We continue to like gold over the medium term and are keen buyers of pullbacks in the space, particularly given the pick-up in M&A that supports equity prices. One explorer we are particularly interested in is Black Cat which has three development projects in WA. The main asset, Paulsens, was seeing production of ~75koz of gold per annum before being put on care and maintenance 6 years ago. Since then, a drilling program has continued to increase the size of the resource with a further upgrade expected within the next 6 weeks. Despite the low-risk restart of Paulsens, Black Cat trades on a ~40% discount to peers on an EV/Resource multiple with incremental updates supporting shares.
MM is bullish BC8, adding it to our Emerging Companies Portfolio Hit List
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