NEW CENTURY RESOURCES (NCZ): New CFO a quality appointment,...

NEW CENTURY RESOURCES (NCZ): New CFO a quality appointment, maintain OUTPERFORM

NCZ has appointed Mark Chamberlain as CFO. Mark is well known to us and in our view is an extremely well experienced candidate for a small, single asset company, having worked for multi-commodity, multi-jurisdiction majors in his career prior to retiring from OceanaGold. His appointment should free up MD Pat Walta to focus on the multifaceted metallurgical and operational challenges that are part of any commissioning, ramp-up and particularly a re-start of a complex, large plant like Century. We view this as another important milestone and achievement for the company as it matures, bring functional expertise and for me this adds validity to the project. While zinc process have declined they still sit above our forecasts. No change to A$2.10/sh Target Price and OUTPERFORM rating maintained. If we use spot Zn/FX our valuation comes to A$2.88. Stock last traded at $0.67c. June Qtly is the next update which should provide further evidence of improvement to recovery rates towards nameplate, benchmark pricing being achieved and potential valuation upside should their study on in situ mining bring forward production plans. Analyst: Michael Slifirski; Click here to view document (8 pages, 656KB)