SP Angel reckons Ormonde Mining (LON:ORM) is looking at a number of financing options for its flagship Barruecopardo tungsten project in Spain and should be able to start work next year.
Last month the firm confirmed it had received the mining concession for the site.
SP Angel rates the shares a 'buy', targeting 8p.
"We believe management are looking at a number of project and subordinated debt financing options and should be in a position to start work on the project next year," it said.
The historic tailings dams and good infrastructure means the project could move through construction to production relatively quickly, it added.
It values the project at €82mln assuming an average 227,000mtus pa of tungsten trioxide over nine years.
"Our base case valuation gives a value of US$108mln for the project and a target price of 8p rising to 12p if the project extends with underground mining," said the broker.