National Bank said its target on NGEx is based on a 0.8 times multiple to NAVPS (net asset value per share), "comparable to quality base metal acquisition precedents". The bank ascribes a speculative risk rating "as a significant portion of the thesis is contingent on exploration success and an M&A exit, and several de-risking initiatives which remain ahead, including exploration as well as permitting and eventual development."

National noted NGEx is a Lundin Group company focused on exploration of the Vicuna District, a "rapidly emerging world-class mining region that hosts some of the largest copper-gold discoveries in the Andes". The bank is anticipating "impactful results" from "maximum growth" drilling at Lunahuasi, and said the miner is "strategically positioned" for M&A.

According to National, the "backdrop is positive for an influx of demand" for NGEx shares, as the bank believes it is increasingly likely to be added to the S&P/TSX Composite Index during the December 2024 rebalance. The bank is also watching for the C$4.5 billion acquisition of Filo Corp (FIL.TO) by BHP Group Limited, and Lundin Mining Corporation (LUN.TO) to close in Q1 2025 and disbursement of a C$2.77 billion cash component which some shareholders may choose to reinvest into NGEx.

NGEx shares closed up $0.30 to $12.90 on the Toronto Stock Exchange, a 52-week high.

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