PMY Broker & Media News, page-3

EUROZ Quick Comment "It continues to screen cheaply for a potentially long life project, with excellent margins and ‘doable’ capital requirement. (sic) V

Pacifio Minerals Ltd (PMY $0.007) Speculative Buy Analyst Date Price Target Andrew Clayton 2/6/20 $0.025/sh Sorby Hills Resource upgrade Key Points ·20% increase in Measured and Indicated Resource to 20.8mt @ 4.9% Pbeq (3.6% Pb, 40 g/t Ag), up from 16.6mt @ 5.1% Pbeq. This includes a maiden Measured resource of 7.1mt @ 6.1% Pbeq (4.3% Pb, 0.4% Zn). ·Global resource has from 36mt @ 5% Pbeq to 44.1mt @ 4.5% Pbeq. With a 9% increase in contained Pb. ·Contained silver has increased by 19% to 54.8moz including a 28% increase in the M&I category (26.8moz). ·Optimised PFS to include new pit optimisations using the upgraded resource classifications. This will allow conversion of a significant portion of the M&I resource to Probable and Proven reserves and the new interpretations has resulted in a simpler ore body geometry which is more continuous. ·Optimised PFS is now due in July’20 to allow for inclusion of this new resource. Investment Case With 20mt of M&I resource we would envisage a significant portion of this resource will convert to reserves with PMY already flagging a 50% increase in plant t’put to 1.5mtpa. A >8yr mine life would be an excellent result (minimum of 12mt of reserve). As previously flagged the Dense Media Separation is the most likely processing route, increasing annual Pb and Ag production to >60kt and 1.8moz Ag pa. The biggest unknown is the capital costs which will increase due to the plant size but we would be hopeful this would be no more than 25% higher than the original $95m estimate. Notwithstanding, the NPV should show a significant increase on a like for like basis. We continue to like the project and whilst longer tern finding will remain a key issues, potential NAIF funding and lack of base metal development projects in Tier 1 jurisdictions augers well that this hurdle can be overcome. We maintain our Spec Buy and $0.025/valuation and PT which remains heavily risk adjusted. It continues to screen cheaply for a potentially long life project, with excellent margins and ‘doable’ capital require
Pacifico Minerals Ltd (PMY) Share Price 0.007 A$/sh Price Target 0.025 A$/sh Valuation 0.025 A$/sh Shares on issue 2,888 m(dil) Market Capitalisation 20 A$m	Enterprise Value 18 A$m Debt Nil A$m Cash 2 A$m Largest Shareholder Villers QLD 12%
Euroz Securities Limited Stockbrokers Participant of the ASX Group Authorised to provide financial services ACN 089 314 983 AFSL 243302 Disclaimers Important Disclaimers apply to this Quick Comment report - Please go to the link below and ensure that you’ve read and understood the Disclaimers. If you have any questions about these Disclaimers please speak to your adviser. Link to Quick Comment Disclaimers