Zak Mir talks to Andrew Dennan, CEO of Halo Minerals (AIM: HALO), a copper development company focused on extracting critical minerals from legacy mining waste.
Halo Minerals announces the initiation of independent equity research coverage by Equity Development. The research provides investors and other market participants with an independent analytical framework through which to assess the Company, its development strategy, and the potential value drivers associated with the Playa Verde project.
This includes Chile as a mining jurisdiction, the technical and environmental characteristics of tailings reprocessing at the Playa Verde project, and potential upside scenarios associated with the Company’s resource base and development pathway.
Independent Research Highlights a Significant Value Gap
Equity Development initiated research coverage on Halo Minerals with a fair value assessment of 46p per share. This should not be confused with a short-term price target. It is an assessment of what the company could be worth today based on the project’s underlying fundamentals and development position.
At the time of the assessment, this represented a substantial premium to the prevailing share price. The detailed research provides a useful framework for understanding the value embedded in Playa Verde, including the project’s anticipated capital costs, operating costs, resource base and route to production.
The valuation is principally supported by the project’s competent persons report, which identified an after-tax net present value at a 10% discount rate of approximately US$154 million, alongside an after-tax internal rate of return of around 51%.
For a company newly listed on the London market, building awareness remains an important part of the journey. Independent analyst coverage helps communicate not only the scale of the opportunity, but also why a copper tailings reprocessing project should be assessed differently from an early-stage conventional mining project.
The research has been written by leading mining analyst Nick Hatch and is available on Equity Development’s website at:
https://www.equitydevelopment.co.uk/research/tag/halo-minerals
