Cannindah Resources [ASX:CAE]
Metals & Mining
Queensland’s Next High-Grade Copper Giant in the Making
We initiate coverage on Cannindah Resources (ASX: CAE) with a 12-month target price of A$0.180, representing a 149.7% upside from the current share price of A$0.072. This valuation reflects our DCF and peer-based EV/resource analysis, highlighting CAE’s high-grade, fully permitted Mt Cannindah Project with a JORC-compliant 14.5Mt at 1.09% CuEq and 158,050 tonnes contained CuEq. The open-pit potential and granted mining lease provide a de-risked development path, differentiating CAE from early-stage peers. Recent drilling results, including 82m @ 2.32% Cu, reinforce the project’s expansion potential. With copper demand accelerating due to global electrification trends and supply constraints, key catalysts include drilling success, resource expansion, and potential strategic partnerships, positioning CAE for a significant re-rating.
Queensland’s Next Copper-Gold Powerhouse with WorldClass Potential
Cannindah is unlocking one of Queensland’s most exciting copper-gold opportunities at the Mt Cannindah Project, where recent drilling has delivered exceptional high-grade intercepts such as 493m @ 1.17% CuEq from the surface. With a JORC-compliant resource of 14.5Mt @ 1.09% CuEq, the project presents significant expansion potential, with mineralisation open along strike and at depth. The discovery of largescale IP chargeability anomalies, including the untested Southwest IP anomaly, signals attractive-scale potential, positioning Cannindah as a leading player in Australia’s copper supply story.
Proven Leadership Driving Exploration Success & MultiAsset Upside
Backed by a highly experienced and credentialed leadership team, Cannindah Resources is advancing its high-impact exploration strategy under the leadership of Tom Pickett, with further strength added by the recent appointment of Tony Rovira, whose industry expertise enhances the company’s growth trajectory. This team brings decades of expertise in major discoveries, resource development, and corporate growth strategies, ensuring effective project execution. With a strong financial position following a $5 million capital raise, the company is aggressively advancing its multi-asset portfolio, including the high-grade Piccadilly Gold Project. Historical production from the Piccadilly main lode averaged over 31 g/t Au, while recent trenching has delivered outstanding gold results, including 5m @ 14 g/t Au.
Attractive valuation with significant upside
Our valuation of Cannindah demonstrates its significant upside potential, driven by its high-grade copper resource, strategic location, and nearterm development catalysts. In the Base Case, we derive a firm value of A$127.4M, translating to an implied share price of A$0.175, while the Bull Case valuation reaches A$134.4M, or A$0.185 per share. This represents a 143.0%–156.4% upside from the current price of A$0.072, with a midpoint target of A$0.180 per share. Our valuation approach combines discounted free cash flows (DCF) and a peer-based EV/resource multiple of 354.32 A$/t CuEq, reflecting Cannindah’s mining lease, open-pit potential, and favourable project economics. Despite trading at a premium to peers due to its stronger resource base, higher potential for exploration upside, and greater future production potential, it remains well-positioned for a re-rating as development progresses and market sentiment for copper improves.