Karora delivered positive financial results with earnings up YoY and adjusted EPS of C$0.10 in line with our expectations of C$0.11, as record production helped boost sales and drop QoQ costs. While the adjusted EPS was not quite as high as we had anticipated, we expect these metrics to continue to rise through H2/21 given ongoing mill and mine expansions. We lowered our target price to C$7.25/sh as we reduce our grade forecasts for Beta Hunt downwards towards resource grades.
We recently visited Silver X’s Nueva Recuperada silver-polymetallic (Zn-Pb-Cu-Au) project in central Peru. During the visit we toured the company’s 600 tpd mill, an area of veins exposed on surface that are currently the target of exploration, and two areas of current underground mine development. We were impressed by the company’s ability to bring the past-producing mining operation back into production, rapidly expand into new areas of underground development, and demonstrate exploration upside. We also believe the company is particularly well-positioned within Peru, with most of the senior management based in-country and strong relationships within the local community. We believe that Silver X is one of the best positioned junior silver producers in the market, with tremendous growth potential at its Nueva Recuperada mining operation.
Gold79 released the final batch of assays from its recently completed 16-hole maiden drill program at its Gold Chain project in Arizona. The final batch of assays comprised 12 holes (852m) focused on the northern 2km of the 10km North Oatman trend which includes the historical Roadside mine and the Banner mine. In our view, 2021 drilling, including the previous results from Tyro (read more), returned good grades that warrant follow-up drilling (2022E) and additional exploration work. We believe Gold79 has proven that it can execute a high-impact and efficient drill program. We also continue to believe Gold79 offers a compelling buying opportunity for investors at its current valuation.