Edison Investment Research Limited: DFR Gold (DFR): Initiation - Past work heralds a cascade of future riches
Edison Investment Research Limited
London, UK, 21 September 2023
DFR Gold (DFR): Initiation - Past work heralds a cascade of future riches DFR Gold is a Canadian-listed, West African gold explorer and developer. Its management and board have a strong record of discovering and developing gold projects and they have wasted no time in demonstrating value at DFR’s flagship Cascades project in southern Burkina Faso where, in a short time, they have defined a maiden resource, made new discoveries and demonstrated extensions to the existing resource. From drilling either already completed or under way, Edison estimates that DFR could almost double its maiden resource in the short term.
The current resource base at Cascades and recent exploration success on the licence represents a significant value opportunity for investors, with the remaining portfolio offering further upside. At its current share price of C$0.07 and a foreign exchange rate of C$1.3433/US$, DFR had an end-H123 enterprise value of US$25.53 per attributable resource ounce. This puts the company close to the mean of its peer group, but does not account for recent discoveries and represents a notable discount to recent corporate valuations (eg Fortuna Silver recently agreed to pay c US$60/oz to acquire Chesser Resources in neighbouring Mali). Given the higher-grade resource at Cascades (1.6g/t cf 0.98g/t average) compared to many of its peers in the region, the momentum of discovery in recent exploration campaigns and an experienced management team, we believe the current price will offer deep value to investors as exploration progresses.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Lord Ashbourne +44 (0)20 3077 5700 [email protected] Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
1731703 21-Sep-2023