Monday, December 22, 2014 10:26:31 PM
Daniel Earle is providing an update on the El Limon-Guajes project and providing his near-term outlook for the company
According to the Mexican attorney general, 43 student teachers participating in a protest in the nearby town of Iguala were abducted by local police in late September and subsequently murdered. While searching for their remains in the area, a number of mass graves were discovered and in the resulting protests a further six people were killed. Authorities believe Iguala's mayor and his wife were behind the atrocity – they subsequently fled, as did the town's police chief.
This incident and related protests did blockade the project briefly but have not impacted the project timeline, accordingly to the company; however, these security issues have reportedly made it more difficult to ramp-up the number of contractor employees on site that are required to meet the construction schedule. Should staffing challenges continue, the company suggested that non-critical work for the ramp-up would be postponed to after the first gold pour.
Daniel Earle calculates that Torex is currently trading at 1.03x, the corporate NAV5%; this is above both the junior producers and its development-stage peers in the coverage universe, which trade at an average of 0.77x and 0.56x NAV5%, respectively
Overall construction of the El Limon-Guajes project was approximately 20% complete (as of September 30) and the project appears to be on schedule for initial production in H2/15. Daniel Earle would suggest, however, that timeline and capex creep occur regularly in the construction of mining projects and particularly ones that are technically challenging (grade/strip ratio risk, metallurgy, topography, etc.), as Daniel Earle believe this one is. These delays and cost overruns are typically disclosed in the later stages of construction, in Daniel Earle's view.
Daniel Earle likes the Morelos project. However, before recommending the stock, Daniel Earle would look for either reduced risks via project advancement or a more attractive valuation relative to producers to compensate for the elevated level of risk at the current stage, with commercial production being approximately a year and a half away. Daniel Earle maintains his HOLD recommendation and his target price remains unchanged at $1.75.
Recent TXG News
- 10x Genomics to Report First Quarter 2024 Financial Results on April 30, 2024 • PR Newswire (US) • 04/10/2024 08:05:00 PM
- 10x Genomics Commercially Launches Visium HD Spatial Gene Expression Assay • PR Newswire (US) • 03/26/2024 01:00:00 PM
- 10x Genomics Expands Xenium Menu with Multi-Modal Cell Segmentation Kit and Immuno-Oncology Gene Panel • PR Newswire (US) • 03/21/2024 08:05:00 PM
- 10x Genomics Begins Commercial Shipments of Chromium GEM-X Products • PR Newswire (US) • 03/13/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 09:12:06 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/04/2024 11:40:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/26/2024 09:13:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/26/2024 09:12:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/26/2024 09:12:10 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/23/2024 12:19:58 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/23/2024 12:06:30 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/22/2024 11:59:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/20/2024 09:20:30 PM
- 10x Genomics to Present at the 44th Annual TD Cowen Health Care Conference • PR Newswire (US) • 02/20/2024 09:05:00 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 02/15/2024 10:33:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/15/2024 10:16:21 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/15/2024 09:05:40 PM
- 10x Genomics Reports Fourth Quarter and Full Year 2023 Financial Results and Provides Outlook for 2024 • PR Newswire (US) • 02/15/2024 09:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/13/2024 09:56:40 PM
- 10x Genomics Expands Leadership in Single Cell Analysis with Launch of GEM-X Technology • PR Newswire (US) • 02/07/2024 09:05:00 PM
- 10x Genomics to Showcase New Cutting-Edge Technologies and Highlight Innovation Roadmap at 2024 AGBT General Meeting • PR Newswire (US) • 02/05/2024 09:05:00 PM
- 10x Genomics to Report Fourth Quarter and Full Year 2023 Financial Results on February 15, 2024 • PR Newswire (US) • 01/24/2024 09:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/18/2024 09:49:13 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 01/16/2024 11:08:02 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/16/2024 09:07:19 PM
FEATURED Cannabix Technologies to Present Marijuana Breathalyzer Technology at International Association for Chemical Testing (IACT) Conference in California • Apr 22, 2024 8:49 AM
BestGrowthStocks.com Issues Comprehensive Analysis of Triller Merger with AGBA Group Holding Limited • AGBA • Apr 22, 2024 1:00 PM
Kona Gold Beverages, Inc. Prepares for First Production Run Set to Launch May 17, 2024 • KGKG • Apr 22, 2024 8:30 AM
VPR Brands LP Reports Record Annual Financial Performance for Fiscal Year 2023 • VPRB • Apr 19, 2024 11:24 AM
Coinllectibles' Subsidiary, Grand Town Development Limited, Acquires Rare Song Dynasty Ceramics Worth Over USD28million • COSG • Apr 18, 2024 8:03 AM
ILUS Provides Form 10-K Filing Update • ILUS • Apr 17, 2024 9:54 AM