Alien Metals has assets in all the right places, and in all the right commodities


It looks like 2021 will shape up to be a good year for Alien Metals Ltd (LON:UFO).

Exploration work is already getting underway, as joint venture partner Capstone Mining Corp (TSE:CS) completes preparations for a fresh round of drilling at the Donovan 2 copper-gold project in Mexico.

At the end of last year an induced polarisation survey will enabled Capstone to zero in on where exactly it wants to drill. Now, 2,500 metres of drilling is planned as part of Capstone’s 2021 US$450,000 earn-in commitment at Donovan 2.

Ultimately Capstone can go to 80% of the project by taking it through to the prefeasibility stage, an outcome which would allow Alien to focus its energies on the wide range of other projects that it has under its belt.

Key value drivers to date have been the Hammersley iron ore project, the Elizabeth Hill silver project, where exploration work is also ongoing, and the legacy silver assets in Mexico.

Evaluation work on all continues.

Meanwhile, the company has recently demonstrated its continued appetite for deal-making, with the acquisition of a 208 square kilometre licence in Greenland that’s prospective for lead and zinc.

With news expected from all of these projects, it promises to be a busy year for Alien, especially as market sentiment towards the mining sector remains strong and the commodities to which Alien is exposed remain very much in demand.

Although they are off the highs they reached in October, the company’s shares are still trading at ten times the level they were at six months ago, as the market has woken up to the momentum and the quality of the asset portfolio.

There’s also considerable know-how in and around the company, with chief executive Bill Brodie-Good supported by some significant heft in the Australian mining investment scene, as well as a set of serious-minded non-execs.

It all makes for a potent combination that allowed the company to become the darling of the market in the second half of 2020, with potential for a repeat performance in 2021.


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