AIC Mines' (ASX:A1M) proven model of creating value through drilling, resource conversion, and development fits the Mt Cuthbert project in Queensland, where the opportunity is broad, Jefferies said in a Wednesday note.

Jefferies' base case assumes a 1 million tonnes per annum plant producing around 19,000 tonnes per annum of copper and values Mt Cuthbert at AU$178 million. It modelled drilling from March 2027 to March 2029, a final investment decision in March 2030, and first sulphide ore in June 2032.

Development capital expenditure is around AU$340 million, comprising AU$165 million for the concentrator, AU$80 million for underground development, AU$45 million for the pre-strip, AU$30 million for infrastructure, and AU$20 million for the SX-EW restart.

The brokerage assigned a buy rating to AIC and a price target of AU$1.05 per share.