Solitario Resources, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating on the stock and has a $1.20 price target.
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Heiko Ihle has given his Buy rating due to a combination of factors including the recent securing of drilling permits for Solitario Resources’ Cat Creek project. This project, located in Colorado, is centered around an untapped molybdenum-rhenium porphyry system, which was initially discovered in the early 1980s but has not yet been drill tested. The acquisition of both federal and state permits is a significant milestone, paving the way for imminent core drilling activities that could enhance shareholder value, especially given the strategic importance of rhenium in defense and aerospace industries.
Moreover, Ihle’s valuation of Solitario Resources is supported by the company’s interests in other significant projects, such as the Florida Canyon zinc project and the Zazu Metals acquisition. These assets, along with the company’s other exploratory ventures and financial investments, contribute to an estimated net asset value of $113.2 million, or $1.19 per share, justifying the price target of $1.20 per share. The combination of these strategic assets and the potential for increased investor interest due to domestic supply chain restoration efforts underpins the Buy rating recommendation.