The team at Shaw and Partners has run the ruler over some up-and-coming ASX mining companies they believe could deliver serious upside.
They've picked two gold companies and a copper company, which they think could outperform.
Let's see who they like.
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Strickland Metals Ltd (ASX: STK)
Shaw and Partners has just initiated coverage on this company, which owns the Rogozna gold and base metals project in southern Serbia.
The company's shares are down about 40% over the past 12 months, but the broker thinks they could more than double from this lower base.
Shaw and Partners said the company's "substantial existing resource" of 9.3 million ounces at 1.33 grams per tonne of gold equivalent had high growth potential.
They added:
Optionality across the four Rogozna deposits could potentially allow staged entry and ramp-up of mining and processing. We expect a maiden prefeasibility study late CY27. We find the market is materially undervaluing Rogozna's deposits and overestimating current regulatory concerns. Indeed, Zijin Mining recently increased its STK ownership to 7.4%.
Shaw and Partners said regulatory and project derisking could increase their valuation to 30 cents per share, up from 20 cents, while the current share price is 8.5 cents.
The broker added:
Due to Rogozna's vast scale, STK has substantial further re-rate potential from delivering project studies and progressing towards production.
AIC Mines Ltd (ASX: A1M)
AIC recently announced guidance for the current year and a three-year growth outlook for its Eloise and Jericho copper mines.
The company said it was "an exciting time" as it transitioned from a small-scale, single-mine operation to a 1.5 million tonne per annum dual-mine operation producing 25,000 tonnes per annum of copper concentrate.
For the current year, AIC said it expected to produce 17,500 to 18,000 tonnes of copper, weighted to the second half of the year.
Guidance for the following year was for production of 20,000 to 22,000 tonnes, increasing to 25,000 to 27,000 tonnes in FY29.
Shaw and Partners has a price target of $1.10 on AIC shares, compared to the current price of 69 cents.
Aurelia Metals Ltd (ASX: AMI)
Shaw and Partners said Aurelia recently delivered "standout" results for its fourth quarter, "highlighted by gold production beating the top end of its recently upgraded guidance, generating the highest quarterly operating cash flow since 2018, and sharply improving balance sheet liquidity following the close of a new financing package''.
The broker added:
The operational turnaround, outstanding cash generation, and finalised debt structure sets a firm foundation for FY27.
Shaw and Partners has a price target of 50 cents on Aurelia shares compared to 33 cents currently.
