Stifel Canada on Tuesday maintained its buy rating on the shares of Omai Gold Mines (OMG.V) and its C$3.50 price target after the company released drilling results from its Omai Gold Project in Guyana.
"Omai reported additional drill results from Northeast Wenot highlighted by 8.54 g/t Au over 20.6m, with results grade accretive to the current MRE. Reported mineralized intervals averaged ~2.20g/t Au versus the Wenot inferred resource grade of 1.35g/t Au (63% grade accretive), while sediment-hosted mineralization averaged ~1.84g/t Au (36% grade accretive). We believe the sedimentary sequence remains a key area to watch as previously modeled 'barren sediments' continue to return grades that could support improved strip ratio and project economics to be seen in the upcoming PEA expected within two months. OMG currently trades at 0.49x LT/PNAV versus precedent transactions at 0.45-0.66x P/NAV, implying a valuation range of C$2.93 - $4.24/sh," analyst Cole McGill wrote.
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Price: $2.63, Change: $+0.08, Percent Change: +3.14%