Macquarie benchmarks cost estimates for the Wodgina spodumene project against industry peers and also recent cost guidance for Mt Marion. The broker assumes costs for Wodgina fall -35%, bringing estimates in line with other large-scale spodumene cost assumptions.
Hence, earnings estimates are upgraded, and recent upgrades to iron ore price forecasts suggest to the broker the company is well-placed to beat FY18 operating earnings guidance of at least $500m.
Outperform rating retained. Target is raised to $20.00 from $17.00.
Sector: Commercial Services & Supplies.
Target price is $20.00.Current Price is $16.00. Difference: $4.00 – (brackets indicate current price is over target). If MIN meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).