Mineral Resources has rights to new onshore exploration blocks in the Perth Basin and Pilbara. The acquisitions form part of the plan to develop a fully integrated energy business to support the mining and processing operations.
Macquarie notes the company now boasts a large exploration portfolio and the drilling of the Lockyer Deep-1 well later this year is a potential catalyst.
Upgrade momentum remains strong along with the iron ore price and the broker maintains an Outperform rating. Target is $50.
Sector: Materials.
Target price is $50.00.Current Price is $37.86. Difference: $12.14 – (brackets indicate current price is over target). If MIN meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
