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Market research firm Arrowhead believes Metals Australia (ASX:MLS) is positioned to benefit from surging demand for critical minerals tied to the global energy transition. In a September 2025 Due Diligence and Valuation Report, analysts Karan Mehta and Sahil Rustagi suggested a fair share value of AU$0.071 to AU$0.087, more than triple the current trading price of AU$0.022 as of mid-September 2025.
At the heart of this optimism is the company’s Lac Carheil graphite project in Quebec, Canada, which has rapidly advanced into Metals Australia’s flagship asset. The project now boasts an updated mineral resource of 50 million tonnes (Mt) grading 10.2 percent total graphitic carbon (TGC), containing 5.1 Mt of graphite, placing it among a select group of high-grade, large-scale deposits globally
Backed by strong technical partners and a grant from the Quebec government, the project is moving through a pre-feasibility study, with downstream integration plans centered on producing battery anode materials.
Lac Carheil Graphite Project: New MRE within World class graphite endowment covering 10 mapped and sampled graphite trends over 36 km in combined strike length. Less than 1/3rd of the claims held have been investigated
Highlights from the Arrowhead Report
- Valuation Range: Arrowhead estimates a fair value bracket of AU$0.071 to AU$0.087 per share, versus the current market price of AU$0.022 (Sept. 16, 2025), implying meaningful upside potential.
- Flagship Project: The Lac Carheil graphite project in Quebec now hosts a 50 Mt resource at 10.2 percent TGC, a fourfold increase from the maiden estimate, and is progressing through a pre-feasibility study.
- Strategic Positioning: The project has achieved battery-grade graphite purity of 99.99 percent and benefits from supportive trade and supply-chain dynamics, including proposed US tariffs on Chinese graphite
- Risks: As a pre-revenue exploration company, Metals Australia remains dependent on external funding despite holding AU$11.8 million in cash and having secured a C$600,000 Quebec grant
Read the full report herereport here.
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