Macquarie resumes coverage of the stock, with an Outperform rating and $2.90 target, following the completion of its $110m placement and retail offer.
The Mount Morgans gold development is now fully funded and on track for first gold in early 2018. The broker notes upside exists in both extensions to the planned underground and open pit positions as well as ongoing exploration.
Target price is $2.90.Current Price is $1.93. Difference: $0.97 – (brackets indicate current price is over target). If DCN meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges – negative figures indicate an expected loss).