afr article, page-7

AFR story

Territory Resources shares have fallen about 40 per cent since the start of 2008 but given the robust iron ore outlook there could be potential for a rerating. Territory hit $1.70 last November during the height of its bid for Michael Kiernan's former company Consolidated Minerals. But since picking up 20 per cent stake in embattled gold producer Monarch,shares in Territory have plummeted.

Territory was in a trading halt on Thursday and was expected to announce the sale of its Monarch stake following the departure of Michael Kiernan on Wednesday. The sale will lunber Territory with a loss, considering the fall in Monarch's shares. But given Territory's plans to boost iron ore output to 3 millions tonnes a year at Frances Creek in the Northern Territory, it seems well positioned for a share price revival.