Why H&P Research sees 160% upside for Arras, a miner of gold and copper in Kazakhstan

H&P Research has maintained its target price on Canada’s Arras Minerals following a visit to the company's assets in Kazakhstan, still seeing around 160% upside in the shares. Exploration results at the flagship Elemes project point to the potential discovery of a large copper-gold deposit, H&P believes, though it cautioned that some assay results are still pending. Other promising exploration sites on top of Elemes offer additional opportunities, with drilling potentially continuing in 2027.

H&P Research has maintained its target price on Arras Minerals at CAD2.83 per share, according to a note dated Tuesday and seen by Oninvest. The TP implies 160% upside from Thursday’s close.

Exploration at Elemes points to the potential for a large copper-gold project, H&P Research believes. Over the last eight months, Arras has drilled around 35,000 meters against an annual plan of 40,000 meters and identified signs of porphyry mineralization at at least three targets.

On October 8, Arras reported two copper-gold intercepts at Berezski Central: 574 meters grading 0.40% copper equivalent and 707 meters grading 0.26%. Copper-equivalent grade combines the grades of copper, gold, and other metals, accounting for their prices and recovery rates. H&P estimates that gold’s substantial contribution could improve the economics of future mining operations. Previously, at Berezski North, the company intersected around 936 meters of copper-gold mineralization grading 0.71% copper equivalent. H&P also sees potential at the K-Ozek gold exploration area.

Arras stock has gained around 47% year to date. H&P believes assay results from samples awaiting analysis due to laboratory delays could provide a near-term catalyst for the stock. In 2027, the company may introduce a portable gold-testing system that would deliver results within 24 hours and allow it to plan drilling quicker.

Another advantage for Arras is low costs: according to H&P, core drilling costs around $110 per meter, substantially less than in many exploration programs elsewhere.

Arras Minerals was spun off from Silver Bull Resources in 2021, taking over its Kazakhstan assets, including the option to acquire the Beskauga copper-gold project. Arras stock began trading on Canada’s TSX Venture Exchange in 2022. The company assembled a portfolio of exploration projects, including Elemes and Tay, and attracted investment from Canadian miner Teck Resources.

In 2023, Arras partnered with Teck to conduct exploration in Kazakhstan. In February of this year, however, Teck opted out of the next phase of that collaboration, saying the initial results did not meet its criteria for further investment. Teck remained an Arras shareholder, however. Note that the flagship Elemes project was outside of the scope of the collaboration.

Arras decided against acquiring Beskauga for $15 million in June 2025, preferring to allocate capital to other exploration projects. The company is now focused primarily on Elemes. According to MarketWatch data, the stock’s sole rating is a “buy.”