29Metals owns the Golden Grove multi-metal underground mine in Western Australia and the Capricorn copper mine in Queensland. The company expects to produce 37,000t of copper in 2021 from these two core operations.
Production growth is largely underpinned by rising head grades and the company is expected to deliver an 11% compound growth rate over the next five years.
Macquarie initiates coverage with an Outperform rating and $3 target and believes improved production results will be the key catalyst over 2021.
Target price is $3.00.Current Price is $2.35. Difference: $0.65 – (brackets indicate current price is over target). If 29M meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
