MAC has announced it has commenced the redemption of the bulk of warrants on issue for shares at fair value. There are 15.4m public and private placement warrants on issue with an exercise price of US$11.50/share. Given its strong cash generation and cash position, MAC will look to effectively cancel these warrants by issuing shares in lieu of the cash payment. The reduced equity dilution translates to 14% upgrades to our fully diluted EPS forecasts. After a soft start to the year, we expect MAC to deliver rising production over the remainder of CY24, coinciding with higher copper prices. The reduced equity dilution is partially offset by the removal of the cash raised from warrant conversion, and we lift our price target 2% to A$27.50 and reiterate our BUY rating on MAC.
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