Xceed Resources: Broker Increases Price Target To Double Current Share Price
Seeking Alpha Analyst Since 2009
Xceed Resources (ASX: XCD) has received an increased price valuation of A$0.33, double its current share price, in a broker update following the release of its March quarter results.
TARGET PRICE: A$0.33
BFS March 2012 quarter, confirms viability of Moabsvelden:
Xceed Resources Ltd is a South African coal company focused on the development of the Moabsvelden Thermal Coal Project immediately east of Johannesburg, together with several other earlier stage exploration and development projects in the Witbank region.
Xceed Resources Ltd (XCD, speculative buy, target price A$0.33/sh, previously A$0.30/sh) announced its latest quarterly result with updates on its 74% Moabsvelden thermal coal project, and findings from recent exploration drilling and washability testwork at its Roodepoort and Bankfontein projects (acquiring 70%).
Our NPV has increased to A$0.33/sh (up from A$0.29/sh) based on revised commodity and exchange rate assumptions, and moving forward our calculation date by one quarter.
Key catalysts include: (1) completion of the Moabsvelden Environmental Impact Assessment (FY12Q4), secure financing (FY13Q3); and (2) completion of the maiden resource estimates and scoping studies at Roodepoort and Bankfontein thermal coal projects are expected later this year (which should ultimately provide further upside to our NPV).
Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.