Centaurus Metals (CTM AU)New satellite discovery at JaguarKey...

Centaurus Metals (CTM AU)New satellite discovery at Jaguar

Key points

 CTM has defined a new satellite nickel sulphide deposit at Jaguar calledTwister with one of the better intersections including 14.0m at 1.03% Ni. Twister is located within 5km from proposed Jaguar infrastructure and if infilldrilling is successful then there is potential for a maiden Resource.
 Upcoming catalysts for CTM are ongoing drilling results and the JaguarFeasibility Study (and maiden Reserve) expected in 4QCY23.

Event• CTM has announced the discovery of a new nickel sulphide discovery calledTwister, which is located on its Jaguar tenements.

Impact• New nickel discovery called Twister: Multiple high-grade nickel sulphideintersections over a strike length of 900m at Twister included:

 JAG-RC-23-190: 14.0m at 1.03% Ni.
 JAG-RC-23-191: 11.0m at 1.06% Ni (including 5.0m at 1.70% Ni).
 JAG-RC-22-186: 8.0m at 1.20% Ni (including 3.0m at 2.67% Ni).

• Potential for mine life upside: In our view, if infill drilling is successful it couldresult in a maiden Resource for Twister which could increase the totalresource endowment at Jaguar which currently stands at 109.2Mt at 0.87% Nifor 948.9kt of contained nickel. In our view, Twister could have the potential tobe added to the near-term open pit mine plan since mineralisation isoutcropping from surface and is currently open along strike and at depth.

• Close to planned future infrastructure: Twister is located only 5km from theproposed ROM pad for the Jaguar Nickel Project and is more than 1km fromthe nearest proposed project infrastructure and could be easily integrated intothe open-pit mine plan if mineralisation results in a maiden Resource.

Earnings and target price revision

• No change.

Price catalyst• 12-month price target: A$1.60 based on a 1x NPV methodology.

• Catalyst: Ongoing drilling results and Jaguar Feasibility study in 4QCY23.

Action and recommendation

• Maintain Outperform: The discovery of an additional satellite nickel sulphidedeposit at Jaguar is important for CTM and it points to the geologicalprospectivity of its tenements. Jaguar is a tier 1, global top 20 nickel sulphidedeposit at 108Mt at 0.87% Ni for 938.5kt of contained nickel. Of note, theBrazilian power grid is sourced from 80% renewables, and once Jaguarcommences production the project should be able to source 100% renewablepower sources. The major upcoming catalyst is the delivery of the JaguarFeasibility Study in 4QCY23, which in our view, should significantly increasethe mine life to >20 years at ~20ktpa of nickel.