Patersons - A$0.35 price target

1832 ET – Patersons thinks high zinc prices make it a good time for Ironbark Zinc to get cracking with development of its wholly-owned Citronen Fjord project in northern Greenland. That’s because buoyant prices should allow the project to get enough financing, with construction potentially starting next year. Citronen Fjord is “a globally significant zinc project,” with a 14-year mine life and peak annual production of around 200,000 tons of zinc, Patersons says. There’s also lots of exploration potential, says Patersons as it starts Ironbark at speculative buy with a A$0.35 price target. The broker thinks the project could create “US$150 million/year in free-cash generation with a payback period of circa 2.5 years.” Shares are at A$0.073. ([email protected]; @dwinningWSJ)

http://commodities-report.com/commodities-basic-materials-roundup-market-talk-39.html