Shaw liked the CR removing the Debt overhang.Shaw and Partners...

Shaw liked the CR removing the Debt overhang.

Shaw and Partnersrates MMI asBuy, High Risk(1) -

The shackles holding back Metro Mining have been unleashed, suggests Shaw and Partners, which removes its -50% valuation discount and raises the target to 13c from 7c.

With the main aim of retiring junior debt, explain the analysts, management has completed a $40m equity raise at 4.1c via an institutional placement, and is conducting a $4m share purchase plan at the same price.

The company should now be able to refinance its senior debt on more attractive terms with traditional lenders, notes the broker, resulting in further financing cost savings.

Adding to the broker's excitement, the analysts recently sighted the company’s game changing ‘Ikamba’ transhipper at the Bauxite Hills operation, which will allow Metro Mining to potentially ship 7mt of bauxite in 2024.

The Buy, High Risk rating is maintained.

Target price is$0.13Current Price is$0.04Difference:$0.087
IfMMImeets the Shaw and Partners target it will return approximately202%(excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

	Shaw and Partners forecasts a full yearFY24dividend of0.00cents and EPS of1.80cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is2.39.

Forecast for FY25:

	Shaw and Partners forecasts a full yearFY25dividend of1.00cents and EPS of2.00cents. At the last closing share price the estimated dividend yield is23.26%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is2.15.