Date: 06/03/2025
*** GENERAL AVICE ONLY***
Polymetals Resources (ASX: POL) is an Australian mining company operating at its 100% owned Endeavor Silver Zinc Mine, located in the Cobar Super Basin, NSW, Australia. The company has the potential to be a +20-year producer in one of Australia’s most prolific polymetallic mining districts
- Fully funded mine restart with rapid execution. US$20M facility secured. First production in April 2025, first cash flow in May-June 2025.
- $35m institutional placement to accelerate near-mine and regional exploration. Funds will also provide additional working capital as Endeavor transitions into zinc/silver production.
- Strategic infrastructure advantage. $200M in existing infrastructure enabling a 14-month payback and A$609M free cash flow over initial 10 years.
- Long-term growth pipeline. 20-year operation potential driven by high grade results and regional exploration across 1,107km² in the prolific Cobar Basin.
- Proven leadership with investor alignment. Experienced team with A$9.5M personal investment into POL and decades of mine restart success.
Trade Rationale
POL recently raised $35m at 80c, so we have an opportunity to buy POL below the recent entry of some larger players. The share price has fallen since that raise so we have been waiting patiently for some signs of price support. It seems buyers have finally found value, as yesterdays action was strong. So buy POL at current levels as downside risk is reasonable and easy to manage. Analysts have a $1.20 price target for POL
Trade Strategy:
Buy POL up to 70c
Stop Loss 55c
Initial profit target 85c
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.