The March quarter was challenging and production from Hera was below expectations because of lower grades. Macquarie expects an improvement in the fourth quarter as Peak normalises.
The weak result drives a -41% reduction in earnings per share for FY20 in what the broker describes as a “very sensitive” year. No changes are made for FY21. Outperform rating and $0.50 target retained.
Sector: Materials.
Target price is $0.50.Current Price is $0.30. Difference: $0.20 – (brackets indicate current price is over target). If AMI meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges – negative figures indicate an expected loss).
