St. Barbara’s June-quarter result outpaced Macquarie, thanks to an 11% beat on production (up 40% quarter on quarter) which helped the company romp in to meet guidance.
Volumes rose across all operations and cash generation was admirable, the company closing the June quarter at $98m, a 35% beat on Macquarie’s forecast.
EPS forecasts rise 27% for FY22; 14% for FY23 and 1% to 6% for FY24 and FY26.
Target price rises 10% to $1.10. Rating upgraded to Outperform from Neutral, the broker spying several catalysts such as the Simberi sale and consolidation in Leonora, and given the recent share price retreat.
Sector: Materials.
Target price is $1.10.Current Price is $0.92. Difference: $0.18 – (brackets indicate current price is over target). If SBM meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
