Euroz Hartleys lifts Centaurus price target to 85c

Euroz Hartleys has upgraded its price target for nickel developer Centaurus Metals (ASX: CTM) in the wake of a standout nickel hit and an update to the Perth-based broker’s medium-term nickel price forecast.
18th December 2020
Resources Rising Stars

Euroz Hartleys has upgraded its price target for nickel developer Centaurus Metals (ASX: CTM) in the wake of a standout nickel hit and an update to the Perth-based broker’s medium-term nickel price forecast.

“This has prompted a revision of our back-of-the-envelope initial Jaguar development,” wrote Euroz Hartleys analyst Jon Bishop in an updated note, referring to Centaurus’ flagship Jaguar nickel sulphide project in north-eastern Brazil.

“Our valuation increases to 86c and we set our price target at 85c, cognisant of a firm nickel price macro,” he said.

Euroz Hartleys has a Speculative Buy rating on Centaurus.

The new note also comes on the back of a standout >30m intersection of semi-massive and massive nickel sulphides reported by Centaurus last week outside of the current Jaguar resource, which Euroz Hartleys said “further validates Jaguar as a company-making project.”

The broker says the presence of millerite in the middle section of the mineralised zone in the new hole, JAG-DD-20-104, indicates that pending assays “will carry good nickel grade”.

Plus, a second hole has encountered nickel sulphide mineralisation to the east of hole 104.

“The strike length of the high-grade ore shoot at Jaguar Central has expanded to >500m on the back of step-out drilling, with the broad intercept instilling confidence in thick high-grade mineralisation continuing at depth,” Bishop said.

“The scale of the existing high-grade resource not only provides unparalleled leverage but also flexibility with respect to the development of the Jaguar project, which we envision commencing as a capital-light open cut operation prior to advancement underground,” he continued.  

“We flag assays from further step-out and deeper drilling at Jaguar Central in addition to CTM’s maiden study on the project (due Q1 CY21) as key near-term catalysts.”

Euroz Hartleys maintains its Speculative Buy recommendation.

To view the full Euroz Hartleys report, click here.

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