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TICKERS: TM; PNTZF; TZU2

Copper Co. Achieves Key Production Milestone
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Trigon Metals Inc. (TM:TSX; PNTZF:OTCQB; TZU2:FRA) recently announced a significant production milestone and strategic operational changes, according to an Atrium Research note.

Atrium Research analysts Ben Pirie and Nicholas Cortellucci, in a research report published on September 19, 2024, provided an update on Trigon Metals Inc. (TM:TSX; PNTZF:OTCQB; TZU2:FRA) following the company's announcement of a significant production milestone and strategic operational changes. The analysts maintained a Buy rating and a target price of CA$3.50 on the stock.

Trigon Metals announced that its underground operations at the Kombat Mine had reached a production rate of 980 tonnes per day (tpd) over a 30-day period, surpassing a key threshold in its streaming agreement with Sprott.

The analysts viewed this development positively, stating, "This milestone is key as per the terms of the streaming agreement with Sprott, ensuring that Trigon is not required to convert the principal advance pursuant to the stream agreement into a loan."

In light of this success, Trigon has made the strategic decision to pause its open pit mining activities. The analysts noted, "This decision was made for a few reasons, but primarily because the 980tpd for 30 consecutive days from the underground is just under the current milling capacity of 1,000tpd and it is far more profitable for the Company to process the much higher-grade underground ore."

Pirie and Cortellucci expressed their positive view on these developments: "We are impressed with today's release as it highlights the much better than expected ramp-up of the underground operations and sets Trigon up for much more profitable quarters and increased production going forward."

The analysts also highlighted Trigon's ongoing exploration efforts, mentioning a ~3,500m drill program that has yielded positive results, particularly high-grade copper found outside of the existing resource near Shaft #3. They noted, "This area is set to be a key mining area as TM ramps throughput from 1,000tpd to 2,000tpd next year."

Atrium Research's valuation methodology for Trigon Metals is not explicitly stated in the report. However, the analysts maintain their Buy rating and target price of CA$3.50, representing a potential return of approximately 456% from the price at the time of the report of CA$0.63.

The analysts concluded by outlining key catalysts for Trigon, including "Quarterly Production & Financial Results - Ongoing" and "Drill Results at Kombat & Expansion Drilling – Ongoing," indicating potential near-term drivers for the company's valuation.


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  1. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Atrium Research, Trigon Metals Inc., September 19, 2024

Analyst Certification Each authoring analyst of Atrium Research on this report certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated securities discussed (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the research, (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer, (iv) the analyst does not own common shares, options, or warrants in the company under coverage, and (v) the analysts adhere to the CFA Institute guidelines for analyst independence.

About Atrium Research Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. For further information on our team, please visit https://www.atriumresearch.ca/team.

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