Extensive Analysis

Continental Gold: Its Upcoming PEA Could Be Impressive But Permitting Will Be The Real Catalyst

Executive summary

  • Continental Gold has one of the largest and highest grade gold projects in Latin America, with 7.4M oz gold equivalent @ 9 g/t gold equivalent.
  • A Preliminary Economic Assessment (PEA) of its Colombian flagship project Buritica is about to be released soon, estimated PEA economics look impressive.
  • Notable risks are a lack of follow up studies like a PFS and FS before production, and permitting.
  • I don't expect the PEA to be a big catalyst, compared to the possible granting of an environmental permit in H2 2015.
  • A sum of parts valuation generates an estimated target range of $3.92-4.83 per share, for a profit of 74-115% when the permit would be granted.

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