Global Hunter Securities Initiates Coverage On Timberline Resources Corp.

Global Hunter Securities is initiating coverage on Timberline Resources Corp. TLR with an Accumulate rating and a $1.35 price target. In a note to clients, Global Hunter Securities writes, "Timberline Resources (Timberline) is on the cusp of becoming a producing gold company while still maintaining its hybrid business model of an exploration & development company along with a profitable drilling service business. Timberline presents an excellent opportunity to gain exposure to a gold producer with a robust pipeline of exploration & development projects in Nevada. We believe as the Butte Highlands JV comes online and ramps up production; enhanced profitable cash flow will attract a new level of interest from investors not comfortable with an exploration & development stage company. The added bonus is Timberline Drilling is a consistent, profitable stand-alone entity which has historically partially offset the cash-burn for the parent company. We believe Timberline is currently undervalued when compared to other junior producers of precious metals based in the U.S. Thus, we are initiating coverage of Timberline with an Accumulate rating and a price target of $1.35 per share, which is based on a 10x multiple to our 2012/2013 average CFPS estimate and in-situ NAV for South Eureka."