The company has updated the outlook for the second half. The limited availability of equipment has meant reduced FY19 guidance, at 150-160,000 ounces versus 180-210,000 ounces.
Macquarie lowers its production estimates but retains a positive longer-term view. The company notes mine-to-mill reconciliation has been strong and mining dilution from both underground and open pit remains better than the estimates from the feasibility study.
Outperform rating maintained. Target is reduced to $3.00 from $3.10.
Target price is $3.00.Current Price is $2.33. Difference: $0.67 – (brackets indicate current price is over target). If DCN meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).