Morgans: Mineral Deposits Limited shares are a buy

Brokers at Morgans have upgraded Australian mining small cap Mineral Deposits Limited (ASX: MDL) to add from a hold rating with share prices in the company up 3% to $1.18 at the time of writing.

Mineral Deposits focuses on mineral sands resources in the Grand Cote Projects in Senegal, West Africa, with an ilmenite upgrading facility in Tyssedal Norway.

A note out of the Morgans equities desk has seen revised production and cost projections out of Mineral Deposits. Morgans has increased the share price target from $1.18 to $1.51 – ramping it up to an add rating.

The upgrade is related to a boost in production at the Grand Cote project – the project is 90% owned by TiZir, but Mineral Deposits owns 50% of TiZir itself. However the broker labelled the full year results handed down on February 21 as “a disappointment”.

Several analysts have flagged the mineral sands miner and processor as a stock to watch in the past 6 months as the company has displayed good operational efficiencies despite a hiccup at its Norway facility of late.

With brokers circling, this one should surely be on your watch list.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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