Heiko Ihle, an analyst from H.C. Wainwright, reiterated the Buy rating on EMX Royalty (EMX – Research Report). The associated price target is $6.50.
Heiko Ihle has given his Buy rating due to a combination of factors concerning EMX Royalty’s recent strategic moves and financial health. Ihle points to the company’s acquisition of a new royalty interest in the Mustajärvi gold project as a positive development, highlighting the potential of this gold-rich area in Finland. Additionally, the execution of an option agreement for the Sagvoll and Meråker projects with Lumira Energy, which promises future royalties and payments, further bolsters the company’s portfolio. Ihle also notes EMX’s early repayment of debt as a prudent financial decision that demonstrates proactive management and sets a positive tone for the company’s fiscal responsibility.
Moreover, Ihle’s increased price target for EMX to $6.50 from $5.75 is justified by the incorporation of the Timok Lower Zone into his valuation model and the adjustment of the NAV multiple to more accurately reflect the value unlocked and current market premiums. This revised valuation takes into account the discounted cash flows of EMX’s key royalty interests, geopolitical risks, and their asset portfolio, leading to a rounded price target that suggests a favorable outlook for the company’s stock. Ihle’s analysis underscores EMX’s solid foundation of cash-flowing royalties and the potential for growth, reinforcing his Buy recommendation.
According to TipRanks, Ihle is an analyst with an average return of -17.0% and a 22.60% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Drdgold, Galiano Gold, and Victoria Gold.
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EMX Royalty (EMX) Company Description:
EMX Royalty Corp. engages in the acquisition and exploration of precious and base metals properties. The company focuses on the gold, copper, silver, lead, zinc and molybdenum properties. It conducts exploration on properties located primarily in Turkey, Haiti, Kyrgyz Republic, Europe, Southwest United States, and Asia Pacific. The company was founded on August 21, 2001 and is headquartered in Vancouver, Canada.
