Mwana Africa plc Stock Rating Reaffirmed by Edison Group (MWA)
The analysts wrote, “Mwana’s fourth quarter operational update revealed record throughput at Freda Rebecca (since the restart) as well as a 15.2% improvement in tonnes milled at Trojan on the back of a record tonnage mined.
We have adjusted our forecasts for FY14 to reflect the fourth quarter’s operational performance. While these now historic numbers are lower however, our valuation has increased to 12.1c for FRGM and BNC vs 11.7c previously at long-term metal prices and a 10% discount rate, owing to the passage of time (ie discounting from FY15 not FY14). At current spot prices the valuation has improved markedly, from 5.8c to 9.1c, owing to the increase in the nickel price, from US$15,550/t to US$18,580/t. Including SEMHKAT and Zani-Kodo, the valuation of the company increases to 15.1c vs 14.7c at long-term prices and 12.1c vs 8.8c at current spot prices. A resource conversion drilling programme is underway at Zani-Kodo as part of a feasibility study at Kodo Main to upgrade ‘inferred’ ounces to ‘indicated’ and ‘measured’ status, which should add value to both the project and the company.”
Shares of Mwana Africa plc (LON:MWA) traded up 1.33% during mid-day trading on Thursday, hitting GBX 1.90. The stock had a trading volume of 6,773,497 shares. Mwana Africa plc has a 52-week low of GBX 1.047 and a 52-week high of GBX 4.00. The stock has a 50-day moving average of GBX 1.58 and a 200-day moving average of GBX 1.44.
Mwana Africa PLC (LON:MWA) is engaged in the exploration, development and production of nickel, gold, copper and diamonds.
To view Edison Group’s full report, visit Edison Group’s official website.
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