Thanks I was able to find it. Here it is for everyone's awareness. They raised their target from 5 cents to 35 cents.
Corp () () is quickly building the only permitted cobalt refinery in North America, a distinction that has earned the junior company a Buy rating from research house Red Cloud Securities.
The Toronto-based company recently closed a C$2.5 million financing to develop its planned cobalt refinery in the aptly-named town of Cobalt, Ontario, with flow-through funds earmarked for exploration on its silver properties in the nearby Cobalt Camp.
In an update earlier this week, Red Cloud said it is raising its price target on the stock by five cents to C$0.35 off the back of the firm’s successful financing.
“We believe ’s shares are undervalued and we believe that as it advances the only permitted cobalt refinery in North America towards production the stock should re-rate towards our target,” analyst Derek Macpherson wrote.
The cobalt company is progressing optimization studies on the refinery to help reduce sodium treatment costs. An updated feasibility study is expected by the end of 2020, according to Macpherson.
also owns substantial silver assets in the Cobalt Camp of Ontario that could pose an interesting upside with the recent run in precious metals prices. The firm is working to assess the value of the asset in anticipation of further exploration or a potential spin-out or sale, a move that caused Macpherson to increase the estimated in-situ value of the project to C$24.9 million from C$5.6 million.
While the silver assets add value to the story, it is the refinery that is key to unlocking value for shareholders, according to Macpherson.
“We highlight that while a corporate transaction monetizing First Cobalt’s silver asset could push the stock higher in the short-term, the key to a longer-term re-rating is bringing the refinery back into production.”