FULL DISCLOSURE: The Deep Dive is long the equity of Steadright Critical Minerals.
Atrium Research has initiated coverage on Steadright Critical Minerals (CSE: SCM), centering their coverage on the company framing itself as a pure country play with a focus on near term production. The initiation came with a BUY rating along with a price target of $0.50 per share.
The thesis behind the price target focuses on Steadright’s track record of quickly executing on strategic acquisitions since entering the country of Morocco. Steadright has accumulated four critical minerals projects in the country, all of which center around the theme of fast-tracking towards production.
Near term revenue opportunities at Steadright’s Goundafa asset, a historic copper-zinc-gold-lead-silver mine with underground infrastructure in place, is said to enable near term non-dilutive growth for the company. Attrium estimates near term stockpile sales at Goundafa will generate US$1.0 million for the company, with sales to begin in May.
On the country itself, Attrium says that Morocco “offers a favourable mining framework and untested prospective mineralization,” with the country expected to double mining revenues by 2030.
WATCH: What If Morocco Is the Next Big Mining Story? | Matt Lewis – Steadright Critical Minerals
On valuation, Atrium points to the current valuation disconnect stemming from the current project portfolio not having clearly defined resources and technical studies. The drive towards re-rating however is expected to come via Steadright’s focus on mine plans and exploration work, along with increased visibility on the potential of its assets.
With a price target of $0.50 per share, Atrium suggests that there is room for a 113% improvement in the current share price. The target is based on an estimated total asset value of US$33.1 million, of whicjh $15.2 million is attributed to TitanBeach, $14.9 million to Goundafa, and the remainder to Copper Valley.
Oncoming catalysts for the equity include stockpile sales expected to commence in May, and production from TitanBeach One in Q3 2026.
FULL DISCLOSURE: Steadright Critical Minerals is a long investment of Canacom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
