The company has updated on the Brazilian assets. UBS has been waiting for further details on development to refine its assessment. The update indicates that the economics of the Antas mine are worse than previously assessed.
The Pedra Branca mining concept is also smaller than previously anticipated. As a result of permit risks, long timelines to development and worse economics at Antas, the broker downgrades its valuation of the Brazilian assets to around $350m.
Buy rating maintained. Target is reduced to $11.30 from $12.00.
Target price is $11.30.Current Price is $9.56. Difference: $1.74 – (brackets indicate current price is over target). If OZL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).