Here are some more recent Rubicon Minerals Corporation analyst reports:
Is (dot) gd/9bkfPr
According to Desjardins Capital Markets:
is (dot) gd/ZJuuF4
Rubicon Minerals Corporation
Rating: Hold, Risk: Speculative, Target: C$1.40
RMX C$1.00, TSX/RBY US$0.76, NYSE:MKT
CEO stepping down; mill suspended with underground operations ongoing
The Desjardins Takeaway: Negative
Rubicon this morning made two significant announcements, neither of which is positive for the share price in our view. First, it announced that president and CEO Michael Lalonde has left the company, with Michael Winship, a director, taking over the duties on an interim basis. No details as to the reason for the departure were provided. The board will look for a new full-time president and CEO. A lunch meeting is set for today for analysts to meet Mr. Winship before he flies up to site.
The company also announced that it has temporarily suspended mill operations on orders from the Ministry of the Environment on September 30 due to elevated ammonia levels, and a need to discharge sufficient water from the tailings management facility (TMF) and to upgrade the TMF under specific timelines. We spoke with the company and our takeaway is that the cost will be relatively minimal, but it will take time and production will be halted for this period. The company will be required to upgrade its TMF to become compliant, and management said it is basically calling for a slightly more robust design to account for a potential 100-year rain event.
The company initially received the order on September 8 to commission a new temporary as well as permanent ammonia treatment system, and also to make upgrades to the TMF. The orders received on September 8 include the following timelines: (1) commission new temporary ammonia treatment system before November 30, 2015; (2) apply for permanent ammonia treatment system, with this being operational by April 1, 2016; (3) construct northeast dam; (4) take other measures to control run-off; and (5) submit a variety of monitoring analyses.
is (dot) gd/5Ec8QU
Toronto Stock Exchange
Company Name: Platinum Group Metals Ltd.
Last Updated: August 27, 2015
Insider Sells Volume: 76,500
Insider Sells Value $: 25,055.00
Insider Sells Transaction: 19
According to Canaccord Genuity:
Is (dot) gd/F07aWg
Rubicon Minerals Corp.
RATING: HOLD↓ from SPECULATIVE BUY
PRICE TARGET: C$1.30↓ from C$1.50
Delayed guidance forces hand
Although we did not expect a road map to commercial production with the Q2/15 results, we had hoped for some details on progress to date at the Phoenix underground (UG) gold project in the Red Lake District of NW Ontario. Our concerns revolve around the progress of UG development in the ramp up to commercial production (Q1/16E) and the potential optimized mining methods (impacts on dilution and throughput). We acknowledge that there are legitimate reasons to delay guidance as management seeks to provide achievable targets. But nonetheless, the delay of guidance to potentially October 2015E (Q3/15 results) has generated enough consternation to force our hand.
We revised our model to accommodate a slower and lower, throughput ramp up to steady state levels (1.65 kt/d vs 2.0 kt/d), higher FY2015 capital spend to commercial production (C$162 M vs C$135 M) which was offset only slightly by a change in the ramp up head grade (H2/15E, +18-20% to 6.0-6.5 g/t Au, +2 koz to 10 koz). We modeled a small equity financing (C$30 M, C$1.30) to support its balance sheet in H2/16 due to the slower throughput forecast. The revisions led us to lower our target price (C$0.20 or 13%) to C$1.30. The implied return (
Here are some recent Platinum Group Metals Limited analyst reports:
Is (dot) gd/hidYCi
According to Canaccord Genuity:
Is (dot) gd/jGPiZE
Rubicon Minerals Corp.
Rating: SPECULATIVE BUY (unchanged)
PRICE TARGET: C$1.50↓ (from C$1.80)
Lowering Target Price
Lower gold price and commercial production delayed to Q1/16E (prev. Q4/15E)
We lowered our target price (C$0.30 or 16-17%) for Rubicon Minerals due predominantly (83%, C$0.25) to a change in our long-term gold price forecast (down 1.8%) to US$1274. The remainder of the downward target price revision (17%, C$0.05) is related to pushing back commercial production to Q1/16E (vs. previous estimate of Q4/15E). We maintain our SPECULATIVE BUY recommendation as our target price still implies a 25-27% return.
The company is commissioning the 1.25 kt/d processing plant with the first pour in hand (see research note published on June 24, 2015, "First pour at Phoenix gold project achieved"). The company's objective for underground mining is to optimize the stoping method (to improve stope designs going forward) in a controlled environment prior to ramping up to permitted capacity. We will review our assumptions and forecasts if needed after the release of an operations update in early Q4/15E.
• The drop in the gold price alone pushed our valuation (NPV@7%, 1.02x) for the F2 Zone of the Phoenix high grade underground gold project in the Red Lake District down 13% to C$665-670 M. We arrived at our revised valuation (~C$660 M, down an additional 1-2%) by pushing back our forecast for commercial production to Q1/16E. Previously, we forecast full ramp-up to permitted capacity (1.25 kt/d) by Q1/16E.
• The drop (70%) in our 2015 pre-production forecast from 22 koz of payable gold production to 7 koz due to the push-back on commercial production to Q1/16E led to an additional C$20 M cash flow drain that lowered our end of year 2015 working capital position to C$22 M (prev. C$42 M). This impact was responsible for our remaining C$0.05 drop in our valuation.