Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Continental Coal receives Buy and 9.00p(A$0.13)target from Investec Securities  Join our daily free Newsletter

MENAFN - ProactiveInvestors - Australia - 20/02/2013

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - ProactiveInvestors - Australia) Continental Coal (ASX: CCC, AIM: COOL) has received a Buy recommendation from Investec Securities, with a target of 9.00p (A0.13), which is a Forecast Total Return of 111.8% when compared to the current price of 4.25p.

The following is an extract from the report.


Key project Penumbra showing real promise

Continental Coal (COOL) today provided updates on both its operations and its corporate activities. The two operating mines are performing well, while the key development operation, Penumbra, is continuing to ramp up towards the June target rate of 60kt/month.

Talks with parties interested in participating in the development of DWC are ongoing, with COOL reporting significant advancement in the past two months. Recent refinancing activities and resultant dilution has, however, lowered our TP.

- Penumbra is continuing to ramp up with a second continuous miner to be operating underground from the end of this month. Current focus is on expanding underground infrastructure to support the planned increase in production levels.

Outstanding mine development remains on target and within budget, with no cost overruns expected. All outstanding capital costs are being met from the existing ABSA debt facilities.

- The US10m sale of COOL's interest in VanMag is nearing completion, with the balance of 6m on track for settlement at the end of this month. The proceeds are to be used to fund all the outstanding amounts due for the minority interests in Mashala Resources.

- Additional equity that has been issued as a consequence of debt refinancing has been dilutive, reducing our valuation (and hence our target price) from 10p per share to 9p per share.

- The company updates highlight COOL's improving investment appeal, with Penumbra in particular
a major catalyst in this regard. Securing a strategic partner for DWC would certainly be an additional positive catalyst.

We note that almost 40% of our total project NPV is made up of the DWC project, which remains unfinanced and is therefore at risk.

 






  MENA News Headlines


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help