new report $1.15

In Fin Review today.

Hartleys Research is maintaining a “buy” recommendation on Atlas Iron with a 12-month price target of $1.15 a share.

“We view AGO as a beta trade with limited fundamental downside and a potential infrastructure catalyst (we still view that as a low probability). With most maintenance capex incorporated into opex charges, we estimate that, at steady state around 14mtpa, AGO should generate about $250 million per annum of free cash flow at spot iron ore prices and around $80 million per annum at consensus long run prices.”

Hartleys notes the company expects a resource upgrade at Corunna in coming weeks and a maiden resource at Miralga mid-year. “Corunna and Miralga have the potential, in our view, to be typical AGO trucking operations and to significantly increase the visible mine life of the company.”

The Australi