new coverage - target 80c , page-6

Blam
I think you have about 2 weeks at best .
24 th of April - annual report
and then end of month quarterly

I have never relied on broker coverage to buy and sell but find it an important input to check my own assumptions and metrics

Euroz numbers tell a very positive story
A few highlights include
- estimate of year end cash balance 97 m usd( doesn't include rsc cash of another 50-60 m usd )
- cash flow for 2014 - 240 million
- ebit to more than double
PE of sub 3 for 2014 and 15 . ( now this is very unlikely to remain this low and even a move to 4.5 will see roc on in the low 70s

They also make the comparison with HZN which has similar reserve and resources numbers , roc offers 3 x the production , has cash instead of debt and yet is trading at half the EV of HZN

Now what I like is none of Euroz assumptions seem overly optimistic
Brent at 105
Aud at 90
And the assume only 50c per per 2c resource boe where I was in my calc assumed 1 dollar. In fact this difference would bring my 89. Valuation down to almost the exact figure as Euroz . In summary - I thinks Euroz estimate is very much in line with mine . Euroz end off the note saying that they see considerable upside to valuation should Phase 1 deliver production increases and even more of phase 2 converts some of the 2 c resource into reserves