Norman MacDonald VP & portfolio manager at Invesco Trimark Ltd says $3 for Torex
I believe the property will ultimately hold over 6 million ounces and up to 10 million which would put the stock anywhere from 6 to 8 per share could be more!
Turning to the materials sector, MacDonald says that he is cautious on base metals, but optimistic about precious-metals producers. He says Torex Gold Resources Inc. TXG , which owns the Morelos Gold Project, a gold-exploration property southwest of Mexico City, has “excellent prospects.” The project was owned by Teck Resources Ltd., “which did little with the property before it was sold in 2009.” In a short time, Torex has undertaken an “extensive amount of exploration drilling and the initial results are promising,” says MacDonald. “The pre-feasibility should further delineate the resource potential.” The project has three million ounces measured and indicated. But the company could, he says, prove up another one million ounces on the site, which would produce a net asset value per share of $3.” MacDonald is impressed with Torex’s leadership, which he considers to be a considerable plus for the company. “Torex CEO Fred Stanford is a conservative manager who has had extensive experience in the mining business.”
