Silvercorp Metals gets price target boost, repeat Buy rating from Roth after promising Ying mine update
Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) got a jolt of analyst optimism Wednesday when Roth Capital Markets bumped its price target for the stock up to US$9.25 from US$8.25 and reiterated its Buy rating.
The firm was pleased to see Silvercorp increase the reserve and resource estimate for its Ying Mining District assets at the end of August.
Silver reserves increased 4% compared to the company’s 2017 reserves update despite production of 21 million ounces of silver from July 2016 to December 2019, the firm said.
READ: Silvercorp Metals boosts mineral resource at Ying complex in a new technical report on the flagship property
Resource-wise, the company’s measure and indicated resource tonnage increased 23% and inferred resource tonnage increased 78%.
“We view this update as a significant positive for SVM,” Roth wrote. “Significant resources could drive effort to increase throughput. Based on Ying’s current mine plan that runs through 2040 and the significant resource base that should drive further mine life extensions in the future, we believe Silvercorp’s management will look for ways to increase throughput instead of extending mine life.”
The firm noted that the Ying mine, located in China’s Henan province, is not operating at full capacity due to concerns regarding underground access. If Silvercorp can create additional access or open new mining areas, throughput could increase substantially.
“As a result of the extended mine life at Ying and our expectations for further mine life extension over time, our [discounted cash flow] valuation increased significantly,” the firm wrote.
“This was partially offset by a reduction in our DCF premium from 35% to 30% as precious metals prices have retreated somewhat in recent weeks. Thus, we are increasing our price target from $8.25 to $9.25 and reiterating our Buy rating.”
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/928142/silvercorp-metals-gets-price-target-boost-repeat-buy-rating-from-roth-after-promising-ying-mine-update-928142.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).