Broker Hanson Westhouse has reiterated its ‘buy’ rating on Niger Uranium PLC (AIM: URU) with a target price of 36 pence a share.
Its valuation of the stock has risen substantially since its last note at the end of March, in part because of the highly encouraging update last week from the Henkries uranium project in South Africa, but mainly due to the value of Niger’s 15.5 stake in Kalahari Minerals PLC (AIM: KAH).
In a note, the broker said Niger’s Kalahari stake has continued to increase in value and is now worth £32.4 million, well in excess of the company’s current market capitalisation of £21.8 million.
“Niger Uranium’s cash position remains a concern but we are confident, due to the value of its assets and the interest in them, that additional funds can be secured to complete the drilling and pre-feasibility study at Henkries,” Hanson Westhouse said.