Xceed Resources (ASX: XCD) has received a buy recommendation and a $0.25 price target from UK broker Old Park Lane Capital - with the price around three-and-a-half times higher than the last traded price of $0.073.
The following is an extract from the report.
Pursuing development and building the pipeline
Xceed Resources Ltd (ASX: XCD) reported a two-pronged update covering financing of its flagship Moabsvelden project, and a maiden resource at the Bankfontein project.
At Bankfontein, the initial drilling programme generated a 19.7 Mt JORC compliant total in-situ resource estimate, of which 15.8 Mt is deemed to be of economic interest.
At Moabsvelden, South African banks have commissioned an independent review of the BFS in order to submit final credit approved offers of project finance. XCD’s new potential partner, Thebe Mining has approved R65m of the total R90m planned investment.
Bankfontein JORC resource.
Xceed has received the Competent Persons Report from Gemecs (Pty) Ltd, geological consultant for the project which is located in the Ermelo coalfield, South Africa. Gemecs reported a JORC compliant total in-situ resource of 19.76 Mt of which 6.05 Mt is Indicated and 13.71 Mt is Inferred.
Significantly 15.8 Mt is deemed by Gemecs to be of economic interest and is located in the high-yielding B Lower and C Lower Ermelo coal seams.
Another cab in the rank.
XCD anticipates that if mined, Bankfontein would be primarily an underground operation, potentially accessible from an initial open pit mine to provide a lower cost entry to underground mining.
Washability testwork indicates that it is possible to produce an export-quality coal product with average primary yields of 66% in the Lower B, and 95% in the Lower C seams. Critically 11.6 Mt of the resource sits in the B Lower seam which has an average thickness of 2.13m which we deem to be an acceptable minable thickness.
Coal quality analysis has not raised any red flags for us as yet. We view Bankfontein as a robust pipeline project which warrants further drilling and evaluation.
Bank funding getting closer.
XCD has previously received indicative non-binding offers of project finance from a number of South African banks for the development of the Moabsvelden project to cover approximately 60% of the total anticipated development cost of R266m.
In order to submit final credit approved offers, the financial institutions have commissioned an independent review of the Moabsvelden BFS. XCD expects this review to be completed in the coming weeks, allowing the finalisation of project finance in the last quarter of the year.
Initial Thebe investment approved.
The previously announced transaction whereby Thebe Mining will replace XCD’s existing BEE partner and emerge with a 30% stake in Moabsvelden is progressing quickly.
Thebe has approved R65m of the planned R90m funding injection into Moabsvelden. The process to inject the balance of this funding is underway, and subject to an offer of credit approved project finance as detailed in the previous bullet point.
Broker Target.
Yet again, Xceed has made commendable progress fast-tracking Moabsvelden development within the stated time frame and outlining a maiden resource at Bankfontein.
With the first funding injection from Thebe approved, and project finance nearing completion, the company appears to still be on track for first production at Moabsvelden in mid-2013.
With XCD hurtling towards cash flow and the current share price well below our 25¢ target we reiterate our BUY recommendation.
Furthermore, with A$7m cash in the bank, the stock continues to trade near cash providing a further incentive.
Investors interested in Xceed Resources recently viewed•Churchill Mining (AIM: CHL) Thermal Coal developer in Kalimantan, Indonesia •Resource Generation (ASX: RES) Developing a massive coal mine in South Africa •Universal Coal (ASX: UNV) An emerging near-term thermal coal company in South Africa •Edenville Energy (AIM: EDL) Energy development in Africa, Coal and Uranium in Tanzania •Leyshon Resources (ASX | AIM: LRL) Acquiring high quality coal assets in China, Mongolia, and Indonesia
Company Articles Company News Sector News Xceed Resources Archive
Xceed Resources advances Bankfontein and Moabsvelden coal projects
Xceed Resources has updated the market today on the company's Bankfontein project in the Ermelo coalfield of South Africa, along with details of project financing for Moabsvelden - where the company remains on-track for production in 2013.
Xceed Resources: Old Park Lane Capital recommends BUY and $0.25 share price target
Xceed Resources' Moabsvelden is now “firmly on the front foot”, according to U.K. broker Old Park Lane Capital, following a recent major restructuring event involving the signing of an MOU with BEE-compliant Thebe Mining Resources. This has attracted a BUY recommendation and a $0.25 price target.
Xceed Resources gains key investments from Thebe Mining Resources
Thebe Mining Resources is a subsidiary of Thebe Investment Corporation a leading South African investment management company with R5.5 billion of assets under management. The cornerstone investment into Moabsvelden thermal coal project and into Xceed will assist de-risking of the project and company.
Xceed Resources: broker increases target price to A$0.25 on de risking of Moabsvelden Coal Project
A broker has increased its price target on Xceed to A$0.25 and offered a buy recommendation as a result of Bankable Feasibility Study results that significantly de-risk the company’s Moabsvelden Coal Project.
Xceed Resources valued at more than double by broker on the back of Moabsvelden BFS
The completion of the Bankable Feasibility Study confirming the viability of the Moabsvelden Thermal Coal Project has earned Xceed Resources a price target of more than double its current share price and a speculative buy recommendation.
Xceed Resources: Moabsvelden Bankable Feasibility Study delivers IRR of 60%
A Bankable Feasibility Study for the Moabsvelden Thermal Coal Project has proven the project’s economic viability with an IRR of 60% and NPV of A$92 million post tax. Importantly, Xceed has received expressions of interest to take coal at the mine gate, liberating the project from rail and port constraints.
Xceed Resources: Cash backed and developing coal production and cash flows from Moabsvelden
Based on coal sector M&A transactions and current valuations of South African listed coal explorers, Xceed’s current valuation looks light. It is trading at close to cash backing, valuing its coal assets at a minimal amount.
Xceed Resources delivers maiden thermal coal Reserve for Moabsvelden
Reaching a significant milestone for the Moabsvelden thermal coal project, Xceed Resources has established a maiden Reserve capable of supporting a plus 15 year, open cut mining operation, assuming an annualised mine throughput of 3mtpa.
Xceed Resources expands portfolio with highly prospective South African thermal coal projects
By acquiring a 70% interest in the Roodepoort and Bankfontein thermal coal projects in South Africa, Xceed now has a pipeline of potential coal exploration targets. Managing director Ian Culbert told Proactive Investors today the acquisitions will allow Xceed to develop mutually supporting operations.
Xceed Resources: A cash backed coal developer worth double says Old Park Lane
The $0.22 target price target and buy recommendation for the emerging coal explorer and developer Xceed Resources set by Old Park Lane Capital is more than double the last traded price of $0.10.
.
Home Events Companies Research Media Archives Work for us Newsletter
Andrew McCrea is Sub Authorised Representative (SAR: 291331) of Proactive Investors Australia Pty Ltd (ABN: 19 132 787 654) which is a Corporate Auhorised Representative (CAR: 413802) of RM Capital Pty Ltd (AFSL: 221938).
Xceed Resources (ASX: XCD) has received a buy recommendation and a $0.25 price target from UK broker Old Park Lane Capital - with the price around three-and-a-half times higher than the last traded price of $0.073.
The following is an extract from the report.
Pursuing development and building the pipeline
Xceed Resources Ltd (ASX: XCD) reported a two-pronged update covering financing of its flagship Moabsvelden project, and a maiden resource at the Bankfontein project.
At Bankfontein, the initial drilling programme generated a 19.7 Mt JORC compliant total in-situ resource estimate, of which 15.8 Mt is deemed to be of economic interest.
At Moabsvelden, South African banks have commissioned an independent review of the BFS in order to submit final credit approved offers of project finance. XCD’s new potential partner, Thebe Mining has approved R65m of the total R90m planned investment.
Bankfontein JORC resource.
Xceed has received the Competent Persons Report from Gemecs (Pty) Ltd, geological consultant for the project which is located in the Ermelo coalfield, South Africa. Gemecs reported a JORC compliant total in-situ resource of 19.76 Mt of which 6.05 Mt is Indicated and 13.71 Mt is Inferred.
Significantly 15.8 Mt is deemed by Gemecs to be of economic interest and is located in the high-yielding B Lower and C Lower Ermelo coal seams.
Another cab in the rank.
XCD anticipates that if mined, Bankfontein would be primarily an underground operation, potentially accessible from an initial open pit mine to provide a lower cost entry to underground mining.
Washability testwork indicates that it is possible to produce an export-quality coal product with average primary yields of 66% in the Lower B, and 95% in the Lower C seams. Critically 11.6 Mt of the resource sits in the B Lower seam which has an average thickness of 2.13m which we deem to be an acceptable minable thickness.
Coal quality analysis has not raised any red flags for us as yet. We view Bankfontein as a robust pipeline project which warrants further drilling and evaluation.
Bank funding getting closer.
XCD has previously received indicative non-binding offers of project finance from a number of South African banks for the development of the Moabsvelden project to cover approximately 60% of the total anticipated development cost of R266m.
In order to submit final credit approved offers, the financial institutions have commissioned an independent review of the Moabsvelden BFS. XCD expects this review to be completed in the coming weeks, allowing the finalisation of project finance in the last quarter of the year.
Initial Thebe investment approved.
The previously announced transaction whereby Thebe Mining will replace XCD’s existing BEE partner and emerge with a 30% stake in Moabsvelden is progressing quickly.
Thebe has approved R65m of the planned R90m funding injection into Moabsvelden. The process to inject the balance of this funding is underway, and subject to an offer of credit approved project finance as detailed in the previous bullet point.
Broker Target.
Yet again, Xceed has made commendable progress fast-tracking Moabsvelden development within the stated time frame and outlining a maiden resource at Bankfontein.
With the first funding injection from Thebe approved, and project finance nearing completion, the company appears to still be on track for first production at Moabsvelden in mid-2013.
With XCD hurtling towards cash flow and the current share price well below our 25¢ target we reiterate our BUY recommendation.
Furthermore, with A$7m cash in the bank, the stock continues to trade near cash providing a further incentive.
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Investors interested in Xceed Resources recently viewed•Churchill Mining (AIM: CHL) Thermal Coal developer in Kalimantan, Indonesia •Resource Generation (ASX: RES) Developing a massive coal mine in South Africa •Universal Coal (ASX: UNV) An emerging near-term thermal coal company in South Africa •Edenville Energy (AIM: EDL) Energy development in Africa, Coal and Uranium in Tanzania •Leyshon Resources (ASX | AIM: LRL) Acquiring high quality coal assets in China, Mongolia, and Indonesia
Company Articles Company News Sector News Xceed Resources Archive
Xceed Resources advances Bankfontein and Moabsvelden coal projects
Xceed Resources has updated the market today on the company's Bankfontein project in the Ermelo coalfield of South Africa, along with details of project financing for Moabsvelden - where the company remains on-track for production in 2013.
Xceed Resources: Old Park Lane Capital recommends BUY and $0.25 share price target
Xceed Resources' Moabsvelden is now “firmly on the front foot”, according to U.K. broker Old Park Lane Capital, following a recent major restructuring event involving the signing of an MOU with BEE-compliant Thebe Mining Resources. This has attracted a BUY recommendation and a $0.25 price target.
Xceed Resources gains key investments from Thebe Mining Resources
Thebe Mining Resources is a subsidiary of Thebe Investment Corporation a leading South African investment management company with R5.5 billion of assets under management. The cornerstone investment into Moabsvelden thermal coal project and into Xceed will assist de-risking of the project and company.
Xceed Resources: broker increases target price to A$0.25 on de risking of Moabsvelden Coal Project
A broker has increased its price target on Xceed to A$0.25 and offered a buy recommendation as a result of Bankable Feasibility Study results that significantly de-risk the company’s Moabsvelden Coal Project.
Xceed Resources valued at more than double by broker on the back of Moabsvelden BFS
The completion of the Bankable Feasibility Study confirming the viability of the Moabsvelden Thermal Coal Project has earned Xceed Resources a price target of more than double its current share price and a speculative buy recommendation.
Xceed Resources: Moabsvelden Bankable Feasibility Study delivers IRR of 60%
A Bankable Feasibility Study for the Moabsvelden Thermal Coal Project has proven the project’s economic viability with an IRR of 60% and NPV of A$92 million post tax. Importantly, Xceed has received expressions of interest to take coal at the mine gate, liberating the project from rail and port constraints.
Xceed Resources: Cash backed and developing coal production and cash flows from Moabsvelden
Based on coal sector M&A transactions and current valuations of South African listed coal explorers, Xceed’s current valuation looks light. It is trading at close to cash backing, valuing its coal assets at a minimal amount.
Xceed Resources delivers maiden thermal coal Reserve for Moabsvelden
Reaching a significant milestone for the Moabsvelden thermal coal project, Xceed Resources has established a maiden Reserve capable of supporting a plus 15 year, open cut mining operation, assuming an annualised mine throughput of 3mtpa.
Xceed Resources expands portfolio with highly prospective South African thermal coal projects
By acquiring a 70% interest in the Roodepoort and Bankfontein thermal coal projects in South Africa, Xceed now has a pipeline of potential coal exploration targets. Managing director Ian Culbert told Proactive Investors today the acquisitions will allow Xceed to develop mutually supporting operations.
Xceed Resources: A cash backed coal developer worth double says Old Park Lane
The $0.22 target price target and buy recommendation for the emerging coal explorer and developer Xceed Resources set by Old Park Lane Capital is more than double the last traded price of $0.10.
.
Home Events Companies Research Media Archives Work for us Newsletter
Andrew McCrea is Sub Authorised Representative (SAR: 291331) of Proactive Investors Australia Pty Ltd (ABN: 19 132 787 654) which is a Corporate Auhorised Representative (CAR: 413802) of RM Capital Pty Ltd (AFSL: 221938).
Xceed Resources is worth A$0.25 a share according to Old Park Lane Tuesday, October 02, 2012 by Proactive Investors The A$0.25 price target for Xceed from UK broker Old Park Lane is three-and-a-half times the last traded price. The broker said Xceed is hurtling towards cash flow, and with A$7m in the bank, the stock continues to trade near cash.
Xceed Resources (ASX: XCD) has received a buy recommendation and a $0.25 price target from UK broker Old Park Lane Capital - with the price around three-and-a-half times higher than the last traded price of $0.073.
The following is an extract from the report.
Pursuing development and building the pipeline
Xceed Resources Ltd (ASX: XCD) reported a two-pronged update covering financing of its flagship Moabsvelden project, and a maiden resource at the Bankfontein project.
At Bankfontein, the initial drilling programme generated a 19.7 Mt JORC compliant total in-situ resource estimate, of which 15.8 Mt is deemed to be of economic interest.
At Moabsvelden, South African banks have commissioned an independent review of the BFS in order to submit final credit approved offers of project finance. XCD’s new potential partner, Thebe Mining has approved R65m of the total R90m planned investment.
Bankfontein JORC resource.
Xceed has received the Competent Persons Report from Gemecs (Pty) Ltd, geological consultant for the project which is located in the Ermelo coalfield, South Africa. Gemecs reported a JORC compliant total in-situ resource of 19.76 Mt of which 6.05 Mt is Indicated and 13.71 Mt is Inferred.
Significantly 15.8 Mt is deemed by Gemecs to be of economic interest and is located in the high-yielding B Lower and C Lower Ermelo coal seams.
Another cab in the rank.
XCD anticipates that if mined, Bankfontein would be primarily an underground operation, potentially accessible from an initial open pit mine to provide a lower cost entry to underground mining.
Washability testwork indicates that it is possible to produce an export-quality coal product with average primary yields of 66% in the Lower B, and 95% in the Lower C seams. Critically 11.6 Mt of the resource sits in the B Lower seam which has an average thickness of 2.13m which we deem to be an acceptable minable thickness.
Coal quality analysis has not raised any red flags for us as yet. We view Bankfontein as a robust pipeline project which warrants further drilling and evaluation.
Bank funding getting closer.
XCD has previously received indicative non-binding offers of project finance from a number of South African banks for the development of the Moabsvelden project to cover approximately 60% of the total anticipated development cost of R266m.
In order to submit final credit approved offers, the financial institutions have commissioned an independent review of the Moabsvelden BFS. XCD expects this review to be completed in the coming weeks, allowing the finalisation of project finance in the last quarter of the year.
Initial Thebe investment approved.
The previously announced transaction whereby Thebe Mining will replace XCD’s existing BEE partner and emerge with a 30% stake in Moabsvelden is progressing quickly.
Thebe has approved R65m of the planned R90m funding injection into Moabsvelden. The process to inject the balance of this funding is underway, and subject to an offer of credit approved project finance as detailed in the previous bullet point.
Broker Target.
Yet again, Xceed has made commendable progress fast-tracking Moabsvelden development within the stated time frame and outlining a maiden resource at Bankfontein.
With the first funding injection from Thebe approved, and project finance nearing completion, the company appears to still be on track for first production at Moabsvelden in mid-2013.
With XCD hurtling towards cash flow and the current share price well below our 25¢ target we reiterate our BUY recommendation.
Furthermore, with A$7m cash in the bank, the stock continues to trade near cash providing a further incentive.
XCD Price at posting:
7.3¢ Sentiment: LT Buy Disclosure: Held
