SFX – Macquarie rates the stock as Neutral

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The pre-feasibility study on Thunderbird confirms the potential of a significant development, although at higher capex with lower production and a delayed start up.

The results are disappointing. Macquarie considers it unlikely the project will meet previous expectations. Combined with a bearish outlook for mineral sands, the broker considers the project is significantly more challenging.

Rating is downgraded to Neutral from Outperform. Target is reduced to 60c from $1.00.

Sector: Materials.

Target price is $0.60.Current Price is $0.61. Difference: ($0.01) – (brackets indicate current price is over target). If SFX meets the Macquarie target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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