LionGold Corporation rated 'invest' by SIAS

Stock Name: LionGold
Company Name: LIONGOLD CORP LTD

Research House: SIAS

Price Call: BUY

Target Price: 1.215

SIAS Research in an Apr 16 research report says: "LionGold Corp Ltd (LIGO) announced that (a) it will be subscribing for 11.37% of ASX listed Castlemaine Goldfields Limited (CGT) at a cash consideration of $5.05 million for new CGT shares and that (b) it will be making an off-market share-swap takeover bid for all other issued shares of CGT at a cost of up to $65.2 million.

"CGT’s current production rate of 3,000 to >4,500oz per quarter is about 1.6x to >2.5x that of Signature Metals Ltd (Signature), with further plans by CGT to increase output at Ballarat to 50,000oz/year. As such, this acquisition when completed will most likely significantly raise LIGO’s near term output.

"We have previously raised our valuation of LIGO to $1.215 following the close of its offer for Signature in an update report dated Mar 29. MAINTAIN INVEST."

LionGold Corporation rated 'invest' by SIAS

Stock Name: LionGold
Company Name: LIONGOLD CORP LTD

Research House: SIAS

Price Call: BUY

Target Price: 1.215

SIAS Research in a Mar 29 research report says: "Over the last two weeks, LIGO proposed the placement of 12m shares for $12.4 million and the issue of convertible bonds for up to US$30 million. We view the proposed fund raising activities in a positive light.

"Upfront, we are looking at a potential expansion of LIGO’s share capital by up to only 7%. More importantly, LIGO will gain some $50 million of funds to accelerate Signature’s expansion and to bank roll other acquisitions that it is reviewing. As at end December 2011, LIGO had $27.8 million of borrowings.

"As such, the total amount of funds raised will also be sufficient to help refinance LIGO’s debt. Moreover, the increase in LIGO’s stake in Signature to 76.22% at the close of the takeover offer has allowed more value from the Konongo project to accrue to the company. Intrinsic value of $1.215. MAINTAIN INVEST."

LionGold Corporation rated 'increase exposure' by SIAS

Stock Name: LionGold
Company Name: LIONGOLD CORP LTD

Research House: SIAS

Price Call: BUY

Target Price: 1.035

SIAS Research in an Oct 3 research report says: "LionGold Corp Ltd (LionGold, formerly The Think Environmental Co Ltd) announced the commencement of commercial production in Ghana on Sept 28.

"LionGold intends to use this site as a model and training ground to build more mine development teams that will be deployed to subsequent sites. At the same time, LionGold is watching the neighbours adjacent to its site for opportunities to accumulate resources.

"While LionGold's 1H FY12F (ended Sep) results are likely to be muted, 2H FY12F will most likely see a significant jump in profitability. We are currently waiting for at least one quarter of full gold production before we revisit our model. Intrinsic value of $1.035. MAINTAIN INCREASE EXPOSURE."