Stifel Canada on Thursday Reiterated its buy rating on the shares of Hemlo Mining (HMMC.V) and its C$12.00 price target following the company's first-quarter results.
"Hemlo reported Q1/26 adjusted EPS of $0.07 vs. our $0.14 (consensus $0.14) and Q1/26 adjusted EBITDA of $86.6Mln vs. our $83.6Mln (consensus: $94.2Mln) on pre-released attributable gold production and sales of 29.7Koz and 32.1Koz, respectively. Q1/26 attributable cash cost at $1,385/oz vs. our $1,461/oz and AISC of $1,805/oz vs. our $1,748/oz were impressive as transition to an owner-operator model was completed two-weeks ahead and supported by mine/mill optimization while lower EPS reflected higher DD&A, tax, finance expense. Q1/26 free cash flow of $71.5Mln was also stronger and full repayment of the $100Mln RCF reduces net debt to $26.4Mln (-$66.6Mln QoQ). HMMC currently trades at 0.51x on P/NAV and 3.9/3.4x on FY27/28E EV/EBITDA vs. mid-tier (0.1-0.5Moz) and intermediate (0.5-2.0Moz) gold producers under Stifel coverage at 0.62x and 4.1/3.5x, respectively, and we continue to see a path towards further unlocking value through underground reserve and resource growth and mine/mill optimization," analyst Ralph Profiti wrote.
(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)
Price: $5.86, Change: $-0.49, Percent Change: -7.72%