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Denarius Metals Corp ( (TSE:DMET) ) has issued an update.
Denarius Metals has released a positive Preliminary Economic Assessment for its fully owned Zancudo Project in Colombia, centered on the historic underground Independencia Mine near Medellin. The study, based on an updated mineral resource estimate, outlines indicated resources of 217,000 ounces of gold and 2.7 million ounces of silver, plus inferred resources of 832,000 ounces of gold and 12.5 million ounces of silver.
The PEA envisions an 11-year mine life processing 3.3 million tonnes of ore to produce about 466,000 payable ounces of gold and 2.2 million payable ounces of silver, generating roughly $2.0 billion in revenue and $723 million in pre-tax gross profit at long-term gold and silver prices of $4,000 and $50 per ounce. With remaining initial capex of $11 million, an after-tax NPV of $324 million at a 5% discount rate, a 558% after-tax IRR and a one-year payback, the project significantly strengthens Denarius Metals’ production profile and cash flow outlook, while the deposit’s open extensions and a new 15,000-metre drilling campaign point to further potential upside for stakeholders.
The most recent analyst rating on (TSE:DMET) stock is a Sell with a C$0.55 price target. To see the full list of analyst forecasts on Denarius Metals Corp stock, see the TSE:DMET Stock Forecast page.
Spark’s Take on DMET Stock
According to Spark, TipRanks’ AI Analyst, DMET is a Neutral.
The score is held down primarily by weak financial performance (large losses, persistent cash burn, and rising leverage). Technicals are neutral-to-risky (flat trend with an overbought RSI), while valuation offers limited support due to negative earnings and no dividend. Offsetting these, corporate updates are constructive (permits, resource upgrade, early production and financing activity).
To see Spark’s full report on DMET stock, click here.
More about Denarius Metals Corp
Denarius Metals Corp. is a Canadian mining company focused on underground precious metals projects, notably its 100%-owned Zancudo Project in Antioquia, Colombia. The company produces high-grade gold-silver concentrates under a long-term offtake agreement with Trafigura, targeting cash-flow-generative, long-life assets in a robust precious metals market.
Technical Sentiment Signal: Sell
Current Market Cap: C$36.29M
See more data about DMET stock on TipRanks’ Stock Analysis page.