StoneBridge Research – Western Areas NL (WSA)

StoneBridge Research – Western Areas NL (WSA $5.75) – World class nickel production with exploration upside

Downgrading recommendation from Buy to HOLD, price target $5.40/share

Key points

• WSA owns two world class nickel deposits within its 100% owned Forrestania Nickel Project in Western Australia.
• Flying Fox is WSA’s only operating mine and is expected to produce around 12.0kt of nickel in concentrate in FY10.
• Spotted Quoll, which was discovered by WSA in late 2007, is due to commence production in early 2010.
• At full production, Flying Fox and Spotted Quoll should produce around 25.0ktpa of nickel in concentrate for 8-10 years.
• WSA is adequately funded to bring the Spotted Quoll project into production and continue with its aggressive drilling program at Forrestania.
• However, we believe that much of the upside potential at Forrestania has been factored in to the current share price.
• The stock is trading at a modest premium to our $5.40/share price target and we are downgrading our recommendation from Buy to HOLD.

View Full Report

Related Posts:

1. StoneBridge Research – Panoramic Resources Limited (PAN)
2. StoneBridge Research – Panoramic Resources Limited (PAN $2.52)
3. StoneBridge Research – Intrepid Mines Limited (IAU)
4. StoneBridge Research – OZ Minerals Limited
5. Stonebridge Research: ING Office Fund (IOF)
6. Stonebridge Research: ING Office Fund (IOF)
7. Stonebridge Research: Commonwealth Property Office Fund (CPA)