Alkane Resources - Dubbo very robust

Thursday, Jan 26 2012 by
1

Jan 26th 2012 - Edison Investment Research today published a report on Alkane Resources entitled "Dubbo Very Robust". In summary, the report says:

Media attention concerning the rare earth group of elements has dragged negative sentiment towards Alkane’s flagship Dubbo Zirconia Project (DZP). Indeed, prices for the DZP basket of goods (Zr, Nb, LREE and HREE based concentrates) decreased in Q411 (resulting in a 40% and 22% decrease in LREE and HREE Dubbo concentrate prices respectively between Q311 and Q411). However, our base case valuation (A$3.02/share excluding McPhillamys value of A$0.42) is based on significantly more conservative price estimates (indicative of those seen in Q111), and, maybe surprisingly, if we apply the ‘depressed’ rare earth prices seen in Q411, our base case increases by 129% to A$7.05/share.




About Edison Investment Research

Edison Investment Research

Follow

Edison Investment Research is a leading international investment research company. It has won industry recognition, with awards both in the UK and internationally. The team of 95 includes over 60 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 400 companies across every sector and works directly with corporates, fund managers, investment banks, brokers and other advisers. Edison’s research is read by institutional investors, alternative funds and wealth managers in more than 100 countries. Edison, founded in 2003, has offices in London, New York and Sydney and is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584). more »