UBS upgrade

https://thewest.com.au/business/gold/ubs-lifts-price-target-on-de-grey-mining--c-9630318

UBS lifts price target on De Grey Mining
Danielle Le MessurierThe West Australian
Thu, 2 February 2023 10:46AM




Exploration by De Grey at Hemi. Credit: Photography Project/Photography Project

Shares in De Grey Mining lifted after UBS lifted its price target on the stock to $1.55, citing strong potential for its celebrated Hemi deposit.

A pre-feasibility study for Hemi, which falls within De Grey’s Mallina gold project in the Pilbara, last September demonstrated “clear tier-1 potential” with 20 years life at about 530,000 ounces per annum for the first 10 years and 430,000 ounces per annum for the decade thereafter, UBS said.

The investment bank said while its modelling was broadly in-line with the study it added about five years extra to the base case mine life plan on the back of “extended known resources being included in the mine plan”, “new discoveries” and “ongoing project optimisation”.
“New gold discoveries are scarce especially ones of this scale in Australia,” UBS said.
“We lift our price target to A$1.55/sh updating our forecast with greater mine life optionality amid a more favourable gold price environment.”

UBS also said native title agreement for the entire Hemi resource and project footprint gave it greater confidence of final investment decision in the second half of this calendar year.
“Although with the share price up nearly 60 per cent since (the pre-feasibility study in September) we downgrade to neutral,” it said.

Shares in De Grey were up 3.4 per cent, or 5¢, to $1.51 at 10.45am.