H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on McEwen Mining today and set a price target of $21.50.
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Heiko Ihle has given his Buy rating due to a combination of factors surrounding McEwen Mining’s Los Azules copper project. The recently released Feasibility Study highlights a promising post-tax NPV of $2.9 billion with an Internal Rate of Return of 19.8% and a payback period of 3.9 years. The project is expected to have a 21-year mine life, producing an average of 204,800 tonnes annually in the initial years, which underscores its long-term potential. Additionally, the project is designed to be environmentally sustainable, utilizing 100% renewable power and significantly reducing water consumption compared to conventional mining methods.
Despite high initial capital costs, Ihle views financing as a manageable challenge, particularly given the strong interest from the Argentinian government due to the project’s low-cost and low-impact operations. Furthermore, McEwen Mining has several growth opportunities not included in the Feasibility Study, such as the potential use of Nuton’s bio-heap leaching technology, which could enhance ore processing and recovery rates. Ongoing exploration efforts around Los Azules also suggest the possibility of extending the project’s life and expanding its size, adding to the positive outlook for McEwen Mining.
In another report released on October 8, Roth MKM also reiterated a Buy rating on the stock with a $23.00 price target.