austock research report.

Just read this report now this could be why people are selling if it is funny cause that broker has got a lot of things wrong. Heath Andrews at AUstock Securities i hope no one actually uses him. Says MIN will Get port allocation because?

His key points are as follows.
1. The target company?s balance sheet (i.e. MIN net cash) and the size of the company is bigger than CAZ.
"Cazaly has assembled a group of Tier 1 partners in HWE Mining, Asciano and Vitol whose combined balance sheets, expertise and reputation far outweighs MIN?s."

2. Length of tenure for use of the port (i.e. large reserves)
"CAZ reserves are actually greater than MIN?s (CAZ: 28.5Mt, MIN 21.5Mt)"

3. The ability to start shipping soon
"CAZ is aiming to ship ore in mid 2011, essentially the same time as MIN, & have the world?s biggest ship charterer (Vitol, chartered over 5,000 ships last year) as their partner."

4.The ability to help underwrite future growth through the proposed Berth 5 dock.
"CAZ likewise has committed to assisting in the development in KBT5"

On valuation:
If Min Res get port allocation of 4 mtpa, then Austock will revalue MIN to $15.00/share from current $12.50 / share. This equals $420M (being 166M shares on issue x $4.20).This is their valuation for just 40% of the project (as Austock have a current 60% risk weighting on the project) ie; IF 40%= $420M then 100% = $1050M !!Given that CAZ has a better project (lower Opex and Capex costs, larger reserve?) then this implies a huge CAZ valuation. At ~100M shares CAZ = $10+ /share! But the key point is that Austock reckon Min Rtes deserve the allocation over CAZ based upon the above points; & they are all wrong or better weighed towards CAZ.