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East Coast Research: Revised target share price for QMines (ASX: QML) upwards to $0.213

We are revising our target share price for QMines (ASX: QML) upwards to $0.213, implying a compelling 288% total upside from the current $0.055 share price and a 35.9% uplift from our September 2024 report. The re-rating case is driven by execution: Develin Creek’s upgraded resource base and the Mt Mackenzie acquisition, followed by a multi-rig RC/diamond validation program designed to lift confidence for mine studies. In parallel, optimisation, mine design and metallurgy/geotech are advancing Mt Chalmers toward an updated integrated PFS, strengthening the investment thesis.

QMines has consolidated 100% ownership of Develin Creek and rapidly shifted the project from a “resource story” into an engineering-led growth track. A March 2025 upgrade lifted the Mineral Resource to ~4.2Mt with meaningful copper–zinc grades and, critically, a ~70% Indicated weighting, an important quality marker as the company progresses open-pit evaluation at Scorpion–Window and advances the project as hubcompatible satellite feed.

The Mt Mackenzie acquisition (completed in 2025) added a high-quality, preciousmetals satellite to the portfolio and strengthened the hub-and-spoke development case. The project hosts a JORC 2012 resource of ~3.4Mt and has already moved into active value-add: QMines’ first drilling has returned high-grade gold with very strong silver within broader mineralised zones, supporting both grade integrity and growth potential while generating data for mine design and optimisation workstreams.

Across the district, the company is progressing along the milestones that typically drive re-rating for developers: resource confidence upgrades, optimised mineable inventory, and study integration. At Develin Creek, drilling and open-pit work are aimed at converting additional tonnes into higher-confidence categories and tightening the mine plan. At Mt Mackenzie, ongoing RC/diamond drilling continues to expand and validate mineralisation while supporting pit optimisation and scheduling. With the hub concept now advancing toward blended feed and an integrated development case, the key value inflection is delivery of the district-scale integrated study/PFS (guided for H2-2026). Ongoing assays, resource updates and mine-planning outputs progressively de-risk the pathway, and QMines’ execution momentum supports confidence in timely
delivery.

Following recent milestones, we value QML at $0.197 in our base case (259% upside) and $0.229 in our bull case (317% upside), relative to the current share price of $0.055. Using the midpoint of these scenarios, our target price of $0.213 implies a potential upside of 288%. QML’s target price increase is being driven by de-risking and scale. The Mt Mackenzie acquisition adds meaningful gold–silver feed, while Develin Creek’s upgraded, confidence-weighted resource and advancing open-pit work strengthen the satellite pipeline. Together, these assets expand contained metals and support a single regional development plan anchored by Mt Chalmers as the processing hub. The investment case is increasingly about conversion: turning resource growth into optimised mineable inventory, then into integrated mine plans, and finally into a district-scale economics case. QMines is progressing optimisation, metallurgy and mine design toward an integrated hub PFS update targeted for H2-2026, creating a clear catalyst ladder as results and study outputs reduce execution risk and sharpen valuation support.

Source: East Coast Research