Formed in 2008, OZ Minerals (OZL) is a copper and gold mining company based in Adelaide. Raymond Chan said that the larger dividend was the only real surprise among first half 2021 financials.
“Approval of the Prominent Hill shaft/expansion (PHOX) similarly didn’t surprise, but project economics do underwhelm at face value,” Raymond said.
“We expect the market to recognise upside in Resources/ Reserves (mine life) to be unlocked over time.
“Valuation adjusts to $23.29ps while our $24.45ps target maintains a 5% premium for OZL’s quality/ scarcity value.
“We upgrade to an Add, particularly as the cooling of macro sentiment or a subdued response to the PHOX update may crystallise an opportunity at lower prices,” Raymond said.
OZ Minerals (OZL)
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