MAC has completed a A$150m placement at A$18.00/share. The funds will be used to de-lever the balance sheet, with accelerating the repayment of the Mezzanine debt facility the key focus. We have updated our copper price outlook, which drives near-term cuts to our earnings outlook for MAC, offset by medium-term upgrades. Importantly, the improved copper price outlook is now set to occur in parallel to a rise in copper output at MAC’s CSA Mine. MAC is expected to start generating strong free cash flow from CY26 post the completion of the ventilation upgrades and ramp up of copper production to ~50ktpa. We are reiterating our BUY rating on MAC, lifting our price target 3% to A$23.80, reflecting the improved medium-term earnings outlook and stronger spot copper price.
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