Picked up some more today24 Jan 2024 21:35
Early stage acquisition demonstrates post Runruno strategy
MTL recently announced that it has entered into an agreement to acquire a controlling interest in the YMC Group that holds exploration tenements in the Abra area of northern Luzon in the Philippines which are prospective for gold and copper.The initial exploration programme, which should commence in Q1 2024, will include field mapping, sampling, and geophysics with surveying of small scale tunnels and vein systems. This will be used to build out the geological database and to define drill targets for drilling in 2024. The focus will be on identifying a high grade gold project
that would fit with MTL’s existing operational skill set, while also continuing to advance other exploration targets.
Valuation: GBp4.25/share Our DCF-based target valuation is GBp4.25/share, offering 35% upside from the
current share price, based on a long-term gold assumption of US$1,850/ounce and a
discount rate of 12%. Our previous target price was GBp4.23/share