eResearch is pleased to publish an Initiation Equity Research Report on Kingsview Minerals Ltd. (CSE:KVM | FSE:0L4).
We are Initiating Coverage with a Speculative Buy rating and one-year price target of $0.40.
You can download our 32-page Equity Research Report by clicking on the following link: eR-KingsviewMinerals-KVM-2022-08-24_FINAL
Company Overview
Kingsview is a Vancouver-based mineral exploration and development company that explores for gold and copper near Wawa, Ontario, Canada. The Company’s flagship project is the 100%-owned Echum Project covering an area of 7,691 hectares and an NI 43-101 technical report for the project was released on SEDAR in February 2022. It also holds a 100%-interest in the Hubcap Project, which contains the former Centennial and Lendrum properties, consisting of 4,163 hectares.
Investment Thesis and Upcoming Catalysts:
District-scale Projects in the Wawa Gold Greenstone Belt:
- Kingsview controls a large land package (11,854 hectares) of two highly prospective gold exploration projects (Echum and Hubcap) that are located in the Michipicoten Greenstone Belt, part of the Wawa Gold Belt.
- Echum (7,691 hectares) is the main project and historic grab samples returned high-grade assays including 7.49 oz/ton (256.80 g/t) Au with 12.91 oz/ton (442.63 g/t) Ag.
- The Hubcap Project (4,163 hectares) contains a past-producing mine with historic underground samples reportedly returning up to 80 g/t gold, and other historic grab sample values of up to 11.2 oz/ton (383 g/t gold) Au and 6.4 oz/ton (219 g/t) Ag.
- Greenstone belts are important because they are synonymous with high-grade Au production and can contain ore deposits of Au, Ag, copper (Cu), lead (Pb), and zinc (Zn).
- Value Creation Opportunity:
- Kingsview is taking a systematic and methodical approach to evaluating, targeting, and drilling this underexplored land package. Due to the quality of assets and resource growth potential of the mining properties, the Company has a significant value creation opportunity.
- It owns (100%) the Echum Gold Project that hosts several untested targets. The area has experienced a significant resurgence in mining activity and investment with the expansion of Alamos Gold’s (TSX:AGI) Island Gold Mine and Argonaut Gold’s (TSX:AR) Magino project, which is currently under construction.
- See Section 4 of the Initiation Report for other companies working in the area.
- An Experienced Team with a History of Success:
- Kingsview has an experienced leadership team with a solid track record of operational and financial performance.
- The technical team has a thorough knowledge of Ontario geology, with experience from early-stage exploration to mine development, and has been part of teams that discovered economic mineral deposits, including two of the three Hemlo Gold Camp mines.
- Solid Infrastructure with a 100-Year-Old History of Mining:
- Canada is a mining-friendly jurisdiction with a transparent regulatory regime.
- Ontario is regarded as a tier-1 mining jurisdiction with an abundance of expertise and overlooked regions of high mineral potential.
- The property is located along Provincial Highway 651, the main line of the Canadian Pacific Railway is located about 4 km to the east of the property, and a powerline runs along Hwy 651.
Financial Analysis & Valuation:
- We are valuing Kingsview using a Comparative Company Valuation methodology, relative to other early-stage companies with exploration projects in Canada and based on the exploration potential at Echum.
- We are assuming the Company will be successful in closing at least $0.7 million in financings over the next 12 months to fund exploration until C2023 and will find mineralized zones that warrant further exploration.
- The valuation is based on a Fully Diluted Share count in one year from now of 41.3 million shares and an Enterprise Value of $16.1 million.
We are Initiating Coverage with a Speculative Buy rating and one-year price target of $0.40.
You can download our 32-page Equity Research Report by clicking on the following link: eR-KingsviewMinerals-KVM-2022-08-24_FINAL
FIGURE 1: Kingsview Minerals Wawa, Ontario, Canada, Gold Properties Location Map
FIGURE 2: One-Year Stock Chart
Notes: All numbers in CAD unless otherwise stated. The author of this report, and employees, consultants, and family of eResearch may own stock positions in companies mentioned in this article and may have been paid by a company mentioned in the article or research report. eResearch offers no representations or warranties that any of the information contained in this article is accurate or complete. Articles on eresearch.com are provided for general informational purposes only and do not constitute financial, investment, tax, legal, or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this information should consult with a financial advisor. The article may contain “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are based on the opinions and assumptions of the Company’s management as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein. Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Please read eResearch’s full disclaimer.
