Higher Metal Prices Reflected in EV/oz Valuations
The first quarter of this year has seen an unprecedented rapid rise in the prices of gold and antimony, with spot prices of ~US$2950/oz Au and ~US$30,000/t Sb, respectively. Spot prices have increased ~50% and 150% from the US$1,900/oz Au and US$12,000/t Sb we used when we established our rating and target for the stock in Nov/24 (read report). We believe that this higher price environment justifies a richer valuation for Southern Cross and have updated our valuation, primarily by adjusting the in-situ enterprise value per ounce metric to US$200/oz AuEq (was US$150/oz AuEq). We maintain our BUY rating and increase our target price to C$5.60/sh (was C$4.20/sh).
