Magnetic Resources [ASX:MAU] Update July 2025
Metals & Mining
Major Gold Resource Expansion Reinforces Magnetics’ Development Case
We update MAU with a revised Target Share Price of $2.98, this represents a total upside potential of 116.1%, reflecting significant increase from the current share price of $1.38 and a 4.6% increase from the previous Target Share Price of $2.85 from our update report from March this year. MAU’s continued exploration success at the Lady Julie Gold Project (LJGP) has driven a significant Mineral Resource upgrade, reinforcing its status as one of Western Australia’s most promising nearterm gold development projects. With the Feasibility Study nearing completion, this progress strengthens the project’s economic case and enhances investor confidence in its scalability, development readiness, and long-term value potential.
Significant Resource Growth at Lady Julie Gold Project Enhances Project Scale
Magnetic Resources has released an update on its flagship LJGP, an advanced feasibility-stage gold asset near Laverton, WA. The project, comprising three open pits, a CIL processing plant, and supporting infrastructure, has benefited from recent deep infill drilling at LJN4, resulting in a resource upgrade and improved continuity at depth. The updated JORC 2012 MRE for LJN4 now totals 31.18Mt at 1.93g/t Au for 1.94Moz of contained gold. This represents a 25% increase in contained ounces since the January update and a 22% uplift from the previous MRE. Notably, LJN4 now accounts for 91% of the total oz within the LJGP, with 81% of the combined resource upgraded to the Indicated category, reflecting a significant improvement in geological confidence. The total Laverton Region resource has also increased to 40.7Mt at 1.77g/t Au, containing 2.32Moz of gold.
LJN4 Delivers Strong Exploration Results as Native Title Clears Path to Development
Recent exploration at LJN4 has defined and expanded multiple high-grade core zones, with mineralisation now extending to depths beyond 600m and remaining open. These results continue to support further resource growth and enhance the underground development potential. In parallel, Magnetic Resources has secured a Native Title Agreement with the Nyalpa Pirniku People, removing a key approval hurdle and paving the way for mining lease approvals. These developments significantly de-risk the project and reinforce its near-term production potential.
LJGP Progress Highlights Re-Rating Potential for MAU
We update our valuation for MAU to $2.43 per share in the base case and $3.53 in the upside case with a Price/NAV of 0.46x. As MAU advances the LJGP toward development, its current market valuation continues to underestimate the scale of its growing resource base and strategic development appeal. The recent 22% increase in contained gold at LJN4, supported by high-grade drill results and a secured Native Title Agreement, significantly de-risks the project and strengthens its development trajectory. With a strong gold price environment, driven by central bank buying, inflationary pressures, and geopolitical uncertainty, MAU is wellpositioned to benefit from macro tailwinds. The company remains well-funded, with ~$8M in cash, and continues to attract M&A interest. These factors collectively support a favourable outlook and potential re-rating as the project moves closer to production.