Fort Capital Investment Banking Pitch Book
Analyst Consensus Estimates
Four out of five analysts currently covering Corvus assign a Buy rating to the stock (1)
• Average NAVPS of $5.53 implies a 0.72x P/NAV multiple at current trading prices (0.74x implied by current C$4.10 Anglo Gold offer)
Target prices have been changed to reflect the non-binding offer from AngloGold
Research Summary (1)
Industrial Alliance
H.C. Wainwright
Roth
Broker
Canaccord
BMO
Average
Median
Date of
Report
18-Ju-21
14-Ju-21
14-Jul-21
13-Ju-21
15-Apr-21
Rating Price Target
(CS)
$4.00
Hold
Buy
Buy
Buy
Buy
"The transaction value is $550M, a premion
of 23% to yesterday's close. The resource
multiple applied stands at US$115/0z, a fair
offer, even considering the synergies and the
large amount of lower-grade, heap
leachable ounces that become available at
higher gold prices".
-Industrial (July 14,2021; Buy C$4.00)
$8.75
$5.00
$4.00
$3.50
$5.05
$4.00
Valuation
Methodology
DCF
(0.8x NAV)
DCF
(1.0x NAV)
25% Potential Offer
Increase
DCF
(1.0x NAV)
DCF
(1.0x NAV)
Disc. Rate
Corvus (1) Based on reports available to Fort Capital through S&P CapitaliQ
10.0%
11.0%
20.0%
12.0%
5.0%
11.6%
11.0%
NAV
(2) Some modeled estimates are from a previous report with a different price target
LT Au
(USS/Oz)
n/a
$1,900
$1,700
$1,716
$1,400
"We currently view this proposal as the first
stage of negotiations and ultimately would not
be surprised to see a higher price paid to
Corvus shareholders. In fact, the proposed
price in U.S. dollar terms of about $3.20per
share implies a roughly 54% discount to our
price target."
- Wainwright (July 14, 2021; Buy C$8.75)
$1,679
$1,708
Per Share
(CS)
$5.01
$8.74
$0.96
$3.43
$3.50
$5.53
$5.01
Year of
Production
(Year)
na
2025
na
2024
2024
2024
2024
Mine Life
(Years)
ra
10
n/a
10
11
10
Avg Annual
Production
(Koz Au)
260
258
na
140
na
20
219
258
"AngloGold Ashanti announced a proposal to
acquire Corvus Gold for C$4.00per share. We
believe this offer is significantly below fair
value for Corvus, but note it is unlikely the
pricing could increase by more than 25% from
the current offer. Thus, we are reiterating our
Buy rating, cutting our target to US$4.00."
-Roth (July 14, 2021; Buy C$5.00)
Fort CapitalView entire presentation