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Bulls Eye: Place Your Bets on Tinka

ANALYSTS BEGIN TO BET ON TINKA

Named after Peru's popular lottery game, zinc explorer Tinka Resources ($TK on the Canadian TSXV and $TKRFF on the US OTC) has seen its stock price triple in value since I made it a top pick last September.

Though a handful of newsletter writers have been covering the stock through its run, Tinka Resources finally received some much deserved analyst attention with GMP Securities initiating coverage with a BUY recommendation on June 29th.

In their research note, GMP Securities assigned a price target of C$1.00/sh (0.8x NAV multiple applied to NAV8% of C$1.25/sh), implying over 56% upside from Friday's close. It should be noted that GMP Securities calculated the NAVPS at C$1.25 based on the NI 43-101 compliant resource of 18.8Mt @ 5.9% Zn (8.2% ZnEq including by-products), which was published a year ago. GMP Securities also assumes a zinc price of US$1.10 per pound.

This is just the first of much more coverage to come for this under-appreciated junior. Mining blogger Otto Rock at IncaKolaNews reported a couple weeks ago that Tinka Resources was hosting site visits for several analysts (click for link).

SLOW PLAYING THE HAND

As noted above, GMP Securities is using an out-dated resource estimate and conservative commodity price assumptions in calculating their NAVPS.

Since publishing their NI 43-101 resource estimate in June 2016, Tinka Resource has had tremendous success exploring their project and may have more than doubled the resource half-way into the ongoing exploration program. Here, blogger AngryGeologist estimates that Tinka...


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