New Pacific Metals upgraded to ‘Buy’ at Roth Capital

Roth Capital Partners analysts upgraded New Pacific Metals Corp (TSE:NUAG) (OTCMKTS:NUPMF) (FRA:3N7A) shares to ‘Buy’ from ‘Neutral’, following the company’s acquisition of the Carangas silver project in Bolivia.

“We see this as an ideal, bolt-on acquisition and a third potential avenue for resource growth,” the analysts wrote.

And while they noted that New Pacific has been unable to produce additional drill results from its projects due to the continued impact of the coronavirus (COVID-19) as well as the Bolivian election in the latter half of last year, the analysts “believe the company will begin a new drill campaign in the coming months that could provide a steady stream of catalysts in 2H 2021.”

READ: New Pacific Metals is a first mover in an underexplored, world-class silver belt

The analysts added that New Pacific’s current market valuation is significantly below its C$6.50 price target — which is based on $3 per ounce of resource valuation, in addition to a C$250 million valuation for future resource growth potential, or a total value of C$1 billion.  

New Pacific Metals is also advancing its flagship Silver Sand project in Bolivia. The project boasts a large silver measured and indicated (M&I) resource at 35.39 million tonnes (Mt) at a grade of 137 grams per tonne (g/t) silver, which contains 155.86 million ounces (Moz) of silver. Notably, 70% of the resources are within 200 metres (m) of the conceptual open pit surface and the deposit is open to the north, south, and at depth.

And the company also recently acquired a 98% stake in the polymetallic Silverstrike project from a private Bolivian firm by making a one-time cash payment of US$1.35 million. Silverstrike lies about 450 km northwest of Silver Sand and contains extensive silver mining dumps, the results of Spanish colonial mining activities that exploited near-surface silver-gold-lead-zinc.  

Shares of New Pacific Metals rose 7% to $5.20 in midday trading on Thursday.  

Contact Sean at [email protected]

Story by ProactiveInvestors