Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


CRP de-risks as progress continues says Edison

This announcement was released to NZX a few minutes ago. To see the Edison report follow the following link - Our section is on page 27.

http://www.edisoninvestmentresearch.co.uk/sectorreports/Novemberasiapac_301112.pdf <http://www.edisoninvestmentresearch.co.uk/sectorreports/Novemberasiapac_301112.pdf>

7 December 2012

CRP de-risks as progress continues says Edison

Chatham Rock Phosphate’s (CRP) share price will continue to de-risk as it progresses its project to establish its undersea mining operation, Edison Investment Research (Edison) says in its latest Asia-Pacific quarterly update on the company.

“With a mining licence application having been lodged with authorities during the last quarter, marine consents and project engineering will be CRP’s key area of focus over the coming year.”

Edison has been engaged by CRP to provide independent research in the absence of analysts preparing any on smaller NZX listed companies.

The Managing Director of CRP Chris Castle said the market took the initial Edison research coverage, followed closely by CRP’s licence application, very positively with the CRP share price doubling to a peak of 46c in less than two weeks.

Wellington based Edison analyst John Kidd said “if and when CRP continues to pass further significant milestones over 2013-14, we expect the market to continue to de-risk CRP’s share price towards our un-risked valuation, currently at $1.87 a share.”

Mr Kidd says CRP still faces a number of significant hurdles before it will be in a position to consider a final investment decision. In addition to project engineering, CRP’s biggest challenge lies in securing marine consents for its operation.

“While a new regulatory regime to deal with far-shore marine operations provides much-needed clarity, the risk of delay, deferral and even denial still remains.”

He says a notable feature of the business model is the lack of capital intensity through the planned use of contract mining.

“Most of the capital required will come from global dredging major Royal Boskalis, with which CRP has a close relationship.” He believes the 20% stake Boskalis has taken in CRP following a two-year advisory period significantly de-risks the project.

Mr Castle said the current capital raising is expected to be the final tranche before a final investment decision is made.

“CRP has achieved considerable past success in tapping the private placement market and it is likely this will again be targeted. A capital raising is also a necessary prerequisite to completing a TSX-V listing which CRP is aiming to do during the first half of 2013.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Pre-Budget: Computer Emergency Response Team, Assemble!

John Key told the country's first ever Cyber Security Summit in Auckland that the government had earmarked funding set up a national Computer Emergency Response Team to help prevent and act on cyber incidents in partnership with the private sector and other organisations. More>>

ALSO:

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news