Friday, May 3, 2019

Coeur Mining (CDE)

Should Investors Count On A Better Second Half?

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. The company is involved on the discovery and mining of gold and silver, and generates the vast majority of revenue from the sale of these precious metals. The operating mines of company are palmarejo, rochester, wharf, and kensington.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• EBITDA in line with our estimate.  Coeur Mining reported adjusted EBITDA of $26.1 million versus $49.2 million during the first quarter of 2018 and our estimate of $26.0 million.  The company reported a first quarter adjusted loss of ($0.11) per share, compared to $0.00 during the prior year period and our estimate of ($0.07).
• Updating estimates.  We now forecast a 2019 loss of ($0.35) per share and EBITDA of $146.8 million versus our previous estimates of ($0.22) and $156.0 million.  In 2020, we project a loss of ($0.05) per share and EBITDA of $205.1 mill… 

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Friday, April 26, 2019

Coeur Mining (CDE)

Resetting Expectations: Will Our Estimates Prove To Be Conservative?

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. The company is involved on the discovery and mining of gold and silver, and generates the vast majority of revenue from the sale of these precious metals. The operating mines of company are palmarejo, rochester, wharf, and kensington.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• Updating estimates.  We are lowering our 2019 EPS and EBITDA estimates to
  ($0.22) and $156.0 million, from $0.11 and $160.4 million, respectively. 
  We have revised our estimates to reflect significantly higher non-cash
  amortization expense and increased our 2019 revenue estimates based on greater
  metal sales.
• We expect steady improvement.  We believe the Coeur’s financial results could improve
  throughout the year as Silvertip production continues to ramp up, the Rochester
  mine benefits from the installation of high-pressure grinding roll technology
  to improve recoveries, and the Kensi… 

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Tuesday, April 23, 2019

Aurania Resources Ltd. (ARU:CA)

Will A New Chief Financial Officer and Loan Commitment Increase Momentum?

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Aurania appoints new Chief Financial Officer.  Aurania appointed
  Mr. Tony Wood as Chief Financial Officer.  Mr. Wood has completed ~$1
  billion in financing and M&A transactions in the mining industry.  Mr.
  Wood has been consulting for the company on a part-time basis since January
  2019.  Mr. Wood earned a B.Sc. degree from the University of Lancaster,
  United Kingdom (U.K), and is a qualified Chartered Accountant in the U.K. and
  Canada.  We believe Mr. Wood’s experience will enhance the company’s
  strategic development and fundraising capabilities. 
• New loan commitment enhances financial flexibility.  Aurania also announced a
  loan agreement with Dr. Keith Barron, Aurania’s Chairman and CEO, providing up
  to US$3,000,000 in financing.  In our view, the new loan commitment
  provides financial flexibility to expand and/or accelerate the comp…
  

  
  
  
  
  

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Should the U.S. Uranium Industry Be Rescued?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)

On April 14, 2019, the U.S. Department of Commerce (DOC) submitted a report to the White House on their investigation into the impacts of uranium imports on U.S. national security.  The President has up to 90 days from April 14 to act on the DOC’s recommendations.  While the report remains confidential, supporters and foes of trade sanctions that could protect the U.S. uranium industry from imports of uranium await the outcome.  Should trade actions be taken to protect the U.S. uranium industry from imports?

Wednesday, April 17, 2019

Sierra Metals (SMTS)

How Does The Worker Strike Affect 2019 Production Expectations?

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico.  

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• SMTS reports first quarter production results.  Compared with the prior year period, first quarter
  production of silver increased 16.3% to 691 thousand ounces, lead production
  increased 10.2% to 6.9 million pounds and gold production increased 1.7% to
  1,986 ounces.  Copper and zinc production declined 4.4% and 9.8% to 7.7
  million and 16.4 million pounds, respectively.  Compared to the fourth
  quarter of 2018, production of copper, lead, gold, zinc and silver fell 13.4%,
  12.5%, 7.1%, 6.4% and 1.4%, respectively.  The Yauricocha mine experienced
  a 14% reduction in throughput during the first quarter due to a worker’s strike
  that resulted in 12 days of lost production.  Management has maintained
  its 2019 production guidance range and we think there may be opportunities to
  gain lost ground throughout the remainder of the year.
• Updating estimates.  While we are making no changes to our 2020 EPS or
  EBITDA estimates, we are trimming our 2019 EPS and EBITDA estimates to $0.19
  and $101.2 million from $0.20 and $103.9 million, respectively.  Our 2019
  revi…
  

  
  
  
  
  

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Wednesday, April 17, 2019

Avino Silver & Gold Mines Ltd. (ASM)

Bralorne Exploration Provides Some Reasons for Optimism.

Avino Silver & Gold Mines Ltd. engages in the acquisition, exploration, development, production, and sale of mineral properties in Canada and Mexico. It primarily explores for gold, silver, copper, zinc, and lead deposits.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• ASM reports first quarter 2019 production results.  Avino Silver & Gold Mines Ltd. reported first
  quarter production of 615,019 silver equivalent ounces representing a 6.4%
  decline versus the prior year period and a 14.6% decrease relative to the
  fourth quarter of 2018.  First quarter production results were negatively
  impacted by lower grades, declining recoveries at the San Gonzalo mine and
  seven days of lost production while upgrades to the crushing circuit were
  completed at the Avino mill. 
• Updating estimates.  Based on modestly lower than expected first quarter
  production, we are reducing our full year 2019 EPS and EBITDA estimates to
  $0.06 and $10.6 million from $0.07 and $11.8 million, respectively.  Our
  2020 estimates have been lowered to $0.09 and $13.5 million from $0.10 and
  $14.5 million, respec…
  

  
  
  
  
  

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Monday, April 15, 2019

Endeavour Silver Corporation (EXK)

Waiting for the Turnaround at Guanacevi.

Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• EXK reports first quarter
  production results.  Compared to the prior year period, first quarter silver and
  gold production declined 20.7% and 23.9% to 1,071,355 ounces and 10,055 ounces,
  respectively.  The decline was attributed to lower silver grades at the
  Guanacevi mine and anticipated production declines at the Bolanitos and El Cubo
  mines.  Compared to the fourth quarter of 2018, first quarter silver and
  gold production declined 22.7% and 23.3%, respectively.
• Updating estimates.  While our 2020 estimates are unchanged, we are
  lowering our 2019 EPS and EBITDA estimates to $0.04 and $36.6 million from
  $0.05 and $40.1 million, respectively.  Our… 

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Monday, April 15, 2019

Coeur Mining (CDE)

What Will It Take To Turn The Tide?

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. The company is involved on the discovery and mining of gold and silver, and generates the vast majority of revenue from the sale of these precious metals. The operating mines of company are palmarejo, rochester, wharf, and kensington.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• CDE reports first quarter
  2019 production results.  Coeur Mining reported lower than expected first
  quarter production of 78,336 ounces of gold, 2.5 million ounces of silver, 3.7
  million pounds of zinc and 3.1 million pounds of lead.  While management
  indicated that first quarter production met their expectations and maintained
  full year 2019 production guidance, the company may have some catching up to do
  in subsequent quarters.   
• Adjusting estimates.  We are lowering our first quarter estimate to roughly
  break-even per share, compared to our prior estimate of $0.02 per share. 
  Our full year 2019 EPS and EBITDA estimates have been lowered to $0.11 and
  $160.4 million, from $0.15 and $183.3 million.  We have also reduced our
  2020 EPS and EBI… 

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Thursday, April 11, 2019

Great Panther Silver (GPL)

What Was Behind Lower Than Expected Production Results?

Great Panther Silver Ltd is a precious metals mining and exploration company. It owns two mines Topia and Guanajuato Mine Complex (GMC). The Topia operations produce silver, gold, lead, and zinc whereas the GMC operation produces silver and gold.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• GPL reports first quarter production results.  In aggregate, first quarter production increased 6.7%
  to 14,860 gold equivalent ounces versus the prior year period and increased
  24.9% compared to the fourth quarter of 2018.  First quarter production
  was negatively impacted by lower production at the San Ignacio mine due to
  variability in vein widths and lower throughput at the mill that serves the
  Tucano mine.  Management expects to provide updated 2019 consolidated
  guidance when it reports first quarter 2019 financial results.
• Adjusting estimates.  Based on lower than expected production, we now
  forecast a first quarter loss of ($0.02) per share versus our prior estimate of
  ($0.01).  Our full year earnings 2019 earnings per share and EBI… 

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Wednesday, April 10, 2019

Aurania Resources Ltd. (ARU:CA)

Kirus Target Shows Its Colors.

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Another promising
  copper target.  High-grade copper and silver have been discovered in an
  area measuring 6 kilometers by 3 kilometers in the Kirus copper target
  area.  Exploration identified boulders in streams containing up to 11.9%
  copper with 166 grams per tonne of silver.  Follow-up exploration led to
  the discovery of outcrop with grades of up to 5.1% copper and 70 grams per
  tonne of silver.  This follows last week’s announcement by the company that
  high-grade copper and silver had been discovered at the Tsenken target, located
  ~6 kilometers from the Kirus target.
• More evidence
  supporting a cluster of copper porphyrys.  Both Tsenken and Kirus contain high-grade copper and
  silver in sedimentary rocks.  What is unique about these sediment-hosted
  targets is that they exhibit flat-lying copper and silver-bearing rock which
  would be relatively easy to drill.  However, both exhibit evidence of
  po…
  

  
  
  
  
  

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Wednesday, April 3, 2019

Aurania Resources Ltd. (ARU:CA)

Scratching the Surface?

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Tsenken evolves into a high-potential copper target.  High-grade copper and silver have been discovered over
  a nine-kilometer trend.  Recent grab samples from boulders in streams
  contain up to 7% copper with 70 grams per tonne of silver.  Recall that in
  January, Aurania reported that grab samples of rock in streams draining from
  the Tsenken-A porphyry target contained up to 9% copper with 185 grams per
  tonne of silver over three kilometers.
• Evidence points to a cluster of
  copper porphyrys.  Recent work appears to corroborate management’s earlier
  belief that rather than being one very large target area, Tsenken may be a
  cluster of porphyry bodies.  Rather than having one potential source of
  copper at Tsen…
  

  
  
  
  
  

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Wednesday, April 3, 2019

Prize Mining (PRZ:CA)

More To The Deal Than Meets the Eye.

Prize Mining Corp is a Canada based resource exploration company. It is primarily engaged in the business activity of acquiring and exploring resource properties in Canada. All the operations of the company are carried out in Canada. The organization is focused on Kena and Daylight Gold project which is located in the Nelson area of British Columbia, Canada. 

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• Prize announces option
  agreement to acquire gold properties.  Prize Mining announced a performance-based option
  agreement with Denton Resources Inc., a private corporation, to acquire a 100%
  interest in 62 mineral claims comprising the Carscallan property near the town
  of Cochrane in northeastern Ontario, Canada.  The option agreement is
  contingent on approval by the TSX Venture Exchange (TSX-V).
• Performance-based
  payments require little up-front capital.  The option agreement requires little up-front capital and
  Prize has the option to move forward based on key predictors of success. 
  The initial capital out…
  

  
  
  
  
  

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Monday, April 1, 2019

Sierra Metals (SMTS)

What will drive expansion in 2019?

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. 

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.  

• Full year earnings modestly lower than expected.  Sierra Metals reported a fourth quarter loss of
  ($0.01) per share and full year earnings of $0.12 per share, compared to our
  respective per share estimates of $0.02 and $0.15.  The variance to our
  estimates was largely attributed to higher fourth quarter expenses, including
  taxes.  Fourth quarter and full year EBITDA were $15.3 million and $89.8
  million.
• Near-term expansions on the horizon.  Production capacity at Yauricocha is expected to
  increase from 3,150 tonnes per day to 3,600 tonnes per day in 2020, while
  capacity at Bolivar is expected to increase from 3,600 tonnes per day to 4,200
  tonnes per day by the fourth quarter of 2019.  Capacity at Cusi is
  expected to increase fro…
  

  
  
  
  
  

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