Gold prices near 3-week lows as stronger dollar, trade progress weigh
On Wednesday, Stifel Canada expressed a positive outlook on Calibre Mining Corp (TSX:CXB:CN) (OTC: CXBMF), as analyst Ingrid Rico reaffirmed a Buy rating alongside a Cdn$4.00 price target. The optimism follows Calibre Mining’s announcement of achieving one million ounces of gold production in Nicaragua since its 2019 acquisition. Additionally, the company’s maiden inferred resource estimate at Talavera, which indicated 630,000 ounces at 5.09 grams per tonne of gold, was highlighted as a significant development.
The company’s recent update showcases its effective strategy of leveraging nearby satellite deposits to extend the life of its mines in Nicaragua. According to Stifel, the reserve mine life for the Nicaraguan operations is approximately five years. However, their projections show potential for production to continue into the mid-2030s, supported by consistent reserve replacement and the addition of new ounces to the resource inventory.
Looking forward, Stifel anticipates that Calibre Mining’s valuation multiples will expand as the Valentine project progresses towards its expected initial production in the second quarter of 2025. The firm also noted that Calibre Mining currently trades at a Spot Price to Net Asset Value (P/NAV) of 0.37 times, which is below the peer average of approximately 0.5 times. This, coupled with an attractive three-year forward Free Cash Flow yield of around 20%, underpins the firm’s positive assessment of Calibre Mining’s stock.
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