ubs rates the stock as buy pt2

GBG - UBS rates the stock as Buy
BY BROKER NEWS - 11/09/2009

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Although the result was slightly below the broker's expectations, the analysts say this is basically irrelevant as “upcoming milestones are key."

Within four weeks UBS expects to hear positive news on Federal approval of the Karara JV, while news of the start of onsite construction, the finalisation of the project financing facility and concentrate pricing premium is expected to follow within three months of the approval.

UBS highlights GBG is trading at a 23% discount to its valuation, while also pointing out the value of a possible expansion. The JV is hoping for 30Mtpa+, if this was expanded by 8Mtpa, UBS calculates this would be worth around 50c per share. Sector: Materials.

Target price is $1.30.Current Price is $0.99. Difference: $0.31 - (brackets indicate current price is over target). If GBG meets the UBS target it will return approximately 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

http://www.sharecafe.com.au/fnarena_news.asp?a=AV&ai=14273