Trevali recommendation UpdatesM Partners research update on Trevali - June 22 They are maintaining their target of $4.25, and a BUY recommendation.
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Scotia Mining Sales likes Trevali (TV-CN, not covered) for a pure play on Zinc, which they think is going to $2.00 a pound
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Raymond James - Trevali Research Update June 22-Outperform
Trevali's shares trade at a P/NAV of 0.43x, which we view as inexpensive when compared to the weighted average of base metal development companies at a multiple of 0.54x and its closest peer, Breakwater Resources at 0.88x. Our C$2.40 target price is based on a 0.70x multiple applied to our NAV of C$3.41 per share (previously C$3.45; in-line with risk and liquidity-adjusted historic developer multiples).
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From Fraser Mackenzie:
Trade Ideas
Trevali - One of the Men Last Standing (TSX:TV)
· With the take out of Breakwater this leaves Trevali as one of the only mid-teir zinc companies left· Will have 2 producing mines operating by 2012 –New Brunswick & Peru --- both deposits are open for expansion· Current NI 43-101 of 4.5 billion lbs zinc,1.1 billion lbs lead,31.4 million ounces silver and 625million lbs copper· Market Cap of $122 million· Assume production of 144.5 million lbs Zinc price of
.75 = EBITDA will be $135 million a year (TRADING at less than 1 times cash flow 2012)· Share price is down 50% since January partially due to the Peru election essentially receive the Peru assets for free· See below for break down of the mid-teir Zinc companies compared to resource· Is Trevali next takeover target for Nystar – they are still hungry for feed to fill their smelters?