Cerro Grande Mining (TSX:CEG) Receives Buy Recommendation from Fundamental Research - Video Summary Posted on www.InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, October 12, 2011 - Fundamental Research analyst
Siddharth Rajeev has initiated coverage on Cerro Grande Mining (TSX:GEG)
(OTCQX:CEGMF), giving the company a speculative buy recommendation, and a target
price of $0.95, approximately 50% higher than the current price of $0.61.
InvestmentPitch.com has produced a "video news alert" based on the Fundamental
Research report. If this link is not enabled, please visit
www.InvestmentPitch.com and enter "Cerro Grande" in the search box.
Cerro Grande's key project is the Pimenton Gold Mine Property, which has been
producing gold since March 2008, and is located in the high Andes Mountains in
Chile.
Revenues were $18.7 million in the first 9 months of the year, with a reported
net profit of $3.09 million, and earnings per share of $0.03. Fundamental
forecasts revenues of $25.3 million, net profit of $4.36 million and earnings
per share of $0.05 for the full year.
Proven and Probable reserves at the Pimenton Gold Mine are 132,000 tonnes
containing 13.5 grams per tonne gold, and 1.47% copper.
The mill is currently processing 100 to 110 tonnes per day of material, which
the company intents to increase to 150 tonnes per day by the end of 2011, and to
200 tonnes per day or 25,200 ounces of gold per year by the end of 2012. At the
current rate of production, the proven and probable reserves are adequate for 4
years production.
This is just one of Cerro Grande's properties in Chile, which is, by the way,
the world's largest producer of copper, and a significant molybdenum producer.
In July 2011, the company signed an option agreement to acquire a 65.6% interest
in the Santa Cecilia project, which lies in the Maricunga Gold District of
Chile. The company also has interests in the Tordillo prospect, the La Bella
prospect and the Catedral project in Chile. Catedral is a potential large
limestine resource with an inferred resource of approximately 86 million tonnes
across two zones.
Current exploration aims to define economic grade reserves of a potentially
large deep-seated porphyry deposit at the Pimenton Mine Property and the nearby
Tordillo project.
The company also plans to initiate drilling in November on the Santa Cecilia
Project which Fundamental believes holds significant further upside potential.
Cerro Grande was previously known as South American Gold and Copper, but changed
its name in March of this year, following a reverse one for ten share rollback.
For a more information on Cerro Grande, please visit their website at
www.cegmining.com, or email ceg(at)cegmining.com.
You can also obtain a copy of the Fundamental research report from
www.researchfrc.com.
InvestmentPitch.com is a multimedia company that provides a combined solution
for creating and hosting financial video content, and distributing it across
multiple platforms to investors and financial professionals.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan(at)investmentpitch.com
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Source: InvestmentPitch via Thomson Reuters ONE
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Unternehmensinformation / Kurzprofil:
Datum: 12.10.2011 - 18:49 Uhr
Sprache: Deutsch
News-ID 75488
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