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- Release Date: 30/05/14 16:03
- Summary: GENERAL: CRP: Edison Report says CRP share price at big discount
- Price Sensitive: No
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CRP
30/05/2014 14:03
GENERAL
REL: 1403 HRS Chatham Rock Phosphate Limited
GENERAL: CRP: Edison Report says CRP share price at big discount
Media Release
Latest Edison report says CRP share price at big discount to unrisked
valuation
30 May 2014
Edison Investment Research's latest report says Chatham Rock Phosphate's
shares are trading at a significant discount to its unrisked valuation of
$1.76 a share.
The research note says CRP has delivered on its milestones and awaits the set
six month timeframe for marine consent in the final quarter of 2014 and the
finalisation of its seabed mining contract in the first half of 2015. The
marine consent is the last major consent the company needs.
"The high margin, low impurity, long-life, wholly owned Chatham Rock
Phosphate project does not require any development capital under the build,
own and operate mining project model."
The $1.76 unrisked valuation reflects the dilution of the company's capital
from its 1-10 rights issue and takes account of planned capital raising
associated with the London AIM listing.
The report notes CRP's preferred partner to build and operate its mining
dredge is Royal Boskalis but that there are four other dredging specialists
showing interest, which reduces the risk to CRP's production plans if
Boskalis elected not to proceed.
"With increased global exploration activity directed to marine deposits,
there is a strong appetite from global dredging companies to be involved in
the embryonic seabed mining industry. To reflect expected international
interest in the project, CRP is planning an AIM listing."
For further information please contact Chris Castle on 021 55 81 85 or
[email protected]
End CA:00251072 For:CRP Type:GENERAL Time:2014-05-30 14:03:50
