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PI Financial has Initiated Coverage on Superior Gold (TSXV: SGI)

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Analyst Brian Szeto gives the company a buy recommendation along with an above average risk rating and a 12-month target of $2.60, a premium of 152% to the $1.03 price on July 26th, the day the report was issued.

Additional Information:

Company: Superior Gold
Website: http://www.superior-gold.com
Stock Symbol: TSXV: SGI
Date Published: Aug 1, 2017
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Today’s buy recommendation comes from PI Financial who has initiated coverage on Superior Gold

Analyst Brian Szeto gives the company a buy recommendation along with an above average risk rating and a 12-month target of $2.60, a premium of 152% to the $1.03 price on July 26th, the day the report was issued.

Superior Gold, a newly established gold producer, listed on the TSX Venture Exchange in February 2017.

It acquired its 100%-owned Plutonic Gold Mine for $41 million in October 2016, from Northern Star Resources.

The Plutonic Gold Mine, consisting of a land package of 64,000 hectares, is located in central Western Australia, 800 kilometres northeast of Perth.

Plutonic has been a producing mine since 1990 where it has combined to produce in excess of 5 million ounces of gold through the development and construction of several open pit and underground mines.

The mine is expected to produce 78,000 ounces in 2017 in its first full year of production.

It is also in the process of developing the Hermes open pit that is expected to go into production later this year which would propel the company’s production profile to 120,000 ounces per year.

Analyst Brian Szeto stated: “The company’s value proposition is extremely compelling given that it is currently trading at a discount on multiple valuation metrics on both an absolute and relative basis. We believe with a renewed focus under a new management team, it has the potential to restore its former glory when it was an impressive 330,000 ounce per year producer.”

The company is well cashed up with net cash of $35 million on its balance sheet.

The shares are currently trading at $1.05, well below the $2.60 price target, and with 96 million shares outstanding, the company is capitalized at $101 million.

For more information, please visit the company’s website www.superior-gold.com or email investor@superior-gold.com

For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.

I’m Samantha Deutscher for Investmentpitch Media