Impact: Mildly Positive
Blue Sky released positive step-out channel sampling outside of the Ivana deposit which provide evidence that suggests the current resource at Ivana has the potential to materially grow. Blue Sky is in possession of a PEA stage uranium-vanadium resource within a potential district-scale project and could see a re-rating with further exploration success.
Impact: Positive
Atico has announced the end of its labor-strike and is resuming all regular activities including production and exploration drilling. This should allow the company, to get back to generating FCF from operations and testing the exploration potential of El Roble. Our fundamental view is unchanged, we believe Atico is a low-cost producer with exploration upside that should generate significant free cash flow providing the capital required for growth.
North American Palladium released good drill results from Sunday Lake as part of the company’s regional exploration program. We continue to highlight that the imminent release of Q1/19 operating results should be an important catalyst for the company. We believe the company is undervalued relative to peers and with continued operating execution, along with a strong palladium market it should re-rate.
Cashed-up junior on the hunt for major discoveries in two world class gold camps. With C$20M in cash, Chalice is actively exploring on trend with one of the world’s highest-grade gold mines in Australia (Fosterville). In addition, Chalice is also looking for the next Abitibi gold giant, on its recently consolidated East Cadillac project in Quebec. Trading near cash value, our thesis is that Chalice is poised to rerate on the first hint of drilling success at either of its two highly prospective projects.
Impact: Mildly Positive
Drill results from Gran Colombia’s Marmato operation align with our view that this project could represent a longer-term step change in production profile, from the Deeps Zone. We maintain our fair value estimate of C$6.00/sh and expect operating execution, exploration updates from Segovia and the Marmato PEA to drive a progressive re-rating towards our estimates.
Impact: Positive
We had the opportunity to visit Standard Lithium’s in-construction pilot plant and were impressed by the progress. The company is on track to deliver the plant to site in early Q3 and we expect commissioning to be underway by the end of Q3. Standard Lithium’s unconventional approach has created significant value for investors, that is not reflected in the company’s current share price.
Gran Colombia has been steadily improving its operations and balance sheet over the last 18 months, but the market does not yet appear to fully recognize what has been accomplished. Additionally, the company can deliver game-changing catalysts with the drill bit at Segovia and a new ore-body at Marmato. We expect Gran Colombia to progressively re-rate towards our fair value estimate of C$6.00/sh, with continued operating execution, along with near-term exploration and development catalysts that could drive our estimates higher.
Drill results from Wallbridge Mining continue to impress.
Recent results from Wallbridge’s Area 51 target continue to provide strong support of the exploration upside at the Fenelon Gold Property beyond the Main Zone deposit. In addition, impressive high-grade intercepts from step-outs at the Main Zone demonstrate the potential for this resource to grow. Wallbridge Mining Company Ltd (TSX:WM) is a gold exploration company advancing its 100% owned Fenelon Gold Property in Quebec.
Impact: Mildly Positive
Vanadium One has delivered a successful iron ore resource estimate that, together with a potential vanadium by-product, warrants a significant re-rating of the company’s current valuation. With a C$8.0M market cap, the market has yet to price in the resource or the economic potential we see at Mont Sorcier (Fe-V) near Chibougamau, Quebec.
Impact: Positive
Mawson has released gold and cobalt assay results from 14 drill holes drilled at the Raja prospect, which have been largely successful in intersecting the highest-grade parts of the system. We estimate a fair value of C$0.79/sh for Mawson’s shares and we believe the company is on track to double its current gold-cobalt resource with its 2019 drill program.
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