Good afternoon folks, An update from a couple of the brokers...

Good afternoon folks,

An update from a couple of the brokers have come through today.

Macquarie rates AMI as Outperform

24 October 2024
Aurelia Metals reported softer than forecast gold production and higher than expected copper production in 1Q25, Macquarie highlights, although cost guidance was retained.

Weaker gold production was attributed to a soft performance at Peak. Lead production was also lower than expected. Cash on hand stood at $103.2m, down -$11m and more than estimated.

Macquarie lowers earnings forecasts for the weak quarterly result by -8% for FY25 EPS and raises FY26 EPS estimates by 8% for the updated hedge book.

Target price decline -4% to 24c. Outperform rating unchanged.


Ord Minnett rates AMI as Speculative Buy

24 October 2024
While yesterday's 1Q results for Aurelia Metals were slightly softer-than-expected, Ord Minnett was buoyed by the release of the Cobar Optimisation Study which should result in higher net present value (NPV) estimates by the market.

Management outlined an around $40-60m NPV improvement now that the Peak mill expansion to 1.1mtpa from 0.8mtpa is the preferred choice, rather than restarting the Hera underground gold-lead-zinc mine.

Despite this positive, the share price fell post the update creating an opportunity for investors to buy the stock, in the broker's opinion.

The Speculative Buy rating and 27c target are maintained.