Initiating Coverage
We are initiating coverage of NorZinc Ltd. (TSX:NZC) with a BUY rating and C$0.15/sh target price. NorZinc is a zinc exploration and development company that is focused on advancing its 100%-owned Prairie Creek Zn-Pb-Ag project in Northwestern Territories, Canada. Our estimates indicate an after-tax NPV8% of ~US$364M (at US$1.20/lb Zn) for the project, which represents a ~21% increase from the November 2021 PEA. In our view, NZC has a strong management team that is well-positioned to advance a significant zinc project in a low-risk and stable jurisdiction.