Double down on Osisko

You’d have a hard time finding any company that has outperformed Osisko Mining Corp.over the last five years, in which it has gone from a penny stock to a$5.4-billion giant. But according to Dundee Capital Markets analyst RonStewart, Osisko’s massive growth profile makes the stock is a greatbuying opportunity even today.

“The choice is yours,” he wrote in a cheeky note to clients.

“You can call us now or wait until 2012 and, all things being equal,buy [Osisko] at what we believe will be a much higher price. At somepoint, it might be time to double down as we expect [Osisko] will doubleup more than their reserves.”

Put simply, Mr. Stewart figures that Osisko is going to deliverspectacular growth in production and reserves. Right now, the companyhas established a reserve of nine million ounces of gold at its CanadianMalartic project, and a total mineral inventory of 18.4 million ouncesof gold at Canadian Malartic and the Hammond Reef project. Over thecourse of the next two years, Mr. Stewart wrote that Osisko stands agood chance of nearly doubling the reserve through exploration atMalartic and a feasibility study at Hammond Reef.

That leads to strong production growth as well. With initialproduction of close to 500,000 ounces expected from Canadian Malartic in2011, Mr. Stewart thinks Osisko can almost triple production to 1.15million ounces a year by 2015 if Hammond Reef delivers as well.

He added 2.2 million ounces of gold to his Canadian Malartic reservemodel. As a result, his price target on Osisko rose to $18.50 a sharefrom $17.00 a share. He maintained a “buy” rating.