Production in the March quarter comprised 17,900t of copper and 9,400 ounces of gold at C1 costs of US$0.74/lb. Guidance has been withdrawn as a precaution rather than because of any particular impact.
Credit Suisse was pleased with the cost performance, although notes there is yet to be any clarity on development projects which will be the principal drivers of future value. Outperform rating maintained. Target is reduced to $5.70 from $6.30.
Sector: Materials.
Target price is $5.70.Current Price is $4.27. Difference: $1.43 – (brackets indicate current price is over target). If SFR meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
