is making encouraging exploration progress at all three of its properties, especially at its flagship Stillwater West project, reported Couloir Capital in an October 3 research note.
"We expect the company to add more resources at Stillwater West via the current drill campaign," Couloir wrote. "This should drive the valuation higher."
Return Still Attractive
After updating its valuation model on Stillwater, Couloir lowered its fair value price on it to CA$0.35 per share from CA$0.46, the equity research firm reported. In comparison, Stillwater's current price is about CA$0.17 per share.
Even with the revised fair value price, the projected upside for investors in this mining exploration company is still significant, at 106%.
Stillwater is a Buy.
2023 Program Updates
Couloir provided an update on the exploration efforts underway at Stillwater's projects: Stillwater West, Kluane, and Drayton-Black Lake.
"We continue to favor Stillwater's operating jurisdictions and metal mix, which is well suited for the ongoing green energy transition," Couloir wrote.
Expansion Drilling in Montana
At its Stillwater West nickel-platinum group elements (PGE)-copper-cobalt plus gold project in Montana, Stillwater completed 2,000 meters (2,000m) of the planned 5,000m for the 2023 drill program, "with initial indications being positive," noted Couloir. This year's campaign also will include geophysical and geological prospecting and mapping surveys.
Exploration goals include expanding the existing NI 43-101 compliant resource from January of this year and potentially upgrading at least some of it from the Inferred category. Also, Stillwater is looking to extend the high-grade mineralization shown in previous drill results.
"[Stillwater's] priority on high-grade structures could significantly impact the company's valuation," wrote Couloir.
Stillwater's drilling to date has been to the west of the DR-Hybrid deposit at Chrome Mountain, one of five key target deposits. Two other targets are the CZ and HGR deposits at Iron Mountain.
"The mineralization remains open to expansion along trend and at depth in all five deposit areas, which are set within 12 kilometers (12 km) of the broader 32-km-long land package in the Stillwater Igneous Complex," wrote Couloir.
Going for Stillwater West, added Couloir, are its prime location in an active, historic, and expanding U.S. mining district and the current demand for critical metals. Further, the project is one of the few critical elements projects in the States, particularly with regard to nickel, offering grade and scale in a producing district.
"We believe Stillwater West is well-positioned to rapidly advance as a potential large-scale, low-carbon source of nickel, copper, cobalt, palladium, platinum and rhodium," wrote Couloir.
Earn-In Partner Busy in Ontario
A 3,600m drill program is in progress at Stillwater's Drayton-Black Lake high-grade gold project in the prolific Rainy River gold district of Ontario, Canada, being carried out by earn-in partner Heritage Mining. It is drill testing three areas: New Millennium, Moretti, and Alcona, the latter of which is now done.
"The underexplored nature of the target area combined with high-grade gold mineralization in grab samples points to substantial exploration potential," Couloir wrote.
Early-Stage Efforts in the Yukon
As for Stillwater's Kluane PGE-nickel-copper project in Canada's Yukon, the 2023 program encompasses field work, including geological mapping, drone LiDAR, and imagery acquisition, along with prospecting and rock sampling.
Also, Stillwater is examining the potential for carbon sequestration to determine if it could eliminate or reduce the carbon footprint of a potential mining operation at Kluane.
New Strategic Investor
In other news, mining major Glencore invested $4.94 million in Stillwater for a 9.99% ownership stake. The investment was made at a significant premium to Stillwater's market price. Also, with Glencore as a significant stakeholder, Stillwater may tap its extensive technical expertise in global magmatic systems.
"The investment marks a major step for [Stillwater] as it works to advance its flagship Stillwater West project," wrote Couloir.
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- Stillwater Critical Mineralsis a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee.
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Disclosures for Couloir Capital, Stillwater Critical Minerals, October 3, 2023
This report has been prepared by an analyst on contract with or employed by Couloir Capital Ltd. The analyst certifies that the views expressed in this report which include the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report accurately reflect his or her personal views about the subject securities and the issuer. No part of his / her compensation was, is, or will be directly or indirectly related to the specific recommendations. Couloir Capital Ltd. is affiliated with Couloir Securities Ltd., an Exempt Market Dealer. They shall be referred to interchangeably as Couloir Capital herein. Part of Couloir Capital’s business is to connect mining companies with suitable investors that qualify under available regulatory exemptions.
Couloir Capital, its affiliates, and their respective officers, directors, representatives, researchers, and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Couloir Capital may have provided in the past and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Couloir Capital has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed.
This document does not consider the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before making an investment. Couloir Capital will not treat recipients of this document as clients by virtue of having viewed this document.
Company specific disclosures, if any
- In the last 24 months, Couloir Capital Ltd. HAS been retained under a service agreement by the subject issuer. This service agreement includes analyst research coverage.
- The views of the Analyst are personal.
- No part of the Analyst’s compensation was directly or indirectly related to the specific ratings as used by the research Analyst in the Reports.
- The Analyst DOES NOT maintain a financial interest in the securities or options of the Company.
- Couloir Capital DOES NOT maintain a financial interest in the securities or options of the Company.
- The information contained in the Reports is based upon publicly available information that the Analyst believes to be correct but has not independently verified with respect to truth or correctness.