Share
- Release Date: 27/09/12 11:23
- Summary: GENERAL: CRP: Edison report values Chatham at unrisked $1.87 per share
- Price Sensitive: No
- Download Document 1.87KB
CRP
27/09/2012 09:23
GENERAL
REL: 0923 HRS Chatham Rock Phosphate Limited
GENERAL: CRP: Edison report values Chatham at unrisked $1.87 per share
27 September 2012
Edison report values Chatham Rock Phosphate at unrisked $1.87 a share.
Edison Investment Research values Chatham Rock Phosphate shares on a success
case at $1.87 a share in its first independent report on the company, issued
today.
Wellington based analyst John Kidd said CRP is moving closer to demonstrating
a technically and commercially viable undersea mining project.
He says the equity stake taken by Royal Boskalis significantly reduces doubts
over the project's technical viability.
He notes CRP's main focus over the next year will be managing the other main
area of risk - mining and environmental approvals.
"In our view Boskalis deciding to join the project at an equity level after
completing extensive hands-on due diligence over 18 months is a very material
endorsement of the project and of the confidence it has in the technical
viability of its mining concept."
Mr Kidd says on most scenarios there is substantial upside to the current
share price.
The report notes that while recovering phosphate from 400m depths would be a
world first, three dredging companies were confident it was viable.
The unrisked $1.87 valuation is based on a US$10 million capital raising in
2012 prior to a listing on the TSX-V and assumes full dilution of shares and
options. The unrisked valuation on an undiluted basis (assuming existing
options are not converted) is around $2.29. Last sale price for the shares is
23 cents.
Mr Kidd says the main value drivers are the rock price, foreign exchange
movements and mining costs.
The full report can be found on www.rockphosphate.co.nz
Chris Castle - Managing Director CRP - +64 21 55 81 85 or
[email protected]
End CA:00227797 For:CRP Type:GENERAL Time:2012-09-27 09:23:08
