The title above today’s initiation report gives it all away: "The new mid-tier gold miner". Citi analysts forecast strong YoY FY17 growth for revenues and profits. And growth is expected to continue in FY18/19/20 carried by expanded production and multiple new mines.
All-in costs (AISC) are projected to fall below A$1,100/oz in FY18. Initiation of coverage with Buy rating and price target of $1.25.
Citi expects Thunderbox to lift group production to a rate of 300kozpa by MarQ 2017.
Target price is $1.25.Current Price is $1.06. Difference: $0.19 – (brackets indicate current price is over target). If SAR meets the Citi target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).