News

Lithium developer Liontown Resources (ASX: LTR) continues to attract attention from the bigger end of town, with two initiation reports since the start of July.

Macquarie Research initiated coverage with an Outperform rating (see last week’s story in our FitzGerald column) and a $1.05 valuation, saying that the company’s flagship Kathleen Valley lithium-tantalum project in WA has the potential to produce ~700ktpa of spodumene, a scale large enough to underpin a fully integrated lithium hydroxide refinery. “Kathleen Valley is one of the largest undeveloped spodumene resources globally and the largest not tied to off-take and joint venture agreements,” Macquarie said.

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Canaccord Genuity says gold production of 15.2koz from Red 5’s (ASX: RED) Darlot gold mine for the June quarter was above its forecast of 13.3koz, largely driven by higher plant throughput.

Canaccord has a Speculative Buy recommendation on the $434 million gold miner, with a price target of 35c-a-share, well above its current price of 18.5c. “AISC of A$2,461/oz was slightly higher than Canaccord’s estimate of A$2,445/oz with higher volumes mined and milled causing the variance,” said Canaccord analyst Henry Renshaw. “The result takes production for the full FY21 to 76.1koz at an AISC of A$2,273/oz, which is within the recently revised guidance range of 74-78koz at an AISC of A$2,240-2,290/oz.”

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Perth-based broker Euroz Hartleys Ltd has re-initiated research coverage of mid-tier copper miner Sandfire Resources (ASX: SFR), setting a $10 price target – well north of its closing price last night of $6.70.

Euroz Hartleys analyst Steven Clark notes a number of key developments since the cessation of coverage on October 2020, including a 41 per cent appreciation in copper prices from US$3.06/lb to US$4.30/lb, an increase in its copper price forecast and a magnification of the limited ASX exposure to copper production.

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Canaccord Genuity has issued a Speculative Buy recommendation with a 30c price target for emerging copper explorer-developer New World Resources (currently 10c).

In an initiation note, Canaccord cautions that its valuation is preliminary in nature and should be viewed as a what-if case, given no formal mining studies have been published and a maiden JORC resource is awaited, but outlines what it describes as a “likely development scenario” for the company’s Antler project in Arizona, USA. “Based on the published drilling data to date, we have modelled a potential mine inventory for Antler,” Canaccord says. The project has a non-JORC historic resource of 4.7Mt at ~3.4% copper equivalent.

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Investors stand to triple their money in emerging WA iron ore junior CZR Resources, according to a new research report by experienced analyst Andrew Pedler of Matau Advisory.

Investors stand to triple their money in emerging WA iron ore junior CZR Resources, according to a new research report by experienced analyst Andrew Pedler of Matau Advisory. Pedler values CZR, which owns the Robe Mesa project in the Pilbara, at 3c a share based on it shipping through Port Hedland. But he says the value rises to 4.5c in the event that its plan to ship through the closer port of Onslow is successful. CZR is currently trading at 1.2c for a market capitalisation of just $34 million.

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A respected Sydney-based resource analyst believes gold developer Kingston Resources (ASX: KSN) has a “head start to low-cost gold production” at its advanced Misima gold project in PNG

A respected Sydney-based resource analyst believes gold developer Kingston Resources (ASX: KSN) has a “head start to low-cost gold production” at its advanced Misima gold project in PNG, where it is aiming to restart one of the most prolific gold mines of the region. In a lengthy initiation report, Michael Bentley from MST Access says Kingston is an early-stage investment opportunity that captures the benefit of what is effectively a “brownfield” project at its 3.6Moz Misima project.

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The recent release of a DFS progress update by Liontown Resources (ASX: LTR) reinforces the view that its flagship Kathleen Valley project in WA is set to become “one of the next world-scale hard rock lithium projects

The recent release of a DFS progress update by Liontown Resources (ASX: LTR) reinforces the view that its flagship Kathleen Valley project in WA is set to become “one of the next world-scale hard rock lithium projects to supply the world’s insatiable demand for lithium products.” This is the view of leading Sydney-based broking and advisory firm Bridge Street Capital Partners in an updated research note triggered by the DFS update and recent sharp upward moves in the prices for lithium raw materials.

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Heavyweight global investment bank Goldman Sachs has upgraded its recommendation for mid-tier copper producer Sandfire Resources

Heavyweight global investment bank Goldman Sachs has upgraded its recommendation for mid-tier copper producer Sandfire Resources (ASX: SFR) from neutral to a BUY on the back of higher base metal forecasts, raising its price target to $7.60-a-share. The news prompted an immediate 6% lift in Sandfire shares yesterday to over $5.80, though still well short of the revised Goldman Sachs target.

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