First Berlin – Golden Dawn Minerals Inc. Research Update (19/06/2018)

First Berlin Equity Research has published a research update on Golden Dawn Minerals Inc. (ISIN: CA3808957060). Analyst Simon Scholes reiterated his BUY rating and decreased the price target from CAD 0.72 to CAD 0.43.

Golden Dawn Minerals (GOM) has scheduled the start of gold production from its Lexington mine and Greenwood Processing Plant (GPP) for Q4 this year. Additional feed is expected from the Golden Crown mine from mid 2019. Combined run-of-mine output is estimated at 546,500 tonnes grading 6.6 g/t Au and 0.76% Cu corresponding to life-of-mine production of 100,100 oz. Au equivalent. All-in sustaining costs are put at USD786 per oz. Au. Mine life is estimated at five years but surface and drill hole samples indicate potential to extend this period. Production starts at both mines have been put back from the originally scheduled dates (Lexington: January 2018, Golden Crown: January 2019). Delays occurred in dewatering at Lexington because water volume was 3 times the expected level, and also in meeting new health and safety requirements. Dilution caused by these delays is the main reason for the reduction in our price target from CAD0.72 to CAD0.43. We maintain our Buy recommendation.