Altaley Mining Corporation (TSX-V:ATLY) is on track to return revenues of US$190 million and net earnings of US$63 million, or US$0.23 per share, in 2022 as production at its two Mexican projects ramps up, according to broker Couloir Capital who has initiated coverage on the junior company with a ‘Buy’ rating.
Couloir analysts also provided a fair value estimate of CAD$0.93 per share. The company’s shares currently trade at about C$0.21.
Analysts noted that production at Altaley’s Campo Morrado mine in Guerrero was increasing towards forecast levels as disruptions arising from prior shutdowns were resolved, with potential efficiency gains to be made at the site.
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”The ore at Campo Morado has a significant content of refractory precious metals and increased recovery could have an outsize impact on mine revenues,” they wrote.
Further, analysts noted that production would be significantly boosted as the company’s Tahuehueto mine in Durango comes online in the coming months.
“At current, we forecast production in 2022 of 32,300 gold ounces and 64 million pounds of zinc, arising from production at Campo Morado and Tahuehueto,” analysts wrote.
Altaley Mining is a Canada-based junior resource company with two Mexican gold, silver, and base metals mining projects.
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