In a report released yesterday, Rene Cartier from BMO Capital maintained a Buy rating on Marimaca Copper, with a price target of C$13.00.
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Rene Cartier has given his Buy rating due to a combination of factors surrounding Marimaca Copper’s MOD project. The feasibility study results indicate a robust project with a nominal production of 50ktpa of copper cathode over a 13-year mine life, supported by a post-tax NPV8% of $709 million and an IRR of 31%. The project also boasts a quick payback period of 2.5 years, assuming a long-term copper price of $4.30/lb, which makes it financially attractive.
Additionally, Marimaca is actively working on securing environmental approvals and exploring strategic alternatives for project development, including partnerships with mining companies and alternative financing sources. The potential for cost reductions through alternative contracting strategies and the opportunity for future expansions further enhance the project’s appeal. Despite some higher-than-expected costs, the overall prospects for resource increases and exploration success contribute to the positive outlook, justifying the Buy rating.
In another report released on August 21, Raymond James also maintained a Buy rating on the stock with a C$11.50 price target.
MARI’s price has also changed dramatically for the past six months – from C$5.650 to C$11.460, which is a 102.83% increase.