Macquarie upgrades production forecasts for Saracen Mineral, based on strong drilling results from Whirling Dervish and Karari. A smaller but higher-grade underground mine at Thunderbox will reduce capital expenditure and accelerate development without affecting overall production, the broker adds.
Outperformed maintained. Target is raised to $1.80 from $1.60. Earnings estimates for FY18 and FY19 are raised by 14% and 18% respectively.
Target price is $1.80.Current Price is $1.49. Difference: $0.31 – (brackets indicate current price is over target). If SAR meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).