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- Release Date: 01/03/13 10:31
- Summary: GENERAL: CRP: CRP in for watershed year says Edison
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CRP
01/03/2013 08:31
GENERAL
REL: 0831 HRS Chatham Rock Phosphate Limited
GENERAL: CRP: CRP in for watershed year says Edison
1 March 2013
CRP in for watershed year says Edison
2013 is shaping up as a watershed year for Chatham Rock Phosphate, Edison
Investment Research says in its latest update.
"CRP is moving closer to demonstrating a commercially and technically viable
undersea mining project,' Edison says.
"Risks still remain but the most significant are easing," according to
analyst John Kidd in a fresh assessment released today.
He notes that in the second half of 2012 CRP achieved two major milestones.
In July global dredging major Royal Boskalis subscribed for a 20%
shareholding in CRP, while in September CRP lodged a mining licence
application. In December CRP announced it had reached agreement with Boskalis
to complete detailed project design for mining operations.
"CRP is progressing the appraisal and potential development of a large permit
area 450 km offshore from the east coast of New Zealand. The area has been
known since the 1950s to contain large deposits of high grade rock phosphate
on or near the seabed, 400 m below the surface. New Zealand is a significant
consumer of rock phosphate as a feedstock for fertiliser manufacture, most of
which is currently imported from Morocco."
Edison has been employed by CRP to provide independent research in the
absence of analysts preparing any on smaller NZX listed companies. Edison
Investment Research is a leading international investment research company
staffed by over 100 professionals. The team of 65+ analysts produce research
on over 500 companies, making Edison one of the largest dedicated equity
research teams worldwide. Edison's research is read by institutional
investors, alternative funds and wealth managers in more than 100 countries.
Wellington based Mr Kidd said in December "if and when CRP continues to pass
further significant milestones over 2013-14, we expect the market to continue
to de-risk CRP's share price towards our un-risked valuation, currently at
$1.87 a share."
The share price is currently 36c, having reached a peak of 46c.
Chris Castle - +64 21 55 81 85 or [email protected]
End CA:00233633 For:CRP Type:GENERAL Time:2013-03-01 08:31:02
