Macquarie updates estimates to incorporate the FY21 result. The loss was larger than the broker expected largely because of increased costs associated with employees shares and higher exploration expenses.
The maiden resource at Julimar is due at the end of the year and, subsequently, the Gonneville drilling is expected to be completed by early 2022.
The near-term catalysts is securing access to the state forest, the broker suggests. Outperform rating and $9.70 target retained.
Sector: Materials.
Target price is $9.70.Current Price is $6.84. Difference: $2.86 – (brackets indicate current price is over target). If CHN meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
