[MEDIA] Analyst Comment: Since announcing key management changes...

Analyst Comment: Since announcing key management changes earlier this year, Carbine has continued to work quietly behind the scenes, however are now on the verge of releasing the DFS for their Mount Morgan project next month.  The recently announced resource upgrade, which will be central to the DFS, saw an improvement in terms of the size (extended mine life) as well as head grade,  which should result in improved economic outputs for the DFS in comparison to the PFS.  

Carbine also recently completed a heavily over-subscribed capital raising ($7m), which ensures the company has sufficient funds to complete the DFS, as well as introducing a number of prominent Australian financial institutions to strengthen Carbine’s share register.

Valuation:  We have increased our valuation for Carbine to $0.50 / share (previously $0.40 / share). The key driver for the change to our valuation was an extension to our mine life (10yrs) along with a slight change to our head grade assumption.  Both assumptions are in-line with the resource upgrade.  

However given the upside exploration target (40Mt at 0.97g/t – 1.2Moz) as well as the change in the market’s appetite for gold equities since the release of the PFS, we also examined an increased throughput scenario (1.5Mtpa) which saw our valuation increase to $0.68 / share.