First Berlin Equity Research has published a research update on Klondike Gold Corp. (ISIN: CA4989033010). Analyst Ellis Acklin reiterated his BUY rating and maintained his CAD 0.85 price target.
We now believe Klondike Gold Corp is on a path to delineate 2 Moz Au by YE24, which would make the company a prime takeover candidate for a mining major. After publishing its maiden resource (0.6 Moz) last November, the gold explorer is preparing to double that figure in 2023 setting up a sprint to 2 Moz next year with its planned drilling campaigns. We expect Klondike to raise $C3m in the coming months to finance the upcoming drilling season. Based on transactions vended at C$100 per ounce Au in the Tintina Belt, where the Klondike District Property sits, KG shares are heavily undervalued. A similar valuation implies a KG share price of C$0.38 for the existing 0.6 Moz resource. We remain Buy-rated on Klondike Gold with an unchanged C$0.85 target price.