Ive only copied the part relative to Xceed. Link at bottom.
UK brokers find favour in ASX listed stocks Friday, November 16, 2012 by Angela Kean
ASX-listed resource companies are increasingly attracting coverage by UK brokers with several earning BUY recommendations and share price targets well above their current market value.
Range Resources (ASX: RRS), Lemur Resources (ASX: LMR) and Xceed Resources (ASX: XCD) have demonstrated the global reach of Australian listed stocks with coverage by UK brokers.
Xceed Resources has also caught the eye of Old Park Lane Capital which has placed a BUY recommendation and a $0.25 price target on the company.
The share price target is more than three times Xceed’s last traded share price of $0.08.
Old Park Lane Capital is impressed with Xceed’s “commendable progress” in fast-tracking the development of its flagship Moabsvelden thermal coal project.
The broker said Xceed is hurtling towards cash flow, and with A$7 million in the bank, the stock continues to trade near cash.
The company is on track for 2013 production from the Moabsvelden.
Xceed is currently in advanced stages of securing development financing for Moabsvelden, where there are no infrastructure constraints to development with all production to be sold at the mine gate. The project is expected to deliver $20 million in net operating cashflow per year for 15 years.
The company has received from locally based South African banks indicative, non-binding offers of project finance for the development of Moabsvelden – which is located in the Witbank coalfield of South Africa.
Xceed has short listed two South African banks, Standard Bank and Rand Merchant Bank, to consider providing project finance for the development of the project.
The company believes that bank funding of not less than 60% of the development cost is likely to be obtained in addition to cost overrun and working capital facilities.
Xceed has also attracted interest from Thebe Mining Resources of South Africa in becoming a cornerstone investor.
A memorandum of understanding signed by the two companies will see Thebe invest a total of ZAR90 million (A$9.7 million) in the Moabsvelden project and Xceed.
