Medusa has surprised with gold production guidance upgrades of 20% for FY16 and 30% for FY17 which puts the numbers respectively 18% and 19% above the broker’s current forecasts. There is nevertheless a level of offset in higher costs.
The broker is hesitant about getting excited given Medusa is no stranger to missing guidance, thus Neutral retained. Target rises to $1.00 from 90c.
Target price is $1.00.Current Price is $0.84. Difference: $0.16 – (brackets indicate current price is over target). If MML meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).