Jennings Capital Initiates Coverage on Augusta Resources (TSX:AZC) (NYSE MKT:AZC) with Speculative Buy Recommendation - Video Posted on InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, June 14, 2013 - Investment firm Jennings Capital
initiated coverage on Augusta Resource Corporation (TSX:AZC) (NYSE MKT:AZC).
Analyst Garnet Salmon gives the company a speculative buy recommendation and a
12-month target price of $3.60, a 48% premium to the $2.43 price the day the
report was issued.
InvestmentPitch.com has produced a "video news alert" based on this report. If
this link is not enabled, please visit www.InvestmentPitch.com and enter
"Augusta" in the search box.
Augusta is a base metals company focused on advancing its Rosemont Copper
project near Tucson, Arizona. Rosemont hosts a large copper/molybdenum reserve
of 5.9 billion pounds of copper and 194 million pounds of molybdenum.
Over its 21 plus year mine life, Rosemont's 2012 feasibility study estimates the
project's average annual production is expected to be approximately 243 million
pounds of copper and 5.4 million pounds of moly at average by-product cash costs
of $1.02 per pound of copper. The project is nearing the last stages of
permitting with the record of decision expected to be received in the third
quarter of 2013 and production to start-up in 2015. Once in production, Rosemont
is expected to be the third largest copper mine in the United States.
After making an initial 11% investment in Augusta shares in 2010, Hudbay
(TSX:HBM) has recently increased its stake to approximately 16%.
Augusta is construction ready and is in advanced discussions with potential
parties to source the financing for the remaining $890 million of the $1.2
billion capex at Rosemont.
Both domestic and international lenders are looking to provide debt financing.
Salmon stated, "We believe Hudbay is gaining confidence in the Company's
permitting chances and is using its 16% ownership as a call option on the
remainder of Augusta's shares once a positive permitting announcement takes
place. Permitting announcements could potentially bump the stock upward by 20%
to 30%; however, the big upside is the attractiveness of the Company as a
takeover target. We believe Augusta could fetch $5.00 in an acquisition."
Augusta currently trades at $2.27, well below the $3.60 target price, and with
144.3 million shares outstanding, the company is capitalized at $328 million.
For more information please visit the company's website www.AugustaResource.com,
or call Letitia Cornacchia, VP of Investor Relations and Corporate
Communications at 416-860 6310 or email lcornacchia(at)AugustaResource.com..
For more information about Jennings Capital or to obtain a copy of their
research report, contact your nearest Jennings Capital office. Their branches
are listed on their website at www.jenningscapital.com.
About InvestmentPitch
InvestmentPitch.com, a multimedia company that provides a combined solution for
creating and hosting financial video content, and distributing it across
multiple platforms to investors and financial professionals, specializes in
producing three minute videos based on news releases and research reports.
CONTACT:
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Barry Morgan, CFO
bmorgan(at)investmentpitch.com
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Source: InvestmentPitch via Thomson Reuters ONE
[HUG#1709743]
Unternehmensinformation / Kurzprofil:
Datum: 15.06.2013 - 01:10 Uhr
Sprache: Deutsch
News-ID 269973
Anzahl Zeichen: 4033
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Kategorie:
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