Initiating Coverage on Bluejay Mining plc (AIM: JAY)


January 12, 2022
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We have initiated coverage on Bluejay Mining plc, an exploration and development company with projects in Greenland and Finland. The company is working towards construction of the fully permitted Dundas Ilmenite Project, and advancing its other existing projects in Greenland and Finland. The company has secured world-class partners for its Disko-Nuussuaq and Enonkoski projects that will enable the company to participate in the development of these attractive assets without immediate funding obligations.

With the commissioning of Dundas, Bluejay will transform into an operating company and be able to self-fund it’s share of existing and future projects. Development of any one of these projects, and especially the Disko project, could be a catalyst for the company to re-rate.

Our sum-of-the-parts valuation of Bluejay is US$301m (£223m). Bluejay is currently trading at a significantly discount to this valuation. As the company moves closer to production at Dundas and advances of the Disko and Enonkoski projects, we believe these ‘de-risking’ events will lead to a re-rating of the company.

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