Analyst Heiko Ihle of H.C. Wainwright reiterated a Buy rating on Ascendant Resources Inc (ASND – Research Report), with a price target of C$0.10.
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Heiko Ihle’s rating is based on several strategic developments and financial prospects surrounding Ascendant Resources Inc. The recent agreement for Ascendant to be acquired by Cerrado Gold is a pivotal factor, as it is expected to enhance the future development potential of the Lagoa Salgada project. Cerrado’s current financial health and profitability are seen as favorable for generating shareholder value, which aligns with the interests of Ascendant’s stakeholders.
Additionally, the transaction includes a funding package that is anticipated to support the advancement of Lagoa Salgada, alongside general corporate needs. The future outlook is also bolstered by a positive revision in the precious metal price deck, which reflects increased spot prices for gold and silver due to macroeconomic factors. This revised forecast suggests a promising environment for precious metal investments, further supporting the Buy rating by signaling potential upside in Ascendant’s valuation.