David Pescod om COLOSSUS MINERALS

COLOSSUS MINERALS (T-CSI) $4.13 +0.13
Not that anyone cares about resource stocks these days (they don’t pay dividends do they?) but Colossus Min- erals is a company with its super-rich Serra Pelada gold/ platinum/palladium mine that should be up and running within the next six months in Brazil. I say should be up and running by then because it certainly looks like they’ve got a lot of things already built and they are starting to take a bunch of analysts down to see it first hand.
We had hoped to go mid-January, but there is a wee bit of a trick to going to Brazil...you need visas and part of getting that visa means that you could be kissing your passport away for up to a month while it is sent to Brazil- ian authorities who examine the passport and then issue the visa after a rather significant payment. (If you are thinking of going to Rio’s Olympics or World Cup, make sure to get those visas!)
Seeing as we were in the ‘sick bay’ the last while, it looks like we won’t be going, but I suspect it is going to be an interesting tour for the analysts and observers that do get on board.
Today though, it’s big news is there’s some significant changes in management as Colossus announces that “David Anthony has been appointed President and COO. He is a mining engineer with more than 30 years of experi- ence in the business including nine years with Barrick Gold where he was responsible for the development of Bulyanhulu, Buzwagi and Tulawaka mines.”
Also significantly, Luis Albano Tondo has been ap- pointed VP Operations and Country Manager. In mining these days it is important to make sure that the locals are happy with what you are doing.
Meanwhile we look at a long list of analysts that love the story as Clarus Securities has a $12.50 Spec Buy; GMP Securities has an $11.50 Buy; RBC Capital Markets has an $8.00 Outperform target; Macquarie Securities has a $7.75 Outperform target and Dundee Securities has a $7.70 target. But no one seems to care...yet! Hey it is the resource sector no matter how rich this play might be.
Meanwhile Nicholas Campbell at Canaccord has an $11.00 target which he gets to by stating, “We continue to value the shares of Colossus based on a 0.75x multiple to our peak gold price estimate of NAVPS (7.5%,US$2000/oz Au) of C$14.51, which gives us a target price of C$11.00, unchanged.”