Dahlman Rose Reiterates Hold On Midway Corp. (MDW)

Dahlman Rose & Co. reiterated its Hold rating on Midway Corp. (NYSE Amex: MDW) after Midway reported a strong "preliminary economic assessment" for the Pan project in Nevada. In the report, Dahlman writes "Midway reported a summary of a recently completed Preliminary Economic Assessment (PEA) for their Pan Project in Nevada. The resource could be exploited with surface mining methods and processed using heap leaching. The Pan project currently hosts 38.8MM tons of M&I resources, containing 682K oz of gold. The PEA considers average annual production of 44K oz/yr of gold over the +7 year mine life. Midway estimates cash costs at $453/oz. Initial CAPEX would be $59MM, which includes a 20% contingency. Assuming $950/oz gold, the project generates an IRR of 23% and a NPV (5%) of $49MM, both on a pre-tax basis." Shares of the miner closed at $0.45, down 3 cents in Friday trading.