Ann: Coburn Project Open Pit Mining to Start Two Months Early, page-15

A bounce today thanks to;
Shaw and Partners rates ((STA)) as Buy (1) –

Strandline Resources will start mining at the Coburn Mineral Sands project two months ahead of plan, and expects the first strip ratio will fall to 0.5x from a previously forecast 0.7x, thanks to enhanced pit design, reports Shaw and Partners.

Management says the project is on budget, despite rising costs and says early mining will not necessarily lead to early concentrate production, given that hinges on the construction of the Wet Concentration Plant.

Shaw and Partners says the early start de-risks the mine's launch and notes the mine is fully funded to completion with a solid contingency and cash buffer. Any further expansion is expected to be funded through the mine's cash flow.

Buy recommendation retained. Target price steady at 80c.

This report was published on June 30, 2022.

Target price is $0.80 Current Price is $0.32 Difference: $0.48
If STA meets the Shaw and Partners target it will return approximately 150% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.00.