Brokers at Morgans have upgraded Australian mining small cap Mineral Deposits Limited (ASX: MDL) to add from a hold rating with share prices in the company up 3% to $1.18 at the time of writing.
Mineral Deposits focuses on mineral sands resources in the Grand Cote Projects in Senegal, West Africa, with an ilmenite upgrading facility in Tyssedal Norway.
A note out of the Morgans equities desk has seen revised production and cost projections out of Mineral Deposits. Morgans has increased the share price target from $1.18 to $1.51 – ramping it up to an add rating.
The upgrade is related to a boost in production at the Grand Cote project – the project is 90% owned by TiZir, but Mineral Deposits owns 50% of TiZir itself. However the broker labelled the full year results handed down on February 21 as "a disappointment".
Several analysts have flagged the mineral sands miner and processor as a stock to watch in the past 6 months as the company has displayed good operational efficiencies despite a hiccup at its Norway facility of late.
With brokers circling, this one should surely be on your watch list.
