SeeThruEquity Initiates Coverage on Iberian Minerals Ltd. (TSXV: IML; OTCQB: SLDRF) with a Price Target of CDN$ 0.21
NEW YORK, NY / CRWEPRESSRELEASE / September 16, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it recently initiated coverage of Iberian Minerals Ltd. (CVE:IML; OTCMKTS:SLDRF) with a 12 month price target of CDN$ 0.21.
The report is available here: IML Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Based in Calgary, Canada, Iberian is a junior mining company focused on developing gold and high grade iron ore mining plays in Spain, a politically stable and mining friendly country with first-class infrastructure. Iberian has an experienced management team led by CEO Greg Pendura, CFO Don Weatherbee, CPA, CMA, and Chief Geologist Fernando de la Fuente Chacon, who has over 41 years of experience in exploration, evaluation, and mining geology including managerial roles at Anglogold and BHP, among others. Iberian’s strategy is to identify promising assets with relatively low risk and high potential rewards. The company then seeks to prove their value through exploration, investigation and early development. Currently Iberian is focused on two developing plays: the re-opening of the Cehegin iron ore concessions in southeastern Spain and the evaluation of its recently acquired Caurio gold/copper/silver concessions located in the Rio Narcea Belt in northern Spain.
“We are intrigued by Iberian’s strategy of identification and early development of promising assets followed by production partnerships. We see the two plays as promising early-stage projects and view Iberian as an intriguing speculative growth company in the mining sector,” stated Ajay Tandon, CEO of SeeThruEquity. “We are initiating coverage with a 12-month price target of CDN $0.21 per share.”
Additional highlights from the report are as follows:
Intriguing acquisition of gold rights in historic Asturius region
Iberian announced an opportunistic acquisition of the option to purchase nine gold-copper-silver Caurio concessions in the northern province of Asturias owned by Carolines del Narcea, S.L. The concessions total 3,143 hectares, and are located in an historic area that was originally mined by occupying Romans in Hispania. Iberian should benefit from the extensive exploration data from 1986 – 2006 by Anglo American Corp., Rio Narcea Gold Mines, and Lundin. The data includes a comprehensive GIS database, drill surveys from 38 drill holes targeting 12,262m, and 9,005m of core available for analysis, as well as soil geochemistry, petrographic studies, and data from 200m spaced flight lines from Airborne Geophysics over the entire area. Iberian estimates that the project has potential for up to 30 grams per tonne (g/t) of gold. Importantly, we note that the acquired concessions are strategically located between Orvana Minerals’ (TSX:ORV) El Valle-Boinás and Carles Mine gold mines, which are the only two operating gold mines in Spain. Given the location, we would consider the possibility of Orvana as a potential strategic partner in the future if Iberian is able to confirm prior data and better define the area’s prospects.
Continued progress on attractive high grade iron ore project
Despite the dramatic weakness in the iron ore process over the last twelve months, we are encouraged by progress on Iberian’s Cehegin high quality iron ore project in southeastern Spain. Through a joint venture and off-take partnership with natural resources giant Glencore Xstrata plc, Iberian is developing a magnetite iron ore project with several attractive attributes, including proximity to world-class infrastructure – the project is less than 100 miles from the deep sea Port of Cartagena and is connected by a toll free highway and rail. Additionally, Cehegin offers relatively low risk for a junior mining project, as the Iberian is seeking to re-open a brownfield operation, allowing the company to benefit from favorable permitting terms and extensive historical data. Approximately 4mn tonnes of magnetite iron ore was mined from Cehegin from 1975 to 1989, producing a high-grade product with over 65% iron and low impurities. Iberian is in the midst of Phase I of the project, and recently completed a high-resolution airborne magnetic survey, which the company is using to expand its area by 3,630 hectares. We expect Iberian to complete Phase I and release Davis Tube results over the next six months, with a goal of completing a Definitive Feasibility Study (DFS) by the end of 2016E. Iberian estimates magnetite mineralization of at least 25 – 30Mt at Cehegin and is targeting initial production by the end of 2018E.
Initiate coverage with a price target of CDN $0.21
Our analysis indicates a fair value estimate of CDN$0.21 per share for Iberian. We see the company as an intriguing junior miner with an experienced management and geological team and a nice focus on the early-stage development of promising gold and iron ore mineral assets in Spain. If achieved, the price target of $0.21 represents potential upside of 200% from the recent price of $0.07.
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About Iberian Minerals Ltd.
Iberian Minerals is a Canadian junior mining company focused in Spain. The Company is currently studying the re-opening of the Cehegin iron ore concessions in south eastern Spain and is further evaluating its recently acquired Caurio gold/copper/silver concessions located in the Rio Narcea Gold Belt in Asturias, northern Spain. Iberian Minerals’ business strategy is to actively engage its Spanish contacts and technical team towards the further accumulation of high interest assets throughout the country. For further information, go to www.iberianminerals.ca.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
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