Anatolia Minerals Development ANO Copler Mine Construction Update

admin — Thu, 04 Feb 2010 15:19:29 +0000

Anatolia Minerals Development (ANO) – $3.91 – Copler Mine Construction Update
Top Pick, Speculative Risk, Price Target: $5.50 (prev. $5.00)
Construction activity continues for the open pit, heap leach gold mine in Turkey, with roughly 60% of capital spending completed to date. Winter weather through mid-January was favorable with relatively mild temperatures and no significant snowfalls. Mining commenced during December 2009 in the Manganese Pit area with ore being stockpiled ahead of the primary crusher. In December, Anatolia completed a $50 million equity financing to replace the $62.5MM project debt facility that had been contemplated as part of the capital funding to build Cöpler. In RBC CM’s view, the company has more than sufficient cash on hand to complete construction. RBC CM has taken a conservative view on the Cöpler mine start-up, assuming that commercial production will not be achieved this year (RBC CM has previously assumed 44Koz of gold in 2010). Anatolia management still expects the mine to start pouring gold early in Q4, but RBC CM’s forecasts assume commercial production in early 2011. As the project advances towards production, RBC CM expects further re-rating of ANO shares as it successfully transitions from explorer/developer to Tier III gold producer. As a result, RBC CM has increased its target multiples from 1.0 to 1.25x NAV, and from 10x to 12.5x forward P/CF.

TSX Commentary » Anatolia Minerals Development

Anatolia Minerals Development ANO Copler Mine Construction Update