Exploits Discovery, the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Ben Pirie from Atrium Research maintained a Buy rating on the stock and has a C$0.10 price target.
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Ben Pirie has given his Buy rating due to a combination of factors that highlight Exploits Discovery’s strategic moves and financial positioning. The company has entered into a definitive agreement to sell its Newfoundland mineral claims to New Found Gold for up to $8.8 million, which includes $7 million in shares and a 1% NSR royalty. This transaction significantly exceeds the previously assumed project value of $5 million and is favorable compared to Exploits’ market capitalization of $10.1 million.
Following the completion of this deal, Exploits Discovery plans to concentrate its efforts on its Ontario and Quebec projects, which boast 680,000 ounces of historical gold resources with notable potential for expansion. The sale ensures that the company is well-funded to advance exploration in these regions, aligning with its strategic focus and supporting the Buy rating with a target price of $0.10 per share.
According to TipRanks, Pirie is a top 100 analyst with an average return of 55.1% and a 64.89% success rate. Pirie covers the Basic Materials sector, focusing on stocks such as Copper Fox Metals, Santacruz Silver Mining, and Forge Resources.