The development of Karlawinda is on schedule for first gold in the fourth quarter of FY21. Budget is on track for $165-170m.
The company has also announced conditions for the drawing down of the $80m debt facility have been met. Hence, Macquarie anticipates no further funding will be required.
Despite the good progress, the broker notes the stock continues to trade at a multiple in line with more established producers and retains an Underperform rating. Target is $1.70.
Target price is $1.70.Current Price is $1.84. Difference: ($0.14) – (brackets indicate current price is over target). If CMM meets the Macquarie target it will return approximately -8% (excluding dividends, fees and charges – negative figures indicate an expected loss).