Macquarie finds OZ Minerals’ updated annual Mineral Resource and Ore Reserve summary shows strong resource reclassification and conversion at Prominent Hill have offset mining depletion.
Strong copper prices and upgrade momentum combined to generate a spot-price scenario boosting earnings by more than 37%, notes the broker.
The company’s reserve-contained copper rose by roughly 5% and the mineral and ore reserve upgrades are driven by progress on several projects, including Wira Shaft Mine Expansion, the West Musgrave project, and the discovery of a maiden mineral resource at Santa Lucia.
Target price is steady at $32. Outperform rating retained.
Sector: Materials.
Target price is $32.00.Current Price is $25.72. Difference: $6.28 – (brackets indicate current price is over target). If OZL meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
