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.”