RBC Capital Markets analyst Chris Drew described Northern Iron’s decision to raise A$55.5 million at a significant discount in early October to shore up the company’s working capital position in the wake of volatile iron ore prices, as prudent.
“Now the company is on track for a record production quarter in December, it’s benefiting from a recovery in the iron ore price and has a stronger balance sheet,” Mr. Drew said.
RBC Capital Markets has an Outperform recommendation on Northern Iron and a price target of A$1.10 a share.
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be careful holders coz this one may get back on track very shortly
DTZ Price at posting:
42.0¢ Sentiment: None Disclosure: Held
