A report produced by Independent Investment Research (IIR) states that Aim-listed Bluejay Mining is trading at a significantly discounted rate and that there is upside to its sum-of-the-parts valuation of $301-million as its projects progress with development.
The company’s Dundas ilmenite project, in Finland, alone is valued at $219-million, owing to the extent of its reserves and resources, as well as it nearly being in production. The fully permitted project will be ready to start with construction once financing discussions are finalised; production is planned for 2024.
Bluejay is also developing the Disko project, in Greenland, where it has a joint venture with KoBold Metals that will allow Bluejay to advance the project without spending its own funds, as well as a joint venture project alongside Rio Tinto called Enonoski, in Finland.
IIR affirms that Bluejay has a first-mover advantage in Greenland and some of the most prospective exploration licence areas.
The report states that Bluejay has strong exposure to critical minerals, including titanium, nickel, cobalt, platinum, palladium and zinc, which are expected to enjoy high demand from the US and Europe.
The report defined Bluejay’s weaknesses as being the short nine-year mine life of Dundas; however, the project has a robust net present value and there is potential for expansion.
“The main threat to Bluejay’s immediate development plans would be if the company is unable to secure financing to develop the Dundas project, although this seems unlikely,” IIR says.
It adds that the high latitude of the Dundas project carries certain inherent Arctic engineering challenges and costs, but Bluejay’s team is experienced with working in Greenland, which should help to mitigate those challenges.