H.C. Wainwright analyst Heiko Ihle maintained a Buy rating on Solitario Exploration & Royalty (NYSE: XPL) today and set a price target of $1. The company’s shares closed yesterday at $0.44, close to its 52-week low of $0.39.
Ihle wrote:
“We note that Nexa has the option to earn up to a 70% interest in the project by funding all project expenses and committing to bring the project into production, following a positive PFS. Nexa has also agreed to fund Solitario’s portion of construction expenses through a loan once the 70% ownership is reached. The planned drill program is estimated to cost $5.3M and is expected to be jointly funded on a 70-30 basis between Nexa and Solitario. That said, funds provided by Solitario are to be credited against the expected construction loan facility provided by Nexa following a positive future production decision. In our view, the JV agreement reduces some of the risks for Solitario shareholders given that Nexa could fund remaining project expenses and Solitario’s portion of initial capital (via a loan) in exchange for 9% of the project.”
According to TipRanks.com, Ihle is a 4-star analyst with an average return of 8.9% and a 50.0% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Americas Silver Corporation, Golden Star Resources Ltd, and Northern Dynasty Minerals.
Solitario Exploration & Royalty has an analyst consensus of Moderate Buy, with a price target consensus of $1.
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Based on Solitario Exploration & Royalty’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $1 million. In comparison, last year the company had a GAAP net loss of $13K.
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Solitario Zinc Corp. is an exploration company, which engages in mineral exploration. It focuses on acquisition of precious and base metal properties with exploration potential, and the purchase of royalty interests. The company was founded on November 15, 1984 and is headquartered in Wheat Ridge, CO.
