Posted: 16-Nov-09 at 18:28 | IP Logged

broker note out 321p target

UK-Analyst target price of 321p
While we expect both financial and operational synergies to eventually flow from the Mano / African Aura merger, our view is that the majority of the enlarged group’s value resides in those assets contributed by Mano. Putu dominates the portfolio, while New Liberty, with gold the darling of commodity markets, offers a very attractive wholly owned operation for the company. With Stellar appearing ready to demonstrate stand-alone value, this will provide African Aura with a valuable liquid investment to monetise should it need the cash to not only accelerate New Liberty’s development, but progress several of the Cameroon prospects. Adjusting our valuation for the share consolidation, our target price for the enlarged group is 321p and our stance, at 66p, is speculative buy