What Makes Renforth Resources An Intriguing Acquisition Target
Renforth Resources (CA:RFR – $0.04 & US:RFHRF – $0.03 & GER:9RR – €0.02) is a mineral exploration company that focusses on easily accessible Canadian-based gold projects. Reasons to own Renforth stock:
1. Renforth has a couple of projects with already attractive gold resource estimates (Parbec ~700,000 ounces of gold, and New Alger ~237,000 ounces of gold).
2. There is significant potential to expand and upgrade these resources. In fact, new resource estimates for both properties will be published shortly.
3. The Company’s geologists can drive to and work on the properties the year round. No helicopters are necessary to access the properties.
4. Next to Parbec and New Alger, the Company has several other properties with blue sky potential.
5. After being stagnant for several years between $1,100 and $1,350, the price of gold has shot up to over $1,500 the past six months, indicating that we could be on the verge of a new gold revival.
Renforth’s prime project locations, along with its heavily discounted value in terms of enterprise value per ounce of gold resource, make it an intriguing potential acquisition target for some of its giant mining neighbors.
With its recent exploration activities, Renforth has established itself as one of the most active junior explorers in Canada, and the New Alger property as one of the top discovery prospects in Quebec.
If the Company is able to deliver further success from this work, the profile of this emerging gold deposit area in one of the hottest mining districts in Canada will attract further attention. With a market cap that may be considered in the bargain range at the present, the prospects for steady news flow from New Alger will be a catalyst to move this stock higher.
As a result, we reiterate our buy recommendation for Renforth Resources with a price target of $0.12, which is 200% above today’s stock price.
|Smallcaps.us Advice: Buy||Price Target: $0.14||Latest Company Report (pdf)|
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