Sounds promising.
GLTA
SM
Pointing to “geopolitical tensions and an increasing focus on onshoring strategies to fortify domestic supply chains,” Stifel analyst Madison Tapscott thinks Talon Metals Corp.’s (
) Tamarack project in Minnestoa is “ideally suited to capitalize on the United States’ increasing demand for locally sourced, high-grade nickel.”
“In our view, Talon offers asymmetric upside potential underpinned by 1) Talon’s strategic partnerships and support from Tesla, the DoD and the DOE set the company apart from its peers, further solidifying the local demand outlook for nickel, 2) we believe there is further value to be unlocked through exploration, culminating in additions to the current resource estimate for the project and 3) the project is in the first quartile of cash costs compared to peers, providing attractive margins that are more resistant to metal price volatility,” she said.
Seeing its upcoming feasibility study serves as “a substantial de-risking milestone” and emphasizing the firm’s view of “an opportunity in the mid to long-term outlook for nickel,” she resumed coverage of
Talon with a “buy” rating and 50-cent target. The average is 63 cents.