Weekly Reports | 10:30 AM
A summary of the highlights from Broker Call Extra updates throughout the week past.
Broker Rating Changes (Post Thursday Last Week)
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NEW ZEALAND KING SALMON INVESTMENTS LIMITED ((NZK)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden upgrade to an Overweight rating for New Zealand King Salmon Investments with its target price increased to NZ$0.37 from NZ$0.35 following strong preliminary guidance upgrades.
Management guided to an FY26 pro-forma EBITDA of NZ$36m to NZ$39m, marking a 17% upgrade at the midpoint, and an expected EBIT of NZ$27m to NZ$30m.
While FY26 harvest volume guidance remains unchanged at 5,950 to 6,050 tonnes, the analyst lifts the operating EBITDA forecast by 19% to NZ$38m due to positive fish performance.
Jarden subsequently raises FY27 and FY28 EBITDA forecasts by 7% and 4% respectively to reflect higher inshore volumes resulting from lower mortality levels.
RAMELIUS RESOURCES LIMITED ((RMS)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity upgrades to a Buy rating for Ramelius Resources with its target price increased to $6.15 following the release of an updated four-year outlook outlining a materially stronger long-term production profile offset by higher near-term growth capital expenditure.
Management guides to FY27 production between 205k ounces and 225k ounces at an all-in sustaining cost of $2,150 to $2,350 per ounce, before stepping up to 560k ounces to 610k ounces at $2,100 to $2,400 per ounce by FY30.
Mt Magnet serves as the primary driver of the improved long-term profile, forecast to contribute 420k to 460k ounces in FY30 driven by mine-life extensions at Galaxy and the inclusion of the Gilbey's Underground operation.
The analyst lifts total FY27 and FY28 growth capital expenditure forecasts by 53% or $410m, primarily reflecting inflationary impacts, engineering pricing, and scope enhancements to increase mill capacity at Mt Magnet above the planned 4.3m tonnes per annum.
Despite a resulting -60% decrease in near-term underlying free cash flow, Canaccord Genuity views the four-year plan as fully funded, noting a forecast cash low point of $586m in early FY28 highlights the strength of the balance sheet.
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AIC MINES LIMITED ((A1M)) Downgrade to Hold from Buy by Moelis.B/H/S: 0/0/0
Moelis downgrades its rating to a Hold from Buy for AIC Mines with a $0.89 target price following an agreement to acquire Materra Metals Limited and its Mt Cuthbert copper project in North Queensland.
The transaction involves a $100m consideration in newly issued scrip alongside a $20m cash component, supported by a $70m private placement to Hawke's Point Resource Finance for funding and working capital.
The acquired asset contains current mineral resources totalling 18.7m tonnes at 1.3% copper for 246k tonnes of contained copper across granted mining leases.
Commentary concludes the addition of a second regional copper project presents a compelling case for developing a new standalone operation with the potential to double the existing production outlook to 50k tonnes per annum.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Upgrade | |||||
| 1 | NEW ZEALAND KING SALMON INVESTMENTS LIMITED | Buy | Neutral | Jarden | |
| 2 | RAMELIUS RESOURCES LIMITED | Buy | Neutral | Canaccord Genuity | |
| Downgrade | |||||
| 3 | AIC MINES LIMITED | Neutral | Buy | Moelis | |
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