CMM – Macquarie rates the stock as Neutral

Macquarie adds a development scenario to its calculations for Capricorn Metals after tenure was granted for the Mt Gibson project, and upgrades to Neutral from Underperform.

The broker believes Mt Gibson represents a big growth opportunity and should diversify operational risk.

EPS forecasts fall -3%, -1% and -4% across FY22, FY23 and FY24, to reflect heightened exploration and development costs; but are upgraded to the tune of 57% and 93% in FY25 and FY26.

Macquarie says this increases the net asset value, justifying a 31% increase in the target price to $3.40.

Sector: Materials.


Target price is $3.40.Current Price is $3.17. Difference: $0.23 – (brackets indicate current price is over target). If CMM meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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