Currency in USD
Last close As at 09/06/2023
USD15.60
▲ 0.25 (1.63%)
Market capitalisation
USD5,685m
Research: Metals & Mining
Pan American Silver (PAAS) has announced the results of additional infill and exploration drilling at the La Colorada Skarn project. The latest data are based on 22 new drill holes totalling c 18,000m and contain a number of high-grade intercepts, providing a further indication of the project’s scale and potential. The company plans to release an update on the project’s mineral resource estimate in Q322.
Pan American Silver |
Positive drill results at La Colorada Skarn |
Drilling results update |
Metals and mining |
25 July 2022 |
Share price performance Business description
Analyst
Pan American Silver is a research client of Edison Investment Research Limited |
Pan American Silver (PAAS) has announced the results of additional infill and exploration drilling at the La Colorada Skarn project. The latest data are based on 22 new drill holes totalling c 18,000m and contain a number of high-grade intercepts, providing a further indication of the project’s scale and potential. The company plans to release an update on the project’s mineral resource estimate in Q322.
Year end |
Revenue (US$m) |
EBITDA |
EPS* |
DPS |
P/E |
Yield |
12/20 |
1,338.8 |
469.1 |
0.57 |
0.22 |
33.0 |
1.2 |
12/21 |
1,632.8 |
593.2 |
0.60 |
0.34 |
31.3 |
1.8 |
12/22e |
1,710.5 |
564.7 |
0.68 |
0.48 |
27.6 |
2.6 |
12/23e |
1,629.9 |
580.4 |
0.81 |
0.64 |
23.2 |
3.6 |
Note: *EPS is normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
At La Colorada Skarn, PAAS reported the results for 22 new infill and step-out drill holes totalling approximately 18,000m. The latest data show a number of wide and high-grade intercepts and build on the earlier positive exploration results, with over 200,000m drilled on the project to date. In particular, one of the infill drill holes in the western part of the deposit was reported to contain an extensive zone of high-grade silver and base metals mineralisation with an intercept of 296m at 234g/t of Ag, including 97m at 654g/t of Ag. The company plans to provide an update on the project’s mineral resource estimate in Q322, however the latest drill results will not be included as they were obtained after the cut-off date. As at 30 June 2021, La Colorada Skarn had 141Moz of contained silver at 44g/t in the inferred category. As our valuation of the project is based on the resource multiple, we will update it following the release of the latest mineral resource data.
In other news, PAAS has recently announced that it will report its Q222 financial results on 10 August after the market close. While the commodity prices remained at relatively favourable levels during the quarter, the key focus of the release will be on the cost performance and the pace of the production recovery at the flagship La Colorada project. We will update our estimate and the valuation of the company following the planned release of the results.
|
|
Research: Healthcare
Oryzon Genomics has reported results for H122 and highlighted the progress of key assets iadademstat and vafidemstat during the period. It reported combined R&D grants of US$7.48m in H122. Total operating expenses amounted to US$10.90m (R&D expense US$8.12m), an 11% increase from H121 of US$9.78m (R&D US$7.26m). Expenses were largely due to costs associated with the clinical trial programme for iadademstat in acute myeloid leukaemia (AML) and vafidemstat in various central nervous system indications. Gross cash at end-H122 was US$23.60m. At the reported H122 burn rate of US$6.92m (capex including capitalised intangibles of US$5.35k plus cash loss from operations of US$1.57m), we estimate a cash runway to Q225, past key clinical readouts. As Oryzon’s H122 results are in line with our estimates, our forecasts are unchanged. We value the company at €802m, or €15.1/share.
Get access to the very latest content matched to your personal investment style.