ALTONA ENERGY (ANR.L) - Buy - PRICE/TARGET : 12p/35p
BFS commenced
Starting the journey
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EVO TAKE - With the start of work on the BFS, Altona and its joint venture partner CNOOC-NEIA are set to generate solid newsflow over the coming months - watch this space. DETAILS - Altona has started the first phase of its two-phase BFS at the Arckaringa coal project in South Australia.

The first phase is budgeted to cost about A$12m and will include: a detailed review of coal deposit geology; groundwater investigation and verification; groundwater management research and design; environmental baseline studies; open cut mining methodology options; and product market research.

The second phase will follow on from this in about 12 months and is currently budgeted at about A$28m.

It will use data from the first phase to complete detailed mine and process plant design for the currently envisaged 15Mt/year operation. VALUATION AND RECOMMENDATION - We believe that Altona and its joint venture partner are now set to make consolidated progress over the coming months on the development of the mine and coal to liquids project.

We therefore reiterate our recommendation.

Buy.
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Starting the journey (Charles Kernot)
Charles Kernot +44 (0)20 7071 4365