Anglesey Mining PLC (AIM:AYM) offers major upside as the Welsh mine developer is demonstrating further potential in its portfolio, according to stockbroker WH Ireland.
In a note following Monday's project update, the broker's analyst highlighted an 11.2p ‘fair value’ estimate which suggests many multiples of upside to the current share price of 2.5p.
Earlier today, Angelsey Mining released the results of an internal review of the Northern Copper Zone at Parys Mountain, in North Wales, which is deemed to be one of the largest undeveloped copper deposits in the United Kingdom. It comes as the company is advancing towards a fresh phase of work at the project.
“We have always viewed the Parys Mountain area as prospective,” WH Ireland analyst Paul Smith said. “The current PEA plan is to bring the Northern Copper Zone into production towards the end of year 4.
"However, drilling at the Northern Copper zone over the next 12 months will help lift confidence in this orebody and generate material for modern metallurgical test work. We expect the understanding of the zone, its size and its grade and metallurgical characteristics to improve considerably and we expect that this copper zone could form a larger part of the mine plan going forward.”
Smith added: “Anglesey continues to work on a resource update for the White Rock and Engine Zone at Parys Mountain, which is expected to be completed over the next six weeks.”