Contract Awards, Rising Gold Prices 'Incrementally Positive' for Lycopodium, Euroz Hartleys Says

MT Newswires Live
02-12

Lycopodium's (ASX:LYL) recent contract wins, including a AU$56.7 million award for the Kone Gold Project in Ivory Coast and a AU$5.4 million award for the Kalgoorlie Nickel Project in Western Australia, along with rising gold prices, are expected to be "incrementally positive" to the company, according to a Tuesday note by Euroz Hartleys.

Euroz Hartleys noted that the ongoing strength in gold prices is likely to incentivize continued investment and development in mining projects, leading to a period of elevated earnings for the company, driven by major project contributions.

The firm believes that Lycopodium offers "compelling" value relative to its closest competition, GR Engineering Services (ASX:GNG).

The company's recent acquisition of Saxum positions it well for upcoming copper projects in the Latin America region, Euroz Hartleys added.

Euroz Hartleys maintained a buy rating and AU$14.50 price target on Lycopodium.

Shares of Lycopodium rose nearly 2% in recent Wednesday trade.

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