Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Solaris Resources Inc T.SLS

Alternate Symbol(s):  SLSR

Solaris Resources Inc. is a Canada-based multi-asset exploration company that is engaged in advancing a portfolio of copper and gold assets in the Americas. Its Warintza property is a porphyry copper-molybdenum-gold project located in southeastern Ecuador in the province of Morona Santiago. It includes nine metallic mineral concessions covering 26,777 hectares (ha). The Ricardo property is an exploration porphyry copper prospect located near Calama, Chile in the Calama Mining District. Its claim block covers approximately 16,000 ha. The Tamarugo property is a grass-roots copper porphyry target located in northern Chile approximately 85 kilometers northeast of Copiapo. Its claim blocks cover a total of approximately 12,300 ha. The Capricho project is a 4,200-ha copper-molybdenum-gold property. The Paco Orco project is a 4,400-ha lead, zinc and silver property. The La Verde property is situated in the Sierra Madre del Sur west of Mexico City, including the Unificacion Santa Maria claim.


TSX:SLS - Post by User

Post by savyinvestor333on Apr 19, 2022 7:40am
143 Views
Post# 34612435

Scotia Update and New Target $19.50

Scotia Update and New Target $19.50

Solaris Resources Inc.

  • SLS-T: C$14.65
  • Target: C$19.50
    Old: C$18.00
  • Rating: Sector Outperform

Warintza Resource Debrief: Outlining a Long-Life, Compelling Copper Asset

OUR TAKE: Positive. Following the resource update at Warintza, we have updated our estimates with this note to include a larger total resource along with our other assumed parameters. Total reported resource is 579 million tonnes of Indicated resources at a grade of 0.59% copper equivalent along with Inferred resources of 887 Mt at 0.47% CuEq. The new resource also includes a high-grade ‘starter pit’, with nearly ~300Mt grading 0.73%-0.82% Cueq (Inferred and Indicated). For additional details, see our First Look note here. We now include a mineable reserve of ~1Bt (+40%), which may prove to be conservative given that the deposit remains open in multiple directions and follow up drilling is ongoing. We expect a subsequent resource update in the future that will incorporate the additional drilling completed since the November 2021 resource cut-off date. Following model updates, our price target increases to C$19.50 (from C$18), while our SO rating is maintained.

KEY POINTS

Sensitivities – Notably, our model is sensitive to the higher-grade, near-surface portion of the deposit that is to be mined at the outset. We assume higher grades of 0.6% Cu mined in years 1-6, before reducing to 0.5% in years 7-12 and 0.4% in year 13 onwards. Were we to add another year of mining at 0.6% copper, our NAVPS would increase by ~2%, all else equal. Our new life-of-mine parameters are shown in Exhibit 1.

Valuation – At Scotiabank GBM’s long-term copper price assumption of $3.50/lb, SLS shares are currently trading at 0.75x our P/NAV10% estimate, broadly in line with base metal developer peers at 0.77x; however, we believe Solaris shares should trade at a premium given Warintza's relatively high grade nature and continuous tenor of mineralization, good access to infrastructure, exploration upside, and backing by a well-known management team at Augusta Group with a proven track record.


<< Previous
Bullboard Posts
Next >>