Astral Resources NL's (ASX:AAR) Mandilla gold project in Western Australia is strategic in the next part of the gold boom, according to a Wednesday report by Euroz Hartleys.

On Tuesday, the company said that the net present value of the project increased to AU$3.1 billion from the net present value of AU$1.4 million based on a June 2025 preliminary feasibility study.

Euroz believes that the company is overlooked and undervalued and could outperform on its costs.

The Mandila project will be mined as an open pit, which generally has lower operational expenditure, Euroz said.

It also has a low barrier to entry for personnel, is residential, infrastructure-rich, and has the lowest capital intensity among its peers, Euroz added.

The project also has a merger and acquisition appeal to its neighbors.

Euroz downgraded the company's recommendation to speculative buy from buy but raised its price target to AU$0.64 from AU$0.54.

Shares of the company rose 4% in recent Thursday trade.