AIC Mines cash flows to improve from second half of FY23 - Jefferies

AIC Mines

20/10/2022 22:20

** Analysts at Jefferies see copper miner AIC Mines Ltd's
 A1M.AX  cash flows to improve from second half of FY23 due to
lower capex resulting from reduced cost pressures
    ** A1M on Thurday posted net revenue from its Eloise copper
mine of A$27.2 mln ($17.08 mln) and A$22.1 mln in cash for
period ending Sept 30  urn:newsml:reuters.com:*:nASX7QmpzS
    ** Brokerage says resumed high-grade mining at Eloise copper
mine should enable sustained higher copper production in the
following quarters, and result in lower unit costs for the
remainder of FY23
    ** Jefferies says expect copper price recovery through FY23
into FY24, and co's ability to leverage value-accretive deals
presents an opportunity to build long-term positions in stock
    ** Brokerage sees co's ability to maintain and grow its
balance sheet to improve from December quarter onwards 
    ** Jefferies raises PT by 44% to A$0.70, reiterates "buy"
rating 
    ** All three analysts rate the stock "buy" or higher; their
median PT is A$0.70 – Refinitiv data
    ** Stock has fallen 7.6% this year, as of last close
($1 = 1.5926 Australian dollars)
 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))