The five small cap mining stocks one broker tips are on the way up
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Western Australian broker Hartleys has tipped five mining small caps it predicts will head north.
The zircon explorer has begun production at its Boonanarring mineral sands project and expects it will generate $90-$100m in the 2020 calendar year.
Right now it sits at 24c, but Hartleys has set a target of 33c.
The mine, which has an initial five-year life, will export 240,000 tonnes of heavy mineral concentrate containing zircon, ilmenite, rutile and leucoxene.
Hartleys sees this junior explorer gaining at least 30 per cent thanks to its nickel projects. The broker has set a price target of 30c.
Duketon recently sold its gold tenements in the Duketon Belt for $25m and is looking at a new nickel prospect (Somerset), with prices recovering after lying dormant since late 2014.
Results included grades of up to 1.78 per cent nickel.
It has five exploration licences and one mining licence at Duketon and a resource of 7.6 million tonnes at 0.9 per cent nickel for 71,000 tonnes.
Tietto has a gold project in central-west Cote d’Ivoire which Hartleys brokers visited earlier this month.
It hosts a resource of 37.6 million tonnes at 1.4 grams per tonne (g/t) gold for 1.73 million ounces.
But Hartleys expects it to cross the 2-million-ounce mark by years’ end with further drilling.
While it has not been an easy wet season, Tietto has continued to drill and its rigs have not only survived but performed better than other well known African drill contractors.
Hartleys admitted its viability would depend on the grade, and that a successful operation needed a higher grade than the current resource.
The broker sees Tietto climbing to 40c — nearly double its current 22c.
Jupiter is a manganese producer in South Africa.
Hartleys has kept an eye on the stock through tensions in South Africa and falling manganese prices.
But Jupiter is paying a total dividend of 1.75 billion South African Rand ($170m) which after withholding tax and costs will equates to 4c per share back to Jupiter shareholders.
Hartleys tips Jupiter will continue to pay dividends and it expects the stock to rise to 44c from 37.5c.
Metals X has had a good year with tin, but its copper project has faced a few issues.
Over the winter it was affected by a shift to campaign milling and a development drive being extended.
Hartleys admitted it would be marked down until targets were hit, but it liked its targets and reserves.
Metals X is aiming for 2-million-tonnes-per-annum by Q1 2020. Its reserves sit at 11.1 million tonnes at 1.45 per cent copper. Hartleys tipped a 33 per cent rise from 21c to 28c in the next 12 months.