I-80 Gold Corp. is trading at an “attractive valuation” following its acquisition of 1,280 acres of strategic land sections adjoining its Granite Creek Property from Nevada Gold Mines LLC, according to a Stifel GMP analyst note released Monday.
“The strategic acquisition gives the company significant exposure to potential upside both to the north and south of their current property and allows i-80 to connect the dots along trend,” Stifel wrote.
The firm maintained its Buy rating and C$6.20 price target for the company.
READ: i-80 Gold secures key water rights for Nevada Cove mine with property acquisition; posts 1Q revenue of $2.8M
“i-80 trades at what we view as an attractive valuation on an enterprise value per ounce basis of $35/oz, lower than its [North America] gold developer peer average of $52/oz. In terms of a spot price/net asset value ratio, it trades at 0.46x, below its one-year historical average of 0.68x.
Shares of i-80 climbed nearly 2% to C$3.21 in Toronto and 1.6% to US$2.49 in New York.
Separately, the company announced Tuesday the acquisition of a strategic property package in Lander County, Nevada, including 582 acre-feet of water rights, from Baker Hughes Oilfield Operations LLC.
It also reported first-quarter results after Monday’s closing bell, including revenue of $2.8 million and an operating loss of $13.8 million.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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