Lowering Discount Rates on Sustained De-Risking; Raising Target Price to C$5.72.
We are lowering the discount rates applied in our sum-of-the-parts (SOTP) net asset value for First Phosphate by 100 basis points – 10.5% for the mine (earlier 11.5%) and 12.5% for the phosphoric acid plant (earlier 13.5%). In our view, the adjustment reflects meaningful project de-risking over the past several months, including the Nasdaq ADR uplisting and broader access to U.S. capital, Filon’s inclusion in Quebec’s fast-track permitting framework, and the expanded definitive mineral resource estimate, which clears the path for advancement toward feasibility.
