In a report released today, Ben Pirie from Atrium Research maintained a Buy rating on Santacruz Silver Mining (SCZ – Research Report), with a price target of C$0.90.
Ben Pirie has given his Buy rating due to a combination of factors that highlight Santacruz Silver Mining’s strategic financial maneuvers and potential for growth. The company has announced a plan to accelerate its debt payments to Glencore, which is expected to save $40 million and improve its balance sheet. This move not only reduces the company’s debt burden but also makes it more appealing to investors by enhancing its financial stability.
Furthermore, despite an 80% rally year-to-date, Santacruz Silver Mining’s stock is still trading at an attractive valuation of 2.8 times its estimated 2025 operating cash flow. This suggests that there is still significant upside potential for the stock. Additionally, the company’s acquisition of Glencore’s Bolivian mining assets, including stakes in productive mines, positions it well for future growth and operational expansion. These factors collectively underpin Ben Pirie’s Buy rating for Santacruz Silver Mining.