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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news