Pilbara Minerals Ord Shs T.PLS

And, so it begins: PLS targets rise

[beckalodeon]

TDWaterhouse just yanked up its PLS target from 17 to 20 bucks, calling the CEMEX deal a "Strong Positive" for the company. Also note that CEMEX gets first right of refusal should another company bid for Polaris. Bidding war, anyone? Let the games begin... Here's the full text of the summary section of the report: ========================================================== Polaris Minerals Corp. (PLS-T) C$13.78 Strategic Alliance with CEMEX Cements Polaris in the Pacific EVENT Polaris announced yesterday that they have entered into a strategic alliance with CEMEX S.A.B. de C.V. (CX-N, Not Covered) covering the states of California, Oregon and Washington. Under the agreement, CEMEX will be the exclusive marketing agent for Polaris, and Polaris will be the exclusive supplier to CEMEX of marine transported construction aggregates. In addition, we have made a modification to how we accounted for the minority interests in our model, and for our revised exchange rate forecast. IMPACT Strong Positive. In our view, this agreement is a major step forward for Polaris as it provides the company with access to CEMEX’s substantial network of customer contacts, and more importantly, provides several new offloading terminals. This will allow Polaris to ramp up production well ahead of its original plans, and we have increased our production profile by 1 mm stpa in each year beginning in 2008 to reflect this. In addition, CEMEX has agreed to collaborate with Polaris in developing a market for the materials from Eagle Rock, which could accelerate development of that project as well. The revision to our accounting for the minority interest resulted in an increase to our NAVPS, although this was offset somewhat by the changes to our exchange rate estimates. The net result of these changes is an increase in our NAV to C$19.92/share. We have increased our target price to C$20.00/share and maintain our BUY recommendation. DETAILS Key Contract Terms: • Agreement is structured to provide CEMEX with a Right of First Offer on new terminal developments, but Polaris is able to act unilaterally to secure customer contracts in the event that they and CEMEX are unable to reach an agreement • Includes a standstill over the life of the agreement, but CEMEX has a Right of First Refusal in the event a third party makes a bid for Polaris • Pricing based on market prices adjusted for a required return on terminals