In a Jan. 17 research note, analyst Jake Sekelsky reported that ROTH Capital Partners raised its price target on SilverCrest Metals Inc. (SIL:TSX.V) to $7.75 per share from $7.25. The current share price is $6.85. "Our increased valuation is primarily a reflection of rolling our model forward to 2020, coupled with the inclusion of the company's financing announced in Q4/19," he added.
Sekelsky noted that SilverCrest will be announcing in Q1/20 results from several hundred holes drilled at the Las Chispas property in 2019. It will include all results available through the end of Q1/20 into the upcoming feasibility study. After, it will likely shift focus "from infill drilling for the feasibility study to expansionary drilling at various targets across the company's land package," he added.
The analyst highlighted that with C$124 million in its treasury, SilverCrest is well funded for both exploration and development work this year. Its financial position also portends a positive production decision, expected around mid-2020. Accordingly, production could begin as soon as late 2021 but more conservatively in Q1/22.
Sekelsky commented, "2019 featured significant exploration success culminating in the establishment of what we view as a significant resource estimate at Las Chispas, which outlined over 100 million high-grade AgEq ounces. Despite this, we believe the surface has just been scratched as Las Chispas and expected 2020 to serve as a transformational year."
ROTH has a Buy rating on SilverCrest.[NLINSERT]
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Disclosures from ROTH Capital Partners, SilverCrest Metals, Company Note, January 17, 2020
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.
Within the last twelve months, ROTH has received compensation for investment banking services from SilverCrest Metals.
ROTH makes a market in shares of SilverCrest Metals and as such, buys and sells from customers on a principal basis.
Shares of SilverCrest Metals 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 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.