AIC Mines Ltd (ASX: A1M) recently released a new mineral resource figure for its flagship Eloise project, with the new data prompting Shaw and Partners to reiterate its buy recommendation on the stock.
The analyst team at Shaw and Partners also has a bullish price target on the AIC Mines shares which we'll get to later.
Firstly, let's have a look at what the company announced.
Image source: Getty Images
Main project looking good
AIC said in a statement released at the end of March that its Eloise processing plant near Cloncurry in Queensland now had access to the largest resource base compared to any time in its 30 year history.
The combined project mineral resource increased 10% to 31.2 million tonnes of ore at a grade of 2% copper and 0.4 grams per tonne of gold, containing 631,800 tonnes of copper and 445,800 ounces of gold.
The company also said that resource extension drilling at the Jericho deposit, which is part of the greater Eloise project, showed that the ore body remained open along strike and at depth.
AIC Mines managing director Aaron Colleran said regarding the results:
Resource definition and extension drilling completed in the 2025 field season has increased resources and improved reserves at both Eloise and Jericho – again highlighting the quality of these deposits and the strong geological, geophysical, geochemical and structural understanding that our exploration and geology teams have developed. The increase in resources and reserves at Eloise and Jericho strengthens the long term outlook and underpins potential mine-life extensions and future production growth. It is a great time to own a copper mine, as global demand for copper is surging due to the rapid expansion of renewable energy, electric vehicles, and AI infrastructure projects. With copper being a crucial component in electrical wiring and hence electrification, its value is rising steadily and set to rise further, making copper mining operations more profitable than ever.
Shares looking cheap
Shaw and Partners said in a note to its clients that it was important to note that AIC's calculations were done using conservative price assumptions.
As they said:
The Ore Reserves were … calculated using a $10,500/t copper price and a $2,500/oz gold price, significantly below current spot prices of $18,400/t for copper and $6,900/oz for gold.
Shaw and Partners said catalysts for share price growth in the future would include production scaling via an underground link to new ore zones, a mill expansion which was under way, and the potential for regional consolidation.
Shaw and Partners has a $1.10 price target on AIC Mines shares, which would represent a return of more than 100% from the current level of 53.5 cents if achieved.
AIC mines is valued at $430.7 million.
