EXT excite technology services ltd

Kalahari Minerals supported by Extract newsAmbrianWednesday,...

  1. 21 Posts.
    Kalahari Minerals supported by Extract news
    Ambrian
    Wednesday, August 11, 2010 by Ian Lyall Extract Resources?
    (ASX, TSX, NSX: EXT)

    Good news from the Rossing South uranium deposit in Namibia will have a long-term supportive effect on the shares of Kalahari Minerals LON:KAH), according to research boutique Ambrian.

    London listed Kalahari has a 41 per cent stake in the Aussie uranium miner which earlier today unveiled a ten-fold increase in the size of the resource at Rossing South.

    Repeating his 232p a share price target, analyst Brock Salier said: "This resource upgrade indicates to us that, led by the stunning Zone 1 orebody, Extract now holds all the cards as to its choice/ability to take Rossing South into production (we think in 2014), supported by debt, equity, off-take finance or JV.

    "While there is potential to divest a section of the orebody to fund production, the sheer width and depth of Zone 1 makes it, in our view, almost too attractive to sell, although the size does give options to the company in terms of, for example, a JV with Rio to enable a quick move to production using the Rossing plant to the mutual benefit of both parties."

    Salier said the immediate focus of Extract will now be carrying out a definitive feasibility study of the area.

    That way it will be better placed to negotiate an a deal with a mining major, possibly Rio Tinto (LON:RIO, NYSE:RTP, ASX:RIO), which is already a major investor in the group, he added.

    "(The Kalahari shares) continue to trade at a discount to the investment in Extract (currently c. 12%), and we consider that this makes Kalahari the more attractive investment because, although the discount isn?t likely to disappear immediately, it will close on either take-out of Rossing South or the combination of the two companies, offering optionality. As with funding/JVs etc., we think the consolidation may well take place in 2011, but see the DFS as the immediate priority for Extract."
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
0.9¢
Change
-0.001(10.0%)
Mkt cap ! $18.65M
Open High Low Value Volume
1.0¢ 1.0¢ 0.9¢ $9.393K 1.046M

Buyers (Bids)

No. Vol. Price($)
16 6320472 0.8¢
 

Sellers (Offers)

Price($) Vol. No.
0.9¢ 307407 1
View Market Depth
Last trade - 16.10pm 11/08/2025 (20 minute delay) ?
EXT (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.