Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) had its target price by Canaccord Genuity raised 6.25% to reflect the mining developer's Q2/25 results and the investment bank's revised commodity price assumptions, reported Peter Bell in an Aug. 15 research note.
"For investors, we highlight that Liberty is the cheapest company in our coverage, trading at 0.06x price:net asset value versus covered peers at 0.27x," Bell wrote.
1,048% Return Implied
Canaccord increased its target price on Liberty Gold to CA$4.25 per share from $4, the analyst noted. In comparison, the Canadian company's share price at the time of Bell's report was CA$0.37 per share. From this price, the return to target is 1,048%.
Liberty remains a Speculative Buy.
The company's market cap is US$105 million (US$105M).
What to Know
Bell summarized Liberty Gold's highlights and recent developments. After completing a prefeasibility study (PFS) on its flagship Black Pine project in Idaho in October 2024, the company has made progress advancing it to construction, particularly with permitting.
The PFS outlined an operation producing an average of 183,000 ounces (183 Koz) of gold per annum for the first five years, peaking at about 231 Koz. This calculation is based on a reserve of 3,110,000 ounces of 0.32 grams per ton gold.
A 40,000 meter drill program is underway at Black Pine, and the metallurgical sampling program continues.
"We view this update as a positive signal to the company's commitment to maintaining its Black Pine development schedule," Bell wrote.
As for another of Liberty's assets, the Goldstrike project in Utah, the company plans to spin it out into a separate entity along with Antimony Ridge, the third zone of high-grade antimony mineralization it discovered there. This quarter, Liberty's shareholders will decide whether or not to approve this move.
In terms of its cash position, Liberty ended Q2/25 with US$17.65M after its CA$23M equity raise in April. The amount on hand, according to Canaccord Genuity, is enough for Liberty's work this year.
Most Compelling Elements
Bell pointed out the reasons Canaccord Genuity likes Liberty. As for Black Pine, Canaccord considers it a "very low risk project" given it previously was an open-pit, heap-leach operation. The metallurgy is simple.
"This, along with the scarcity of similar projects within the region and growth the company has demonstrated over the past three years, makes Liberty a standout mergers and acquisitions target," Bell wrote.
Canaccord also likes the plan to spin out Goldstrike and Antimony Ridge.
"If the arrangement proceeds, this could effectively establish Liberty Gold as a pure-play, Carlin-style developer-producer and provide all Liberty shareholders with exposure to other minerals," wrote the analyst.
Potential Catalysts
Bell noted that investors should watch for the release of additional drill results from Black Pine, on an ongoing basis.
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