Eloro Resources enters the final days of April caught in a sharp divergence: short sellers are covering at pace, yet the stock is still down nearly 19% on the week.
The most striking dynamic in the lending market is how quickly shorts have pulled back. Short interest as a percentage of the free float has collapsed from roughly 0.93% in mid-March to just 0.53% now — a 43% decline over the past month. On a weekly basis the fall is even sharper, with short shares dropping 27%. Borrowing costs have followed suit, falling more than 70% over the month from a March peak near 8.3% to just 1.86% today. A month ago this was a genuinely contested borrow; it is no longer. Availability in the lending pool is wide open, meaning there is ample room for new shorts if sentiment were to sour further. The combination of falling SI and cheap borrow suggests the short thesis has largely been abandoned rather than pressed — this is an exit, not an escalation.
The ORTEX short score of 41.6 reinforces that picture. It has been declining steadily all week, down from 48.1 on April 21, and the factor-score percentile for short interest ranks in the 22nd percentile versus the broader universe. There is no technical squeeze pressure here.
What makes the setup unusual is that the covering has done nothing to support the share price. ELO closed Wednesday at CAD 1.72, down nearly 3% on the day and roughly 48% below the 3-month high of CAD 3.29 reached in late January. That level also happens to be near where Chairman and CEO Thomas Larsen sold shares in December at CAD 1.73 — the stock has now retraced to almost exactly that price point. Peers across the TSX junior mining complex have also had a rough week: fell more than 17% and dropped 13%, confirming this is a sector-wide move rather than an ELO-specific story.
The analyst picture is thin but notable. The mean price target, last updated in late April, stands at CAD 9.08 — more than five times the current price. The gap is too wide to take at face value without scrutiny; it likely reflects a small number of resource specialists who modelled target prices based on project economics at higher zinc and silver price assumptions, or at a pre-dilution share count. Without a recent formal update or visible catalyst bringing the target lower, the figure is best treated as a directional signal rather than a precise valuation anchor. There are no recent analyst rating changes on record.
Ownership is concentrated. Crescat Portfolio Management holds nearly 13% of shares, and several named insiders — including Larsen at 2.8% and CFO Miles Nagamatsu at 1.7% — maintain sizeable positions. The last recorded insider transactions were VP Christopher Holden's modest open-market sales in January, totalling roughly 15,000 shares at around CAD 3.08-3.15. No insider buying has been reported since. With the stock now trading well below those January sale prices, the next earnings event is pencilled in for late June — the distance between today's price action and the analyst community's long-term project value is the central tension worth watching into that date.
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