The company has reported a doubling of the Bellevue resource in the December quarter and grades have been boosted by the inclusion of the Viago high-grade discovery.
Macquarie expects more positive drilling results from areas surrounding the old Bellevue workings. The broker maintains an Outperform rating and $0.70 target.
Incorporating the cash flow statement lifts earnings per share by 5%, although the broker notes the company lacks meaningful earnings as exploration continues.
Sector: Materials.
Target price is $0.70.Current Price is $0.51. Difference: $0.19 – (brackets indicate current price is over target). If BGL meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
