Panoramic Resources’ underlying earnings were in line with expectation. No guidance was provided and the broker has made no changes to forecasts.
The broker does otherwise acknowledge that the nickel price has now jumped above US$8/lb on expectations Indonesia will bring forward its anticipated nickel ore export ban.
Were the broker to use spot prices in its forecasts, earnings would rise by 357% in FY20 and valuation would rise 39%. Outperform and 46c target retained.
Target price is $0.46.Current Price is $0.34. Difference: $0.12 – (brackets indicate current price is over target). If PAN meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).