In a report released today, Heiko Ihle from H.C. Wainwright reiterated a Buy rating on Solaris Resources, with a price target of $13.50.
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Heiko Ihle’s rating is based on the promising economic outlook of Solaris Resources’ Warintza Project. The updated Pre-Feasibility Study (PFS) highlights the project’s potential with a projected production of 4.5 million tonnes of Copper Equivalent over a 22-year mine life, with higher output in the initial years. The study indicates a robust post-tax Net Present Value (NPV) of $4.6 billion and an internal rate of return (IRR) of 26%, suggesting strong economic viability.
Furthermore, the project is positioned as a Tier-1 copper asset with a low-cost profile, making it competitive on a global scale. The potential for extending the mine life beyond the initial 22 years, supported by a substantial underlying resource, adds to its attractiveness. Additionally, the project benefits from a supportive financing arrangement and a favorable regulatory environment in Ecuador, enhancing its strategic importance and reducing risks associated with its development.