Highfield Resources (Buy, TP: 320AUc) Double Top (By Numis Securities)

Sierra del Perdon Scoping study results demonstrate another robust project in HFR’s stable with a post tax NPV (10%) of $527m and IRR of 39%. Results envisage a shallow underground/flotation operation producing 520ktpa at a C1 cost of $155/ t (All-in $178/t). Capex is estimated at $233m and the numbers overall compare well to our previous estimates, with a larger project but higher cost.

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