On Tuesday, Stifel Canada maintained its Hold rating on SilverCrest Metals (TSX:SIL:CN) (NYSE: NYSE:SILV), with a consistent price target of Cdn$7.25. The firm's analysis followed SilverCrest's reported fourth-quarter production, which included 14.1 thousand ounces of gold and 1.34 million ounces of silver, with 16.1 thousand ounces of gold and 1.28 million ounces of silver sold during the quarter.
SilverCrest's adjusted earnings per share (EPS) of $0.24 notably exceeded the anticipated and consensus estimate of $0.13, primarily due to lower-than-expected tax expenses. However, the adjusted cash flow per share (CFPS) before working capital changes was $0.20, slightly below the forecasted $0.23, impacted by non-operating cash expenses.
The company's all-in sustaining costs (AISC) for the quarter were reported at $13.69 per ounce of silver equivalent, higher than the analyst's estimate of $11.90 per ounce. Stifel Canada updated its model with SilverCrest's recent financials and adjusted costs to align with the company's guidance.
The anticipated year-over-year increase in operating unit costs by 30%, including mobilization/demobilization costs through the first half of the year, was noted. Despite recognizing SilverCrest as a company with strong cash flow generation capabilities, Stifel Canada concluded that the stock is fully valued at its current price level. The Hold rating and the price target of C$7.25 per share are based on a 1.20 times price to net asset value (P/NAV) target ratio.
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