Nickel Mines: Citi sees no cost overrun risks for Angel Nickel; lifts PT, earnings view

Val-dOr Mining

02/12/2020 21:08

** Citi says Australia's Nickel Mines  NIC.AX  has no
construction cost overrun risks for Angel Nickel project in
Indonesia, where first production is expected in 3Q22
    ** Brokerage lifts price target to A$1.40 from A$1.30,
maintains "buy/high risk" rating
    ** NIC on Wednesday announced a A$364 mln ($269.18 mln)
equity raising to fund acquisition of 30% stake in Angel Nickel
project in Indonesia (https://bit.ly/36wL0mL)
(https://bit.ly/2JBe6ID)
    ** A$364 mln equity raise higher than Citi's expectations;
sees another $150 mln raising in 1H of CY21
    ** See NIC becoming a top 10 global nickel producer by about
2023 - Citi
    ** Expects NIC to report FY20 sales of $511 mln, and $526.7
mln in FY21, compared with $64.9 mln recorded in FY19
    ** Lifts FY20 core net profit estimate to $86.6 mln, up 6.2%
from previous estimate
    ** NIC has gained 63.6% this year, as of close on Dec. 1, vs
a 7.5% increase in the ASX 300 Metals & Mining index  .AXMM  


($1 = 1.3523 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Lisa
Shumaker)
 ((Sameer.Manekar@thomsonreuters.com;))