The recent $80M equity raise by SPR provides ample funding to commence the Never Never decline and bring the project one step closer to production. Recent drill results at the Pepper Lode are encouraging but we wait further confirmatory drilling before including it in our valuation. Exploration results at Never Never remain a significant catalyst for SPR which may be at risk of a takeover should it trade lower. We maintain a high conviction on Never Never being a high-margin development regardless of who mines it. We adjust our Price Target from $0.78 to $0.68 driven by spot price fluctuations and increased exploration spend. Speculative Buy rating maintained.
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