QMines [ASX: QML] Update September 2026
Metals & Mining
Mt Chalmers Development Progress Unlocks Regional Upside
We are further revising our target price for QMines (ASX: QML) to A$0.24, implying a compelling 233% total upside from the current A$0.07 share price and a 16% uplift from our April 2026 report. The price reflects the company's progression from a resource-led junior to a more advanced Central Queensland copper-gold developer. The investment case remains anchored by the sharp rise in global copper prices and the reserve-backed Mt Chalmers project, with development visibility improving as funding, technical work and regional growth opportunities advance. The DFS is fully funded following QIC’s A$15m strategic investment, improving near-term funding visibility as the project advances.
Copper and gold prices also remain well above the assumptions used in the existing PFS, providing additional economic support to the development case. QMines has also appointed BurnVoir Corporate Finance to arrange project financing, allowing funding discussions to progress alongside the DFS. Broader engagement with Queensland Government ministers, QIC and relevant agencies has also increased, supporting the project’s transition towards a future Final Investment Decision.
Mt Chalmers Moves Closer to a Development Decision
Mt Chalmers remains the core value driver, supported by a 9.6Mt Ore Reserve and a fully funded DFS targeted for completion by year-end 2026. Mine planning, metallurgy, engineering, geotechnical and hydrogeological studies, resource modelling and environmental work are progressing in parallel. QMines is also undertaking its largest drilling campaign to date, comprising more than 10,000m across DFS and resource-growth programmes. Recent results include 35m at 2.88% Cu and 0.75g/t Au and 32m at 1.99% Cu and 0.39g/t Au, while first-ever modern diamond drilling beneath the flooded historic pit is improving geological definition below the existing mine footprint. The Sep 2026 agreement to acquire strategic land over and adjacent to Botos, located ~700 m from the proposed processing hub, further strengthens the near-mine growth strategy, with modern drilling now underway to assess its potential as a future satellite feed source.
Resource Growth Strengthens the Regional Development Platform
The value proposition increasingly extends beyond the initial 1Mtpa Mt Chalmers development. Develin Creek is being assessed within a 2Mtpa expansion case incorporating blended feed, moving the regional hub strategy into formal engineering evaluation. Woods Shaft, Botos and Mt Warminster provide further near-mine optionality, with all three located within ~1.5 km of Mt Chalmers. Mount Mackenzie has also strengthened following its upgrade to 5.22Mt at 1.01g/t Au and 6.7g/t Ag, containing 170koz of gold and 1.12Moz of silver, with ~70% of contained gold classified as Indicated. If economically integrated, these assets could support higher throughput, longer mine life and improved utilisation of shared infrastructure.
Development Progress Supports a Higher Risk-Adjusted Valuation
Our SOTP framework yields a midpoint target price of A$0.24, implying 233% upside. We believe QMines should increasingly be assessed as an advancing mine developer with regional expansion optionality rather than primarily as an exploration company. The re-rating case is supported by higher copper prices, Mt Chalmers progressing through the final major feasibility stage, the commencement of development-financing work, improving resource confidence and greater visibility around the potential integration of satellite deposits. As these milestones progress, the discount applied to the underlying project value should narrow, while regional resources provide additional upside beyond the current mine plan. Key risks remain FID, construction financing, permitting and project execution.