On Tuesday, Desjardins initiated coverage on Troilus Gold Corp. (TLG:CN) (OTC: CHXMF) with a Buy rating and set a price target of C$1.15 per share. The firm's analyst highlighted the company's substantial resource base and the potential for significant returns.
Troilus Gold Corp. is recognized for its large, low-grade global resource, estimated at 12.9 million ounces of gold equivalent (Aueq). The company has plans to construct a 50,000 tonnes per day processing facility. Desjardins anticipates the facility will enable an annual production rate of approximately 300,000 ounces of Aueq.
The analyst's optimistic outlook is partly based on the potential of the Troilus project to appeal to intermediate and senior gold producers. The projected returns for investors could reach 229% from the current share price to the target price over the next 12 months.
Troilus Gold's project is situated in a highly favorable location within a top-ranked jurisdiction. The existing infrastructure at the site is expected to significantly reduce the initial capital expenditure by approximately US$500 million, adding to the project's appeal.
The Buy rating from Desjardins reflects a positive assessment of Troilus Gold's prospects, underpinned by the company's strategic planning, resource potential, and cost-saving advantages due to its existing infrastructure.
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