Do you remember the analysis by Noble Capital Markets from September 2025? In it, the analysts described Nicola Mining (TSX.V: NIM, FSE: HLI, WKN: A14T7S) as a compelling growth story, valuing the stock with a fair price of US$0.75 or CAD 1.05 and recommending it as a buy. In our view, this assessment is impressively confirmed by the company’s recent announcements.
One factor that spoke in favour of Nicola Mining at the time was that, with the Merritt Mill, it had a facility for processing ore from Talisker Resources’ Bralone project. In addition, the first-time processing of ore from Blue Lagoon’s Dome Mountain gold mine and from the Dominion Creek Gold Project, in which Nicola holds a 75 per cent economic interest, was expected for the third quarter of 2025.
Nicola Mining was thus one of the few companies in the junior miner sector on track to soon have a stable cash flow. And not only this: the analysts at Noble Capital Markets also expected in September that the capacity increase of the Merritt Mill in the third quarter would represent a turning point for the company, as revenues and cash flow were expected to increase significantly.
The bet on a golden future for Nikola Mining seems to be paying off
“We believe that Nicola Mining is at the beginning of what we believe is a compelling revenue and cash flow growth story. Our rating remains ‘Outperform’ with a target price of US$0.75 or CAD 1.05 per share,” the analysts wrote verbatim. And the accuracy of this forecast is beginning to be confirmed these days, as Nicola Mining was able to open 2026 with the announcement that it, together with Blue Lagoon Resources, had sold gold and silver worth US$1.0 million to Ocean Partners UK Limited.
This marks a very pleasing initial start, as it was only on 1 December of last year, i.e. just five weeks ago, that Nicola Mining had announced that ore had been delivered from the Dome Mountain project for the first time. Since then, the company has recorded a continuous delivery of the announced ores. The basis for a steady supply within the framework of the long-term partnership has thus been laid.
Support from the rising gold price
For Peter Espig, the CEO of Nicola Mining, the review of the last weeks of the old year and the outlook for the coming months are correspondingly positive. He commented on the recent development with the words: “Nicola is very pleased about the close cooperation with Blue Lagoon, as both companies are increasing their production and revenues in view of the strong precious metal prices. The management of Blue Lagoon has done an excellent job in implementing the project from approval to mine development to commencement of production.”
Nicola Mining is thus entering the new year with a strong tailwind from two complementary and reinforcing directions: Ore production and thus gold production at the Merritt Mill is increasing, while at the same time the gold price is not only remaining at a high level, but is also rising by over US$100 to more than US$4,400 again, triggered by the US intervention in Venezuela at the beginning of the week.
