Ann: Strategic Coop with China Railway Materials , page-4

re: Ann: Strategic Coop with China Railway Ma... Hi ggambler,

RBS Australia rates FRS as Buy - Target $1.00 (was $0.60). China Railways Materials has taken a 12% stake at 55c per share, and the broker sees this as a positive, given non-binding offtake and assistance agreements that form part of the deal.

Rail access issues remain a question mark for the company and the broker sees scope for further increases in issued capital, or a further divestment of equity as the company attempts to develop its East Pilbara assets, but there is no change to its Buy rating on the stock.