CMM – Macquarie rates the stock as Underperform

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.

Sector: Materials.

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).

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