fte initiated as ‘buy’ at hanson westhouse

Friday, July 03, 2009

Forte Energy initiated as ‘buy’ at Hanson Westhouse, target 10.6p (Approx A$0.22)

Hanson Westhouse has initiated coverage on Forte Energy (ASX, AIM: FTE) with a ‘buy’ rating and a first price target of 10.0 pence, following the company’s maiden inferred JORC compliant resource for the Firawa uranium project in Guinea.

Forte’s estimate of 11.6 million pounds contained triuranium octoxide was well above the broker’s expectation of 10 million.

Firawa has always been viewed as a poor cousin due to the company’s co-operation agreement with Areva for Forte’s Bir En Nar project, it said. “However, Firawa is looking attractive in its own right and with a maiden resource for Bir En Nar due in in the second half of 2009, we believe that Forte is becoming an attractive target.”

“With Areva’s current 12.5 percent stake in Forte and Areva stating yesterday (July 2) that it could look at buying mining or renewable energy assets, you do not have to look to far to see who the potential suitors might be. In view of this, we are initiating coverage with a ‘buy’ recommendation and a target price of 10.0p,” Hanson Westhouse said.

http://proactiveinvestors.co.uk/companies/news/6479/forte-energy-initiated-as-buy-at-hanson-westhouse-target-106p--6479.html