stockwatch Globe says Trilogy seen having "multiple positives"
2022-06-14 08:17 ET - In the News
The Globe and Mail reports in its Tuesday, June 14, edition that National Bank Financial analyst Rabi Nizami has reaffirmed his recommendation for Trilogy Metals to "sector perform." The Globe's David Leeder writes that Mr. Nizami cut his share target to $1.75 from $2.50. Analysts on average target the shares at $2.44. Mr. Nizami says in a note: "Our 'sector perform' thesis acknowledges multiple positives such as the high-grade economics of the UKMP project, significant exploration potential of the surrounding land package which could further enhance the economics, mostly favourable community support, and a strategic 50/50 JV partnership with South 32 which lowers financing risk and ultimately increases the likelihood for acquisition. Nevertheless, development is currently facing permitting headwinds while Federal authorities reassess a previously approved environmental assessment statement and right-of-way agreement that is required to build the access road infrastructure. Over the coming months, we will look for more clarity on the scope and timing of the proposed supplemental work that is needed for these permits to be reinstated. ... In the long term we think that permitting should be achievable."