Respected analyst Jay Taylor has initiated coverage on Bonterra (T.BTR). Here is his takeaway:
“Having a high regard for the geological and exploration skills of geologist Dale Ginn, I wanted to follow this company when the markets turned in early 2016. Some good drill results early in that year drove the stock to levels that made it less attractive at the time compared to some others stories I was following. So I put Bonterra on the back burner. However, given the fact that the stock has not risen much at all despite the fact that so much has been accomplished since early 2016, I view this as a good time to pick up shares. By mid-2018, I anticipate a 2+ million-ounce high-grade deposit will have been outlined with the potential for much more upside from the new discoveries along trend to the southwest.
I believe a very strong high-grade underground mine at Gladiator is in the making. But that does not dismiss the company’s second very good asset, the Larder Lake Project, which will likely rise well over 1 million ounces once the Goldfields data is baked into the resource. With a lot of drill results to be reported between now and mid 2018 when a new and much larger resource will be reported, and with no need to raise additional capital until a new resource is reported, I believe this is a stock you may want to pay attention to, and pick up some shares during this period of weakness due to tax loss selling.”
You can read the whole Jay Taylor Report here (PDF).