Miner to Turn out to be ‘Intermediate Valuable Metals Firm,’ Rerating Anticipated

The corporate’s Q1/19 numbers and the affect of its newest acquisition are mentioned in a ROTH Capital Companions notice.

In a Could 16 analysis notice, analyst Jake Sekelsky reported that ROTH Capital Companions raised its goal worth on Nice Panther Mining Ltd. (GPR:TSX; GPL:NYSE.American) to US$2.25 per share from US$1.80 (versus about US$zero.70 at the moment) after incorporating the Tucano mine acquisition and an in line Q1/19 into the corporate’s mannequin.

ROTH forecasts consolidated 2019 manufacturing, together with that from Tucano, to be round 175,500 ounces (175.5 Koz) of gold, which “elevates the corporate to intermediate producer standing and may pave the way in which for a rerating,” Sekelsky highlighted.

Tucano ought to produce 125–135 Koz of gold at all-in sustaining (AISC) of $1,100–$1,200 per ounce, in line with Nice Panther’s administration. ROTH’s estimate falls inside that vary, at 130 Koz at an AISC of $1,114 per ounce.

Sekelsky identified that capital expenditures will doubtless stay elevated in 2019 for improvement and optimization of Tucano. Nonetheless, this could “reasonable” in 2020 as soon as Nice Panther has absolutely built-in the Brazilian undertaking, which is “nicely underway.”

The corporate commissioned a supplemental oxygen plant at Tucano earlier this month, which already led to an elevated grade of gold produced to 1.7 grams per ton, a stage that ought to stay steady now, the analyst added. “We view this enchancment as tangible proof that administration’s turnaround efforts are starting to bear fruit and count on continued enhancements all through 2019.”

As for Q1/19, the corporate reported a web lack of $zero.05 per share on income of $16.7 million versus ROTH’s projected lack of $zero.03 per share on income of $14.7 million. “We attribute the marginally increased loss to elevated prices related to the closing of the Tucano acquisition in addition to higher-than-anticipated working prices in Mexico,” commented Sekelsky.

The analyst concluded that “buyers ought to preserve deal with the strides being made at Tucano as we count on the undertaking to be the primary worth driver over the subsequent 12 months.”

ROTH has a Purchase score on Nice Panther Mining.


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Disclosures from ROTH Capital Companions, Nice Panther Silver, Firm Observe, Could 16, 2019

Regulation Analyst Certification (“Reg AC”): The analysis analyst primarily answerable for the content material of this report certifies the next beneath Reg AC: I hereby certify that each one views expressed on this report precisely mirror my private views concerning the topic firm or corporations and its or their securities. I additionally certify that no a part of my compensation was, is or can be, immediately or not directly, associated to the precise suggestions or views expressed on this report.

ROTH makes a market in shares of Nice Panther Silver Restricted and as such, buys and sells from prospects on a principal foundation.

Shares of Nice Panther Silver Restricted could also be topic to the Securities and Change Fee’s Penny Inventory Guidelines, which can set forth gross sales observe necessities for sure low-priced securities.

ROTH Capital Companions, LLC expects to obtain or intends to hunt compensation for funding banking or different enterprise relationships with the lined corporations talked about on this report within the subsequent three months.

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