Analysts from BMO Capital Markets, Roth Capital Partners, and ATB Cormark Capital Markets have returned from site visits to New Pacific Metals Corp.'s two Bolivian projects with positive assessments, highlighting the company's development potential and the improving political climate for mining investment. The visits, conducted in October, prompted BMO to raise its price target on the stock to $12 from $8.82.
New Pacific Metals, listed on the NYSE under NEWP and on the TSX under NUAG, is advancing the Silver Sands and Carangas projects. Silver Sands is in the Pre-Feasibility Study phase and has the potential to produce between 12 million and 15 million ounces of silver annually, according to the company. Carangas, which features an updated Preliminary Economic Assessment, could produce up to 15.5 million ounces of silver annually during its initial high-grade phase and is currently undergoing a 30,000-metre drill campaign.
BMO analyst Kevin O'Halloran cited the framework agreement signed earlier this year with the local community at Carangas and the Administrative Mining Contracts that the government is expected to sign by year-end as encouraging signs. He also noted continued progress with the community at Silver Sands to advance development. "New Pacific's two flagship projects have made meaningful progress over the past two years, coinciding with a political shift in the country that appears significantly more receptive to private investment in natural resources projects," O'Halloran wrote. "Together, these projects represent meaningful silver production of over 27Mozpa, and we see valuation upside for NUAG shares as they are advanced. Our target increases to $12."
Roth Capital Partners analyst Joe Reagor, who visited both mines with a team, suggested there could be further catalysts ahead. "There appears to be significant regional exploration potential that could provide positive catalysts for New Pacific in the quarters ahead," Reagor wrote. He noted that at Carangas, New Pacific has identified a number of exploration targets outside the existing resource, and three drills were operating at the time of the visit. Roth has a buy rating on the stock. Regarding Silver Sands, Roth said that while the company must sign agreements with local communities, these challenges should not prevent development. "None of these challenges should prevent the development of these assets as they fall within the normal scope of South American mine development, in our view," the analysts wrote.
ATB Cormark Capital Markets analysts said their site visit reinforced their conviction that the two projects are among the "best undeveloped silver deposits globally." They expressed confidence that the miner will benefit from ongoing changes in Bolivian politics, including the removal of widespread roadblocks due to citizen protests earlier this year. "We anticipate further positive headlines in the coming months from New Pacific Metals related to permitting/political developments, which we see as the key to de-risking the two projects and driving a further re-rating of the stock," the analysts wrote, maintaining an outperform rating. They pointed to the restructuring of the Ministry of Mining and Metallurgy to promote investment and new mining regulations aimed at attracting foreign capital. The government has also shown interest in prioritizing tier-1 silver projects, which favors New Pacific Metals. "Combined, New Pacific Metals' projects could produce nearly 20 million ounces per year of silver, enough to move the needle for any large primary-silver producer," the analysts wrote. "Both projects are being advanced simultaneously, each stacking up with the best silver projects globally and the combined production potential makes New Pacific Metals a clear takeout target in our view if its projects are advanced through permitting."
The bullish commentary comes as demand for silver continues to outstrip supply, driven by electric vehicles, AI data centers, and green energy. According to the release, 2025 marked the fifth consecutive year of a supply/demand imbalance. Bolivia is home to vast undeveloped silver and gold resources, and the new government is courting foreign investment and mining partnerships. For readers interested in learning more about the Carangas project, additional information is available click here. The original content was published on Benzinga, and disclosures can be found here.
