Initiating Coverage
We are initiating coverage on Aldebaran Resources Inc. (TSXV:ALDE) with a BUY rating and C$2.50/sh target price. Aldebaran is advancing its flagship Altar Cu-Au porphyry project (option for 80%) in San Juan, Argentina. The project hosts M&I+I resources totaling ~15.6B lb CuEq and likely has further room to grow as an additional >63,000m of drilling has been completed since the 2021 MRE. Aldebaran is rapidly advancing and de-risking Altar ahead of a likely sale to a major mining company. Situated in a top mining jurisdiction in a country experiencing an economic renaissance, Altar benefits from significant drilling and the discovery of the Altar United area since the prior MRE. We anticipate substantial resource growth in the forthcoming MRE update, which should be the main driver of the stock in the near term. Given that Altar is well beyond the ~10B lb CuEq threshold sought by major mining firms, we believe it should attract considerable interest from potential buyers.
