Research and Markets: Sulliden Gold Corporation Ltd - De-risked enough for a take-over?


Research and Markets ( has announced the addition of the "Sulliden Gold Corporation Ltd - De-risked enough for a take-over?" report to their offering.

Sulliden Gold Corporation Ltd. is focused on the development of its 100%-owned Shahuindo gold project located in the Cajamarca region in northern Peru. Sulliden Gold is a part of the Forbes & Manhattan group of companies. Peter Tagliamonte who has extensive experience of building mines in Latin America, is the CEO of the company and Stan Bharti serves as the Chairman of the Board.

Sulliden continues to de-risk and advance Shahuindo

The company recently announced arrangement of project finance facility of up to US$125 MM for the construction and development of the gold and silver Shahuindo Project in Peru. This proposed facility is expected to close in Q1'13 and in our view is a significant de-risking event for Sulliden. In the current market conditions equity financing would have diluted the SUE shareholders and the management of the company deserves credit for being disciplined. The proposed debt facility covers approximately 90% of the project capex for Phase 1.

We expect gold production commencing in 2015 at Shahuindo

We have build our financial model based on the recently completed feasibility study, studying some nearby operations as well as making our own assumptions. We forecast average annual production of 181,200 ozs of gold at average cash operating costs of US$605/oz Au over a 11-year mine life.

We are initiating coverage of Sulliden with a C$1.85/sh Price

Our target price of C$1.85 per share for Sulliden is based on our net asset value of C$1.83/share. We are ascribing 1.0x P/NAV - consistent with all the gold companies in our coverage universe that are in the development stage.

Key Topics Covered:

Investment Positives

Investment Risks

Near-Term Catalysts

Corporate Overview

Shahuindo Project, Peru

Share Capitalization

Management And Board Of Directors


Companies Mentioned

- Kinross

- Rio Alto

- Atacama Pacific Gold

For more information visit

Research and Markets
Laura Wood, Senior Manager.
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Company Reports, Metals and Minerals

Posted In: Press Releases