Alien Metals Ltd (AIM:UFO, OTC:ASLRF) is set for a “company defining year” according to stockbroker WH Ireland which expects to see the Hancock project, in Western Australia, de-risked over the course of 2022.
WH Ireland, in a note, sets a 2.7p per share ‘fair value’ for the junior mining group, suggesting potentially substantial upside to the current price of 0.78p.
“We see a clear route to near-term cash generation from Hancock, in a project that Alien could manage itself,” WH Ireland analyst David Seers.
“In addition, a pipeline of positive news flow from Mexico and Munni Munni/Elizabeth Hill in Australia is expected, which should lead to a re-rating.”
Seers added: “Alien is looking to develop a premium high-grade Direct Shipping Ore (DSO)iron ore operation with low capex, low opex and a ready market.
“The first project, Hancock, requires no infrastructure (barring a small haul road), and can be operated via contractors.
“There is also the very real potential to grow the existing resource to support long-term operations and a longer-term goal to add a second production site at Brockman.
“In our opinion, by pursuing a contractor miner model, Alien can effectively manage these operations while advancing its other projects.”
The broker also highlighted in the note the potential of Alien Metal’s Munni Munni and Elizabeth Hill silver mine, along with exploration projects in Mexico.
Alien Metals chief executive Bill Brodie Good talked to Proactive earlier today from the site of its Elizabeth Hill deposit and discusses the progress there and at its recently acquired Munni Munni project.
