Macquarie believes securing the mining licence at the Motheo Copper project in Botswana is a key de-risking event for Sandfire Resources. Construction and production ramp-up timelines are now considered largely within the company’s control.
Early site development work has already commenced with the construction of the mine camp well advanced. Management is scheduled to release the fourth quarter FY21 production result on 29 July and full year earnings result on 26 August.
The Outperform rating and $10 target are unchanged.
Sector: Materials.
Target price is $10.00.Current Price is $6.87. Difference: $3.13 – (brackets indicate current price is over target). If SFR meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges – negative figures indicate an expected loss).
