BuySorry if this has already been posted
DJ Original-Research: Almonty Industries Inc. (von First Berlin Equity Research GmbH): BUY
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Original-Research: Almonty Industries Inc. - von First Berlin Equity Research GmbH Einstufung von First Berlin Equity Research GmbH zu Almonty Industries Inc. Unternehmen: Almonty Industries Inc. ISIN: CA0203981034 Anlass der Studie: Basisstudie Empfehlung: BUY seit: 06.06.2017 Kursziel: CAD0,60 Kursziel auf Sicht von: 12 Monaten Letzte Ratingnderung: - Analyst: Simon Scholes, CFA First Berlin Equity Research on 06/06/2017 initiated coverage on Almonty Industries Inc. (ISIN: CA0203981034/ Bloomberg: AII CN). Analyst Simon Scholes placed a BUY rating on the stock, with a CAD 0.60 price target. Abstract: If Almonty secures financing for its South Korean Sangdong project, the combined output of its mines will account for ca. 29% of the non-Chinese supply of tungsten concentrate. This would allow Almonty to greatly improve its strategic position in the industry. The omens regarding financing of Sangdong look good as the company is in negotiations with a major customer over an offtake agreement. Almonty is well placed to benefit from a cyclical upturn, of which first signs are now visible, as over 80% of its current reserves were acquired during the cyclical downturn at low prices and Sangdong (73% of overall reserves) operates in the lowest quartile of the cost curve. The balance sheet is still well over 100% geared but stakeholders have so far been cooperative in debt rescheduling/conversion of debt into equity. Assuming a modest recovery in tungsten prices, we set a price target of CAD0.60. Our recommendation is Buy.