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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news