BMO Capital Markets on Wednesday reiterated its outperform rating on the shares of Silvercorp Metals (SVM.TO, SVM) while raising its price target to C$19.50 from an undisclosed prior level after the company agreed to take a majority stake in the Tulkubash and Kyzyltash gold projects in Kyrgyzstan.
"Silvercorp is acquiring a 70% stake in the Tulkubash and Kyzyltash gold projects in Kyrgyzstan from Chaarat Gold in an all-cash, $162M deal. The projects offer near-term development potential and a long production life, with a combined M&I gold resource of 4.4Moz and production as early as 2027/2028. While Kyrgyzstan is a historically risky mining jurisdiction, we are cautiously favourable on the acquisition given the strong economics and the alignment between SVM and the Kyrgyz government on the project. Our $493M project NAV raises our target to $19.50," analyst Kevin O'Halloran wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 16.63, Change: -0.23, Percent Change: -1.36
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