ABN Amro rates FRS as Buy - Initiation of Coverage - The broker estimates the Robertson Range project could produce 2m tonnes annually and together with Davidson Creek there is scope for the company to produce 5m tonnes per year. Infrastructure remains a key and the broker sees scope for the company to form an alliance or sign a rail haulage agreement, while also positive is the company has enough funding in place to finance its 2008 development program.
Given the potential of the company the broker initiates coverage with a Buy rating.
Target price is $1.68 Current Price is $1.01 Difference:$0.67 - (brackets indicate current price is over target). If FRS meets the ABN Amro target it will return approximately 66% (excluding dividends, fees and charges - negative figures indicate an expected loss).
ABN Amro forecasts a full year FY08 dividend of 0.00 cents and EPS of -1.64 cents. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is -61.89.
Market Sentiment: 1.0
FRS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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