OZL – Macquarie rates the stock as Outperform

Despite restrictions in South Australia, OZ Minerals has continued to operate as normal at its mines. Hence the Carrapateena expansion study is due in the next few weeks and Prominent Hill expansion next year. The confirmation of the economics of a block cave at Carra is a key potential catalyst, the broker suggests, offering upside risk to forecasts.

Meanwhile, copper prices have rallied to suggest FY20 earnings 20% above the broker’s forecast if the spot price is used. Target rises to $11.50 from $10.00, Outperform retained.

Sector: Materials.

Target price is $10.00.Current Price is $10.26. Difference: ($0.26) – (brackets indicate current price is over target). If OZL meets the Macquarie target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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