Capricorn Metals’ first half result was stronger than Macquarie expected, with Karlawinda being commercial for the entire half when the broker had assumed capitalisation in the first quarter. Free cah flow was broadly in line.
Looking ahead, the drill-out and resource/study work at Mt Gibson is a key catalyst in 2022, the broker suggests.
But the market is getting ahead of itself in Macquarie’s view. Underperform and $3.70 target retained.
Sector: Materials.
Target price is $3.70.Current Price is $3.95. Difference: ($0.25) – (brackets indicate current price is over target). If CMM meets the Macquarie target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
