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Original-Research: Eloro Resources Ltd. - from Sphene Capital GmbH
12.03.2025 / 08:46 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.
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Classification of Sphene Capital GmbH to Eloro Resources Ltd.
Company Name: Eloro Resources Ltd.
ISIN: CA2899003008
Reason for the research: Update Report
Recommendation: Buy
from: 12.03.2025
Target price: CAD 12.50 (previously CAD 12.40)
Target price on sight of: 24 months
Last rating change: -
Analyst: Peter Thilo Hasler
Significant silver grades intersected with 962 g/t over 9.75 m
Hole DSB-75 yielded the highest-grade and longest silver intersection
recorded by Eloro Resources to date in the definition drill program within
the potential Santa Barbara starter pit area of the Iska Iska silver-tin
polymetallic project in Bolivia. The drill hole returned 135 meters grading
151.47 g/t Ag (from 174 m to 309 m) within a broader 309-meter section
averaging 90.92 g/t Ag (from 174 m to 483 m). Notably, the high-grade
interval in hole DSB-75 includes 9.75 m at 962.23 g/t Ag within a wider
34.50-meter zone grading 440.09 g/t Ag.
This indicates that as definition drilling has expanded to cover a larger
area in Santa Barbara, the concentration of high-grade silver values
exceeding 50 g/t Ag has increased significantly. Additionally, the drilling
data suggest that high-grade silver mineralization is likely quite extensive
and that Iska Iska has strong potential for open-pit mining, which, in our
view, could enable more economically attractive extraction.
We reiterate our Buy rating and raise our price target to CAD 12.50 from CAD
12.40 per share, adjusted for a higher number of shares and a more
favourable USD/CAD exchange rate, representing a significant upside from the
current share price of CAD 0.86. Our price target is based on the in-situ
valuation of the Santa Barbara Breccia Pipe within the Iska Iska property in
Bolivia, while fully excluding all other assets. Focusing on the
higher-grade mineral resource, we estimate a net asset value (NAV) of USD
1,236 million. Applying a 0.70x multiple to our NAVPS estimate, we arrive at
a target price of CAD 12.50 per share, indicating a potential 1,273.6%
increase relative to the latest share price of CAD 0.91. We view the
pullback in the company's share price as an attractive entry opportunity for
long-term investors, driven in part by erratic analyst downgrades and
misunderstandings regarding the intrinsic value of the Iska Iska project.
Additionally, we emphasize that our price target could rise further once the
recently reported higher tin and silver grades are incorporated into the
planned PEA. Additionally, given the fundamental undervaluation of the
stock, we consider Eloro Resources a potential takeover candidate.
You can download the research here: http://www.more-ir.de/d/31950.pdf
Contact for questions:
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de
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2099128 12.03.2025 CET/CEST
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