Ascendant Resources Inc. (TSXV:ASND) announced average daily throughput had improved to 1,960 tpd from its El Mochito mine in April (up from 1,619 tpd in Q1), providing an early indication that the company is on-track with its turnaround. For Q2, the company has guided for 1,850 tpd and expects to exit 2017 at 2,200 tpd. To achieve these goals, we expect the company is likely to deliver steady improvements over the course of the year, as it enters its most capital intensive quarter. The recent financing (C$20 million), should provide the financial support necessary to fund its operational turnaround. In addition, the company announced that its new three-year collective bargaining agreement has been agreed upon with union leadership and ratified by the Minister of Labour of Honduras, which should provide the company medium term labour stability. We believe a progressive re-rating is likely over the year as the company executes on its ongoing optimization program; we expect Q2 operating results (expected in early July) are inclined to be the next catalysts for the company.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
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Ascendant Resources Inc. – TSXV:ASND – 2,4
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