goldman sachs

Murchison Metals Ltd - Wins Right To Develop Oakajee Port Infrastructure
Stock Code: MMX Recommendation: HOLD
Share Price: $3.00 12M Price Target: $3.50 EPS Change: na
• Event: MMX has been selected as the preferred proponent (together with its Oakajee Port and Rail
Infrastructure JV partner Mitsubishi Corporation) to develop the Oakajee port infrastructure to service the
Midwest region of Western Australia.
• Earnings and Valuation Impact: We had assumed that the MMX/Mitsubishi JV wins the right to develop the
infrastructure in our numbers and as such there is no change to our earnings or valuation.
• Investment View: We have no change to our neutral view on MMX. While the Jack Hills project remains a
large scale iron ore project and this announcement does clear a hurdle in bringing it to production, we note the
quality of ore reduces markedly at depth and we see better opportunities elsewhere in the iron ore space.