Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Firm Raises Target Price on Gold Company that Shows 'Strong Focus on Accretive Acquisitions'

July 15, 2020

In a July 13 research note, analyst Heiko Ihle reported that H.C. Wainwright & Co. increased its target price on GoldMining Inc. (GOLD:TSX; GLDLF:OTCQX) to CA$7 per share from CA$6.50 after upwardly revising its precious metals price forecasts. GoldMining's current share price is about CA$2.26.

Based on macroeconomic improvements in the market, H.C. Wainwright increased its long-term gold price projection to $1,700 per ounce ($1,700/oz) from $1,575/oz and its silver price forecast to $18/oz from $17.50/oz. These estimates are below the current spot prices for gold at $1,800/oz and silver at $18.70/oz, Ihle pointed out, "as we acknowledge the possibility for short and midterm metal price fluctuations."

Also, Ihle highlighted that GoldMining is "boosting [its] global resource base through meaningful acquisitions." Most recently, the junior resource company purchased the Almaden gold project in Idaho and quickly thereafter, in June, announced a resource estimate for it.

It "outlined Almaden's near surface characteristics, which could facilitate favorable economics given the reduced need for resource conversion infill drilling programs," Ihle noted.

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