eResearch is pleased to publish a 10-page Update Equity Research Report on Silver Bullet Mines Corp. (TSXV: SBMI | OTC: SBMCF).
We are maintaining a Speculative Buy Rating on SBMI and a one-year Price Target of $0.20 but decreasing the two-year Price Target to $0.32 due to the additional shares and warrants to be issued as part of the equity financing.
You can download our 10-page Equity Research Report by clicking on the following link: eResearch-SBMI-UR-2024_12_31_FINAL2
Company Overview
Silver Bullet Mines Corp. (“SBMI” or “the Company”) is a Canadian-based silver and copper exploration and development company. The Company’s primary asset is the Black Diamond (BD) Property, located near Globe, Arizona, which includes five past-producing, high-grade silver mines, including the Buckeye Silver Mine.
SBMI commenced production at the Buckeye Silver Mine (“Buckeye Mine”) in mid-2022, but mining operations are currently paused pending the resolution of safety issues. While awaiting the restart of mining at Buckeye, the Company plans to generate revenue by processing third-party mineralized material from Super Champ at its mill in Globe, Arizona.
SBMI is also advancing its Washington Mine in Idaho, a historical silver and gold mine that is being prepared for production. Additionally, the Company is exploring copper-gold porphyry targets on the BD Property, leveraging the region’s mining history and proximity to significant copper deposits.
REPORT HIGHLIGHTS
RECENT COMPANY UPDATES:
- Strategic Financing: On December 23, SBMI announced a private placement aiming to raise $1.5 million, with $500,000 committed as a lead order. Proceeds would support work at Super Champ and the Washington Mine.
- Super Champ Development: SBMI continues shipping mineralized material from Super Champ to its mill for stockpiling and processing, and announced that revenue generation from Super Champ is expected to begin in early 2025.
- Washington Mine Update: On November 22, SBMI announced that it began underground development and bulk sampling at the Washington Mine, contracting a miner experienced with high-grade vein operations.
FINANCIAL ANALYSIS & VALUATION:
- We are maintaining a Speculative Buy Rating on SBMI and a one-year Price Target of $0.20 but decreasing the two-year Price Target to $0.32 due to the additional shares and warrants to be issued as part of the equity financing.
- The one-year Price Target of $0.20 is based on SBMI processing 30,000 tons of third-party mineralized material over the next 12 months with a grade of 8 oz/t, 90% recovery rate, and booking net revenue of US$15 per ounce. Silver production would be approximately 240,000 ounces.
- The two-year Price Target of $0.32 is based on SBMI processing the higher-grade mineralized material from the Buckeye Mine in year two. For a base case, we assumed 80% utilization of the mill, 264 production days per year, all-in operating costs of US$20/ounce, a grade of 20 oz/t, and a silver price of US$30/ounce. Silver production would be approximately 583,020 ounces.
We are maintaining a Speculative Buy Rating on SBMI and a one-year Price Target of $0.20 but decreasing the two-year Price Target to $0.32 due to the additional shares and warrants to be issued as part of the equity financing.
You can download our 10-page Equity Research Report by clicking on the following link: eResearch-SBMI-UR-2024_12_31_FINAL2
FIGURE 1: One-Year Stock Chart
Other content about SBMI on eResearch.com:
- Article (December 2, 2024): Developments Bolster Silver Bullet Mines’ Growth Prospects and Revenue Generation Strategy
- Update Report (November 8, 2024): Silver Bullet Mines Battles Challenges to Forge Ahead at the Buckeye Silver Mine & Washington Mine
- Video (February 3, 2022): InvestorIntel Video – Tracy Weslosky Interviews Chris Thompson about eResearch Launching Coverage on Silver Bullet Mines
- Initiation Report (December 7, 2021): Silver Bullet Mines (TSXV: SBMI)
- Video (March 1, 2021): Panel Discussion on Silver with Chris Thompson, Peter Clausi, and Peter Krauth
Notes: All numbers in CAD unless otherwise stated. The author of this report, and employees, consultants, and family of eResearch may own stock positions in companies mentioned in this article and may have been paid by a company mentioned in the article or research report. eResearch offers no representations or warranties that any of the information contained in this article is accurate or complete. Articles on eresearch.com are provided for general informational purposes only and do not constitute financial, investment, tax, legal, or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this information should consult with a financial advisor. The article may contain “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are based on the opinions and assumptions of the Company’s management as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein. Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Please read eResearch’s full disclaimer.
