Resuming coverage
We are resuming coverage of International Tower Hill following previous analyst’s departure.
In 2006 ITH acquired several exploration assets in Alaska from AngloGold Ashanti, including the Livengood project located 120Km NW of Fairbanks.
ITH has been very successful on the exploration front, and Livengood has grown into a world class deposit. We believe ITH has become a potential M&A target.
The latest resource update, released Oct. 13th, was impressive, demonstrating a 64% increase in resources at Livengood, which now total 12.5Moz (all categories).
We derive our C$10.00 target applying a 1.25x multiple to our DCF (8%) valuation for Livengood plus other net assets. We resume coverage with a BUY rating.
