OZL – UBS rates the stock as Buy

The prefeasibility study has indicated that a transition to a block cave at the lower half of the Carrapateena ore body is accretive to value. Mining rates would lift to 12mtpa from 5mtpa for around $1.2-1.3bn of incremental expenditure.

First production could be in 2026. As a result, UBS upgrades valuation by 18%. A final investment decision is due in 2023.

The broker maintains a Buy rating, as OZ Minerals has numerous growth options that should be de-risked over time. Target is raised to $11.90 from $10.90.

Sector: Materials.

Target price is $11.90.Current Price is $10.68. Difference: $1.22 – (brackets indicate current price is over target). If OZL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →