Precious Metals Miners are Coming Off of the Floor

Precious Metals Miners are Coming Off of the Floor

Precious Metals Miners are Coming Off of the Floor

$SLW, $TAHO, $TECK, $EXCFF, $GLD, $SLV

Industry analysts are maintained prior price targets with upside of 20% – 45% in their Outperform ratings.

Note: Wall Street analysts often assign Northside runs of 8% to 15% when it comes to well-established companies being given new or updated Buy and Outperform ratings.

Below are 3 of Credit Suisse’s Outperform-rated metals and mining stocks with 20% – 45% upside to the firm’s price targets.

These targets were made in Canadian dollars (C$) the Northside was converted from there with US-listing consensus data following each company, they are as follows:

 

Silver Wheaton Corp. (NYSE:SLW) assumed with an Outperform rating at Credit Suisse. The price target conversion from Canadian dollars implied upside of almost 21% to the firm’s target price. Credit Suisse’s price target is above-consensus but not the highest analyst target marked.

Silver Wheaton is HQ’d in Vancouver. The company is the world’s largest precious metals streaming company, offering investors cost predictability, direct leverage to increasing Silver and Gold prices and a high-quality asset base. Its US-based market cap is $9.85-B.

Its US-traded shares closed up 0.5% at 21.88 Tuesday. That price compares with a 52-wk trading range of 16.52 – 31.35 and a consensus analyst target price of 28.07.

 

Tahoe Resources Inc. (NYSE:TAHO), Credit Suisse has an Outperform rating and sees 21% Northside at a C$14 target. The US-traded shares finished at 8.97 Tuesday.

Tahoe Resources is in the exploration, development and operations of mining activities in the Americas. It primarily produces copper, Gold, Silver, lead, zinc and precious metals assets, and it is shown to have exposure in Nat Gas and Crude Oil. Its market cap is over $2.9-B for US-listed shares.

The stock has a 52-wk trading range of 7.12 – 17.01 and a consensus target price of 11.80.

 

Teck Resources Ltd. (NYSE:TECK) was assumed as Outperform at Credit Suisse, with the price target signaling upside of 45%.

Teck Resources is based in Vancouver, BC, its US-listed shares show a market cap of $13.15-B. Teck Resources explores for, develops and produces natural resources in the Americas, the Asia Pacific and Europe. Its primary products comprise steel-making (met) coal, copper concentrates and refined copper cathodes, refined zinc and zinc concentrates, and lead concentrates. It also produces molybdenum, Gold, Silver, germanium, indium and cadmium, as well as chemicals, industrial products and fertilizers.

Teck Resource’s US-listed shares closed at 21.49. The 52-wk trading range is 10.22 – 35.67, and the consensus target price is 26.98.

A few weeks ago it looked like Gold’s Y 2017 rally was running out of gas, and in danger of losing sight of the psych mark at 1,200, now the next Key resistance is 1305.

  • June Gold closed near today’s high at the end of pit trading Tuesday +$1.90 (or +0.2%) at 1293.90 oz
  • May Silver closed -0.24 (or -1.3%) to 18.27 oz

A number of major Gold stocks which had outperformed the precious Yellow metal and then some since the beginning of the year, fell back into the Red for Y 2017, things are changing quickly.

Notably, there is a problem in the Gold mining business, and even the biggest mining companies cannot escape it.

The more Gold they mine, the closer they are to running out. The major beneficiaries of this demand/supply/price action are the precious metals royalty and streaming companies like Silver Wheaton (NYSE:SLW) and Metalla (C.MTA, OTCMKT:EXCFF).

Metalla is a new comer to the royalty and streaming sector, as such it is a growth stock, and growth investors often receive big returns from capital appreciation, meaning higher prices, the returns makes them worthwhile.

Symbol Last Trade Date Change Open High Low Volume
NYSE:SLW 21.88 18 April 2017 -0.12 21.87 21.97 21.54 2,235,242
HeffX-LTN Analysis for SLW: Overall Short Intermediate Long
Neutral (0.16) Neutral (0.14) Bullish (0.29) Neutral (0.06)
Symbol Last Trade Date Change Open High Low Volume
OTCMKT:EXCFF 0.4135 18 April 2017 -0.02 0.405 0.4142 0.4026 16,683
HeffX-LTN Analysis for EXCFF: Overall Short Intermediate Long
Neutral (0.16) Neutral (-0.15) Bullish (0.35) Bullish (0.27)

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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