Broker: Petra Capital Pty Ltd
Date of Report: April 2026
Excerpt from Petra Capital report.
Report Summary
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Stock: Apollo Minerals Ltd (ASX: AON)
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Action: BUY (Initiation)
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Target Price: A\$0.11 (77% upside from current price of A\$0.062)
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Most Important Idea: Apollo Minerals (AON) owns 100% of the high-grade Couflens tungsten-gold project in France, focused on restarting exploration at the historic Salau mine. The mine previously produced 930,000t at 1.5% WO₃ (tungsten trioxide), a significantly higher grade than peers. The mine is fully permitted for exploration as of January 2026, with first drilling at Veronique (the highest-grade zone) planned for Q3 2026.
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Key Highlights:
- Salau mine produced at grades much higher than global peers, and grades increased at depth. Exploration target is 1.0–2.0Mt at 1.0–1.5% WO₃.
- Gold prospectivity is an additional upside, with surface and underground samples up to 24.5 g/t Au.
- China controls 83% of global tungsten supply and has sharply reduced exports, causing EU tungsten prices to rise over 300% in the past year. Western governments are banning Chinese tungsten from supply chains.
- Valuation based on 0.5x peer group EV/t contained WO₃, yielding an A\$134M valuation or A\$0.11/share on 1,213M diluted shares.
- AON is well-funded with A\$9.3M raised in early 2026 and poised for rapid, low-cost underground exploration.
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Key Dates:
- H1 2026: Mine re-entry
- H2 2026: Metallurgical test work results
- Q3 2026: Phase 1 drilling (Veronique/gold)
- 2027/2028: Maiden JORC Resource estimate
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Implications: AON is uniquely positioned to benefit from the supply squeeze and strategic importance of tungsten in the EU, with a high-grade, low-risk brownfield project and potential gold upside. The BUY rating and price target reflect the resource potential, strong project economics, and positive regulatory backdrop.
Above is an excerpt from a report by Petra Capital Pty Ltd. Clients of Petra Capital can be the first to access the full report from the Petra Capital website : http://www.petracapital.com.au/research-disclosures
