new review

Financials
ANX are well positioned with approximately $8.3m in cash and liquids
which includes US$2.0m received from Anglo for the sale of a 1%
royalty on ANX’s share of production. The royalty also included a term
sheet for a proposed US$20.0m debt funding and full offtake rights for
ANX’s share of the concentrate, subject to Anglo’s satisfaction of the
feasibility.
Comment, Recommendation and Valuation
ANX is on track to commence production in July 2022, well ahead of its
peers, from a low capex ore-sorting operation which is fully funded by
the Anglo debt proposal. Further processing options of the preconcentrate we anticipate will be confirmed in the near term which may
include toll milling or a stand alone small on-site mill (<0.4mtpa).
We see ANX as an emerging near term Cu producer and initiate
coverage with a Speculative BUY recommendation and a price target of
$0.20 per share upon a decision to mine. Share price catalysts include
the release of the scoping and feasibility studies, pre-concentrate
processing option confirmed, Mining Proposal approval by DMIRS,
formal Project go-ahead and ongoing brownfields Cu/Zn exploration and
gold exploration over the tenure.
A strong Cu price over the foreseeable future offers leverage to the
upside for a re-rating of the ANX share price towards our price target.