Analyst Ben Pirie of Atrium Research maintained a Buy rating on Spanish Mountain Gold, with a price target of C$0.40.
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Ben Pirie has given his Buy rating due to a combination of factors surrounding Spanish Mountain Gold’s strategic initiatives and promising economic indicators. The company has announced an extensive drilling program, aiming to explore high-grade extensions across multiple zones within its Spanish Mountain Gold Project. This initiative is a continuation of previous drilling efforts that have already demonstrated significant growth potential in several key areas.
Moreover, the updated Preliminary Economic Assessment (PEA) highlights a robust after-tax Net Present Value (NPV) of $1.03 billion and an Internal Rate of Return (IRR) of 18% at a conservative gold price, indicating strong economic viability. The drilling program is also designed to support a potential construction decision by 2027, with efforts to enhance gold grade through ore-sorting studies and de-risk infrastructure sites. These strategic moves underpin the Buy rating, reflecting confidence in the project’s advancement and future profitability.
Pirie covers the Basic Materials sector, focusing on stocks such as Forge Resources, Omai Gold Mines, and Copper Fox Metals. According to TipRanks, Pirie has an average return of 55.2% and a 64.44% success rate on recommended stocks.