Soc issue immaterial to can
FROM TDImpact - NEUTRAL
We take this to mean that the Commissioner will unilaterally decide the
matter if an agreement is not reached by this date. Possible resolutions that we
see include (1) the transfer of the license from the third party to Canaco at fair
market value, which we continue to believe will be immaterial to Canaco, or
(2) revoking the overlapping Mining License (ML), which is within the power
of the Commissioner to do.
Our view then is unchanged – we expect Canaco to maintain 100% of all of
its properties and for any settlement to be immaterial to it but the timeline for
resolution has now been pushed back to November 29.
We maintain our 12-month target price of $6.00/share and reiterate our
Speculative BUY recommendation.
The real issue is the Tanzania discount.