Alien Metals Limited’s projects worth up to double market cap, suggests broker

Alien Metals Limited (LON:UFO) currently has projects worth in a range of £82.9mln to £41.5mln according to new research from Turner Pope.

That compares with a market value currently of £40.2mln at 1.11p, says the broker, with range reflecting the potential value to be added as projects come on stream.

Alien Metals has projects in Mexico, Australia and Greenland with an extensive exploration programme planned for 2021.

On the silver side, results from a recent aeromagnetic survey at the Elizabeth Hill prospect in Western Australia are being compiled into additional exploration during the year.

Trenching and a 4,000m drill programme are also planned for an area to the south of the historic mine.

At the San Celso and Los Campos silver projects, in Mexico, the company expects to commence maiden drill programmes at both projects, with Alien highlighting the potential for an initial scoping study at either project based on positive results from the drill programmes.

On the iron ore side, results from the in-fill mapping and sampling programme at the Kalgan Prospect (Hancock Project) at Hamersley are awaited, and the company has recently commenced a maiden drill programme on the Hancock Project.

Turner Pope adds that Alien Metals is, by and large, a project generator, leveraging its teams’ technical experience and skills to evaluate and acquire early-stage exploration projects, to advance these projects, completing next stage exploration before seeking partners to assist in funding the exploration and development costs of the projects, while Alien retains a significant interest in the project.

“This strategy reduces Alien’s financial exposure and risk to any one project but ensures it benefits from any increase in value of each project within the portfolio.

“The strategy gives the company a level of diversification and a reduced risk exposure that conventional exploration companies, focused on one to two assets, would not have.”