Analyst report rates Nicola Mining stock as buy with target of C$0.60

In a recent analyst report from Atrium Research, Nicola Mining [TSXV-NIM; OTCQB-HUSIF; FSE-HLIA] received a BUY rating with a target price set at CAD 0.60 per share. This recommendation signals a strong confidence in the company’s potential to deliver significant returns to investors. The projected return to the target price equals an ambitious 97%, highlighting the growth prospects attributed to Nicola Mining’s strategic assets and business model.

The analyst report values the New Craigmont Copper Project at approximately $62.5 million. This valuation is predicated on metrics from Nittetsu Mining’s assessment conducted earlier in 2023. The Merritt Mill, with an estimated contribution of $25.5 million to the overall valuation, also plays a critical role in enhancing the financial outlook for the company.

Nicola Mining Inc., a junior mining company based in British Columbia, operates a fully permitted Au and Ag Mill and Tailings Facility. This facility is strategically located near Merritt and is designed to process both gold and silver mill feed through various methodologies including gravity and flotation processes.

The company is actively engaged in profit-sharing agreements with several high-grade gold projects. This operational model enables the company to limit shareholder dilution while still funding its exploration activities. With a focus on sustainable practices, the company also operates a Sand and Gravel Pit and Rock Quarry, which further contributes to its revenue streams.

Another noteworthy growth opportunity is identified at the Treasure Mountain Silver Mine. This mine is fully permitted for mineral extraction and is recognized for hosting a substantial resource of silver, lead, and zinc. Its integration into Nicola Mining’s broader operational framework could provide additional sources of ore for the milling facility.

Nicola Mining last traded at .32 cents as of Friday, October 25 with a market capitalization of approximately C$53.3 million. The company’s shares outstanding total 166.68m.