Independence Group and AngloGold Ashanti will proceed with the development of the Boston Shaker underground project at Tropicana, despite the feasibility study falling short of forecasts. A reduction in grade assumptions from the pre-study has led to 10% higher capex but -7% lower opex than the broker assumed.
The key is long term production guidance, the broker suggests, of 400-450kozpa to FY23. The broker has lowered its forecasts marginally. Underperform and $4.00 target retained.
Sector: Materials.
Target price is $4.00.Current Price is $4.85. Difference: ($0.85) – (brackets indicate current price is over target). If IGO meets the Macquarie target it will return approximately -21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
