Credit Suisse valuation

1 Last

Multi

1,454 Posts.

01/07/15

18:14

Post #: 15564705

Column 1

0 DJ Broker Cheers Altona Mining's Chinese Deal -- Market Talk

1

2 0516 GMT [Dow Jones] Credit Suisse is warming increasingly to Altona Mining

3 (AOH.AU), raising its price target on the stock by 18% to A$0.26 and keeping an

4 outperform call. Last week, Altona forged a joint venture agreement with Sichuan Railway

5 Investment Group, which, subject to certain conditions, involves the Chinese entity

6 paying US$214.5 million for a 60% interest in the undeveloped Cloncurry copper-gold

7 prospect in Queensland state. That leaves Altona to contribute A$38 million towards the

8 development. "This deal appears excellent for Altona," the broker says.

9 "The capital required to develop the Cloncurry project was well beyond Altona's

10 capacity." It adds that the combined cash input of US$252 million (329 million

11 Australian dollars) exceeds the last development cost estimate because a broader

12 mining-sector slowdown has shrunk labor and materials costs, while tumbling oil prices

13 have cut fuel bills.

	Column 1
0	DJ Broker Cheers Altona Mining's Chinese Deal -- Market Talk
1
2	0516 GMT [Dow Jones] Credit Suisse is warming increasingly to Altona Mining
3	(AOH.AU), raising its price target on the stock by 18% to A$0.26 and keeping an
4	outperform call. Last week, Altona forged a joint venture agreement with Sichuan Railway
5	Investment Group, which, subject to certain conditions, involves the Chinese entity
6	paying US$214.5 million for a 60% interest in the undeveloped Cloncurry copper-gold
7	prospect in Queensland state. That leaves Altona to contribute A$38 million towards the
8	development. "This deal appears excellent for Altona," the broker says.
9	"The capital required to develop the Cloncurry project was well beyond Altona's
10	capacity." It adds that the combined cash input of US$252 million (329 million
11	Australian dollars) exceeds the last development cost estimate because a broader
12	mining-sector slowdown has shrunk labor and materials costs, while tumbling oil prices
13	have cut fuel bills.