2009
12.21
12.21
Outperform, Above Average Risk, Price Target: $16.00 (prev. $13.00)
RBC CM is increasing its price target to C$16.00 on its assumption that ANV proceeds with expansion plans at Hycroft. RBC CM assumes that Allied will proceed with a ~$25MM investment in 2010 on crushing and conveyors to handle harder, more siliceous ore, which will likely increase production to the 140k to 150k oz range beginning in 2011. Allied’s drill program is ongoing, which should upgrade the oxide and sulphide resources to the reserve category and determine the size of the higher grade, sulphide silver-gold Vortex zone. RBC CM also expects the company to complete a feasibility study for the sulphide mineralization at Hycroft by the end of 2010 or early 2011.
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