Assessing Collective Mining (TSX:CNL) Valuation After New Guayabales Assay Results And Plutus Porphyry Discovery

Assay results and new discovery at Guayabales

Collective Mining (TSX:CNL) has released assay results from ten diamond drill holes at its Guayabales project in Colombia, including further work on the Apollo system and a new porphyry discovery at the Plutus target.

Six holes focused on Apollo, the company’s flagship Reduced Intrusion Related System. Four holes tested greenfield targets across Guayabales, where Plutus returned near surface, lower grade porphyry style mineralization.

See our latest analysis for Collective Mining.

That drilling update lands after a strong run in the stock, with a 30 day share price return of 29.92% and a very large 1 year total shareholder return, suggesting momentum has been building rather than fading.

If this kind of exploration story has your attention, it could be a good moment to widen the search and check out fast growing stocks with high insider ownership.

With the shares up 30.0% over the past month and a very large 1 year total return, plus a CA$20.45 price that sits below the average analyst target of CA$24.54, is there still a buying opportunity here, or is the market already pricing in future growth?

Price to book of 22.3x: Is it justified?

On a P/B basis, Collective Mining trades at 22.3x, which is high relative to both its recent CA$20.45 share price and the wider peer group.

P/B compares the share price to the company’s net assets on the balance sheet. A higher P/B usually means investors are paying more for each dollar of book value.

For Collective Mining, the current 22.3x P/B sits above the peer average of 18.7x and far above the Canadian metals and mining industry average of 3.1x. This points to a rich valuation compared to both close peers and the broader sector.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 22.3x (OVERVALUED)

However, you also need to weigh exploration risk and the current loss of $45.88m, which could pressure funding needs if drilling results or sentiment weaken.

Find out about the key risks to this Collective Mining narrative.

Build Your Own Collective Mining Narrative

If you see the numbers differently or would rather test your own view against the data, you can build a custom thesis in minutes: Do it your way.

A great starting point for your Collective Mining research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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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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