Analyst Theodore R. O’Neill reiterates Brookmount Gold Corp. (Brookmount Explorations, Inc.) with a Buy Rating and a $6 Price Target

Rhea-AI Summary

Analyst Theodore R. O’Neill from Litchfield Hills Research has reaffirmed a Buy Rating for Brookmount Gold (OTC: BMXI) with a price target of $6. The report highlights that shares are trading at a significant discount compared to peers: ~96% on sales, ~95% on earnings, and ~89% on book value. The company reported 4Q22 revenue of $3.2MM and EPS of $0.03, which fell short of estimates due to lower sales, attributed to exploration efforts and increased inventory in anticipation of higher gold prices. Brookmount reported a 16.2% revenue increase year-over-year, totaling $16.35MM, and a net income of $7.49MM, reflecting a 12.8% increase.

Positive

• Shares trading at significant discounts to peers: ~96% on sales, ~95% on earnings, ~89% on book value.
• Revenue of $16.35 million represents a 16.2% year-over-year increase.
• Net income rose to $7.49 million, reflecting a 12.8% increase.

Negative

• 4Q22 revenue was $3.2MM, missing estimates of $4.6MM.
• EPS of $0.03 was below the expected $0.06 due to lower sales.

NEW YORK, March 14, 2023 (GLOBE NEWSWIRE) -- Analyst Theodore R. O’Neill, who leads independent research firm Litchfield Hills Research, reiterates 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 ~96% discount to peers on a multiple of sales, ~95% discount to earnings and a ~89% discount to book while book, earnings and sales are growing.
  
  
• Minor miss to estimates. The company reported 4Q22 revenue and EPS of $3.2MM and $0.03, respectively (See Figure 2). We had been looking for revenue and EPS of $4.6MM and $0.06, respectively. There is no consensus. The unfavorable $0.03 EPS variance was primarily due to lower sales. On the earnings conference call, management explained the sequential downturn in sales was due to spending more time exploring better gold seams and partly due to an increase in its AU inventory in expectation of higher prices.
  
  
• Balance sheet update. There was an increase in inventory, which management said was due to expectations of higher gold prices in subsequent months. Prices have since risen. There was an increase in PP&E that went into extending the life of its existing plant.
  

The report can be accessed by using the link provided below.
https://www.hillsresearch.com/wp-content/uploads/2023/03/BMXI4Q22-Edited.pdf

The report from Litchfield Hills Research covering Brookmount Gold has been distributed by the analyst on Friday 10^th of March 2023.

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.bmxigold.com/analysts

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.

The company reported a revenue of $16.35 million, a 16.2% increase over the previous fiscal year, and a net income of $7.49 million, a 12.8% increase over the latest period. The company's assets have also grown to $30.5 million, a 39.1% increase over the last year.

Founded in 2018, Brookmount Gold is a high-growth gold-producing Company incorporated and quoted on OTC Markets in the United States (OTC: BMXI) (BMXI.US) with operating gold mines in Southeast Asia and exploration and production assets in North America. In addition, the company is actively looking to secure additional high-quality gold assets with JORC/NI 43-101 verified resources.

The company is quoted on the OTC Markets but has already announced its intention to file for uplisting on NASDAQ or NYSE American in the next few months after the completion of the three-year PCAOB Audit, expected by the end of March 2023. The Company's management team is working closely with its advisors to meet the exchange's listing requirements and is optimistic about achieving this significant milestone in the next few months.

On February the 9th, Brookmount agreed to acquire a 75% interest in the Tocantins project, a gold mining operation in Brazil, from Geoblocks Exploration Ltd ("Geoblocks"), a company incorporated in the UK, which has entered into a binding agreement to acquire the 75% interest in the Tocantins from its Brazilian owners. As part of the binding agreement, the company announced the appointment of Elpidio Reis (Dual Brazilian and US National), Charles Heather (United Kingdom National), and Lord Christopher Wellesley (United Kingdom National) as Executive Directors.

Brookmount Gold Corp (Brookmount Explorations, Inc.)

Investor Relations
Ioannis Petratos
ir@bmxigold.com
www.brookmountgold.com

Corporate
corporate@brookmountgold.com

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 the 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.

FAQ

What is the current rating for Brookmount Gold (BMXI)?

Litchfield Hills Research has reiterated a Buy Rating for Brookmount Gold (BMXI).

What was Brookmount Gold's revenue for Q4 2022?

Brookmount Gold reported a revenue of $3.2 million for Q4 2022.

How does Brookmount Gold's share price compare to its peers?

Brookmount Gold shares are trading at significant discounts: ~96% on sales and ~95% on earnings compared to industry peers.

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

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

What were the earnings per share (EPS) for Brookmount Gold in Q4 2022?

The earnings per share (EPS) for Brookmount Gold in Q4 2022 were $0.03.