What Is Drawing Fresh Attention To Collective Mining (TSX:CNL)?
Collective Mining (TSX:CNL) has turned investor attention back to its Guayabales Project after new assay results outlined a high-grade tungsten gold zone in schist beyond the current Apollo breccia margin.
At a share price of CA$17.25, Collective Mining has given investors a mixed ride, with the stock down about 23% on a 30 day share price basis and about 10% year to date. However, the 3 year total shareholder return is roughly 2.5x and the 5 year total shareholder return is above 6x, which points to strong longer term momentum despite recent weakness as the market digests new assay results, ongoing drilling updates, and the recent processing flowsheet progress.
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Collective Mining has a large drill campaign, cash in the bank and a flagship deposit that keeps generating headlines. After a sharp pullback, does that mix still justify a CA$17.25 share price?
Most Popular Narrative: 47% Undervalued
Against Collective Mining's last close at CA$17.25, the most followed narrative points to a fair value of CA$32.80, which hinges on Guayabales evolving into a larger district story rather than a single deposit play.
Further resource updates at the Apollo deposit, following the maiden mineral resource and drilling that intersected mineralization in areas previously modeled as waste, could shift expectations for future revenue and earnings if tonnage or grade is refined in a way that supports larger or longer life production scenarios.
See why 1 investors see Collective Mining as 47% undervalued.
Result: Fair Value of CA$32.80 (UNDERVALUED)
Still, the bullish Collective Mining story depends on more than drill hits, since the thesis leans on potential high margins and very elevated P/E assumptions that could easily be revised.
Find out about the key risks to this Collective Mining narrative.
Next Steps
If the bullish tone around Collective Mining feels compelling but incomplete, consider reviewing the full picture by weighing both the upside and the red flags in the 1 key reward and 2 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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