Victory Metals: The PFS Changed the Investment Case
Disclosure: We own shares in Victory Metals (ASX: VTM).
We were already bullish on Victory Metals. After the North Stanmore PFS, we are considerably more so.
The headline numbers are difficult to ignore: A$1.21 billion post-tax NPV, 240% post-tax IRR and a build cost of just A$155 million, less than half the A$337 million contemplated at scoping stage. The project is now backed by a 47Mt Probable Ore Reserve, and the entire production plan is Reserve-backed.
That A$155 million figure is what changes the story for us. North Stanmore has gone from an exciting heavy rare earth discovery with a compelling valuation to a project that now looks far more realistically financeable. The existing US EXIM Letter of Interest for up to US$190 million is itself substantially larger than the project's initial capital requirement.
And yet the market is still valuing Victory at only a fraction of the project's PFS value.
In our new research report, we explain why we believe the PFS should drive a major re-rating, where the upside could come from next, and why we have raised our 12-month price target from A$3.50 to A$5.20 while reiterating BUY.
This is one of the most compelling development-stage critical-minerals setups we are following. Read the full report below.