ELORO RESOURCES WKN: A12C1E ISIN: CA2899003008 Kürzel: ELO Forum: Aktien Thema: Hauptdiskussion

We initiate research coverage of Eloro Resources with a Buy rating and a fully diluted price target of CAD 15.80 per share,representing 314.7% upside from the current share price. Our price target is derived from the in-situ valuation of the SantaBarbara Breccia Pipe of its property Iska Iska in Bolivia, for which we calculated a NAV estimate of CAD 1,476.5 million. We applied a 0.8x multiple to our net asset value per share estimate to arrive at our target price of CAD 15.80 per share. Other assets (above all La Victoria in Peru) were not included in our valuation. We like to highlight that the current pullback in the company’s stock price (during its recent financing rounds), could be an interesting entry point for investors, as Eloro Resources is now ideally positioned, in our view, to aggressively advance its current portfolio of development projects. Should the company be able to make a discovery and eventually delineate a mineral resource at Iska Iska, we believe the share price could quickly re-rate towards our price target.