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Investing.com - UBS initiated coverage on Amman Mineral Internasional (AMMN:IJ) with a Neutral rating and a price target of IDR8,800.00 on Monday.
The investment bank views Amman Mineral as a quality Indonesian copper company, citing its high-quality assets including Batu Hijau and Elang, which are among the world’s largest copper-equivalent contained reserves with mine lives extending beyond the company’s mining license.
UBS highlighted the company’s integrated operations with one of the lowest C1 cash costs globally, higher margins than global peers, and low regulatory risk as key strengths. The firm noted that Amman’s assets are privately owned with no mandatory stake divestment until 2050, and its smelter commissioning helps it avoid the concentrate export ban.
The bank projects a 15% net profit CAGR for 2024-2027, driven by cost control and a 12% revenue CAGR from 220ktpa of new cathode capacity, 580koz of gold credit sales, and solid copper and gold prices. These factors may lift the company’s ROE to 11-16% in 2026-2027, compared to 10% in 2023-2024 and an expected net loss in 2025.
Despite these positive factors, UBS assigned a Neutral rating, noting that Amman’s premium valuation of 20-26x 2026-27E EV/EBITDA compared to global peers is justified by its strengths.
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