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Analysts See Huge Upside on Arizona Mining Stock

  • Warke expects very attractive economics for Taylor deposit
  • Analysts expect rally in Arizona Mining shares to continue

Arizona Mining’s founder and chairman sees tremendous upside to the company’s Taylor deposit and expects the project to attract the attention of larger mining companies.

Richard Warke, who started the Vancouver-based company, said in an interview that Arizona Mining would “certainly have a good look at” any potential offers that pay good value, though the company isn’t counting on outside help to put the project into production. He said he’s comfortable as drilling continues and expects very attractive economics given the high-grade nature of the deposit, which contains zinc, lead and silver.

Arizona Mining is among the Canadian companies with notable insider holders and greatest potential upside, according to Bloomberg calculations. Analysts predict the shares will rise 55 percent over the next 12 months after surging more than sevenfold in 2016. The stock has slipped over the past month after reaching a record-high on Dec. 7.

  • Insiders own a 39% stake while institutional holdings are 16% of float, according to data compiled by Bloomberg
  • Warke says the company’s current cash position will take it well into 2017; will decide if additional financing is needed after the completion of a PEA study that is expected by end of the first quarter; other potential catalysts include resource update expected by end of 1Q, several drill results, feasibility study in the fourth quarter
  • National Bank analyst Shane Nagle said in a note dated Jan. 12 that the company has an attractive asset in a market that lacks high-quality zinc development projects; he sees high probability of future exploration success, takeout potential
  • The stock has four buy ratings and a 12-month average price target of C$4.25; shares closed at C$2.75 Tuesday
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