Alkane Resources - Dubbo very robust

Thursday, Jan 26 2012 by

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

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals work with leading companies, fund managers and investment banks worldwide to support their capital markets activity.  We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington.  Edison is authorised and regulated by the Financial Conduct Authority ( more »


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