return (IRR) of 40.8%, ensuring a payback period of just 1.8 years. The project’s competitive cost structure, with total cash costs and all-in sustaining costs (AISC) projected at $802/oz and $938/oz of payable gold respectively, positions it favorably among large-scale gold projects worldwide. Additionally, the potential for resource expansion and optimization of the mine plan, as outlined in the PFS, enhances the project’s attractiveness and economic viability, making it a compelling investment opportunity.
Ihle covers the Basic Materials sector, focusing on stocks such as Avino Silver & Gold, Drdgold, and Endeavour Silver. According to TipRanks, Ihle has an average return of 48.1% and a 69.17% success rate on recommended stocks.