CA - Aclara Resources downgraded to Sector Perform at RBC Capital

2023-07-05 17:03:58 ET

Aclara Resources ( OTCPK:ARAAF ) ( TSX: ARA:CA ) on Tuesday was downgraded to Sector Perform from a prior investment rating of Outperform by analysts at RBC Capital Markets. They said the miner of rare-earth materials faces greater uncertainty after the withdrawal of its application for an environmental permit in Chile.

“We continue to see potential value in the Penco module, as one of the only ionic rare earth projects outside of China with proven recoverable heavy rare-earth element material using a sustainable process,” Andrew Wong, analyst at RBC Capital, said in a July 4 report. “However, the permitting process has continued to challenge development.”

Aclara ( OTCPK:ARAAF ) ( ARA:CA ) on Tuesday said its environmental impact assessment application for its Penco mining project was terminated because six native naranjillo trees, which are considered a “vulnerable species,” were discovered in the area.

Aclara’s ( OTCPK:ARAAF ) ( ARA:CA ) stock plunged 29% to $0.30 a share on Wednesday.

RBC lowered its price target on Aclara ( OTCPK:ARAAF ) ( ARA:CA ) to 0.30 Canadian dollars a share.

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