‘Opportune time’ to buy Millennium, says Bell Potter
13th July 2018
Shareholders in Millennium Minerals (MOY) stand to make significant profits as the WA gold miner prepares to unlock the value of the huge sulphide resource at its Nullagine project in the Pilbara, according to a new research report from broker Bell Potter.
Bell has set a price target of 27c for Millennium, representing a substantial increase from the current price of 21c.
Its report says Millennium “is now embarking on a path to exploit the full potential of the project”.
“Key to not only monetising its existing resource base but realising the full potential of its highly prospective tenement package is the capability to economically process sulphide ores which comprise ~850koz (or 76%) of the current resource base,” the Bell report says.
“In March 2018, after investigating several options, Millennium identified a capital-efficient, low-operating cost processing route which is designed to increase overall recoveries to 82.5% of forecast ore blends.
“This has the immediate benefit of enabling a major optimisation of the current resource but also opens up the entire project to Millennium’s aggressive exploration strategy.
“We view this as a major step towards Millennium’s objective of lifting production to ~100,000ozpa, supported by a +5 year mine life.”
Bells believes that the company’s strategy to unlock the value of its huge sulphide resource means it is an “opportune time to gain exposure to Millennium”.
“The success of the sulphide expansion would be a major positive catalyst, enabling Millennium to realise full value from its sulphide resource base through increased production and a materially extended mine life,” the report says.
Image via Millennium Minerals
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