Original-Research: Eloro Resources Ltd. (von Sphene Capital GmbH): Buy
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Original-Research: Eloro Resources Ltd. - von Sphene Capital GmbH
Einstufung von Sphene Capital GmbH zu Eloro Resources Ltd.
Unternehmen: Eloro Resources Ltd.
ISIN: CA2899003008
Anlass der Studie: Update Report
Empfehlung: Buy
seit: 23.10.2023
Kursziel: CAD 12,70 (bisher CAD 16,20)
Kursziel auf Sicht von: 24 Monate
Letzte Ratingänderung:
Analyst: Peter Thilo Hasler
The importance of ore sorting and stripping ratios
After Eloro Resources published the initial mineral resource estimate (MRE)
for the Iska Iska silver-tin polymetallic project in the Bolivian Potosi
Department, the share price came under significant pressure. We believe
this was based on certain misconceptions specifically about the impact of
ore-sorting and the stripping ratio on the value of the Iska Iska project.
Ore-sorting, an innovative technology, should significantly increase
concentrator feed grades, so recovery in both the polymetallic and the tin
domain should rise significantly, allowing bulk mining techniques to be
used without resulting dilution issues. Coupled with a very low strip ratio
of 1:1, downstream processing costs will drop substantially, making Iska
Iska eventually a highly profitable mine, in our view. We reiterate our Buy
rating for the shares of Eloro Resources and calculate a fully diluted
share price target of CAD 12.70, derived from an in-situ net asset
valuation of Iska Iska's Santa Barbara Breccia Pipe. We highlight that the
current pullback in the company's share price is an interesting entry point
for long-term investors, in our view.
The most obvious reason for the share price development may have been the
"low" silver grades in the polymetallic domain that may have raised fears
that operating costs per tonne would not be covered. To investors
accustomed to silver values of 40 g/t and above, Eloro's reported grades of
13.6 g/t (inferred) may indeed appear to be a shortfall. However, this
single value does not reflect that much of Iska Iska's mineralization
occurs in veins and vein breccias. Thus ore-sorting should not only
substantially reduce operating costs by selectively removing waste
material, but also increase feed grades to the grinding circuit.
Sensor-based ore sorting works by selectively removing waste material. This
results in a major increase in grades of feed to the grinding circuit,
which (1) significantly reduces energy and operating costs and (2)
significantly increases the efficiency and life of a mining operation.
While ore-sorting does not work for all deposits (f. ex. Novagold recently
announced that ore-sorting was eliminated from its prestigious Donlin gold
project), at least 40% of the run-of-mine silver-zinc-lead (Ag-Zn-Pb)
polymetallic mineralization could be pre-rejected as waste at Iska Iska,
according to Tomra, a German based company and global leader in ore-sorting
technology. For the tin (Sn) domain, even up to 80% by weight could be
pre-rejected as sub-cut-off grade waste. Given the magnitude of Iska Iska's
potentially open pittable polymetallic and tin resource, we believe that
metallurgical and pyrometallurgical ore-enrichment will become a critical
success factor for Eloro.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/27929.pdf
Kontakt für Rückfragen
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de
-------------------übermittelt durch die EQS Group AG.-------------------
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
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