Reservoir Minerals’ (V.RMC) copper-gold estimate is no surprise to Scotia

Stockhouse Editorial
0 Comments| January 28, 2014

Scotia Capital Inc. analyst Mike Hocking said Reservoir Minerals Inc.’s (TSX: V.RMC, Stock Forum) initial resource estimate for the Cukaru Peki target, which forms part of the Timok project in eastern Serbia, is in line with the investment firm’s expectations.

As reported by Stockhouse Monday, Timok is a joint venture involving Reservoir and Freeport McMoran Copper & Gold Inc. (NYSE: FCX, Stock Forum).

“After reviewing the technical report (expected to be published soon), we will review our mine model assumptions,’’ said Hocking, adding that Reservoir Minerals has $16 million in cash and no further funding requirements for the joint venture at this time.

Scotia rates Reservoir Minerals as sector outperform with a target price of $7. The stock rose 0.89% Tuesday to $5.67, leaving a market cap of $237.2 million, based on 41.8 million shares outstanding. The 52-week range is $5.99 and $2.14.

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