Scotia
TV reported in-line Q1/17 financial results and reaffirmed all of its
previously issued guidance. The Glencore asset acquisitions remain on track to
close in Q3/17. We view the update as neutral to the shares.We rate TV shares SO
based on the company's very high exposure to zinc (our preferred NT commodity),
compelling relative valuation, and solid balance sheet. Our 12-month target of
C$2.25 is based on a 50/50 mix of 5.0x our 2018E EBITDA and 1.0x our updated
(8%) NAVPS estimate. We note TV trades at remarkably low pro forma EV/EBITDA
multiples of 1.7x in 2018E and 1.1x in 2019E vs. peers at 5.2x and 5.0x.