Interesting recommendation by UBS - maintining a buy despite not...

Interesting recommendation by UBS - maintining a buy despite not knowing the extent of a possible reserves downgrade at Ching. They must have a lot of faith in other projects such as Uganda.

They can only assess it based on the best available information at present. Anyway, they are not alone with that call since just about every other broker house has a buy on them as well. Based on production data to date, it's not as if it's totally dry. The downgrade is expected to be around 25-30% based on uncertainty surrounding the northern side of the fault that splits Chinguetti. The fall to date has far outweighed the net worth of those 25-30%.

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