A Fundamental Research Corp. report relayed this
company's investment highlights.
In an Oct. 9 research note, Fundamental Research Corp. analyst Siddarth
Rajeev indicated that Golden Arrow Resources Corp.'s (GRG:TSX.V; GAC:FSE;
GARWF:OTCQB) recent share price drop represents a current buying
opportunity. Fundamental has a CA$0.98 per share fair value estimate on
Golden Arrow; the company's stock price is now around CA$0.29 per share.
The average enterprise value:resource ratio of the other junior silver
companies in Fundamental's coverage universe has decreased to CA$1.63 per
silver equivalent ounce from CA$2.29 since May, when the research firm
initiated coverage on Golden Arrow, due to the decrease in silver prices.
Golden Arrow's shares are trading at CA$0.54 per ounce, much lower than the
average.
Aside from its current valuation, Golden Arrow is an attractive
investment, in part, Rajeev pointed out, due to its joint venture
partnership, with SSR Mining, in Puna Operations Inc., which is composed of
the Chinchillas and Pirquitas projects. Golden Arrow owns 25% of Puna; SSR
owns 75%.
This year, 3 to 4.4 million ounces of silver are to be produced at
Chinchillas, according to SSR Mining estimates. "GRG will receive a 25%
share of the net profit," Rajeev emphasized. Ore from Chinchillas will
be processed at Pirquitas, and that should begin soon.
Also, Golden Arrow owns the Antofalla project in Argentina, which recently
yielded "encouraging" drill results, indicated Rajeev. They
included 3 meters of 191 grams per ton silver, 1 meter of 283 grams per ton
silver and 2.1% zinc.
Rajeev reiterated that Golden Arrow is rated Buy.
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Disclosures from Fundamental Research Corp., Golden Arrow Research
Corp., October 9, 2018
The opinions expressed in this report are the true opinions of the
analyst about this company and industry. Any “forward looking statements” are
our best estimates and opinions based upon information that is publicly
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