Dakota Gold Corp. (DC:NYSE American) President and Chief Executive Officer Robert Quartermain presented on the company at BMO Capital Markets' recent 2025 Global Metals, Mining & Critical Minerals Conference, and BMO Analyst Andrew Mikitchook summarized the key points from the talk, in a Feb. 26 research note.
"2025 is shaping up to be a transformational year for Dakota Gold as the company moves to become a developer establishing a pathway to production," Mikitchook wrote.
This gold explorer-developer is advancing its Richmond Hill and Maitland gold projects in South Dakota.
148% Return Potential
Dakota Gold is trading now at about $3.03 per share, and BMO's target price on the company is $7.50 per share, the analyst noted. The difference between these prices implies a potential return for investors of 148%.
BMO's current rating on Dakota is Outperform.
Updated Resource Estimate
According to Mikitchook, Quartermain discussed the new mineral resource estimate update on its Richmond Hill project, adjacent to Coeur Mining Inc.'s (CDE:NYSE) producing Wharf mine. Richmond Hill's heap-leachable resource is now 3,650,000 ounces (3.65 Moz) of gold (Au) in the Measured and Indicated (M&I) category and 2.61 Moz Au in the Inferred category. The project has additional millable resources.
At the same cutoff grade as Wharf, Richmond Hill has 2.8 Moz at 0.72 grams per ton (0.72 g/t) of Au, M&I, and 1.7 Moz of 0.45 g/t of Au, Inferred. The 4 Moz Wharf mine generated about $95 million in free cash flow last year from about 98,000 ounces (98 Koz) of gold.
Possible Mining Scenario
Quartermain presented a development plan scenario for Richmond Hill. For the first five years, Dakota would mine the heap-leachable M&I resource, producing 150−200 Koz per year. Mining would commence at the project's north end at Chism Ghulch, where the mineralization is hosted in the Deadwood Formation as it is at Wharf. Already, Dakota started baseline studies.
Strategic Investor Advantage
Another key point, noted Mikitchook, is that strategic investor Orion Mine Finance has committed to providing Dakota with future construction financing of up to $300 million.
"Dakota is one of the few exploration companies that have the benefit of potential financing from Orion," the analyst wrote.
What's to Come
Mikitchook reported the activities Dakota has underway and planned for this year and beyond.
Regarding Richmond Hill, the company is preparing an updated initial assessment including cash flow (the equivalent of a Canadian preliminary economic assessment), which it expects to complete in Q2/25. Feasibility work is to start in mid-2025.
Also Dakota is planning stepout and infill drilling to convert resources to reserves there, as mineralization remains open.
"The company is targeting a construction decision timeline in 2028-2029," Mikitchook reported.
At its Maitland project, Dakota plans similar type drilling as well, to connect mineralized ledges in the JB Gold zone.
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