Macquarie envisages upside from higher throughput at West Musgrave, regardless of the cost pressures. A total of 47.5km of infill drilling has been completed and the company assesses the results have improved confidence in the orebody.

Work on the process plant design is 70% complete and OZ Minerals has completed a downstream processing study for the nickel concentrate.

West Musgrave accounts for 17% of Macquarie's valuation and the formal approval of the project is expected to be a key catalyst. Outperform rating and $32 target maintained.

Sector: Materials.

Target price is $32.00.Current Price is $22.37. Difference: $9.63 - (brackets indicate current price is over target). If OZL meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena