probably due to Citi downgrade...Citi - Sell, High Risk -...

probably due to Citi downgrade...

Citi - Sell, High Risk - 11-Oct-13

September quarter production was in line with the broker's estimates but sales were below. Sales are expected to rebound in the December quarter. Citi notes cost reductions are well and good but they are being eroded by the weak uranium price.

The Sell recommendation is retained and the price target is reduced to 40c from 50c because of a lower valuation. Citi has significantly reduced the value of undeveloped projects because of the uncertainty in the uranium market.