TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) offers investors exposure to gold, lithium, and copper and the miner could generate significant returns from its royalty portfolio, according to analysts at Fundamental Research Corp, who have initiated coverage on the company with a ‘Buy’ rating.
They awarded TNR Gold a C$0.22 price target, representing an upside of 266.7% from its current share price of C$0.06.
The analyst noted that the company's Shotgun gold project in Alaska hosts a small to medium-sized gold deposit with inferred resources totalling 706,000 at a relatively high grade of 1.1 grams per ton of gold. TNR is seeking a joint venture (JV) partner to advance it to a preliminary economic assessment (PEA).
The geological characteristics of the project closely resemble Nova Gold and Barrick Gold’s Donlin gold deposit, “one of the largest undeveloped gold deposits in the world” located 190 kilometres away, the analysts added.
They also highlighted that TNR’s portfolio includes royalties in two advanced-stage projects in Argentina: the Ganfeng Lithium’s Mariana lithium project and McEwen Copper’s Loz Azules copper-gold project.
They estimated that TNR could generate annual royalty revenue of $1.4 million plus from the Mariana project.
From the Los Azules copper project, they forecast $5 million plus in annual royalty revenue.
Upcoming catalysts for TNR’s stock include the commencement of production at Mariana and the possibility of a JV partner at Shotgun, the analysts wrote.
“We believe TNR's share price of $0.06 indicates that the market is not only undervaluing the Shotgun project but also completely overlooking TNR's royalty potential,” they concluded.
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