RE: Alien Metals2 Dec 2020 12:53
Good News flow from TPI.
TPI’s original assessment of Alien in
its Initiation Research of 6 April 2020, considered potential for only two of the
Group’s exploration opportunities. These were its Donovan 2 copper/gold
Volcanogenic Massive Sulphide (‘VMS’) project (which recently entered an earnin agreement with Capstone Mining Corp. and where maiden drilling is about to
commence) and the San Celso & Los Campos epithermal targets, where it
contemplated potential for a resource of as much as 10m oz silver. The
valuations were based on nearest neighbours, having applied an EV/resource
multiple derived from a selected peer group. Reapplying the same methodology,
TPI is now considering whether recent exploration progress provides scope not only to reduce the aggressive 60% discount factor that was applied to this analysis (to account for remaining execution,
financing and dilution risks) in expectation of both being able to declare compliant resources, but also to award prudent
valuations elsewhere amongst the Group’s exciting, albeit earlier stage, prospects. In expectation of continued heavy
news flow, Alien’s share price might continue to anticipate potential for further high-impact results.