Strong News Flow Drives Increased Valuation
- Resource upgrade - 79Mt at 3% Zn, 12g/t Ag (100% measured);
- Metallurgical recoveries - zinc recoveries of up to 64%;
- Project ownership - 100% ownership (previously 70%);
- Re-start study - due 4Q17 ; and
- Historical South Block drilling - multiple broad high-grade intercepts identified as an extension of the Century ore body - 26.4m at 8.1% Zneq. & 21.6m at 9.9% Zneq.
Analyst comment: Since listing just over two months ago, New Century has been one of the best performing stocks on the ASX, as their share price has risen from $0.34/share (SP when TSI initiated coverage) to currently be trading at $1.20/share. This is not surprising given the strong and continuous news flow released by company, as well as the zinc price reaching decade long highs of more than US$3,300/t (US$1.50/lb).
Given these announcements we reviewed and updated a number of our key assumptions, including our throughput rate (12Mtpa - TSI), zinc recoveries (60% - TSI) and head grade (3%Zn - TSI) assumptions, which increases our forecasted production to 216,000tpa of zinc metal per annum. At this production rate the Century mine would become the sixth largest zinc operations globally (2016 annual production - SNL).
The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.
Valuation: We have increased our valuation for New Century Resources $3.03/ share.
To view the video, please visit:
About New Century Resources Ltd
New Century Resources Limited (ASX:NCZ) is developing the Century Zinc Mine in Queensland. The Company recently released a Feasibility Study which highlighted that when production recommences at the project (forecast 3Q18) the operation will produce 264,000tpa zinc metal per annum making the company a global top ten zinc producer. The company is fully funded to first production.
About The Sophisticated Investor
The Sophisticated Investor is a new equity investment tool which seeks to assist investors in becoming more informed in their investment decision making. We show and tell investors about a company in a series of short, informative videos. We possess specialist equity analyst skills and are complemented by video professionals. We conduct site visits and interview management, in a way most investors simply aren’t able to access. We promote long term value creation for investors by employing detailed financial analysis and intrinsic value calculations.
Adam Kiley trading as The Sophisticated Investor ('TSI'), (AR No. 458224), is an authorised representative of Intelligent Financial Markets Pty Ltd (AFSL No. 426359). The information contained in this communication is intended as general advice only. Your personal objectives, financial situation and needs have not been taken into consideration. Accordingly, you should consider how appropriate the advice is (or is not) to your objectives, financial situation and needs before acting on the advice. The information in this communication should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.
Conflict of interest
TSI does and seeks to do business with companies featured in its articles and videos. As a result, investors should be aware that TSI may have a conflict of interest that could affect the objectivity of some articles or videos. Investors should consider TSI articles and videos as only a single factor in making any investment decision. The publishers also wish to disclose that they may hold stock in some companies featured in their articles and videos, and that any decision you make to purchase the stock of a company TSI profiles should be made only after you have initiated your own enquiries as to the validity of any information contained in those articles and videos.
TSI will only initiate coverage of a company that passes our internal investment checklist. Once a company has passed this checklist, we will initiate coverage of that company and follow up with ongoing updates and commentary on its activities. Articles and videos produced and published by TSI are NOT Research Reports in terms of ASIC Regulatory Guide 79.
The Sophisticated Investor
New Century Resources Ltd