Haranga Resources [ASX: HAR]

Metals & Mining

A High-Grade Gold Portfolio with Clear Pathways to Re-Rating

We initiate coverage on Haranga Resources (ASX: HAR) with a 12-month target price of A$0.382, representing an ~183% upside from the current share price. Haranga has adopted a dual-track strategy to accelerate growth and maximise shareholder value. It is well-positioned to generate short-term cash flow from its most developed asset, the California-based Lincoln Gold project, as well as the rapidly expanding Senegal-based Ibel South Gold Project. HAR’s portfolio is ably complemented by the advanced Senegal-based Saraya Uranium Project, which operates in a supply-constrained market.

Located in the legendary ‘Mother Lode’ gold-rich belt of California’s mining jurisdiction, the recently acquired Lincoln Gold Project is a fully permitted, exceptionally high-grade gold project with >A$90m of existing infrastructure. The Lincoln Project has historically hosted a non-JORC resource of 286koz of gold at a grade of 9.3g/t Au, confirmed through extensive drilling and sample mapping. Exceptional intercepts confirmed by re-sampling—3.7m at 108g/t Au and 0.91m at 304.5g/t Au—underscore the high-grade nature of the tenement, positioning it as among the most attractive high-margin gold development assets globally. As a capital-intensive mining operation with substantial groundwork already completed, the project is well placed to commence near-term production and potentially reach multi-million ounces of high-grade gold.

High-impact African gold asset positioned to drive near-term value

Haranga holds 100% of the Ibel South Gold Project in Senegal’s prolific Kenieba Inlier, a region that has historically yielded >40 Moz of gold. The project is strategically located ~80 km from Senegal’s largest gold-producing asset. The 41-hole, 2,000m maiden Aircore (AC) drilling programme has returned outstanding results, including single-metre samples of 32.09g/t Au, with 13 results exceeding 10g/t Au. With the second drilling programme underway, it is on the verge of a potential discovery. Together with Lincoln, Ibel offers a compelling combination of near-term development potential and exploration upside. At a time when gold prices are hovering near historic highs, the company is well-positioned for transformative value creation and exponential growth.

Saraya Uranium: Unlocking High-Grade Uranium Potential

The Saraya Uranium Project spans a large area of ~1,236km² in East Senegal, West Africa. It hosts an updated JORC-compliant MRE of 14.5Mt@550ppm eU₃O₈, containing 17.6Mlbs—only from one area of the tenement; 11-12 new targets are yet to be explored. The mineralisation system at the tenement remains open along strike, down-dip, and down-plunge, indicating strong potential for resource expansion. The uranium potential significantly enhances Haranga’s strategic value, positioning the company as a multicommodity player. With uranium being a critical component in the U.S. energy infrastructure and emerging technologies, its inclusion not only broadens Haranga’s market relevance but also strengthens its long-term growth trajectory.

Valuation range of A$0.352–0.411 per share implies a meaningful upside

Using a SOTP-driven asset comparable valuation methodology, we have valued HAR at a midpoint target price of A$0.382, representing a Price/NAV of 0.35x, indicating significant valuation upside (182.9%) potential compared to the current share price. We anticipate that Haranga will undergo a re-rating with the announcement of a JORC-compliant upgraded mineral resource estimate for the Lincoln Gold project. Significant value unlocking is also possible amidst ongoing drilling at the Ibel South project. Our valuation excludes any potential value unlocking from corporate activities undertaken by management on its portfolio. The downside risk to the stock is highly limited. Key risks to our investment thesis include project execution delays, geological risk, and commodity cycle risks.

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Disclaimer: Directors of East Coast Research hold shares in Haranga Resources (ASX: HAR)