Aldoro Resources Limited [ASX:ARN]
Metals & Mining
Unlocking High-Grade Niobium & Rare Earths Potential
We initiate our coverage with Aldoro Resources Limited (ASX: ARN) with a target price of $1.101, representing an upside of 255.0%. ARN is an emerging critical minerals explorer focused on unlocking the value of its high-grade rare earth and niobium assets in Namibia. Its flagship project, the Kameelburg Carbonatite, hosts extensive REE-Nb-Mo mineralisation and has rapidly advanced through drilling and metallurgical testing. Complementing Kameelburg is a suite of Western Australian assets, including the Narndee Project, which targets lithium, rubidium, and tungsten within a large layered maficultramafic intrusion showing extensive pegmatite development. ARN also holds the Niobe and Wyemando Projects, both prospective for lithium and tantalum, with Niobe hosting shallow high-grade lithium-bearing pegmatites and Wyemando offering greenfields potential in a proven mineralised corridor. Together, these assets provide ARN with a diversified pipeline across critical minerals essential to the energy transition.
Encouraging Phase 1 Drilling Results Lay Foundation for Resource Growth
Drilling results from Phase 1 at Kameelburg have been encouraging, confirming broad zones of REE-Nb-Mo mineralisation consistent with surface geophysics and historical data. To date, a total of 8,777 metres has been drilled, providing a strong foundation for the upcoming maiden resource estimate and ongoing exploration targeting extensions and higher-grade zones.
Strategic Deployment of In-House Drill Rigs to Accelerate Kameelburg Growth
To fast-track exploration and resource development at its flagship Kameelburg Project, ARN recently acquired two dedicated drill rigs. These rigs are now fully operational and focused exclusively on Kameelburg, enabling the company to maintain strong drilling momentum while reducing dependency on third-party contractors. This strategic move ensures greater operational control, cost efficiency, and the flexibility to adapt drilling priorities in real time, positioning ARN to rapidly unlock the project’s full-scale potential.
Valuation Range of A$1.024 – A$1.177 Per Share
We value ARN at A$1.024 per share in a base-case scenario and A$1.177 per share in a bull-case scenario using an in-situ valuation-based approach. Our mid-point fair valuation price of A$1.101 represents 255.0% upside potential to the current share price of A$0.310. REE-Nb-Mo are critical inputs for the clean energy transition, advanced manufacturing, and defence applications. With rising geopolitical tensions and increasing global demand, particularly for permanent magnets and superalloys, these commodities are expected to see sustained pricing support, especially as Western nations seek to diversify supply chains away from China. For ARN, key near-term catalysts include the delivery of a maiden JORC resource at Kameelburg, ongoing positive drilling results, metallurgical testwork updates, and potential strategic partnerships.