The analysts at Noble Capital Markets have now commented on the recent publication by the Canadian Nicola Mining (WKN A3D3LF / TSXV NIM), in which the company outlined its silver exploration plans for the Treasure Mountain project for 2026. In their view, CEO Peter Espig’s company is setting the right priorities in this and other areas of its business. Noble is therefore maintaining its price target of CAD 1.70 per Nicola Mining share. From the current price (CAD 1.05), this implies an upside potential of around 62%. Since the beginning of the year, the stock has already risen by 262%.
Nicola Mining: Silver Exploration at Treasure Mountain from 2026
From 2026, Nicola Mining will focus on a target area northwest of the currently former producing mine at Treasure Mountain, which comprises several northeast-to-southwest trending and steeply dipping, sulfide-rich ore veins. Previous explorations confirmed vein mineralization with silver, copper, lead, zinc, and gold. These results provide the basis for initial diamond drilling, which is intended to estimate both the thickness of the trend and the depth extension of the mineralization. The advance notice gives the company leeway for permits, logistics, and detailed planning of the program. Crucial for investors: The work on Treasure Mountain runs parallel to activities on the other assets in British Columbia, which underscores Nicola Mining’s two-pronged approach – exploration and (gold ore) processing.
Merritt Mill: Gold Processing Yields 1,569 Ounces of Gold by the End of September
A central component of the operational strategy is Nicola Mining’s Merritt Mill (gold processing plant). There, ore from external partners is processed, which generates ongoing revenues. For example, there is an agreement with Talisker Resources for the treatment of run-of-mine material from the Mustang Mine. For the quarter ending September 30, a total of 1,569 ounces of gold were produced from Talisker’s material; Nicola Mining receives a share of the gross profit from the processing of this ore.
In addition, Blue Lagoon Resources announced an amended and extended ten-year mining and milling partnership with Nicola Mining. This secures the long-term processing of mineralized material from the high-grade Dome Mountain gold project. Both contracts increase the utilization of the Merritt Mill and thus the plannable cash flows for Nicola Mining – an aspect that Noble expressly emphasizes in its assessment.
Capital Structure: Convertible Bond Exchanged for Shares
On September 22, Nicola Mining announced that convertible debentures held by Concept Capital Management, maturing on November 21, 2025, had been fully exchanged for shares. The conversion resulted in 22,941,177 common shares; in addition, accrued interest was converted into a further 385,185 shares. In total, this results in – according to the analysts’ estimate – an outstanding number of shares of 206,767,207. The step streamlines the balance sheet, as interest and repayment obligations are eliminated, but at the same time leads to an increase in the number of shares. For Nicola Mining, the conversion creates scope to channel funds more strongly into projects such as Treasure Mountain or into the ongoing optimization of the Merritt Mill, without having to rely on additional external financing.
Outlook and Valuation: Dual Project Path and Confirmed Price Target
In addition to Treasure Mountain, Noble refers to the completion of a 4,000 to 5,000-meter diamond drilling program on the New Craigmont Copper Project. The results of this copper project – in combination with the planned silver work – illustrate Nicola Mining’s dual path: exploration progress at the project level and, at the same time, revenues from third-party ore processing. According to the analysts, this approach accelerates the further development of the assets, while recurring cash flows can support the implementation of future programs. Against this background, Noble Capital Markets maintains its “Outperform” rating and confirms its price target of USD 1.20 or CAD 1.70 per share.
For the market, this leaves a clear narrative: Nicola Mining is working on increasing the value of its projects in British Columbia – with silver (Treasure Mountain), copper (New Craigmont), and an operational processing plant (gold, Merritt) as the supporting pillars. Contracts with Talisker Resources and Blue Lagoon Resources secure the utilization of the plant and flow into ongoing liquidity. At the same time, the conversion of the convertible bond creates a simpler capital structure. How these building blocks will affect the medium term will depend largely on the next operational milestones – including the concrete design of the 2026 program on Treasure Mountain and the further use of the Merritt Mill. Noble sees Nicola Mining on track to develop the potential of its existing assets in a structured manner; however, the analysis also points to the usual project-specific and market-related risks in the commodities sector.
