In a June 7 research note, analyst Joe Reagor reported that ROTH Capital Partners increased its target price on New Pacific Metals Corp. (NUAG:TSX.V; NUPMF:OTCQX) to CA$3.50 per share from CA$3 on news of positive, high-grade drill results out of Silver Sand in Bolivia. The stock is currently trading at around CA$2.02 per share.
Earlier in the week, New Pacific announced the results of the first eight holes, infill holes, from its 2019 drill program at Silver Sand, and they confirmed "the grade and thickness of the deposit," Reagor indicated.
The highlight intercept was 169 grams per ton (169 g/t) of silver over 144.2 meters (144.2m). The average total intercept of the holes was 95.4 m per hole with an average grade of 114.7 g/t silver. "The holes showed better grades and thickness than the averages we saw in the 195 holes last year," Reagor commented.
Upcoming catalysts for New Pacific Metals include the release of additional results, which are expected throughout the year, but the most significant one, according to Reagor, is release of an initial resource estimate due out later in 2019. "We expect to see the company's share price rise significantly over the remainder of the year as it provides a steady flow of results," the analyst noted, adding that the recent increase in precious metals prices could help buoy the stock at a higher level.
ROTH has a Buy rating on New Pacific Metals.[NLINSERT]
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Disclosures from ROTH Capital Partners, New Pacific Metals Corp., Company Note, June 7, 2019
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
An Associated Person owns debt or equity securities of New Pacific Metals Corp.
Shares of New Pacific Metals Corp. and Silvercorp Metals Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH makes a market in shares of Silvercorp Metals Inc. and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.