Sprott Capital Initiates Coverage - PGZ $1 PTInstitutional brokerage Sprott Capital Partners has initiated coverage of Pan Global Resources. March 5, 2021 Initiate coverage with BUY rating and C$1.00/sh PT It is too early to speculate not only on a DCF or even a resource. Our thesis is simple: we expect the high-grade tonnes to grow. Based on a nominal 25Mt @ ~1% CuEq for La Romana, we apply a US$500/t metal value (~5% insitu, ie US$100/oz), with US$250/t (~2.8% or US$50/oz) over nominal 200kt Cu in satellites. As such, we initiate with a BUY rating and C$1.00/sh PT.
Potential for 10s to 100s of Mt with ‘string of pearls’ anomalies The La Romana discovery set the stage and could just be the beginning for Pan Global as several other IP/gravity anomalies are yet to be tested along strike towards the Aznalcollar mine 6km away. Only a single hole was ever released on these, returning an impressive 9.5m @ 1.4% Cu. It was never followed up on after Exxon, then Boliden, exited Spain. This offers dual-play of intermediate size (<30Mt) and grade open pits, and future optionality on a ‘mega mine’ (>100Mt) of size attractive to majors, putting M&A on the table.
Sprott Initiates Coverage Of Pan Global Resources 200303-pgz-scp-initiation.pdf (sprott.com)