These two ASX mining shares could have significant upside according to analysts.
Argosy Minerals Limited (ASX: AGY) and Musgrave Minerals Ltd (ASX: MGV) share prices are both tipped to charge higher.
Let's take a look at these two ASX mining shares in more detail.
Argosy Minerals
Argosy Minerals is a lithium miner developing the Rincon Lithium Project in Argentina. The company's shares are 0.45% in the red today and currently fetching 65.3 cents.
Analysts at Canaccord Genuity have placed a speculative buy rating on Argosy Minerals shares with a price target of 85 cents. This implies a 30% upside. Analysts noted Argosy has produced maiden battery quality lithium carbonate at the Rincon project, commenting:
The production of 99.76% lithium carbonate (250kgs) represents a significant validation of its production process, in our view.
In 2023, the team at Canaccord believe Argosy "is likely" to deliver on multiple fronts that could unlock value for shareholders. These include first sales of lithium product, customer offtake agreements, the ramp-up of the two kilo tonnes per annum (ktpa) plant, resource and reserve updates and a final investment decision and financing of the 10 ktpa plant. Analysts added:
We value AGY using a 50:50 NAV:five-year average EBITDA with a multiple of 7.5. We use US$22,500 per tonne for our lithium price and USD/AUD of 0.75.
Musgrave Minerals
Musgrave Minerals is a gold explorer developing the Cue Project in Western Australia. The company's shares are down 2% today and are currently fetching 22 cents.
Argonaut equity research has placed a speculative buy rating on Musgrave with a 40 cent price target. This implies an upside of 82% based on the current share price. Analyst Royce Haese highlighted the "rare nature" of high-grade, near surface gold deposits in WA.
Commenting on Musgrave, Haese said:
Updated met results exceed our expectations and granting of mining leases is another tick towards development.
On our modelling we bump up our assumed average project metallurgical recovery from 92% to 93%, retaining plenty of conservatism. We still assume processing through Dalga. Our valuation improves slightly to $0.40 per share, prior $0.38.
