2312 GMT [Dow Jones] RBS raises Gindalbie Metals (GBG.AU) target...

2312 GMT [Dow Jones] RBS raises Gindalbie Metals (GBG.AU) target price 17% to A$2.05 from A$1.75 vs latest trade A$1.305 after miner announced 87% increase to its Karara iron ore reserve. The upgrade moves reserve to 977.5 million tons and RBS sees that extending mine life to 26 years from 18 years previously. RBS expects project, a joint venture with China's Angang Steel (000898.SZ), to produce first magnetite concentrate 2Q12 and expects net profit of A$42.2 million in FY12 and A$232.5 million in FY13. RBS maintains Buy rating and lifts target on mine life extension but sees downside risks as higher capital costs and project delays. ([email protected])