viewTietto Minerals Ltd

Tietto Minerals has price target boosted to 75 cents by Euroz

Euroz believes Tietto’s shares are trading at a substantial discount to its domestic peers.

Tietto Minerals Ltd - Tietto Minerals has price target boosted to 75 cents by Euroz
A resource update is due later this quarter

Tietto Minerals Ltd (ASX:TIE) is continuing to hit more high-grade gold at the Abujar-Gludehi (AG) deposit, part of its 2.2-million-ounce Abujar Gold Project in Côte d’Ivoire, with results of up to 3 metres at 17.16 g/t gold 150 metres below the existing resource.

The 3-metre interval in the ongoing diamond drilling program at AG was within 7 metres at 8.16 g/t from 440 metres with another strong result being 2 metres at 15.91 g/t from 233 metres.

Euroz has reiterated its speculative buy rating for Tietto and has upgraded the price target to 75 cents per share from 50 cents (current share price: 68 cents).

The following is an extract from Euroz’ research update:

Rampant Gold Market: Peer Comps Support higher Valuation

Investment case

The gold sector is running: African peers are being priced (albeit at a significant discount to their Australian peers) at an average EV:Resource ounce of $90/oz. With results supporting an upgraded Resource of 3moz later this H, TIEs inventories support a Valuation closer to $0.73/ sh. Furthermore, strengthening A$ may see the valuation gap between domestic and offshore producers narrow. Ex-gold price collapse and/ or sovereign/COVID19 risks manifesting, we see little impediment to TIEs current trajectory. Drilling is active and newsflow commensurate. Economics are being matured: The development potential of TIEs flagship Abujar Project are taking shape. As we have seen with successful West African explorers, where a standalone development scale resource is defined, EV:Resource metrics will ‘gap-up’. We view that the current pace of activity can achieve this for TIE within the next 1-2yrs. Our Price Target increases to $0.75/sh. Speculative Buy remains.

Key points

  • We have adjusted our Valuation of TIE to reflect the current universe of ASX listed gold explorers and developers;
  • The African sub-set is currently being ascribed an average EV:Resource ounce of $90/oz:
  • This remains a substantial discount to the domestic peers – we view that this arbitrage may narrow with continued strength in the A$;
  • Regardless, the current peer average, acknowledging a strong gold market and emerging M&A (PRU acquiring ERX), warrants adjustment to our TIE Valuation;
  • Given the on-going results including today’s announcement of high grade intercepts 150m beneath the current AG Resource, we view that the Company will near 3moz with the upcoming revised Resource;
  • Our Valuation increases to $0.73/sh (prev. $0.50/sh) applying $90/oz (prev. $70/oz):
  • We dilute for 79m options in the money (netting c.$15m of unpaid capital);
  • Catalysts are ongoing:
    • Ongoing Resource infill and extensional drilling for 4 diamond rigs;
    • Resource update later this Q;
    • Scoping Study being progressed in parallel;
    • On-going metallurgical testwork;
    • Sector M&A.
  • We set $0.75/sh Price Target (prev. $0.50/sh) as a result.

Quick facts: Tietto Minerals Ltd

Price: 0.545 AUD

Market: ASX
Market Cap: $213.57 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Tietto Minerals Ltd named herein, including the promotion by the Company of Tietto Minerals Ltd in any Content on the Site, the Company...



Lithium Australia sees 'incredible support' for its $4 million fundraise

Lithium Australia NL's (ASX:LIT) Adrian Griffin tells Proactive's Andrew Scott they had incredible support for its $4 million placement and they're intending to raise up to a further $2 million in a share purchase plan (SPP). Funds from the capital raising will be used to accelerate revenue...

1 day, 11 hours ago

3 min read