Research notes

Securing a US$300M streaming deal with Wheaton Precious Metals on a portion of gold and silver production, has effectively financed development of its A$362M Jervois copper project, NT, to produce 30,000tpy of copper in concentrate, over 10 years, at a projected C1 cost of US$3.00/lb, excluding all gold-silver credits. >The upfront consideration is US$275M, with a US$25M cost overrun facility. Wheaton will pay 20% of the prevailing spot price for 75% of produced gold until 45,000oz are produced, reducing to 25% after 60,000oz. The stream covers 75% of silver up to 4.3Moz, stepping down to 25% after 6Moz. >Our Valuation and Target Price has lifted from A$0.30ps to A$0.46 per share with the streaming and equity funding, and the final investment decision. The increase is despite the increased issued capital, given the streaming deal. In part this is due to a stronger projected copper price. We maintain our high 15% discount rate, which we expect to reduce as the project moves into production.

VISA is a global payments technology company that enables fast, secure and reliable electronic payments across more than 200 countries and territories. It facilitates global commerce through the transfer of value and information among a global network of consumers, merchants, financial institutions, businesses, strategic partners, and government entities

General Motors Company (GM-US), headquartered in Detroit, is a global automotive company known for brands like Chevrolet and Cadillac, offering a diverse portfolio of vehicles. A market leader with considerable scale, GM has global operations and employs over 165,000 staff worldwide.

Alphabet Inc., known predominantly as the holding company of Google, is an American multinational technology conglomerate. The company offers a range of products and platforms, including Search, Google Maps, calendar, ads, Gmail, Google Play, Android, Google Cloud, Chrome and YouTube. Its hardware product range includes Pixel phones, smartwatches and Google Nest home products. Alphabet Inc. is also known for its online advertising services, internet services, and licensing and research & development services. The company is headquartered in California, US, but is present across the Americas, Europe and Asia-Pacific.

RTX Corporation is an aerospace and defence company that provides systems and services for commercial, military, and government customers worldwide.

Unilever (ULVR.LSE) is a global consumer goods company whose origins date back to 1929 when Dutch margarine producer Margarine Unie merged with British soap maker Lever Brothers. Headquartered in London, the company owns a portfolio of leading brands across beauty and wellbeing, personal care, home care and foods, including Dove, Vaseline, Rexona, Hellmann’s, Knorr, Lifebuoy and Sunsilk, with products sold in more than 190 countries and used by billions of consumers. Unilever’s household brands hold particularly strong positions across emerging markets.

Tesla designs, develops, manufactures and sells fully electric vehicles; energy generation and storage systems; and offers related services around these products. The group operates under two reportable segments: (1) Automotive; and (2) Energy generation and storage. Within Automotive, Tesla manufactures five consumer vehicles and in 2022 began early production and deliveries of a commercial electric vehicle, the Tesla Semi. Tesla has product plans to launch a lower priced point vehicle and develop an autonomous Tesla ride-hailing network. Tesla continues to leverage developments in its proprietary Full Self-Driving (FSD) capability, battery cell and other technologies (namely robotics). The energy generation and storage segment includes the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products. Tesla’s stated mission is to ‘accelerate the world’s transition to sustainable energy’.