Tag: Tanzanian Gold Corp.

We are launching coverage on Tanzanian Gold Corp (TSX:TNX) with a BUY rating and a C$1.80 target price. Tanzanian Gold is advancing the Buckreef gold project in Tanzania partnered with Tanzanian State Mining Company (STAMICO), where TNX is operating the project with 55% ownership and STAMICO retaining 45% interest. Through a two phased approach, we expect Buckreef to be producing 8k oz by year end until FY2023E (Phase 1) followed by a ramp up to ~170koz by FY2024E (Phase 2). As the company is partnered with the government, we view minimal execution risk associated with the fully permitted sulphide expansion. We expect delivery of small-scale production and key development updates on the sulphide expansion to drive a near-term re-rating.