SolGold Shares (LON:SOLG) Jump: Analyst Puts ‘Speculative’ Price Target of 46p

SolGold shares (LON:SOLG) are up double digits today, hitting a new multi year high at 15.94p following the initiation of coverage by Canaccord Genuity, which assigned a ‘Speculative Buy' rating and a price target of 46p. The analyst's optimistic outlook centers on the potential of the Cascabel Project and expectations for future cash flows.

The market for SolGold had already been bullish leading in to the announcement, with the share price up 64.50% over the past month off the back of solid recent updates. The price target from Canaccord indicates upside of 2x from recent price action, speculative indeed. This rating comes at a pivotal time for SolGold as it advances towards the development of its flagship project.

Canaccord Genuity anticipates that construction of the Alpala project, a key component of Cascabel, will be completed by 2027, with production commencing in 2029. The firm projects robust cash flows starting from the second year of production, underpinning its bullish stance. These projections are contingent upon the successful execution of SolGold's development plans and the prevailing market conditions for copper and gold.

SolGold has recently finalized a US$750 million streaming agreement with Franco-Nevada Corporation and Osisko Gold Royalties to bolster its Cascabel Project in Ecuador. The agreement includes an initial deposit of US$100 million, with an initial tranche of US$10 million provided as a loan facility. This financing is intended to support the project's advancement through permitting, feasibility studies, and securing additional development funding. The company's strategic partnership with Franco-Nevada and Osisko underscores confidence in Cascabel's long-term value.

The company is also making strides in project development, optimizing its infrastructure investigation program through ground geophysical assessments. This approach reduces the need for extensive drilling while enhancing the understanding of foundation conditions. Geotechnical drilling is planned to support infrastructure planning, including plant and portal locations, and to provide critical data for the project's advancement. The submission of Environmental and Social Impact Assessment (ESIA) documents to Ecuadorian regulatory authorities is expected by the end of Q3 2025, marking a crucial step in the permitting process.

Beyond Cascabel, SolGold continues to advance its regional exploration portfolio. The company identified a major porphyry target at the El Cielito Norte prospect within the Blanca-Nieves Project, located approximately 8 km northwest of Cascabel. This target covers an area larger than the Alpala system and has shown promising high-grade gold results, indicating significant potential for integration with the Cascabel Project. These exploration efforts underscore SolGold's commitment to unlocking value from its portfolio and enhancing its position in the global copper market.

SolGold remains dedicated to sustainability and community engagement, strengthening its community partnerships to create lasting benefits for local stakeholders. Progress on environmental, social, and governance (ESG) fronts remains central to SolGold's approach to project development.

The analyst's ‘Speculative Buy' rating, coupled with strategic financing, project advancements, and leadership enhancements, has contributed to a wave of bullish sentiment. The key will be execution against these plans and milestones to unlock the perceived value.