en.Wedoany.com Reported - Bell Potter Securities initiated coverage on ASX-listed Maronan Metals (ASX:MMA) last week, forecasting the company's share price to double.

Maronan Metals' namesake project, located near Cloncurry in Queensland's Northwest Minerals Province, hosts indicated and inferred silver-lead resources of 33.1 million tonnes at 6% lead and 108 g/t silver, containing 1.97 million tonnes of lead and 114.5 million ounces of silver. The project also hosts copper-gold resources of 32 million tonnes at 0.85% copper, 0.63 g/t gold, and 7 g/t silver, containing 271,000 tonnes of copper, 649,000 ounces of gold, and 7.4 million ounces of silver.

In September 2025, the company released a Preliminary Economic Assessment (PEA) for the project's Starter Zone. The standalone development scenario is based on only 22% of the project's resources, with a capital cost of A$266 million, an annual processing capacity of 1.5 million tonnes, and a mine life of 10 years. The scenario corresponds to total production of 3 million ounces of silver, 38,000 tonnes of lead, 1,400 tonnes of copper, and 3,800 ounces of gold, equivalent to 5.4 million ounces of silver equivalent, with all-in sustaining costs of A$30.18 per ounce of silver equivalent.

The scenario is expected to generate EBITDA of A$981 million, a pre-tax net present value (at an 8% discount rate) of A$377 million, and an internal rate of return of 37%. Maronan's Exploration Manager, Andrew Barker, noted at a recent Noosa mining conference that the above estimates are based on a silver price of US$36 per ounce; for every US$1 increase in the silver price, the project's NPV increases by A$20 million, and at current spot silver prices, the project's NPV is approximately A$750 million. Barker stated that the project should not be underestimated.

The PEA also considered a toll treatment scenario, but the company is focused on the standalone development option. Barker said the economics of the Starter Zone PEA look very attractive, which adds confidence to advancing the project to a pre-feasibility study. The Pre-Feasibility Study (PFS) is expected to be released in the first half of next year, at which time a larger area of the orebody will be studied to capture additional resources.

Metallurgical test work to date has shown recoveries exceeding 90% for silver, lead, and copper. Barker explained that the company can process ore into lead concentrate with a lead grade exceeding 70% and silver content of at least 1,500 g/t, sometimes significantly higher. He expects smelters will be eager to purchase this concentrate.

Maronan recently secured a mineral development licence for the construction of box culverts and an exploration decline, which was approved within 12 months of submission. The company remains on track to submit a mining lease application by the end of this year.

Bell Potter analyst James Williamson stated in the coverage report that there are "low-hanging fruit" to be picked in the PFS. He believes there is significant upside to the PEA metrics, with the potential to develop a larger on-site processing facility (i.e., 2 million tonnes per annum) and extend the mine life to cover the 78% of resources outside the Starter Zone.

On the drilling front, approximately one-quarter of Maronan's 40,000-metre infill drilling program has been completed, with two rigs currently on site and a third arriving this month. The program aims to convert more resources to indicated status for the PFS.

Last month, infill drilling approximately 250 metres north of the Starter Zone intersected shallow, high-grade silver-lead mineralisation. The best result was at Eastern Horizon: 7.3 metres (estimated true width 6.2 metres) at 11% lead and 89 g/t silver from 345.7 metres downhole, including 4.3 metres (estimated true width 3.7 metres) at 15.8% lead and 118 g/t silver. Barker said the early results outside the Starter Zone are encouraging, with more drilling to come, but it is a very good start.

On the equity front, in the June quarter, former 35.8% shareholder Red Metal announced an in-specie distribution of most of its Maronan shares, reducing its stake to 6.1%, broadening the shareholder base and removing the overhang on the stock.

This arrangement paved the way for Maronan to subsequently secure a A$22 million investment from US private equity firm Kinterra's Critical Materials & Infrastructure Opportunities Fund II, which acquired a 19.99% stake. Kinterra has been active on the ASX, having previously acquired nickel miner Cannon Resources and copper developer New World Resources.

Barker said Kinterra manages A$1.5 billion in capital with a 20-year investment history in the mining and resources sector, and its entry is institutional recognition of the project and the team. The funding will enable the company to accelerate drilling and complete the PFS.

Williamson also noted in the report that Maronan is located in a mature mining region with the potential to produce metals benefiting from strong long-term structural trends, which will support a valuation re-rating as the company advances the project toward production and risks are progressively retired. He assigned a "speculative buy" rating with a target price of 76 Australian cents, double Friday's closing price.