The Cowal mine in NSW has been granted regulatory approval to increase the processing rate to 9.8mtpa from 7.5mtpa.
FY19 guidance for 240-250,000 ounces assumed the lower throughput and, hence, this capacity addition adds modest upside, Credit Suisse observes. Neutral rating and $2.65 target maintained.
Target price is $2.65.Current Price is $2.75. Difference: ($0.10) – (brackets indicate current price is over target). If EVN meets the Credit Suisse target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).