Loading ...I’ve held Nevsun for a very long time because of the div’s . Share price has diddled around forever but I think that’s about to change. Course I am an eternal optimist .lol
Nevsun Resources Ltd.
(NSU-T: C$4.13)
December 7, 2016
BUY, Top Pick
Dundee target: C$7.00
Joseph Gallucci, MBA / (514) 396-0330
Ian Bjornson, B.Eng / (514) 396-0325
Timok’s Upper Zone Continues To Make The Grade.
Impact – Positive.
NSU released a new set of assays resulting from on-going in-fill drilling of the Timok Upper Zone in Serbia. The results represent roughly 25% of planned in-fill drilling designed to upgrade the Upper Zone Mineral Resource.
Bottom Line: We are maintaining our BUY, Top pick rating on NSU and $7.00/sh target price based on a sum of the parts valuation: C$4.65/sh represents an 8.0x 2016E EV/EBITDA multiple and C$2.35/sh represents a 0.8x multiple to our combined Timok Phase 1 and Phase 2 NAV. NSU is one of very few new sources of zinc supply coming online this year, and we believe their new leverage to zinc could not have been timed better.