First Berlin Equity Research initiated research coverage of Euromax Resources (OTCQX: EOXFF; TSX-V: EOX) with a “BUY” rating and a price target of $0.45. According to the report,
“EurOmax has a NI 43-101 compliant resource base in excess of 5 million oz gold at 0.90 grammes/tonne. The EurOmax share is currently very conservatively valued at an EV/oz gold of C$5.74 per share. This compares with an average of C$68 for the companies in our peer group and C$20 for the next cheapest company. We expect newsflow to push EurOmax’s valuation higher this year. First, we expect positive news on the resource base with the publication of updated resource estimates for the Ilovitsa and Trun properties. Second, there is a significant chance that the current drilling programme at the KMC property will yield a major gold discovery in submerged porphyry intrusions. Our price target is C$0.45 per share and our recommendation is Buy.”
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