JPMorgan has initiated coverage of Hillgrove Resources with an “overweight" recommendation and a 43¢ price target. Hillgrove is currently building its Kanmantoo copper-gold mine in South Australia and, with construction on time and on budget, first production is expected in November.

The broker reckons Hillgrove should produce 19,000 tonnes of copper pre annum as well as 8,000 ounces of gold and 150,000 ounces of silver. The broker believes the stock is trading at a 47 per cent discount its intrinsic value and expects it to “rerate" as the company edges towards production. Promising exploration projects in Indonesia could provide further upside.