The box-cut for the development of Monty, the first new mine in WA’s Doolgunna region, is coming along nicely. It is about where you want to be now that copper has risen by $US1 a pound, or close to 50% in the past 12 months.
That’s great news for 70% Monty partner and manager Sandfire (SFR), which gets to blend the high-grade copper-gold material through its nearby DeGrussa operation towards the end of the next year, extending the life of the operation well in the 2020s and beyond, if another discovery in the region is notched up, which seems likely.
But today’s interest is in what it means for the 30% which Monty partner Talisman (TLM) . Peter Arden at Bell Potter has done the number crunching and he arrived at a 60c price target (12 months), albeit down from a 67c target previously.
A nice way to play the copper thematic for those already up to the gills in Sandfire and OZ Minerals (OZL), the two go-to stocks in this market for copper exposure.
“Development of the Monty deposit is underway and although being done on a longer timeframe than we think is necessary, it will deliver very high grade and highly profitable production as copper and gold prices continue to firm,’’ Arden said.
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