Broker Numis reckons traders should 'add' Wolf Minerals (LON:WLFE) shares to the portfolio as the tungsten miner ramps up at its Drakelands mine in Devon, UK to deliver first production to customers in September.
Numis says everything appears to be "well on track" and first revenues are expected to come shortly afterwards.
In June this year, the firm toppled a key milestone - as it put first ore through the processing plant.
Currently, US$67.5mln of the $75m senior debt has been drawn, with capex (capital expenditure) largely spent and the broker estimates a final US$5mln for the next quarter.
"Wolf’s view is that APT prices have likely bottomed out, interestingly a view supported by Wolf’s customers throughout the chain, thus no need to look at rescheduling debt yet," Numis analysts noted.
The firm is also working through a six month trial of seven day a week operations, and will try to formalise this arrangement permanently by the year's end.
"The process to do this doesn’t look to onerous with no big permitting task, rather it is up to Wolf to demonstrate that they can work within the current environmental constraints, especially in relation to noise," said Numis.
"Whilst some commissioning risk remains, this will gradually diminish as the plant is optimised and beds down towards first concentrate production next month. Overall, Wolf appears to be doing a good job managing and mitigating the risks at this key time."
Numis targets 23p for the shares, which are currently changing hands for 15.25p.