Guerrero heating UP
Both Newstrike and Torex were up today. Torex had a flurry of buying in the last 5 min of trading that pushed the price of the stock up over 30%! Newstrike is undervalued at these levels and we continue to rate it a strong buy. We are overweight NES with a portfolio weighting of 30+ percent. We believe the Gurrero area has been under-explored and under-rated for some time due to conflicts with the local people. These issues have been resolved through careful and considerate negotiations with the locals. The area is now wide open for new discoveries and delineation of past successes. We believe Newstrike’s Ana Paula will ultimately prove up 3 to 3.5 million ounces, similar to many of the other deposits in the region. Given Torex’s market cap today with a similar ounce tally we estimate Newstrike’s share price at 8.14
