McEwen Mining price target raised to $21.50 from $17 at H.C. Wainwright

H.C. Wainwright raised the firm’s price target on McEwen Mining (MUX) to $21.50 from $17 and keeps a Buy rating on the shares. On October 8, McEwen Mining announced the release of a Feasibility Study for its Los Azules copper project. In short, the study outlines a post-tax NPV of $2.9B with an Internal Rate of Return of 19.8% and a payback period of 3.9 years. The firm emphasizes that the asset is projected to have a 21-year mine life while producing an average of 204,800 tonnes annually during the first five years of operations. Wainwright says that “unsurprisingly,” the capital costs for the asset look to be steep, though it views financing to be a surmountable obstacle. The firm also emphasizes strong interest from the Argentinian government based on the project’s low-cost and low-impact operations.