Pershing Gold Corp fka PGLC

[Vegas Matt]

PGLC SA Article Feb. 2014

Pershing Gold: Strong Drill Results, Insider Buying And New Research Coverage

Excerpts:

H.C. Wainwright & Co. Initiates Coverage With a BUY Rating and $0.70 Price Target

As the Pershing Gold story continues to be de-risked by strong drill results and the prudent advancement of the Relief Canyon project, investors and analysts are taking note. Last week, H.C. Wainwright & Co., "HCW" initiated coverage on Pershing Gold with a BUY rating and $0.70 price target. That's nearly twice the current price. HCW incorporated a DCF valuation with a conservative 7.5% discount factor, long-term gold price assumption of $1,200/oz and annual gold production of ~50,000 ounces. These are hardly aggressive assumptions, yet even at $1,200/oz gold, HCW believes the NPV of Relief Canyon is ~$205 million. Presumably, there's upside to HCW's NPV figure from a higher gold price and/or extraction (eventually) of greater than 50,000 ounces per year. I for one believe that a higher gold price and production level are not only possible, but likely.

Conclusion

Pershing is poised to be one of a select few new Nevada gold companies to reach production next year. Midway Gold's (MDW) Pan project is slated to commence production in late 2014, but aside from that, I know of no others. Instead of relying solely on what Pershing's management team says, Peter Baxter of Scotiabank and H.C. Wainwright & Co. recently offered their views of the progress that Alfers and his expert team are making. Yet another positive indicator is that second largest shareholder Dr. Frost very recently began adding to his holdings in the open market. As pieces of the puzzle fall into place, namely the PEA and upgraded NI 43-101 reports, the universe of investors looking at the company will only expand. I continue to believe that Pershing Gold is a relatively low-risk way to play a rebound in the gold price. Low-risk, but with meaningful upside upon ongoing de-risking and growth at Relief Canyon.

Article LINK on SA:

http://seekingalpha.com/article/2015941-pershing-gold-strong-drill-results-insider-buying-and-new-research-coverage