Jefferies hikes valuation of South32's stake in Alaska minerals project as US invests

Trilogy Metals

07/10/2025 20:56

** Jefferies raises valuation of diversified miner South32's S32.AX 50% interest in a joint venture to develop critical mineral resources at the Amber mining district in Alaska to A$1.31 billion($863.30 million) from A$1.13 billion

** The U.S. government announces a $35.6 million investment in Trilogy Metals TMQ.TO, S32's JV partner

** Brokerage says federal stake in the project enhances execution prospects and fastens development pipeline

** Jefferies now expects mining to start in late CY2033, compared to earlier projection of CY2035

** Brokerage rates S32 as 'buy' with PT of A$3.30

** Median PT of 16 analysts is A$3.10, as per LSEG-compiled data

** YTD, S32 shares down 13.8%

($1 = 1.5198 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))