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Investing.com - H.C. Wainwright has reiterated a Buy rating and $3.25 price target on GoldMining, Inc. (NYSE:GLDG), currently trading at $0.73 with a market cap of $144 million, following the company’s announcement of an earn-in agreement for its Boa Vista project. According to InvestingPro data, analysts maintain a consensus Buy rating with targets ranging from $2.76 to $3.32, suggesting significant upside potential.
On July 1, GoldMining entered into an agreement with Australian Mines Limited, allowing the latter to acquire up to an 80% interest in the Boa Vista project for cash and equity payments totaling up to $7.0 million. The company maintains a healthy financial position with a current ratio of 2.55, indicating strong ability to meet short-term obligations. Want deeper insights into GoldMining’s financial health? InvestingPro subscribers get access to over 30 additional financial metrics and exclusive analysis.
Under the agreement terms, Australian Mines has three years to earn a 51% interest by spending a minimum of A$4.5 million on exploration, including 6,000 meters of diamond core drilling and making three annual cash payments of $250,000. The deal also requires establishing a Mineral Resource Estimate of at least 500,000 ounces of gold, with at least 250,000 ounces in the Measured & Indicated category.
Upon completion of these requirements, the companies would form a joint venture with Australian Mines holding 51% as the initial operator and GoldMining retaining 49%. Australian Mines can further increase its stake by an additional 29% through continued project development over the following three years.
H.C. Wainwright noted that this transaction allows GoldMining to monetize its asset base while directing additional capital toward core projects, all while maintaining exposure to the Boa Vista project.
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