Mincor Resources has completed a $60m capital raising and share purchase plan which has boosted its cash reserves to over $100m. The company, once a debt facility is secured, will now have more than enough to cover the funding requirements for full production.
Further extensions to the Cassini and Cassini North deposits present material upside, in Macquarie’s view. The broker resumes coverage with an Outperform rating and $1 target.
Target price is $1.00.Current Price is $0.75. Difference: $0.25 – (brackets indicate current price is over target). If MCR meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).