Broker updates: 29 Feb 2024 Macquarie rates AMI as Outperform...

Broker updates: 29 Feb 2024

Macquarie rates AMI as Outperform

Aurelia Metals' first half earnings were 41% higher than Macquarie expected, driven by higher revenue on in-line operating costs.
The miner is well capitalised to complete the Federation project, the broker notes, with net cash of $97.4m at the end of 2023 and total liquidity of $163m.
FY24 guidance has been maintained for gold, copper, zinc and lead production and cost guidance is also unchanged.
Outperform and 22c target retained.

Ord Minnett rates AMI as Speculative Buy

Aurelia Metals delivered a slightly softer result than Ord Minnett was expecting. Margins improved as cost reductions combined with higher gold prices.
The broker looks towards the upcoming site visit to Cobar which should showcase progress at Federation and the options within the region.
The strong financial position has likely de-risked the future growth trajectory and there is potential from further exploration success, none of which the broker asserts are captured in current trading. Speculative Buy rating and 21c target retained.

Upcoming site visit for brokers sounds good.

All the best.

KKR