Entry for STT List CTM – Centaurus Metals Limited Iron Ore in Brazil FA Pick - Long
Current price $0.12/share Shares on issue 196 million Market cap ~23.5 million 52 wk range $0.105 – $0.25/share Major s/holder Atlas Iron (AGO) - around 20%
Poised to begin construction of initial 1Mtpa Jambreiro Project targeting Brazilian domestic market.
Fully permitted for development and operations.
Initial capital development cost of A$53M, forecast C1 cash costs + royalties of A$22/tonne.
Construction planned for H1 2014, commercial production planned for H1 2015.
Off-take and funding announcements expected in coming weeks to enable construction to commence in H1 2014 – these are likely short-term price catalysts.
DFS undertaken on 3Mtpa operation – wound back to 1Mtpa but near-time expansion likely once cash is being generated.
Four separate brokers with Buy recommendations – 12mth target prices ranging from $0.40 to $0.61/share.
