Nimy Resources [ASX: NIM]
Metals & Mining
Inferred Resource Discovery Underpinned by Growing Macro Support
We revise our target share price on Nimy Resources (ASX: NIM) to $0.221, implying ~263% upside from the current share price of $0.061, following our Initiation Report from May 2025. The re-rating potential for Nimy is supported by maiden gallium and TREO resource discovery at Block 3, advancement of metallurgical testwork and the progression of downstream engagement initiatives that move the project beyond early discovery. Ongoing drilling and advancing exploration targets provide a pathway to scale, while technical collaborations and supply chain discussions improve visibility on processing routes and funding avenues. As the Mons Project evolves from proof-of-concept toward a larger defined system, Nimy has the potential to strengthen its positioning within emerging Western gallium supply chains, improving the credibility of the development pathway and supporting longer-term valuation upside. The company has also initiated early-stage gold exploration on the Mons greenstone project, with early indications from over 2,800 soil Geochem samples revealing potential gold anomalism. Follow-up soil Geochem sampling is now underway.
Maiden Resource Establishes Scale Potential
Nimy’s maiden JORC (2012) Inferred Mineral Resource at Block 3 provides initial confirmation of a structurally controlled gallium system, comprising 7.23 Mt at 102 g/t Ga₂O₃, (using a 70g/t Ga2O3 cut-of) alongside 538 ppm TREO and meaningful NdPr oxide content, or 64.3MT @ 42g/t Ga2O3 (using a 20g/t Ga2O3 cut-off) highlighting the presence of rare earth elements as a potential by-product. The resource is currently constrained to oxide and transition material to depths of roughly 100 m, meaning only the near-surface portion of the mineralised system has been captured, with deeper fresh-rock mineralisation intersected but not yet included. Exploration work indicates mineralisation remains open along strike and at depth, supported by geophysical datasets, soil geochemistry and geological continuity, which collectively suggest scope to materially grow inventory beyond the maiden estimate.
Advancing Downstream Pathways and Supply Chain Positioning
Nimy is advancing technical work through its collaboration with CSIRO, which is focused on resource modelling and improving exploration targeting across the Mons Project. The company’s engagement with M2i Global is aimed at assessing downstream processing pathways and potential funding opportunities, supported by the shipment of gallium mineralised test material to the United States for evaluation. These initiatives align with the Australian Government’s $1.2 billion Critical Minerals Strategic Reserve, which includes gallium as a priority commodity. Together, they position Nimy within emerging Western supply chain efforts while supporting future exploration and development pathways.
Stock Rerating Driven by Resource Growth from Acquisitions and Drilling
We update our valuation for NIM to $0.186 per share in the base case, representing ~205% upside and $0.257 per share in the bull case with ~321% upside, deriving a Price/NAV of 0.28x. Gallium is a key material for semiconductors, defence and advanced electronics, with recent export controls from China highlighting the need for alternative Western supply. Nimy’s discovery places the company within this emerging supply chain theme, supported by policy initiatives such as Australia’s $1.2 billion Critical Minerals Strategic Reserve, which includes gallium as a priority commodity. The company’s Mons project which is currently progressing with a Scoping Study at Block 3 also lies within an untested greenstone belt, which is favourable for significant gold discoveries.