CMM has completed a A$200m capital raising to execute growth plans which includes lifting the production at Karlawinda to 150kozpa and developing the Mt Gibson mine. Combined this would lift production from 113koz in FY24 to +300koz. CMM is now fully funded with no additional debt required and thus does not require further mandatory hedging, which is a key positive in our view. There remains LOM upside at Karlawinda (which currently has a 13-year LOM) and there is underground potential at Mt Gibson beyond the current open pit (12-year LOM) base case. Executing Karlawinda growth, Mt Gibson permits and approvals and continued drilling/resource updates are key catalysts for CMM. We reiterate our BUY rating on CMM and maintain our price target of A$9.40.
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