Friday, February 4, 2011

Base Resources Research Report

Euroz, a well respected firm released a broker report this week on Base Resources (BSE).

Those that have been following my blog will know that I am bullish on mineral sands and have mentioned this company, Gunson Resources (GUN) and a few others recently.

The report commenced coverage with a valuation of $0.76 (well below today's closing price of $0.43) and long term $1 share price.

Euroz believes that the Kwale project has potential revenue of US$160-180m p.a. generating EBITDA of $80-$100m once in full production.

I personally believe that the market is starting to cotton on to the potential of mineral sands companies and that every portfolio should have some exposure.

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