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Original-Research: Eloro Resources Ltd. - from Sphene Capital GmbH
26.11.2025 / 09:34 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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Classification of Sphene Capital GmbH to Eloro Resources Ltd.
Company Name: Eloro Resources Ltd.
ISIN: CA2899003008
Reason for the research: Update Report
Recommendation: Buy
from: 26.11.2025
Target price: CAD 14.10 (previously CAD 12.50)
Target price on sight of: 24 months
Last rating change: -
Analyst: Peter Thilo Hasler
Eloro in resource expansion mode
Last week, Eloro Resources released expanded drilling results from the Iska
Iska Project in Bolivia, which we view as significant and an important step
toward a maiden resource estimate. Two additional definition drill holes
(DSB-91 and DSB-92) were completed in the Phase II programme within the
Starter Pit Zone of the silver-zinc polymetallic system. The data indicate
that mineralisation may extend at least 50-100 metres further east, with no
geological boundary identified to date. Phase II comprised 8,286 metres
across 16 holes, with results for two holes (approx. 939.5 metres) still
pending. Reported intercept lengths of up to 238.50 metres confirm
substantial thicknesses rather than isolated veins. Such widths are material
for open-pit or bulk underground scenarios, as greater scale supports a
stronger resource base and potentially higher tonnage. Overall, this is not
a marginal drill programme with small intervals and low grades, but one
yielding robust intercepts with meaningful width, grade, and continuity,
including step-out and infill drilling, in our view. Geologically, the
results are encouraging too: The fact that the system remains open-i.e., no
boundary has yet been encountered-points to continued exploration upside and
a still-incomplete mineralised target.
For the first time, Eloro Resources refers to a "starter pit" in its press
releases. Although this has not yet been approved or fully modelled, the
terminology implies that a potential open-pit zone is already under
consideration-shifting the focus from pure exploration to defining a
mineable unit. In our view, this elevates the significance of the
announcement: it points not only to a mineralisation discovery but to a
resource targeted for subsequent economic evaluation (e.g., a
pre-feasibility study or a Preliminary Economic Assessment). This
interpretation is reinforced by the definition drill holes, which are
typically used to constrain geometry, thickness, and continuity of
mineralisation and constitute a key step toward resource classification, for
example upgrading material from the inferred to the indicated category.
Our price target is derived from the in-situ valuation of the Santa Barbara
Breccia Pipe at the Iska Iska property in Bolivia, excluding all other
assets and focusing solely on the higher-grade portion of the mineral
resource. Reflecting substantially higher raw material prices-especially for
silver and lead-we increase our net asset value (NAV) to USD 1,936 million
from USD 1,236 million. Based on 135.1 million fully diluted shares and an
unchanged 0.70x multiple applied to our NAVPS, we raise our price target to
CAD 14.10 from CAD 12.50. With an implied upside of 1,014.4% from the latest
share price of CAD 1.39, we reiterate our Buy rating on Eloro Resources.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=9d0e0551a3ea0558be928fed4ff1dd17
Contact for questions:
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de
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2236154 26.11.2025 CET/CEST
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