Gold Co. Provides Exploration Update

Source: Ben Pirie 09/10/2024

In light of Lake Victoria Gold Ltd.’s (LVG:TSXV) most recent news, analysts at Atrium Research reiterated their Buy rating.

Atrium Research analysts Ben Pirie and Nicholas Cortellucci, in a research report published on September 10, 2024, provided an update on Lake Victoria Gold Ltd. (LVG:TSXV) following the company’s announcement of exploration activities by Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) on surrounding claims and the submission of documentation for the Imwelo Mining License renewal. The analysts maintained their Buy rating and target price of CA$0.45 on the stock.

Lake Victoria Gold reported that Bulyanhulu Gold Mine Limited, a partnership between Barrick and the Tanzanian Government, has spent CA$451,000 of its proposed CA$3 million exploration expenditure for ‘Year 3′ on licenses LVG sold to Barrick in 2022. The analysts noted, “Fieldwork resumed in Q2 with the deployment of two drill rigs to the northwest area of the licenses. Additional drilling is scheduled for Q3.”

Regarding the Imwelo Mining License, the analysts highlighted, “On September 4th, LVG announced that all the required documentation had been submitted to the Tanzanian Mining Commission for both the 10-year renewal of the Imwelo Mining License and the transfer of the mining license to LVG.” They added, “The closing of the acquisition is expected to be completed by the end of September and will allow LVG to advance on its Imwelo Project construction and development plan.”

The analysts emphasized the significance of the mining license transfer, stating, “The finalized transfer of the mining license triggers the second tranche of investment from the Taifa Group. This is part of the pre-determined agreement where Taifa will complete a second private placement for CA$3.8M at CA$0.24/share, including a full warrant, providing LVG with needed capital (above market price).”

Lake Victoria Gold’s strategic focus includes advancing the Imwelo Project towards production, expected in H2 2025, and leveraging its partnerships with Barrick Gold and Taifa Group. The company recently closed the second tranche of a private placement of unsecured convertible debentures, raising a total of $750,000 to date.

Atrium Research’s valuation methodology for Lake Victoria Gold is based on a sum-of-the-parts approach. “We value LVG’s ownership of the Imwelo Gold Project at CA$0.12/share, the Tembo Gold Project at CA$0.11/share, the Dora Project at CA$0.09/share, the Barrick agreement at CA$0.14/share, and the PF cash balance at CA$0.03/share,” the analysts explained.

With a Buy rating and a target price of CA$0.45, representing a potential return of 173% from the price at the time of the report, Atrium Research sees significant upside potential for Lake Victoria Gold.

Pirie and Cortellucci concluded, “We use a conservative 0.3x NAV multiple and 8% discount rate for the Imwelo Project as the Company has yet to complete construction and produce any gold, thus, there is a sizeable upside to our CA$0.45/share target price of LVG executes.”

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Important Disclosures:

1. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Disclosures for Atrium Research, Lake Victoria Gold, September 10, 2024

Analyst Certification Each authoring analyst of Atrium Research on this report certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated securities discussed (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the research, (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer, (iv) the analyst does not own common shares, options, or warrants in the company under coverage, and (v) the analysts adhere to the CFA Institute guidelines for analyst independence.

About Atrium Research Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. For further information on our team, please visit https://www.atriumresearch.ca/team.

General Information Atrium Research Corporation (ARC) has created and distributed this report. This report is based on information we considered reliable; we have not been provided with any material non-public information by the company (or companies) discussed in this report. We do not represent that this report is accurate or complete and it should not be relied upon as such; further any information in this report is subject to change without any formal or type of notice provided. Investors should consider this report as only one factor in their investment decisions; this report is not intended as a replacement for investor’s independent judgment. ARC is not an IIROC registered dealer and does not offer investment-banking services to its clients. ARC (and its employees) do not own, trade or have a beneficial interest in the securities of the companies we provide research services for and does not serve as an officer or Director of the companies discussed in this report. ARC does not make a market in any securities. This report is not disseminated in connection with any distribution of securities and is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. ARC does not make any warranties, expressed or implied, as to the results to be obtained from using this information and makes no express of implied warranties for particular use. Anyone using this report assumes full responsibility for whatever results they obtain. This does not constitute a personal recommendation or take into account any financial or investment objectives, financial situations or needs of individuals. This report has not been prepared for any particular individual or institution. Recipients should consider whether any information in this report is suitable for their particular circumstances and should seek professional advice. Past performance is not a guide for future results, future returns are not guaranteed, and loss of original capital may occur. Neither ARC nor any person employed by ARC accepts any liability whatsoever for any direct or indirect loss resulting from any use of its research or the information it contains. This report contains “forward looking” statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Such statements involve a number of risks and uncertainties such as competition, technology shifts, market demand and the company’s (and management’s) ability to correctly forecast financial estimates; please see the company’s MD&A “Risk Factors” Section for a more complete discussion of company specific risks for the company discussed in this report. ARC is receiving a cash compensation from Lake Victoria Gold Ltd. for 12-months of research coverage. ARC retains full editorial control over its research content. ARC does not have investment banking relationships and does not expect to receive any investment banking driven income. ARC reports are primarily disseminated electronically and, in some cases, printed form. Electronic reports are simultaneously available to all recipients in any form. Reprints of ARC reports are prohibited without permission. To receive future reports on covered companies please visit https://www.atriumresearch.ca/research or subscribe on our website. The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.

( Companies Mentioned: LVG:TSXV, )

Source: https://www.streetwisereports.com/article/2024/09/10/gold-co-provides-exploration-update.html