Couloir Capital initiated High Tide Resources with a Buy rating on the resource company’s stock price.
Couloir Capital Report:
Investment Highlights • High Tide Resources (CSE: HTRC (“HTRC”, or “Company”)) is a junior exploration company focused on iron ore exploration and resource development at its flagship Labrador West Iron Project (LWIP) in the Labrador Trough region of Canada. The Company controls 2,475hectares of land in the area around Labrador City, Labrador & Newfoundland. • Promising historical and recent drill results: The LWIP saw some exploration drilling by Rio Tinto between 2007-2014 which yielded some promising intercepts, such as 191m @ 30% Fe and 254m @ 27.1% Fe. After HTRC took over the project a first round of additional drilling returned further encouraging results, such as 315m @ 29.6% Fe and 322m @ 26.8% Fe. • Management The management team at HTRC brings a wealth of experience to the table to advance this iron ore project. The team as a whole, has experience in iron ore exploration and the downstream segment of the industry as well. The financial expertise of the management team will prove key in raising funding to advance the project. • Market Fundamentals: The consensus outlook for the iron ore markets is fairly stable for the coming three years and prices for 66% Fe concentrate are currently above their long-term average, which is a conducive price environment for the project to progress. • Funded to deliver further catalysts: With approximately 3 MCAD in the treasury HTRC anticipates drilling up to 2500m of core this year and work towards a maiden inferred resource of over 500 MMT of contained iron with the goal of completing a PEA level study within 12 months. • Based on our analysis we are initiating coverage with a positive outlook for the company’s share price development over the next 12 months.
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