🕐25.10.12 - 02:27 Uhr

RESOURCE CAPITAL RESEARCH [RCR] - RCR COMPANY UPDATE, IMX RESOURCES LIMITED (IXR) OCT2012



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Resource Capital Research [RCR] 
http://www.rcresearch.com.au/


RCR Company update, IMX Resources Limited (IXR) Oct2012

Resource Capital Research (RCR) has released a company update on IMX Resource Limited (ASX: IXR) for October 2012. 

The recently released Preliminary Economic Assessment for IMXs Ntaka Hill Nickel Sulphide Project in Tanzania (now progressing to a full feasibility study) highlights this as a quality project that could be producing high grade clean nickel-copper concentrates by the second half of 2015.

The valuation of this project, complemented by current iron ore production generating modest cashflow, and excellent exploration potential in Tanzania and Australia, underpins our A$0.33-A$0.41/share corporate valuation. 

 
The current share price (A$0.135) is a 63% discount to our midrange A$0.37/share valuation.

Our six-month target is A$0.22/share. 
  
Highlights: 
  • Recently completed acquisition of IXRs Canadian Nachingwea JV partner (TSXV:CNI) gives IXR 100% of the Ntaka Hill Nickel Sulphide Project in Tanzania and dual ASX and TSX listing.
  • CNI acquisition eliminates complex ownership structure and highlights Ntaka Hill as a quality flagship asset – potential company maker.
  • October 2012 Preliminary Economic Assessment (PEA) for Ntaka Hill predicts cash costs ~US$5/lb Ni and potential production of premium high grade nickel-copper concentrates (averaging ~10,000tpa contained Ni, 2,800tpa contained Cu) starting in 2H15.

    Fourteen year mine life.
  • PEA data indicates after-tax NPV(8% DR) for Ntaka Hill Project of around US$140m after inputting RCR forecast long term nickel price of US$9.00/lb.

    Current enterprise value of IXR is A$36m.
  • Current iron ore production from 51% of Cairn Hill Phase 1 (SA): Magnetite and copper DSO operating at 1.8mtpa, three year remaining mine life, currently cash flow positive (~A$10/t @ US$110/t Fe ore price).
  • Cairn Hill Phase 2 (8.4mt resource) targets ~60% Fe upgraded product to maintain ~1.8mtpa after Phase 1.
  • Mt Woods Magnetite (100%) is a potential large scale project with low opex and capex due to coarse grained magnetite.

    Resource 569mt, target is ~1bn tonnes.

    Potential 5-10mtpa operation in 3 to 5 years. 
  • Strong exploration pipeline with numerous untested Ni-Au-Cu and graphite targets in broader Nachingwea region, Oz minerals JV targeting IOCG Cu-Au in SA, and other properties in Tanzania, Mozambique and Tasmania.
  • Current share price (A$0.135) is at a 63% discount to our assessed midrange NAV of A$0.37/share.

    Our six month target is A$0.22/share.

    We expect strong newsflow from Ntaka Hill as the Feasibility Study progresses, underpinned by a likely continued uptrend in iron ore prices.

Click here for full announcement

For more information, please contact: 

 
Resource Capital Research
www.rcresearch.com.au
T: +612 9252 9405






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