Sunshine Silver Mining Likely to Pursue Upsized Concentrator in Silver Mine, Morgan Stanley Says
Sunshine Silver Mining & Refining (SSMR) is expected to pursue an upsized 2 ktpd concentrator, considering the presence of significant under-explored areas within the existing complex that have yielded "promising" drill results, Morgan Stanley said in a note Monday.The investment firm said the company's existing resource base has about 104 million ounces of measured and indicated silver and roughly 160 million ounces of inferred silver, which underpin a 24-year life-of-mine in its preliminary economic assessment under a 1 ktpd concentrator scenario.Morgan Stanley said that it expects mine life of 12 years and 18 years in its base case and bull case scenarios, respectively, at the up-sized 2 ktpd levels.Unsuccessful drilling campaigns or poor resource-to-reserves conversion would shorten the life-of-mine or result in the company not pursuing an upsized concentrator, according to the note.Morgan Stanley initiated coverage on the stock with an overweight rating and a $23 price target.Price: $13.47, Change: $+0.05, Percent Change: +0.37%
