Thursday, 22 November 2012

Goldman Sachs says Amara Mining is worth 90p

Banking heavyweight Goldman Sachs reckons emerging West African gold miner Amara (LON:AMA, TSE:AMZ) is worth 90 pence a share.
In a note today Goldman rates Amara as a ‘buy’ and highlighted the development of the Boamahun mine as the key catalyst.
“Encouragingly for the economics of the project, the mining operations should have access to grid power and be a relatively simple open pit CIL [carbon in leach] operation processing oxide ore,” Goldman said.
“With the development of Boamahun group production is set to more than double over the next four years to 140,000 ounces.”
The feasibility study for Boamahun is currently at an advanced stage and it is expected in the early part of next year.
Goldman highlights funding will be required to take the project forward, though a recent US$20 mln deal with Samsung is a potential pre-cursor for a much larger financing deal for the development of Baomahun.
Amara is already producing gold from the maturing Kalsaka mine in Burkina Faso, and the addition of the nearby Sega mine will help extend this operation.

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