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Monday, Feb 26, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Calibre Mining’s Nicaragua operations will fuel company growth on all fronts: PI Financial

The company beat the financial firm’s production predictions and had a cash balance US$11 million higher than PI expected

Calibre's Nicaragua operations will fuel company growth on all fronts: PI Financial
Nicaragua, May 29, 2023. Photo via Calibre Mining

The mining infrastructure in Nicaragua established by Calibre Mining (TSX: CXB) (OTCQX: CXBMF) will continue to fuel the company’s growth on all fronts, according to a recent report published by analysts’ from the firm PI Financial.

Image via PI Financial

Analysts’ Justin Stevens and Matt Taylor say that Calibre significantly exceeded their production expectations in Q3 this year, particularly in Nicaragua where the company generated 8,200 more gold ounces than expected. The firm has given Calibre a share target price of $2.20 within the next year.

The analysts’ said their $2.20 target for Calibre’s stock was derived by apply a 50/50 weighting on a 0.9x net asset value (NAV) estimate combined with a 5x next twelve months (NTM) cash flow per share (CFPS) estimate, with corporate adjustments carried at par.

They say their target price implies a 1.0x Adj. price to net asset value ratio (P/NAV) multiple, which they feel is justified given Calibre’s exploration and operational upside potential.

Calibre’s cash balance was also US$11 million higher than predicted at the end of the quarter with a robust US$97 million in hand for the mining company. The analysts’ have given Calibre a resounding BUY rating.

Read more: Calibre Mining outshines expectations with robust Q3 gold production: BMO Capital Markets

Read more: Calibre Mining to achieve high-end gold production guidance by end of 2023: TD Securities

Calibre Mining: an attractive investment and growth stock

Calibre’s share price has steadily risen by over 88 per cent in the past year and is currently trading for $1.47 on the Toronto Stock Exchange. The company has a market capitalization of $586 million.

Similar to PI Financial’s prediction, analysts’ from other banking institutions including the Bank of Montreal Financial Group (TSE: BMO), Toronto-Dominion Bank (TSX: TD), the Bank of Nova Scotia (TSX: BNS) and Cormark Securities have all predicted that Calibre’s share price will be worth between $2.00 and $2.50 within the next 12 months.

“With a steady stream of positive exploration results, we expect the company to continue to grow its resource and reserve base while increasing production, primarily driven by the use of its remaining milling capacity at the Libertad mill, with potential for increased production at the Pan operation in future years through an expansion of leaching facilities if exploration success continues,” said the analysts’ in the report.

PI Financial and Cormark Securities both agreed that Calibre had excellent near-mine exploration targets at its operations in their recent assessments, which will help propel the company’s growth in the future.

 

Calibre Mining is a sponsor of Mugglehead news coverage

 

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