Haywood Lifts Filo Mining’s Price Target After Strong Assay Results

On May 23, Filo Mining (TSX: FIL) reported its assay results from holes FSDH055C and FSDH059 from its Filo del Sol Project. The company announced that hole FSDH055C returned 1,337.5 metres of 0.66% copper, 0.54 g/t gold and 31.5 g/t silver, or 1.33% copper equivalent, from 150.0 metres. This includes 536.0 metres of 1.25% copper, 0.95 g/t gold and 56.1 g/t silver, or 2.44% copper equivalent, from 540.0 metres.

Hole FSDH059 returned 187.5 metres of 0.13% copper, 0.19 g/t gold and 6.2 g/t silver, or 0.33% copper equivalent from 124.0 metres.

The company provided an additional outlook, in which it says there are eight holes with drilling currently ongoing, via seven diamond drills and one reverse circulation drill. They say that these holes are “designed to explore the area around the high-grade intersections.”

Filo Mining currently has 11 analysts covering the stock with an average 12-month price target of C$25.82, or an upside of 10%. Out of the 11 analysts, 1 has a strong buy rating while the other 10 have buy ratings. The street high sits at C$37.50, which represents an upside of 60%.

In Haywood Capital Markets’ note on the results, they reiterate their buy rating and raise their 12-month price target from C$34.00 to C$37.50 and label the firm as their top pick, saying that hole FSDH055C is the best hole at Filo for length, grade, thickness, intrahole grade and is open to depth. They add that even though the hole was stopped at 1487.5m due to drilling capacity issues, it was still within the Cu-Au-Aq mineralization in veined and potassically altered porphyry.

Additionally, they say that these drill results show a continuity of Cu-Au-Aq mineralization over a “significant interval at appreciable grades.” And that specifically the silver zone is above the Braccia 41 Zone. This is important to Haywood as they believe that the more results they see, the more “idiosyncratic targeting feature at Filo.”

Lastly, they add that the price target increase comes from their belief that Filo del Sol will “define a tangible higher-grade core within the high-grade sulphidation/porphyry system that will well differentiate the asset from its peers.”

Below you can see their estimates.

Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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