Trigon Metals Inc. (TM:TSX; PNTZF:OTCQB; TZU2:FRA) recently reported high-grade copper and silver intercepts from recent underground drilling near Shaft 1 at the Kombat mine in Namibia, according to an Atrium Research note.
Atrium Research analysts Ben Pirie and Nicholas Cortellucci, in a research report published on October 8, 2024, maintained a Buy rating on Trigon Metals Inc. (TM:TSX; PNTZF:OTCQB; TZU2:FRA) with a price target of CA$3.50. The report follows Trigon's announcement of high-grade copper and silver intercepts from recent underground drilling near Shaft 1 at the Kombat mine in Namibia.
Pirie and Cortellucci highlighted the significance of these results, stating, "The holes reported today lie close to existing workings and planned developments, allowing for easy integration into the mine plan." They emphasized the standout intercept, noting, "The highlight hole was hole KWO-217, which intersected 11.21% copper (Cu) and 117.9 grams per tonne silver (g/t Ag) over 5m."
The analysts viewed these results positively, commenting, "Today's release showcases the significant upside that this deposit hosts, especially with the high grades reported today being found so close to existing workings, making it easily integrated into the near-term mine plan."
Regarding Trigon's strategic positioning, the analysts stated, "As TM continues to dewater and explore from the underground, we expect more results like this to be reported, which should boost the mine's economics going forward." They also expressed excitement about future potential, noting, "Additionally, we are excited by the potential at the Asis Far West because we know grade increases with depth and this area lies ~750m below surface and remains mostly undrilled."
The report also highlighted Trigon's recent production milestone announcement from September 19, 2024, which the analysts believe "sets the Company up for more profitable quarters and increased production going forward."
While the report didn't provide detailed information on Trigon's capital structure, it noted that the company has a market capitalization of CA$38.0 million, with CA$1.6 million in cash and CA$9.2 million in debt.
Atrium Research's valuation methodology for Trigon Metals was not explicitly stated in the report excerpt. However, the CA$3.50 price target represents a significant potential return of 302% from the price at the time of the report of CA$0.87.
The analysts identified ongoing catalysts for Trigon, including:
1. Quarterly Production & Financial Results - Ongoing
2. Drill Results at Kombat & Expansion Drilling - Ongoing
In conclusion, Atrium Research's maintenance of a Buy rating and CA$3.50 price target reflects a positive outlook on Trigon Metals' potential in developing the Kombat mine, particularly based on the recent high-grade drilling results. The analysts' view suggests significant upside potential for investors if the company can successfully integrate these new findings into its mine plan and continue to deliver strong operational results.
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Disclosures for Atrium Research, Trigon Metals Inc., October 8, 2024
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