Aurelia Metals’ December quarter production fell -7% short of Macquarie’s estimate while sales and costs were in line. Commentary suggests production will be at the bottom end of the FY guidance range while costs should improve.
The key upcoming catalysts for the miner will be a feasibility study on significant Federation growth project, around mid-2022. Despite the miss the broker has increased its target to 60c from 55c, Outperform retained.
Sector: Materials.
Target price is $0.60.Current Price is $0.44. Difference: $0.16 – (brackets indicate current price is over target). If AMI meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
