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On Friday, Stifel Canada initiated coverage on Meridian Mining UK Societas (MNO:CN) with a Buy rating and set a price target of C$2.00 per share. The firm’s analysts highlighted the significant potential they see in the company, emphasizing its low-cost, buildable open pit project and its substantial exploration upside.
According to Stifel, Meridian Mining is currently trading at an attractive valuation, specifically 0.20 times the spot price to net asset value (P/NAV) ratio for its volcanogenic massive sulphide (VMS) project. This valuation is seen before even considering the potential of the company’s belt scale geology, which the analysts believe could be a game-changer for the company.
The analysts expressed their enthusiasm for Meridian Mining’s approach, which combines a nimble mine build with the potential for significant exploration across an underexplored belt. This combination, they argue, could lead to a transformational period for the company if historical precedents are any indication.
Meridian’s flagship Cabaçal deposit is seen as a critical asset, potentially serving as an initial hub that could link future exploration sites across a large land package. This area is now being actively targeted by Meridian for further exploration. Stifel’s analysts are optimistic about the company’s near-term prospects, noting that a series of potential catalysts could trigger a re-rating of the stock, which they believe is currently heavily discounted.
The analysts concluded their remarks by pointing to the considerable upside potential for Meridian Mining, given the firm’s valuation estimate of just 0.20x on a spot P/NAV basis. They anticipate that the company’s shares could begin to see significant appreciation as these near-term catalysts come into play.
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