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


CRP share price at big discount to unrisked valuation

Latest Edison report says CRP share price at big discount to unrisked valuation

30 May 2014

Edison Investment Research’s latest report says Chatham Rock Phosphate’s shares are trading at a significant discount to its unrisked valuation of $1.76 a share.

The research note says CRP has delivered on its milestones and awaits the set six month timeframe for marine consent in the final quarter of 2014 and the finalisation of its seabed mining contract in the first half of 2015. The marine consent is the last major consent the company needs.

“The high margin, low impurity, long-life, wholly owned Chatham Rock Phosphate project does not require any development capital under the build, own and operate mining project model.”

The $1.76 unrisked valuation reflects the dilution of the company’s capital from its 1-10 rights issue and takes account of planned capital raising associated with the London AIM listing.

The report notes CRP’s preferred partner to build and operate its mining dredge is Royal Boskalis but that there are four other dredging specialists showing interest, which reduces the risk to CRP’s production plans if Boskalis elected not to proceed.

“With increased global exploration activity directed to marine deposits, there is a strong appetite from global dredging companies to be involved in the embryonic seabed mining industry. To reflect expected international interest in the project, CRP is planning an AIM listing.”

© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news