Centaurus Metals' purchase of nickel project rights positive news - CG

Centaurus Metals

19/06/2023 22:13

** Canaccord Genuity says Australia's Centaurus Metals
 CTM.AX  now has unencumbered control and optionality over
future marketing and sales of Jaguar's nickel sulphate product;
maintains "speculative buy"
    ** Nickel miner climbed as much as 17.2% on Monday after it
acquired rights over Jaguar nickel sulphide project in Brazil
from Vale Base Metals
    ** Brokerage sees acquisition as a positive as it opens the
doors to funding through equity investment, and increases the
chances of corporate takeover opportunities in CTM
    ** Given Vale still has a vested interest by way of a
royalty, we still expect future support in terms of
infrastructure sharing arrangements, etc. - CG
    ** Says additional royalty payments to Vale under
acquisition terms add negligible cost to brokerage's valuation
of CTM and retains price target of A$1.60
    ** Four of four analysts rate the stock "buy" or higher;
their median PT is A$1.60 – Refinitiv data

 (Reporting by Jaskiran Singh in Bengaluru; editing by Jonathan
Oatis)
 ((Jaskiran.Singh@thomsonreuters.com;))