Monday, BMO Capital Markets raised its price target on SilverCrest Metals (NYSE: NYSE:SILV) shares to C$14.25, up from the previous C$13.25, while maintaining an Outperform rating on the stock. This adjustment follows the company's reported second-quarter production, which slightly exceeded expectations.
SilverCrest announced a second-quarter production of 2.68 million ounces of silver equivalent (AgEq), surpassing the 2.46 million ounces estimated by BMO Capital. The company's throughput and silver grades met projections, while gold grades slightly exceeded forecasts. Notably, SilverCrest achieved a record silver recovery rate of 98.3%.
At the end of the quarter, SilverCrest's financial position was robust, with treasury assets totaling $122.3 million, which included $24 million in bullion. The firm's consistent production performance, which has been a trend, is anticipated to persist. BMO Capital attributes this outlook to the strategic use of surface stockpiles to mitigate production risks.
The positive production report and the subsequent price target increase reflect SilverCrest's operational achievements. The company's ability to maintain consistent production levels and its strong financial standing have contributed to the analyst's optimistic outlook and the revised price target.
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