First-quarter production was weak, although grades at Cowal allowed production to be in line with Morgan Stanley’s estimates. Cost guidance for FY20 has increased to $940-990/oz.
The broker is unsure if Mt Rawdon’s pit wall stabilisation requirements will have an impact going into FY21. Underweight maintained. Industry view is Attractive. Target is $4.
Target price is $4.00.Current Price is $4.40. Difference: ($0.40) – (brackets indicate current price is over target). If EVN meets the Morgan Stanley target it will return approximately -10% (excluding dividends, fees and charges – negative figures indicate an expected loss).