Ascendant Resource (TSX:ASND) main  project is the El Mochito Mine in Honduras. This deposit has been in continuous production since 1948 (NSR breakdown 70% Zinc, 20% Lead, 10% Silver). When acquired in December 2016 from Nyrstar, Ascendant started implementing a rigorous optimization program. With a corporate overview news release in early 2018, the company stated it is proud of its accomplishments in this short time frame and in turning cash-flow positive for the first time in December 2017;

In the original deal with Nyrstar they included a 9 year off-take agreement at prices tracking the LME price, a splendid deal at the time that will pay off big in the years to come. The guidance for 2018 is to have a Free Cash Flow of $14-20 Million based on assumed metal prices of Zinc US$1.50/lb, Lead 1.10/lb and Silver 18.00/oz. Any surplus on these assumed prices will have a tremendous leverage on these margins. 2018 expected production is 41-65% higher than 2017. Adding to this, Ascendant just released the assays from its 2017 drill program that saw multiple holes with higher grades than the current resource estimate. Some of these high grade areas will be immediately targeted and will affect the bottom line in the next two to six quarters. 2018 drilling is planned to be 40km with the aim to convert more resources to higher catogories, define additional material near the mine and to explore new targets. The company expects to release an update resource estimate in Q2 2018.

Comparison with peers (based upon 2018 Guidance);

Summary:

- Succesful Mine turnaround established in record time, improvement actions will continue in 2018

- Tight Share float: FD 94.2 Million Shares

- Tightly held: 76.24% held by major shareholders

- Low Market Cap: $67.3 Million (at 94c)

- Cheap compared to peers as the team still needs to prove this success is a lasting story

- Zinc focused junior producer with direct leverage to the zinc price

- 2018 expected production is 41-65% higher than 2017

- 2018 Guidance incl. FCF $14-20 Million, adjusted EBITDA $32-40 Million

- $8.0 million in cash exiting 2017

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