(MENAFN - ProactiveInvestors - Australia) Lemur Resources (ASX: LMR) continues to be the subject of a buy recommendation by UK broker Fox-Davies, which maintained the A0.16 price target, nearly double the current price of A0.085.
This follows on the heels of a report confirming that the final batch of core sample results from Lemur's Imaloto Coal Project in Madagascar can be beneficiated to a 67% export grade thermal coal.
The following is an extract from the report
Final Lab Results Improve Overall Yield & Quality
The final 7 samples are part of the total 290 samples analysed for the project and have further improved both the quality and yield of the proposed primary product.
The results for both Top and Upper seams are again consistent with previous results. Although they could produce an export product, the yields are too low to be economic. However a F1.8 wash could produce a power station feedstock with yields of 81.4% and 74.9% respectively.
The Lower seam, which is a split form the Main seam, was again intersected but there has been insufficient analysis completed for it to be quantified.
The discount between Lemur's cash position and its market capitalisation continues to increase as the wider market retracts. It is currently trading with a negative "A0.02 EV/tonne for its current 176.6Mt coal resource.
With a resource upgrade expected in the next few weeks, this discrepancy in valuation may widen further and so we maintain our Buy recommendation with an unchanged target price of A0.16 per share.