Analyst Theodore R. O'Neill is Initiating Coverage of Brookmount Gold Corp. (Brookmount Explorations, Inc.) with a Buy Rating and a $6 Price Target

Rhea-AI Summary

Brookmount Gold (OTC: BMXI) has received a Buy Rating from analyst Theodore R. O'Neill of Litchfield Hills Research, with a price target of $6. The report highlights that BMXI shares are trading at significant discounts compared to peers, with a ~95% discount to sales and ~99% to earnings. The company has shown consistent growth, experiencing double-digit sales and EBITDA increases over the past two years. Notably, adjusted EBITDA has been between 43% and 69% of revenue. In Q3 2022, sales rose by 30% YoY, while EBITDA grew 39% to $7.64 million.

Positive

• Shares trading at a ~95% discount to sales and ~99% to earnings compared to peers.
• Consistent double-digit sales, EBITDA, and asset growth over the past two years.
• Significant adjusted EBITDA generation, ranging from 43% to 69% of revenue.
• 30% increase in Q3 2022 sales YoY; EBITDA growth of 39% to $7.64 million.

Negative

• None.

NEW YORK, Dec. 29, 2022 /PRNewswire/ -- Analyst Theodore R. O'Neill who leads independent research firm Litchfield Hills Research, initiated coverage of Brookmount Gold (Brookmount Explorations, Inc.) (OTC: BMXI) (BMXI.US) with a Buy Rating and a $6 price target.

Key highlights from the report (verbatim):

• "Shares selling for a significant discount to peers. Shares are trading at a ~95% discount to peers on multiple of sales, ~99% discount to earnings and a ~90% discount to book while book, earnings and sales are growing"
• "Currently experiencing high growth. The company has produced double digit sales, EBITDA, and asset growth for the past two years and we forecast that to continue into 2023."
• "Significant EBITDA generation. Over the last five years, adjusted EBITDA has ranged from 43% to 69% of revenue."

The report from Litchfield Hills Research covering Brookmount Gold has been distributed by the analyst.

Mr. O'Neill's investment thesis, methodology, disclaimers and disclosures can be found at the back of the report, available on our website at https://www.brookmountgold.com/analyst-reports-bmxi-coverage-litchfield-hills-research

Theodore O'Neill, the CEO of Litchfield Hills Research, is a two-time winner of the Wall Street Journal All-Star Analyst.

Litchfield Hills Research is an independent global equity research firm providing institutional investor quality research for companies looking to increase awareness with investors. Its reports are distributed on 24 platforms used by institutional investors in the US, EU, and China.

Brookmount Gold (OTC: BMXI) is an American listed company with operating gold mines in Southeast Asia and exploration and production assets in North America.

The company has a portfolio of gold projects in Indonesia (Talawaan and Manado), Canada (Moosehorn), and the United States (McArthur Creek in Alaska). The company follows strict environmental care and is led by a team of professionals with years in the industry, including geologists and mining engineers. In its report, Litchfield Hills spotlights that the company has reported profit at the operating income line for the past 15 quarters while committed to sustainable and responsible operations in Indonesia and North America.

On Oct. 20, it posted a 30% increase in sales in the third quarter of 2022 YoY. It also announced an EBITDA growth of 39% during the first nine months of the year, up to $7.64 million, compared with the same nine months of 2021. Its sales up to Aug. 31 were up to $13.15 million, or a 36% increase over the first nine months of 2021.

In aggregate terms, the year's first three quarters showed strong growth and solid performance, and increased production of 34% during the first nine months of the year as per the 90-day AVE gold price, compared with the same nine months of 2021.

Founded in 2017, Brookmount Gold is a high-growth gold-producing company incorporated and listed in the United States. The company is actively looking to secure additional high-quality gold assets, with JORC/NI 43-101 verified reserves, in the developed gold markets of North America and Australia.

Brookmount bases its operations on three pillars: creating effective gold mining systems to increase revenue, formulating a clear plan for acquiring foreign assets, and enhancing liquidity through transparency. Leading an ESG-oriented operation focused on a sustainable exploitation of its gold production facilities, it is run by a seasoned team of professionals with years of experience in the sector.

Safe Harbor Statements:

Except for the historical information contained herein, certain of the matters discussed in this communication constitute "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "could," "anticipate," "estimate," "expect," "predict," "project," "future," "potential," "intend," "seek to," "plan," "assume," "believe," "target," "forecast," "goal," "objective," "continue" or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding benefits of the proposed license, expected synergies, anticipated future financial and operating performance and results, including estimates of growth. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. For example, the expected timing and likelihood of completion of the pending transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstance that could give rise to the termination of the negotiations, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Brookmount's common stock. All such factors are difficult to predict and are beyond our control. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report, except as required by applicable law or regulations.

Brookmount Gold Corp (Brookmount Explorations, Inc.)

www.brookmountgold.com

https://www.otcmarkets.com/stock/BMXI

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SOURCE BROOKMOUNT GOLD

FAQ

What is the current price target for Brookmount Gold (BMXI)?

The current price target for Brookmount Gold (BMXI) is $6.

Who initiated coverage of Brookmount Gold (BMXI)?

Coverage of Brookmount Gold (BMXI) was initiated by analyst Theodore R. O'Neill from Litchfield Hills Research.

What recent growth did Brookmount Gold (BMXI) report for Q3 2022?

Brookmount Gold (BMXI) reported a 30% increase in sales for Q3 2022 compared to the same quarter last year.

What has been the EBITDA growth for Brookmount Gold (BMXI) in 2022?

Brookmount Gold (BMXI) reported a 39% EBITDA growth in the first nine months of 2022, reaching $7.64 million.

How has Brookmount Gold (BMXI) performed compared to its peers?

Brookmount Gold (BMXI) is trading at a ~95% discount to sales and ~99% to earnings compared to its peers.