- Roth initiates Paramount Gold And Silver (PZG) with a Buy rating and $1.25 target (Thursday close $1.06). "We believe its asset portfolio is undervalued in a recovering and accelerating M&A environment."
- "We view the company as having an undervalued asset portfolio with the potential to become a takeout candidate in an accelerating M&A environment."
- "PZG has continued to expand its resource base through drilling at its flagship asset, San Miguel, since it completed a PEA in April 2013. The company has also had successful metallurgical testing that could create the potential to include a larger portion of the known resource at San Miguel, at a lower cutoff grade via the use of a heap leach pad."
- "PZG's Second asset, Sleeper, is a historic mine that produced 1.66 million ounces of gold and 2.3 million ounces of silver in the 1980's through the 1990's. Currently the asset represents a levered call option on the gold price, but could be far more economically viable in a recovering gold price environment."
PZG an interesting asset play in an accelerating M&A environment - Roth
Jan 17 2014, 05:35 ET