RE:Interesting itemRead this very slowly from the article , very slow - CXB up tomorrow for sure
State Department actions to date have consistently targeted state-controlled mining operations (Empresa Nicaraguense de Minas and General Directorate of Mines) and those at the top of Ortega’s regime (Cerna Juarez), not the Nicaraguan people or foreign entities.
Calibre estimates it distributed $335.7 million in economic value in Nicaragua in 2021, representing around 2% of the country’s $14 billion GDP.
Given the miner’s importance to the Nicaraguan economy, Canaccord does not believe the State Department would interfere with Calibre’s operations in-country.
“The State Department’s commentary and actions to date seem to indicate that it would prefer to target state-owned mining companies and individuals at the top of President Ortega’s regime rather than pursue a course of action that would negatively impact the Nicaraguan people,” Fairbairns said.
Assuming the business can continue as usual, Canaccord expects strong free cash flow potential remains. Based on the analyst’s numbers, Calibre’s assets in the US and working capital balance of about $115 million fully support its current $259 million market cap.
Fairbairn maintains a ‘buy’ rating on the stock and a C$2 target share price.