MAC’s CY24 earnings result was broadly in line with our expectations, with reported Ebitda and Ebit within 4% of our forecasts. The cash result was also in line with cash balances having been pre-released. The updated reserves and resources had delivered improved grades and a one-year extension to our mine life assumption to CY37. We note that our forecasts do not yet include any revenue from production from the newly named Merrin Mine, which is the upper 900m of the CSA Mine. MAC notes that production from the Merrin Mine is expected to commence in the 4QCY25 and is not currently incorporated into guidance for CY25 and CY26. We have made modest adjustments to our forecasts for MAC and see upside to our estimates from production from the Merrin Mine. We reiterate our BUY rating, with our price target rising 8% to A$26.00 due to strength in spot copper prices.
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