Solaris Resources Inc T.SLS

TD

[retiredcf]

Have a $20.00 target. GLTA

Solaris Resources Inc.

(SLS-T) C$7.68

Corporate Update Event

In this brief note, we provide a summary of Solaris' recent events and our outlook for the company.

Impact: NEUTRAL

• After releasing its Maiden Warintza Central Resource in April, the company's ongoing drilling continues to target further growth, with an emphasis on the open extensions of near surface, high-grade mineralization at Warintza Central and expanding the Warintza East discovery to include it within a shared pit, while testing the further potential within the cluster (seven rigs currently on site).

• As a reminder, Warintza Central resources are presently defined by ~1.5 Bt at 0.52% CuEq (Ind: 579 Mt at 0.59% CuEq). Additionally, the company reported an ‘Indicative Starter Pit’ comprising 287 Mt at 0.79% CuEq.

• Our view that Warintza provides strong exploration upside exposure continues to increase, given recent results. In an effort to be conservative, our model for Warintza is based only on part of the Maiden Resource (100% Ind + 60% Inf) and does not incorporate the company's other discoveries/targets (West/South and Yawi).

• Solaris continues to advance the proposed spin-out of "Solaris Exploration Inc.' and has made significant progress with the internal re-organization of the company, its subsidiaries, and mineral concessions (see Flash Note).

• Solaris last reported cash of $24mm (June 30) and no debt. Additional funds could come from warrants expiring in Q4/22 (C$24mm between C$1.20-C$6.75) and H1/23 (C$30mm at C$1.20).

• In summary, we see the company as very well-positioned. There has been a dearth of discoveries over the past two decades, leaving the pipeline slim to fill the looming copper supply gap (5.4 Mt by 2030 and 11.4 Mt by 2035). We see Warintza as a natural acquisition target as the company continues to advance the project.

  TD Investment Conclusion

  World-class discoveries are rare and unique, and we believe that Solaris is in the early stages of making multiple world-class discoveries among its cluster of porphyries on the Warintza property. We expect the stock to continue to re-rate higher as the company demonstrates the growth potential of the project.