New intersections highlight potential for extraordinary grades

Eloro Resources intersected the highest-grade silver sample at Iska Iska so far, confirming the strategy adopted by the Board of Directors to expand and upgrade the high-grade area of the Santa Barbara Breccia Pipe in particular. With mineralised intercepts of up to 118.86 g Ag eq/t over 81.28 m (including a high-grade sample of 5,080 g Ag eq/t over 1.46 m), the silver equivalent results from recent definition drilling are significantly higher than the results from the Iska Iska Project's maiden...

The importance of ore sorting and stripping ratios

After Eloro Resources published the initial mineral resource estimate (MRE) for the Iska Iska silver-tin polymetallic project in the Bolivian Potosi Department, the share price came under significant pressure. We believe this was based on certain misconceptions specifically about the impact of ore-sorting and the stripping ratio on the value of the Iska Iska project. Ore-sorting, an innovative technology, should significantly increase concentrator feed grades, so recovery in both the polymetalli...

Highest and most extensive silver grades intersected

Eloro Resources announced assay results from eight more diamond drill holes from its drilling programme at the Iska Iska silver-tin polymetallic project in the Potosi Department, South Bolivia. With consistent high silver grades averaging 69.80g Ag/t over a length of 325.48m in drill hole DHK-27, intercepts and grades continue to be highly remarkable in the Santa Barbara deposit, in our view. In addition, Eloro could outline a second, potential world-class tin deposit below the Iska Iska porphyr...

Multiple intersections with high-grade sections discovered

This week, Eloro Resources announced assay results from two more diamond drill holes from its ongoing drilling programme at the Iska Iska silver-tin polymetallic project in the Potosi Department, South Bolivia. One hole tested the extension of the core of the high-grade feeder zone at Santa Barbara, a second tested the potential south-western limits of the high-grade feeder zone. Once again, several significant intercepts were discovered, including intervals of up to 211.34 g Ag eq/t (over 6.02 ...

Eloro closes CAD 9.8m Bought Deal Financing

Shortly after Eloro Resources filed an updated technical report on the Iska Iska silver-tin polymetallic project in the Bolivian Potosi Department, the company announced that it closed a CAD 9.775m bought deal financing. With an immaculate 100% track record of holes drilled that intersected reportable mineralization, we reiterate our Buy rating for Eloro Resources and increase our fully diluted price target to CAD 16.90 from CAD 15.30 per share, derived from an in-situ valuation of Iska Iska’s S...

Highest-grade intersection obtained so far

Eloro Resources released highly encouraging results from several additional diamond drill holes at its flagship Iska Iska silver-tin polymetallic complex in the Bolivian Potosi Department, where drilling has identified a large mineralized caldera system. In our view, Eloro Resources made good progress with defining the mineralization at Iska Iska, which appears to be on the verge of outlining a significant NI 43-101 compliant mineral resource. We believe continued positive exploration results fr...

Elopak (Hold, TP: NOK29.00) - Raw-material headwinds persist

We are muted ahead of the Q3 results (due at 07:00 CET on 4 November), as we expect a recovery in revenues on easy comparables to be overshadowed by significant raw-material headwinds. Although we continue to find the valuation attractive, we have downgraded to HOLD and cut our target price to NOK29 (31) as we are concerned that 2022 earnings could be at risk in the absence of significant price increases or falling raw material prices.

Sector Fast Comment - Finns under a cloud

EU is investigating pulp producers – potential pulp cartel The Finns have been targeted Potential fine of ~10% of annual sales

Sector Report - Paper up – Pulp down

Sector Fast Comment - August pulp data: shipments -7% y-o-y

Global shipments -7% y-o-y, to China -23% Inventories +7% m-o-m, 34% above hist. avg. Chinese and US pulp prices down 12-18% from peak

Powerpoint Sector Report - Leading indicators for OECD industrial prod...

OECD: The indicator points down (from a high level) USA: The indicator points down from a high level (housing starts, house prices, flatter yield curve) Japan: The indicator is down (monetary policy, stock market)

Sector Fast Comment - Swedish forest asset values +13% in H1’21

Stats show ~13% higher forest prices in H1’21 Central Sweden up ~17%, Northern up ~1% Positive for Stora, Holmen and SCA

Elopak (Buy, TP: NOK31.00) - Set for a tough H2

Q2 results were above our expectations, but H2 guidance was hit by raw-material headwinds and a slower than expected recovery in Americas on negative Covid-19 effects. We reiterate our BUY, but have trimmed our target price to NOK31 (32) on lower estimates.

Elopak - In need of a 2.5% price increase

Adjusted EBITDA ~10% better Leading fresh player + an ESG winner Mid-cycle value NOK 30-45/share

Elopak (Buy, TP: NOK32.00) - Q2 in line, but soft outlook for H2

We consider this a slightly negative report for Elopak, including figures in line with expectations, but soft guidance for H2. We expect only minor changes to consensus 2021e EBITDA, but 5–10% negative revisions to 2022e EBITDA on the back of a weak margin trend for H2e. We consider a negative share price reaction to be warranted.

Elopak - A decent Q2

Clean EBITDA ~10% above ABGSC Europe was better Outlook: Higher raw material costs

Elopak (Buy, TP: NOK32.00) - Packed for the future

Elopak has a unique history, dominant market share in the European fresh liquid carton market, a global reach and broad product offering, and a long-term reputation for sustainability. We believe this puts it in a prime position to exploit a market returning to growth and respond to universal environmental concerns. We initiate coverage with a BUY and NOK32 target price.

Elopak - Liquid packaging – a Nordic success story

Niche market – solid financial track record Leading fresh carton player + an ESG winner A Nordic success story