Original-Research: Eloro Resources Ltd. - von Sphene Capital GmbH

Einstufung von Sphene Capital GmbH zu Eloro Resources Ltd.

Unternehmen: Eloro Resources Ltd.
ISIN: CA2899003008

Anlass der Studie: Update Report
Empfehlung: Buy
seit: 15.01.2024
Kursziel: CAD 12,70 (unverändert)
Kursziel auf Sicht von: 24 Monate
Letzte Ratingänderung: -
Analyst: Peter Thilo Hasler

New intersections highlight potential for extraordinary grades
Eloro Resources intersected the highest-grade silver sample at Iska Iska so
far, confirming the strategy adopted by the Board of Directors to expand
and upgrade the high-grade area of the Santa Barbara Breccia Pipe in
particular. With mineralised intercepts of up to 118.86 g Ag eq/t over
81.28 m (including a high-grade sample of 5,080 g Ag eq/t over 1.46 m), the
silver equivalent results from recent definition drilling are significantly
higher than the results from the Iska Iska Project's maiden Mineral
Resource Estimate ('MRE'). In particular, these higher silver equivalent
results are the result of higher tin recoveries of up to 152.29 g Ag eq/t
over 81.28 m (including 4,746.46 g Ag aq/t over 1.46 m). The high tin and
silver values found could in turn be the result of high temperature
sulphidation centres identified as feeders within the open pit area.
According to the company, the geophysical information and deep drilling
indicate that the tin-silver mineralisation could extend to a depth of more
than 1 km, which is not uncommon in the southern Bolivian Tin Belt, with
the Cerro Rico de Potosi, Animas-Siete Suyos-Chocaya and Tatasi deposits
located in the same geological setting as Iska Iska.
Our valuation is based on the shallow higher-grade resource in the
polymetallic domain of 132 million tonnes at 1.11% Zn, 0.50% Pb, and 24.3 g
Ag/t, as shown in the MRE. It does not take into account that an upcoming
PEA could increase this initial resource and that current metal prices are
now significantly higher than the three-year averages used in the MRE.
Applying a P/NAV discount of 70%, which we feel reasonable these days, we
calculate a net asset value driven price target of CAD 12.70 per share. We
therefore reiterate our Buy rating for the shares of Eloro Resources. We
highlight that our price target could rise further after the recently
reported higher tin and silver grades are included in a next MRE. The
current pullback in the company's share price is an interesting entry point
for long-term investors, in our view.

Die vollständige Analyse können Sie hier downloaden:

Kontakt für Rückfragen
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553

-------------------übermittelt durch die EQS Group AG.-------------------

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