Broker Reports

"Yesterday’s Jambreiro pilot plant testwork provides a nice follow-on to 2Q24 bench scale testing, seeing improved average metallurgical (89.3% vs 89.1%) and mass (40.3% vs 37.6%) recoveries, and highlighting a finished concentrate squarely in the green steel/DR-EAF market, a structural premium segment. The project works not because it recovers a lot of mass, but because it produces a scarce premium DR product (67.8% Fe, 1.93% SiO2+Al2O3, 0.02% P) at high metallurgical recovery, so most iron value is captured while cheap mining and strong logistics support margins".

"We maintain our speculative buy recommendation and improve our price target from A$0.85 to A$1.15 per share. Our improved price target reflects the impact of a higher nickel price on our spot price valuation component".