Southern Hemisphere Mining [ASX:SUH]
Metals & Mining
Major Resource Upgrade Sets Stage for Q4 Drilling and Development
We update our valuation of Southern Hemisphere Mining (SUH), setting a revised target Share Price of $0.101, which represents an upside potential of 247.5%, from the current share price of $0.029 and a 8.4% increase from our Target Share Price from our initiation report from April this year. SUH is positioning itself as an emerging copper-gold and battery metals story on the ASX, underpinned by its flagship Llahuin Copper, Gold and Molybdenum Project in Chile, which recently delivered an updated 218Mt MRE. SUH is advancing exploration through a strategic farm-in with FMR, with company maker deep drilling planned for Q4 2025. In parallel, SUH’s Los Pumas Manganese Project offers exposure to the growing EV and battery metals sector, with strategic options underway, including offtake, JV, or sale. With copper, gold, and manganese assets in highly prospective regions, SUH offers multi-commodity upside in a strengthening critical minerals market.
Llahuin Project Delivers Major Resource Upgrade
The updated MRE for the Llahuin Copper-Gold-Moly Project now stands at 218Mt at 0.4% CuEq, confirming it as one of the larger undeveloped copper-gold resources in Chile. This upgrade reflects the incorporation of recent drilling data, improved geological modelling, and a better understanding of the deposit's continuity. The scale and grade of the resource provide a strong foundation for future development studies and enhance SUH’s positioning as a potential mid-tier copper developer in a world-class mining jurisdiction. Llahuin project hosts a large near-surface open-pit resource, with geophysics (including Magneto Telluric resistivity) indicating a substantial copper system at depth; drilling to test these targets is scheduled to commence in October.
Strategic Farm-In Agreement with FMR to Unlock Llahuin’s Potential
SUH announced that FMR had completed technical due diligence and will proceed to earn up to a 60% interest in four selected concessions under the farm-in agreement. This partnership brings a well-funded exploration program to SUH's portfolio, with deep drilling planned for Q4 2025 targeting the large Southern Porphyry Copper-Gold prospect. As part of the deal, FMR raised $2.2 million through a placement, which resulted in well-known resource investor Mark Creasy becoming a substantial shareholder.
Cardawan Copper & Los Pumas Manganese - Building the Pipeline
SUH continues to expand its exploration footprint with the recent pegging of two new exploration licences - ELA52/4433 and ELA52/4434, at the Cardawan Copper Project, covering a combined area of 551km², these tenements were strategically secured based on a sedimentary-hosted copper exploration model, with early-stage groundwork already underway. In parallel, SUH is advancing its Los Pumas Battery Metals Manganese Project in northern Chile, where it is actively exploring options for offtake agreements, joint venture partnerships, funding, or a potential sale.
Llahuin Growth, FMR Agreement & Strong Market Dynamics Support Re-Rating Potential
We value SUH in the base case at $0.094, representing an upside potential of 223.9%, and $0.108 in the bull case, representing an upside of 271.1% compared to the current share price of $0.029. SUH is well-positioned for a potential re-rating as it advances its copper and manganese assets amid strong demand for critical and battery metals. With copper and manganese prices underpinned by the global energy transition and increasing supply chain localisation, the company’s diversified portfolio offers long term exposure to growth.