Stifel Canada on Monday reiterated its buy rating on the shares of ATEX Resources (ATX.V) and its C$5.25 price target following a visit to the company's Valeriano Project in Chile.

"Late last week we toured ATEX's Valeriano Project, including offices in Vallenar, core repository, and site camp, alongside in depth seminars on geology, infrastructure, community engagement, and exploration strategy by ATEX's team. Our main takeaways are twofold in i) scale of the emerging Valeriano/El Encierro district, where ATEX's new acquisition of Nuevo Horizonte could put a stretch target of ~50-60Blbs CuEq, which would firmly place it as one of the largest undeveloped PCD clusters wholly in Chile, and ii) an exploration process that is improving in efficiency, where we think learnings from ATEX's ability to fingerprint Valeriano can be applied to Nuevo Horizonte, aiding the process. While we are approaching the winding down of drilling season, we would note ATX shares are pricing in just the porphyry resource at Valeriano utilizing the 2024 FdS multiple, with minimal value attributed to B2B (SOTP = C$6.00/sh upside scenario)," analyst Cole McGill wrote.

(MT Newswires 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.mtnewswires.com/contact-us)

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