Filo Mining: BMO Lifts Price Target To $28 Following Assay Results
This past week, Filo Mining Corp. (TSX: FIL) reported its updated assay results from three drill holes at the Filo del Sol copper-gold-silver property in Chile. The company said the highlight of the results was drill hole FSDH058, which intersected 1,251.5 metres of 0.91% copper equivalent, including 310.0 metres of 1.40% copper equivalent and 6.0 metres of 398.3 g/t silver.
Additionally, drill hole FSDH055B intersected 62.0 metres of 280.5 g/t silver and hole FSDH056 intersected 502.2 metres of 0.89% copper equivalent. CEO and President Jamie Beck commented on the results by stating, “Hole 58 continues our success in defining continuity of strong mineralization within the Aurora zone of the deposit, and we are confident that there will be many more holes like this to come.” He also expressed his optimism for holes 55C, 57, and 60 to draw high-grade results.
A number of analysts raised their 12-month price target after Filo announced their drill results. The average 12-month price target rose from $19.43 to $23.42. There are currently 11 analysts covering the stock, with 1 analyst having a strong buy rating and the other 10 have buy ratings. The street high sits at $30 from two analysts and a 23% upside to the current stock price.
In BMO’s note on the news release, they reiterate their outperform rating while raising their 12-month price target from C$23 to C$28, saying that Filo, “continues to highlight success with the drill bit, especially with its long intersections, and as it better defines the structure, including the higher-grade section.”
They do mention Filo’s hole abandonment, which they believe was not completely unexpected. They say they do believe this will allow the company to focus on other holes which will improve productivity and completion rates. They write, “Drill productivity and completion rates are not a new challenge for the exploration efforts at the Filo del Sol project.”
On the results, they say that the most notable thing is that the hole ended in mineralization and is still open at depth. While the hole was outside the resource shell, they write, “the hole confirmed continuity of the silver zone, while also expanding the potential of the high-grade zone.”
Going forward, BMO says that Filo will continue to focus on exploring the “high grade” FSDH041 drill hole while testing for continuity of the Aurora zone. They also have upcoming holes with assay pending, which they say could provide larger step-outs for the company.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
