We recently attended a site tour to MAC’s CSA Mine in Cobar, NSW. The site tour included an underground visit to most key mining areas including the bottom of the mine workings and viewing of all key process plant, ventilation, and tailings infrastructure. The level of investment renewing surface infrastructure was a key highlight of the tour. Ground conditions in the deepest part of the mine were also significantly better than we had anticipated. We believe increasing ventilation airway infrastructure underground is key to lifting the mining rate beyond the current 1.1mtpa run rate. We have lifted our medium-term production forecasts for the CSA Mine by 12% from 45ktpa to 50ktpa, which drives a 5% increase in our price target to A$24.50 and we reiterate our BUY rating.
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