Mining Bulletin

The full story: In-depth news and analysis

You are here

Mining Brokers

Having the world's second largest hard-rock lithium deposit at its Pilgangoora project in Western Australia's Pilbara region ranks Pilbara Minerals above other emerging producers in size, grade and costs.
Foster Stockbroking has initiated research coverage on Pilbara Minerals with a buy recommendation, at a 12-month price target of $A0.47 per share.
The target is based on Pilgangoora being further de-risked in 12 months due to progress on a definitive feasibility study, financing and permitting.

After posting above-guidance production of 27,793oz in the December 2015 quarter, Ramelius Resources is well positioned for the coming quarters with the Vivien project now coming into production.
The company has once again boosted its guidance for the full year to 110,000oz at all-in sustaining costs of $A1,150/oz (from 104,000oz at $1,200/oz previously), and broker Taylor Collison sees that trend continuing.
The situation prompted Taylor Collison to retain a "buy" recommendation, raising its price target by 7.7% to 42c.

West Australian explorer Gascoyne Resources is one of only a small number of AUD gold developers left on the ASX after recent consolidation of the sector.
Hartleys initiates its coverage of the company, describing it as a forgotten Australian gold play. Gascoyne has two 1Moz-plus gold projects in Western Australia, Dalgaranga and Glenburgh.

The consistent flow of special diamonds from the 100%-owned Karowe mine in Botswana helps Canadian-based Lucara Diamond Corp to present a compelling investment case in a market that has seen weak performance as slowing demand from China has impacted the small and mid-market.
The capacity of Karowe to produce higher value and exceptional stones positions Lucara better than its peer group in this market, broker SP Angel noted.

Australian-based West African Resources has a robust, low-capex and high-margin potential development at the Tanlouka gold project in Burkina Faso.
The company is looking to develop the Mankarga 5 (M5) oxide heap leach starter project at Tanlouka in CY16, expecting to produce about 70,000oz pa at AISC of $US538/oz in years 1-3 with modest capital requirement of about $47M.

The completion of a prefeasibility study on the Matilda gold project in the Wiluna region of Western Australia brings Blackham Resources another step closer to recommencing production at the Wiluna processing facility in mid-2016.
Blackham will now incorporate the recent drilling into an upgraded reserve and resource, complete the definitive feasibility study and commit to the Wiluna processing facility refurbishment.

Australian broker Patersons Securities has established explorer Azure Minerals as a speculative buy on the basis of its Mesa de Plata prospect at its Alacrán project in northern Mexico, which it describes as potentially the most exciting silver discovery in recent times.
RC drilling has confirmed a high-grade horizontal layer of silver mineralisation up to 70m thick and outcropping at surface.

UK broker and analyst SP Angel said it was taking a more cautious outlook on UK-based African diamond mine developer DiamondCorp driven by delays in revenues from its under-development Lace mine in the Free State province of South Africa as production is held-up and sales deferred.
In an independent research update, the analyst reduced its target price for DiamondCorp shares to 14p from 17.5p previously.

Plans by Elementos to begin a low-cost tailings retreatment operation at the Cleveland tin-copper-tungsten project in NW Tasmania are backed in a research report by Australian advisor Beer & Co, whose modelling gives a positive valuation at current prices with significant upside from better tin prices.
A prefeasibility study by Elementos assessed the reprocessing of 3.7Mt of tailings grading 0.3% tin and 0.13% copper at a rate of 650,000tpa and producing 900tpa Sn at an all-in cost of $US4.67/lb.

Appropriately, as Australia builds up to its annual craziness of the world's richest two-mile horse race, the Melbourne Cup, broker Hartleys has chosen a racetrack metaphor to introduce its coverage of gold miner and developer Ramelius Resources.
Hartleys suggests the turnaround of Ramelius is well underway, with the company now operating three mining centres in Western Australia and feeding the Mt Magnet processing plant at about 100,000oz pa and moving towards about 130,000oz pa in FY17.

Pages

Mining Brokers