Dacian Gold has completed its recapitalisation via a $98m raising, and the broker has returned from restriction to set an Outperform rating, given the company’s credit risk, which previously had the broker on Underperform, has been materially reduced. Target 45c on dilution (previously 70c).
The fresh capital also shores up the three-year Mt Morgan open pit base case, while upside is on offer from a restart of underground mining and further exploration, the broker suggests.
Target price is $0.45.Current Price is $0.39. Difference: $0.06 – (brackets indicate current price is over target). If DCN meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).