Aurelia Metals posted a strong production recovery in the June quarter thanks to higher grades and improved throughput. A maiden resource was announced for Federation, which the broker sees as a significant step forward towards a substantially longer mine life for Hera.
Drilling results at Kairos and Peak North point to good grades that should ensure meaningful production in FY21022, the broker suggests. Outperform and 70c target retained.
Sector: Materials.
Target price is $0.70.Current Price is $0.63. Difference: $0.07 – (brackets indicate current price is over target). If AMI meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
