September quarter production was slightly weaker than forecast but, importantly, Carrapateena remains on track for first production in November.
UBS retains a Buy rating because of the company’s exposure to copper and because the valuation suggests the share price is trading at a discount. Target is raised to $11.50 from $10.50.
The broker’s valuation does not include various options such as a potential block cave at Carrapateena, an uplift in haulage at Prominent Hill, and West Musgrave.
Target price is $11.50.Current Price is $9.69. Difference: $1.81 – (brackets indicate current price is over target). If OZL meets the UBS target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).