China chip stocks rally on self-reliance bets, Nvidia scrutiny
On Monday, H.C. Wainwright initiated coverage on shares of Solaris Resources Inc. (NYSE:SLSR) with a Buy rating and set a price target of $10.00. The firm highlighted Solaris' progress on its Warintza copper and gold project located in southeastern Ecuador, emphasizing the company's successful drilling and risk mitigation efforts over the past years.
The updated Mineral Resource Estimate (MRE) for the Warintza project was released on July 22, 2024, revealing significant Measured and Indicated (M&I) Mineral Resources. The M&I resources were calculated at 909 million tonnes at a grade of 0.53% Copper Equivalent (CuEq), based on 0.37% copper, 0.02% molybdenum, and 0.05 grams per tonne gold. Additionally, Inferred Mineral Resources were estimated at 1.4 billion tonnes at 0.37% CuEq.
The firm also noted the detailed metallurgical test work that has been conducted, yielding high recovery expectations for the extracted metals. The expected recovery rates are 90% for copper, 85% for molybdenum, and 70% for gold, which are promising figures for the project's potential output.
Looking forward, Solaris Resources has planned extensive mineral resource drilling for the second half of 2024. The company intends to drill over 30,000 meters to explore open extensions and to upgrade mineral resources. This drilling is part of the preparatory work for the Pre-Feasibility Study (PFS), which is slated for release in the second half of 2025.
InvestingPro Insights
As Solaris Resources Inc. (NYSE:SLSR) garners a Buy rating from H.C. Wainwright with a robust price target, it's essential to look at the company's financial health and market performance for a comprehensive view. According to InvestingPro data, Solaris Resources holds a market capitalization of $367.78 million, though it's currently trading at a high Price/Book multiple of 14.07. This valuation metric suggests that the market may have high expectations for the company's asset value or future growth.
Despite the promising project updates, InvestingPro Tips indicate that Solaris Resources is not expected to be profitable this year, with analysts anticipating weak gross profit margins. Additionally, the company's stock has experienced a significant decline over the last three months, with a total price return of -40.48%. These factors are crucial for investors to consider when evaluating the company's near-term prospects.
However, Solaris Resources does have some financial strengths. The company holds more cash than debt on its balance sheet, which is a positive sign of liquidity. Furthermore, its liquid assets exceed short-term obligations, providing some financial flexibility as it continues to invest in its Warintza project. Investors seeking more insights can find additional InvestingPro Tips for Solaris Resources at https://www.investing.com/pro/SLSR, which could provide further guidance on the stock's potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.