RE:RE:RE:$17 Speculative Buy by TD SecuritiesP.S.
The company's next key catalyst, in our view, is the closing of the C$130mm private placement with Zijin Mining (announced January 11). Solaris is planning to release an updated resource (targeting 2-3 Bt) and listing on the NYSE in Q2/24.
SLS is currently trading at a very attractive valuation (0.14x NAV10% vs. peers 0.53x NAV; recent Cu developer take-out transactions have averaged ~0.75x NAV). We estimate that the company currently has ~$40mm of cash (~$10mm at year-end 2023 + $30mm drawn on its $60mm Orion facility). Upon closing of the Zijin Financing, the company will have an additional ~C$130mm of cash plus access to $30mm on its debt facility.
We have made no changes to our estimates. Our corporate NAV10% remains unchanged at C$27.91/share. Our target price decreases to C$17.00 from C $20.00 on lower sector (BM developers) multiples.