Peel Hunt has a 22p price target which suggests some 45% upside for the AIM-quoted share.
Stockbroker Peel Hunt repeated a ‘buy’ recommendation for Base Resources Plc (LON:BSE) whilst pointing to the company’s stronger-than-expected production results for the March quarter.
Analyst Peter Mallin-Jones noted that the stronger performance was driven by both higher mining rates and grades, as well as slightly higher-than-expected recoveries of ilmenite in particular.
With a price target of 22p the stockbroker sees some 45% upside to the current price of 15.17p.
Mallin-Jones said that ilmenite and rutile volumes were well ahead of the broker’s own estimates, meanwhile, added that realised prices were also “well ahead”. Altogether this helped the company retire debt as Peel Hunt had previously expected, he added.