First quarter production was ahead of Macquarie’s estimates. Higher production at Hera and Dargues more than offset lower gold output from Peak.
Dargues was the highlight as production more than doubled quarter on quarter. No changes to made to FY22 guidance with production still expected to be 112-123,000 ounces at an all-in sustainable cost of $1500-1700/oz.
Base metal production was also strong amid good grades at Peak. Macquarie observes the company has signalled that first quarter would be the weakest in FY22 and a stronger performance should be the way for the remainder of the year.
Outperform maintained. Target rises to $0.55 from $0.50.
Sector: Materials.
Target price is $0.55.Current Price is $0.41. Difference: $0.14 – (brackets indicate current price is over target). If AMI meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
