In what was expected to be a low production March Q for Alacer due to maintenance, production rose 100% to be 26% above the FY guidance run-rate. Oxide costs were below guidance due to higher grades.
Oxide production will now decline as sulphide ramps up, the broker notes, and the sulphide ramp-up is progressing ahead of expectation, but the potential for further oxide discoveries leads to an upgraded outlook. Outperform and $5.05 target retained.
Sector: Materials.
Target price is $5.05.Current Price is $3.84. Difference: $1.21 – (brackets indicate current price is over target). If AQG meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
