Minerals 260: PFS Stage 1 higher capex but expansion value in the large resource base; retain Buy, 90cps PT

Research evidence excerpt

Minerals 260: PFS Stage 1 higher capex but expansion value in the large resource base; retain Buy, 90cps PT

Global Research

9 July 2026ab

Minerals 260 Equities

AustraliaPFS Stage 1 higher capex but expansion value in

the large resource base; retain Buy, 90cps PT Mining

12-month rating Buy

12m price target A$0.90Staged approach as expected sets a solid platform, but upfront capex appears

the investor focus Prior : A$1.15

MI6's PFS for the Bullabulling project in WA outlines a Stage 1, 5Mtpa project which Price (08 Jul 2026) A$0.64

generates LOM average 125kozpa gold production over a 19y life at A$2,520/oz, with RIC: MI6.AX BBG: MI6 AU

pre-production costs estimated at $855m. We think today's sell-off in the stock (down

~16%) predominantly relates to higher capex, and lower average production; however, Trading data and key metrics

we believe the market is discounting the optionality in the (recently expanded) resource 52-wk range A$0.99-0.11

base of 6.2Moz (Figure 5ResourceandreservevsUBSLOMminingasumptions). We think it is likely to justify an expansion to 7.5Mtpa, with Market cap. A$1.31b/US$0.91b

the crushing circuit oversized, and design allowance for additional kit to match. We have Shares o/s 2,068m (ORD)

increased our estimate of Stage 1 capex from $650m to $875m, but reduced our Stage Free float 100%

2 spend by $80m as a partial offset (smaller scale vs our prior 3Mtpa expansion + Avg. daily volume ('000) 10,935

brownfields development discount). Trimming our LOM head grade by ~0.1g/t has also Avg. daily value (m) A$9

impacted production rates and unit costs with it, and we now see the project peaking Common s/h equity (06/26E) A$0.25b

just shy of 200kozpa (Figure 3ProductionandAISC) at average AISC of A$2,958/oz (real). We summarise key P/BV (06/26E) 5.7x