Brigus Gold is engaged in gold mining, exploration and development, including the extraction, processing and related activities. The company also owns an open pit and an underground mine, Black Fox, in Ontario, Canada. The three analysts covering the stock recommend a buy rating with the average consensus estimate indicating a potential upside of 77.5% in the upcoming few months. The stock was trading at $1.63 Friday morning.
The company's recently reported third-quarter results that were the best quarter for overall operating performance since production started at Black Fox in May 2009. Looking ahead into the fourth quarter, production is seen ranging between 16,000 and 19,000 ounces, primarily because of reduced pit production. For 2010, the company expects cash costs to remain relatively unchanged from the 2009 levels, between $550 and $600 per ounce.
Going ahead, Brigus is expected to raise its underground production target from 800 tonnes per day to 1,100 tonnes per day by the end of 2011. Meanwhile, ores from the underground portion of Black Fox mine are expected to be shipped to the mill in early 2011. Brigus sees production to range between 102,000 and 112,000 ounces of gold at a total capital expenditure of $26 million. Meanwhile, it is also seeking to develop the Goldfield project into a producing gold mine within the current development schedule, as early as 2013. The conversion process should be completed by June 2011, and should augment production by more than 70,000 ounces in the first year.Effective January 2011, the company has announced plans to eliminate 100% of its forward gold sales contract obligations, thereby benefiting from the sale of its Black Fox Mine gold production at spot prices in the future.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV