Mar 1, 2018 - Belopa. Current project scope envisages a 2-3mtpa operation Production 100-125k oz Au per annum, with AISC
NUSANTARA RESOURCES LIMITED Research Note
EMERGING INDONESIAN GOLD PRODUCER – 2 MOZ MINERAL RESOURCE
Nusantara Resources Limited (NUS) is focused on the development of its 100% owned flagship Awak Mas Gold Project in Sulawesi Indonesia, which currently has a 2.0M oz JORC compliant resource, and production targeted for early 2020. NUS’s highly experienced Board and management team is working to increase shareholder value through advancing the Awak Mas Gold project towards development in the near-term. The company plans to undertake further drilling, which has the potential to significantly increase the resource inventory and complete a Definitive Feasibility Study by mid – 2018 in advance of a final investment decision expected for late 2018. Strong exploration upside. NUS has undertaken a high impact exploration program focusing on extensional resource drilling using the funds received through the IPO and is expected to allocate c.$2m for exploration per year post the DFS. In January 2018, the company announced a 12% increase in the resource to 1.93 Moz. This was followed up in February 2018 with a further 70 koz increase following the update of the Salu Bulo resource, bringing the project resource to 2 Moz. This update has now resulted in a 260koz increase using the US$1400/oz resource optimisation shells since commencement of drilling and includes an increase of 720koz using the US$1200/oz resource optimisation shells. Is Country risk too high? We consider Indonesia to be more problematic than other East Asian countries, with a history of issues with the Indonesian Government. There have been some highly successful mines in Indonesia, such as Gosowong, Batu Hijau, Toka Tindung and Ponkor. However, the loss of Intrepid’s Tujuh Bukit due to Intrepid’s issues with securing legal ownership of their tenements should not be seen as bearing on NUS, and recent issues with requirements to produce finished product in country have tarnished the investment appeal here (whilst not applying to projects such as Awak Mas which produce gold dore). Given Awak Mas is covered under a COW 7 and that NUS has direct ownership of the Indonesian subsidiary, PT Masmindo, and therefore direct ownership of the tenement, we feel ownership is less of an issue here, and look at the project as moderate risk with respect to country risk. Valuation. Our base case assumes a 10% discount rate, with us recently adopting a 5% discount rate for the broader gold sector (up from the historic Patersons discount rate of 0%). We have assumed a funding requirement of $200m, comprised $100m of debt, $100m equity, with the equity component completed at a 10% discount to the current share price. We initiate coverage on NUS with a target price of $0.59 and a Speculative Buy rating. We note the project valuation of $152.4m vs current market capitalisation of $20.9m. Our valuation is highly sensitive to the impact of the current NUS price on the shares issued for an assumed equity raise. Should we assume the IPO price of $0.42 for the raise, our valuation lifts to $0.84.
1 March 2018 12mth Rating A$ A$ %
0.32 0.59 99.1
RIC: NUS.AX Shares o/s Free Float Market Cap. Net Debt (Cash) Net Debt/Equity 3mth Av. D. T’over 52wk High/Low 2yr adj. beta
m % A$m A$m % A$m A$
BBG: NUS AU 97.5 100.0 28.3 -9.9 na 0.01 0.43/0.26 0
Valuation: Methodology Value per share
Cathy Moises
Phone: Email:
DCF 0.59
A$
Analyst:
( +61) 3 9242 4030
[email protected]
12 Month Share Price Performance
Performance % Absolute Rel. S&P/ASX 300
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
Spec Buy
Price Target Price 12mth Total Return
1mth -3.6 -5.6
3mth -20.9 -27.9
12mth 0 0
1
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23 February 2018
Nusantara Resources Limited
HISTORY NUS was listed on the ASX in August 2017, focussed on the development of its flagship Awak Mas project in Indonesia, which currently has a 2.00M oz JORC compliant resource, and production targeted for early 2020. The company is a spin-off out from One Asia Resources, with Lion Selection Group retaining a 32.2% interest in the company.
AWAK MAS GOLD PROJECT Figure 1: Project location
Source: Nustantara
Awak Mas has had varied international ownership since its discovery in 1991. The original partners in the Joint Venture were New Hope Consolidated Industries (New Hope) and Pt Asminco Bara Utama (Asminco). In September 1991, Battle Mountain concluded a farm-in agreement with New Hope and subsequently earned 60% of the project. The project was consolidated into one entity by Gascoyne Gold Mines, and ownership passed through a number of major gold companies in the ensuing years, generally viewed as not of size to justify development within the confines of a major. One Asia Resources took on ownership of the project in 2009, with ownership passing to NUS through the sell down and listing in 2017. To date, over 130,000m of drilling and several development studies have been completed. PFS was completed in 2015, which supported a 10-year 100koz pa operation with competitive margins. DFS is currently underway, with completion expected mid-2018, and targeted gold production in early 2020. Current 2.00 Moz (1.38g/t) gold resource includes 180k ounces of higher grade (1.53g/t Au material) at Salu Bulo which is expected to be processed early in the mine life to optimise cashflow. The project is under a 7 th generation COW (Contract of Work), which allows 100% foreign ownership. There is indication that the Indonesian Government will seek for NUS to divest 51% of the project before year 10 to Indonesian Parties. NUS has commenced a process looking for an Indonesian partner to purchase 25% of the project as part of its long-term funding strategy. The COW comprised 14,000ha in non-forestry land, with a three-year ‘Construction Phase’ awarded in June 2017, following the awarding of an Environmental Permit in April 2017. The Awak Mas Project has access to grid power, with easy access to the establish ports of Palopo and Belopa, daily flights to Palopo from Makassar, and 40km by paved and unpaved road from the project to Belopa. Current project scope envisages a 2-3mtpa operation Production 100-125k oz Au per annum, with AISC of US$500-700/oz, and project capital of US$150-175m, with a strip ratio of circa 3.5:1, with high grade early production from Salu Bulo Recovery rates of 90-94% are expected, with good water availability on site.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
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23 February 2018
Nusantara Resources Limited
Figure 2: Project Location map
Figure 3: Detailed Infrastructure proposed Location
Source: Nusantara
Source: Nusantara
Development time line is relatively short as shown below. Figure 4: Awak Mas Project Timeline
Source: Nusantara
Figure 5: OPERATIONAL SUMMARY AWAK MAS PRODUCTION Ore Milled Head Grade - Au Recovery - Au Production - Au
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 (k t) 0 0 0 0 0 0 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 (g/t) 0.0 0.0 0.0 0.0 0.0 0.0 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 (%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 91.0% 91.0% 91.0% 91.0% 91.0% 91.0% 91.0% 91.0% 91.0% 91.0% 91.0% (k Oz) 0 0 0 0 0 0 103 103 103 103 103 103 103 103 103 103 103
Cash Cost Cash Cost AISC
($/t) ($A/Oz) ($A/Oz)
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
31 742 863
31 742 865
31 742 866
31 743 867
31 743 869
31 743 869
31 743 870
31 744 870
31 744 870
31 744 871
31 745 871
PROFIT AND LOSS Revenue Operating Costs Royalty Operating Profit Net Profit Sustaining Capital Development Capital Net Cash Flow
(US$ M) (US$ M) (US$ M) (US$ M) (US$ M) (US$ M) (US$ M) (US$ M)
0 0 0 0 0 0 0 0
0 0 0 0 0 0 4 -4
0 0 0 0 0 0 13 -13
0 0 0 0 0 0 0 0
0 0 0 0 0 0 75 -75
0 0 0 0 0 0 145 -145
142 77 7 58 30 5 0 43
145 77 7 61 32 5 0 45
148 77 8 63 34 5 0 47
151 77 8 66 36 5 0 49
154 77 8 69 38 5 0 51
155 77 8 70 39 5 0 52
155 77 8 70 39 5 0 52
155 77 8 70 39 5 0 52
155 77 8 70 39 5 0 52
155 77 8 70 39 5 0 52
155 77 8 70 39 5 0 52
Source: Patersons Securities Limited.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
3
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23 February 2018
Nusantara Resources Limited
EXPLORATION NUS is expected to allocate post the DFS c.$2m for exploration for the next 12 months, focussed on extensional drilling of the Awak Mas and Salu Bulo deposits, resource definition drilling at the Tarra deposit and exploration targeted for satellite deposits. In February 2018, the company announced a new resource that included the previously announced resource upgrade to Awak Mas and a new updated Salu Bulo resource. This resource update results in a 15% increase in resource to 2.00M ounces, including a 720koz increase in contained ounces to 1.82 Moz for the US$1,200 optimisation shells at Awak Mas and Salu Bulo. Assays are pending on drilling to confirm eastern extensions of Awak Mas, with results due in February 2018.
VALUATION Our base case assumes a 10% discount rate, with us recently adopting a 5% discount rate for the broader gold sector (up from the historic Patersons discount rate of 0% for the gold sector). We have assumed a funding requirement of $200m, comprised $100m debt, $100m equity, with the equity component completed at a 10% discount to the current share price). Our spot gold valuation and 20% above spot gold valuation applies the same assumptions as discussed above, with the exception of the gold price. Figure 6: Valuation
Source: Patersons Securities Limited
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
4
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23 February 2018
Nusantara Resources Limited
MANAGEMENT Martin Pyle. Chairman. Martin is a geologist with extensive experience in the finance and resources sectors within Australia. He currently serves as managing Director of Aurora Minerals Limited and is a Non-Executive Director of Peninsula Mines Limited. Mike Spreadborough. Managing Director. Mike is a mining engineer with extensive experience in the development and operation of mineral resources projects. Mike has held senior executive roles with several mining companies including COO of Sandfire Resources and Inova Resources. Robert Hogarth. Non-Executive Director. Rob built his mining industry expertise during a 37 year career with KPMG, where he led the Energy and natural Resources & Major Project Advisory Practises. He has been involved in Indonesia since 1983. Robin Widdup. Non-Executive Director. Robin has 40 years of mining industry and equity market experience. Following working in a range of operations in the UK, Zambia and Australia, Robin joined the JB Were Resource Research team prior to founding Lion Selection Group and Lion Manager in 1997. He is currently Managing Director of Lion Manager, director of Lion Selection Group Limited, and a non-executive director of Lion investees One Asia Resources Limited and Asian Mineral Resources Ltd. Boyke Abidin. Executive Director. Boyd holds a BSc in Business Administration and has more than 25 years’ experience in Indonesian Management. He is President Director of Indonesian Operations for One Asia resources and has been a Director of Pt Masmindo Dwi Area since 2000. He is also a director of PT Resources Indonesia, PT Dwinad Nusa Sejahtera and PT Sorikmas Mining.
REMUNERATION Chairman, Martin Pyle receives a fee of $60k per annum. MD, Mike Spreadborough receives $350k per annum. Number of directors is quite low at 4.
RISK ANALYSIS We consider NUS to have a high risk profile given funding requirements of the project, with the political risk associated with Indonesia assessed as high. 1.
2.
3.
Project risk. Project risk remains quite high, with a DFS currently underway (but key project approvals already in place). Whilst the 7th generation COW in principal requires no local sell down, the Indonesian Government does appear to be agitating for some amendments to the COW system to potentially introduce mandatory Indonesian ownership via staged divestment of the project no later than six years following commercial production. In good faith, NUS has commenced a process to engage a strategic local partner for Awak Mas, with very encouraging initial talks. Funding. We view funding as problematic through both the fact that the capital requirements are c. 10X the current market capitalisation of the company, with an added risk of funding an Indonesian project with some question marks over the ultimate ownership structure. However, looking at the major shareholders including Lion Selection and AustralianSuper, we would view the share register as supportive in helping with any funding, and the Indonesian sell down could also bring in some further capital. Country Risk. Country risk is viewed as moderate in a project such as this, with a history of issues with the Indonesian Government. Most notably, Intrepid lost their first class Tujuh Bukit project when its Indonesian partners seized the site and ordered intrepid works to evacuate. Freeport has also been involved in a long running dispute with the Indonesian Government over ownership of the Grasberg mine. Conversely we has seen several mines operate successfully over an extended period including Newcrest’s Kencana mine and Newmont successful operating its 48.5% owned Batu Hijau copper and gold mine until sale to local company for $1.3bn in 2016.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
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23 February 2018
Nusantara Resources Limited
SENSITIVITY The tables below show the valuation is most sensitive to changes in gold price and head grade. Given we have a relatively finite production profile for c.8 years, the incremental increase of tonnage at the tail of mine life doesn’t add significantly to valuation. Figure 7: Valuation sensitivity to Gold Price and FX
Nusantara (NUS) Valuation (A $/sh)
Exchange Rate (A$:US$)
Change in Gold Price Assumptions -10% -5% 0% 5% 0.45 0.55 0.64 0.74 0.44 0.53 0.62 0.71 0.43 0.52 0.60 0.69 0.42 0.51 0.59 0.67
10% 0.83 0.80 0.78 0.75
15% 0.93 0.89 0.86 0.83
-15% -10% -5% 0%
-15% 0.35 0.35 0.35 0.34
5%
0.34
0.42
0.49
0.57
0.65
0.73
0.81
10% 15%
0.34 0.33
0.41 0.41
0.49 0.48
0.56 0.55
0.63 0.62
0.71 0.69
0.78 0.76
Change in Head Grade -5% 0% 5% 0.43 0.50 0.57 0.45 0.53 0.60 0.48 0.55 0.63 0.51 0.59 0.67 0.54 0.62 0.71 0.56 0.64 0.73 0.56 0.65 0.73
10% 0.65 0.68 0.71 0.75 0.79 0.81 0.81
15% 0.72 0.75 0.79 0.83 0.87 0.89 0.90
Source: Patersons Securities Limited
Figure 8: Valuation sensitivity to Head Grade and tonnage.
Nusantara (NUS) Valuation (A $/sh)
Change in Tonnage
-15% -10% -5% 0% 5% 10% 15%
-15% 0.28 0.30 0.32 0.35 0.38 0.39 0.39
-10% 0.35 0.38 0.40 0.43 0.46 0.48 0.48
Source: Patersons Securities Limited
The current spot price is significantly higher than the forward curve, thus running the spot gold price through our forecasts gives a materially higher valuation, as shown below: Figure 9: Valuation Scenarios Valuation Base Valuation
$0.59
Spot Gold
$0.36
Spot Gold + 20%
$1.07
Spot Gold - 20%
$0.26
Source: Patersons Securities Limited
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
6
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23 February 2018
Nusantara Resources Limited
$0.29 V a lua t io n
A$ m
A $ / sh
A wak M as Go ld P ro ject Explo ratio n S ub T o t a l
152.4 0.0 15 2 .4
0.32 0.00 0 .3 2
0.0
0.00
0.0 10.1 (0.2) 138.1 (18.2)
0.00 0.02 (0.00) 0.29 (0.04)
Inv e s t m e nt s
Year End Dec 31
2 .8 6 C o m m o dit y A s s um pt io ns A $ :US$ Go ld (US$ /o z) Silver (US$ /o z) Go ld (A $ /o z) T a rge t P ric e S e ns it iv it y
2 0 17 A
2 0 18 E
2 0 19 E
2020E
2 0 2 1E
2022E
0.77 1,248 10.35 1,667 0%
0.78 1,259 17.08 1,642 +10 %
0.78 1,335 17.45 1,712 C ha nge
0.78 1,365 17.90 1,750
0.73 1,400 18.30 1,795
0.73 1,368 18.44 1,875
2023E
2020E
2 0 2 1E
2022E
2023E
0.73 1,396 18.81 1,912
% Change In DCF Valuation from a 10% change in:
F ina nc ia l Fo rward sales Cash + receivables and invento ry To tal B o rro wings + credito rs P ro ceeds fro m equity raising and o ptio ns co nversio n Co rpo rate/Other
40%
27%
30% 20%
T o tal
12 9 .9
0 .2 7
10%
N P V (@ 10% disco unt rate) P ric e T a rge t
2 8 2 .2
0 .5 9 0 .5 9
-10%
14%
6%
0% Gold Price
Grade
Mineable Tonnes
Op Costs
-20% N P V S e ns it iv it y Spo t Go ld
0.37
-30%
Spo t Go ld +20%
1.07
-40%
Spo t Go ld -20%
0.26
-50%
H e dging
ko z
1- Y e a r
3 - ye a rs
% R e s e rv e
Co mmitted P ro ductio n
P ro duc t io n S um m a ry
G o ld e xplo it e d a s a s ubs e t o f re s e rv e s / re s o urc e s ( k o z)
A wa k M a s
1
2
Ore M illed (kt)
3
Gold Exploited Current Resources Current Reserves
2,500 2,000 1,500 1,000
Awak Mas Gold Project G o ld P ro duc t io n S um m a ry
2,400
500
2,000
400
1,600
300
1,200
200
800
100
400
0
0
0
0
2,500
2,500
2,500
0.0
0.0
0.0
1.4
1.4
1.4
Reco very (%)
0%
0%
0%
0%
91%
91%
91%
0
0
0
0
10 3
10 3
10 3
0
0
0
1,875
1,912
1,950
Cash Co st ($ /t)
0
0
0
0
742
742
742
Cash Co st ($ /o z)
0
0
0
0
991
992
993
A IS C ( $ / o z)
0
0
0
0
864
866
G R O UP A T T R IB UT A B LE P ro duc t io n ( k o z A u)
0
0
0
83
83
83
83
0
0
0
1,7 12
1,7 5 0
1,7 9 5
742 941 1,8 7 5
742 942 1,9 12
742 944 1,9 5 0
742 944 1,9 5 0
C a s h C o s t s ( A $ / o z) S us t a ining A ll In C o s t s ( A $ / o z) R e a lis e d P ric e ( A $ / o z)
(A$/oz)
(k oz)
P ro f it & Lo s s ( A $ m )
0
0
Awak Mas Gold Project (LHS)
AISC AUD/OZ (RHS)
(RHS) R e s e rv e sGold & RPrice e s o urc es R e s e rv e s To tal
Mt
A u g/ t
A u ko z
T o tal R e s o urc e s A wak M as Salu B ulo Tarra
0 .0 Mt 39.0 3.7 2.3
0 .0 A u g/ t 1.4 1.5 1.3
0 A u ko z 1,720 180 100
T o tal D ire c t o rs
4 5 .0
1.4
2 ,0 0 0
N ame M artin P yle M ike Spreadbo ro ugh B o yd A bidin Ro b Ho garth Ro bin Widdup Derek Humphry
P o s it io n Chairman M anaging Directo r No n-Executive Directo r No n-Executive Directo r No n-Executive Directo r CFO
Lio n Selectio n A ustralianSuper M acquarie Zhao jin M ining
s ha re s ( m ) 31.2 9.8 4.9 3.9
% 32.0% 10.0% 5.0% 4.0%
2 0 17 A
2 0 18 E
2 0 19 E
2020E
2 0 2 1E
2022E
2023E
0 .0 0.0 0.0 0.0 1.4 ( 1.4 ) (0.0) ( 1.4 ) (0.0) ( 1.3 ) 0.0
0 .0 0.0 0.0 1.4 2.4 ( 3 .8 ) 0.0 ( 3 .8 ) (0.1) ( 3 .7 ) 0.0
0 .0 0.0 0.0 1.4 2.4 ( 3 .8 ) 0.0 ( 3 .8 ) 3.3 ( 7 .1) 0.0
0 .0 0.0 0.0 1.4 2.4 ( 3 .8 ) 0.0 ( 3 .8 ) 4.7 ( 8 .5 ) 0.0
15 4 .7 0.0 67.1 1.4 2.4 8 3 .8 14.7 6 9 .1 5.3 6 3 .8 7.8
15 7 .8 0.0 67.2 1.4 2.4 8 6 .8 14.7 7 2 .1 4.1 6 7 .9 8.3
16 0 .9 0.0 67.3 1.4 2.4 8 9 .8 14.7 7 5 .1 2.9 7 2 .2 8.9
FX A djustment A bno rmals NP AT
0.0 0.0 ( 1.3 )
0.0 0.0 ( 3 .7 )
0.0 0.0 ( 7 .1)
0.0 0.0 ( 8 .5 )
0.0 0.0 5 6 .0
0.0 0.0 5 9 .6
0.0 0.0 6 3 .3
5 6 .0
N o rm a lis e d N P A T C a s h F lo w ( A $ m ) O pe ra t ing C a s hf lo w - Capex (+asset sales) - Explo ratio n F re e C a s hf lo w - Dividends (o rds & pref) + Equity raised + Debt drawdo wn (repaid) + Other N e t C ha nge in C a s h Cash at End P erio d N e t C a s h/ ( LT D e bt )
( 1.3 )
( 3 .7 )
( 7 .1)
( 8 .5 )
5 9 .6
6 3 .3
2 0 17 A - 2 .0 -5.1 0.0 - 7 .1 0.0 38.1
2 0 18 - 2 .3 19.3 -4.0 13 .0 0.0 100.0
2 0 19 7 .3 -60.0 -4.0 - 5 6 .7 0.0 0.0
2020 5 .9 -116.0 -4.0 - 114 .1 0.0 0.0
2021 8 7 .1 -4.1 -4.0 7 8 .9 0.0 0.0
2022 8 8 .8 -4.1 -4.0 8 0 .7 0.0 0.0
2023 9 2 .5 -4.1 -4.0 8 4 .4 0.0 0.0
-24.3 -1.0 5 .8 5.8 5 .8
100.0 0.0 2 13 .0 218.9 118 .9
0.0 0.0 - 5 6 .7 162.2 6 2 .2
0.0 0.0 - 114 .1 48.0 - 5 2 .0
0.0 0.0 7 8 .9 126.9 2 6 .9
0.0 0.0 8 0 .7 207.6 10 7 .6
0.0 207.6 2 9 2 .0 292.0 19 2 .0
2 0 17 A
2 0 18
2 0 19
2020
2021
2022
2023
Cash To tal A ssets
5.8 33.9
218.9 225.7
162.2 168.9
48.0 54.8
126.9 152.5
207.6 252.0
292.0 355.2
To tal Debt To tal Liabilities Shareho lders Funds
0.0 1.0 32.9
100.0 101.0 124.6
100.0 101.0 67.9
100.0 101.0 -46.2
100.0 101.0 51.5
100.0 101.0 151.0
100.0 101.0 254.2
na na na
na na na
77% na na
na na na
na 8.2 108.7
na 8.2 39.5
na 8.1 24.9
R a t io s Net Debt/Equity (%) Interest Co ver (x) Return o n Equity (%)
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
863
S a le s R e v e nue Other Inco me Operating Co sts Explo ratio n Exp. Co rpo rate/A dmin/Other E B IT D A Depn & A mo rt E B IT Interest O pe ra t ing P ro f it Tax expense
B a la nc e S he e t ( A $ m ) S ubs t a nt ia l S ha re ho lde rs
2 0 19 E
0.0
Realised P rice (A $ /o z)
0
2 0 18 E
Head Grade (g/t A u)
P ro duc t io n ( k o z A u)
500
600
2 0 17 A
7
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23 February 2018
Nusantara Resources Limited
Recommendation History
Stock recommendations: Investment ratings are a function of Patersons expectation of total return (forecast price appreciation plus dividend yield) within the next 12 months. The investment ratings are Buy (expected total return of 10% or more), Hold (-10% to +10% total return) and Sell (> 10% negative total return). In addition we have a Speculative Buy rating covering higher risk stocks that may not be of investment grade due to low market capitalisation, high debt levels, or significant risks in the business model. Investment ratings are determined at the time of initiation of coverage, or a change in target price. At other times the expected total return may fall outside of these ranges because of price movements and/or volatility. Such interim deviations from specified ranges will be permitted but will become subject to review by Research Management. This Document is not to be passed on to any third party without our prior written consent.
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23 February 2018
Nusantara Resources Limited
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Patersons Securities have acted for Centennial Mining Limited (CTL) within the past year and have received fees for these services.
DRO
Patersons Securities have acted for DroneShield Limited (DRO) within the past year and have received fees for these services.
IBG
Patersons Securities have acted for Ironbark Zinc Ltd (IBG) within the past year and have received fees for these services.
IPT
Patersons Securities have acted for Impact Minerals Limited (IPT) within the past year and have received fees for these services.
NUS
Patersons Securities have acted for Nusantara Resources (NUS) within the past year and have received fees for these services.
PEX
Patersons Securities have acted for Peel Mining Limited (PEX) within the past year and have received fees for these services.
PGO
Patersons Securities have acted for Primary Gold Limited (PGO) within the past year and have received fees for these services.
SYA
Patersons Securities have acted for Sayona Mining Limited (SYA) within the past year and have received fees for these services.
UUV
Patersons Securities have acted for UUV Aquabotix Ltd (UUV) within the past year and have received fees for these services.
WKT
Patersons Securities have acted for Walkabout Resources Ltd (WKT) within the past year and have received fees for these services.
XTE
Patersons Securities have acted for Xtek Limited (XTE) within the past year and have received fees for these services.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
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All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility or liability on any account whatsoever on the part of this firm or any member or employee thereof.
23 February 2018
Nusantara Resources Limited
1300 582 256
[email protected] www.psl.com.au
Research Cathy Moises - Head of Research Hira Sakrani - Associate Analyst James Farr - Research Assistant
Phone: Phone: Phone:
(+61 3) 9242 4030 (+61 3) 9242 4052 (+61 8) 9263 1215
Email: Email: Email:
[email protected] [email protected] [email protected]
Phone: Phone:
(+61 2) 9258 8973 (+61 8) 9263 1612
Email: Email:
[email protected] [email protected]
Phone: Phone: Phone: Phone:
(+61 3) 9242 4153 (+61 8) 9225 2816 (+61 8) 9225 2813 (+61 8) 9225 2819
Email: Email: Email: Email:
[email protected] [email protected] [email protected] [email protected]
Phone: Phone: Phone:
(+61 3) 9242 4153 (+61 8) 9225 2836 (+61 8) 9225 2819
Email: Email: Email:
[email protected] [email protected] [email protected]
Phone: Phone: Phone: Phone: Phone: Phone: Phone: Phone:
(+61 8) 9263 1274 (+61 8) 9263 1186 (+61 2) 8238 6215 (+61 3) 8803 0108 (+61 3) 9242 4078 (+61 3) 8803 0166 (+61 2) 8238 6223 (+61 8) 9263 1232
Email: Email: Email: Email: Email: Email: Email: Email:
[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
Strategy & Economics Tony Farnham - Economic Strategist / Analyst Greg Galton - Private Wealth, Analyst
Commodities Cam Hardie - Analyst Simon Tonkin - Senior Analyst Xavier Braud - Analyst Nic Matich - Analyst
Industrials Martyn Jacobs - Analyst Jon Scholtz - Analyst Nic Matich - Analyst
Institutional Dealing Dan Bahen Michael Brindal Artie Damaa Paul Doherty Chris Kelly Jeremy Nugara Phil Schofield Sandy Wylie
Important Notice: Copyright 2017. The Contents contained in this report are owned by Patersons Securites Limited ('Patersons') and are protected by the Copyright Act 1968 and the copyright laws of other countires. The material contained in this report may not be copied, reproduced, republished, posted, transmitted or distributed in any way without prior written permission from Patersons. Modification of the materials for any other purpose is a violation of the copyrights and other proprietary rights of Patersons.
Disclaimer: Patersons believes that the information or advise (including any financial product advice) contained in this report has been obtained from sources that are accurate at the time of issue, but it has not independently checked or verified that information and as such does not warrant its accuracy or reliability. Except to the Extent that liability cannot be excluded. Patersons accepts no liability or responsibility for any indirect loss or damage caused by any error in or omission from this report. You should make and rely on your own independent inquiries. If not specifically disclosed otherwise, investors should assume that Patersons is seeking or will seek corporate finance business from the companies disclosed in this report. Warning: This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate to your particular investment objectives, financial situtation or particular needs. Prior to making any investment decision, you should assess, or seek advice from your adviser, on whether any relevant part of this report is appropriate to your financial circumstances and investment objectives. Disclosure: Patersons, its directors and/or employees may earn brokerage, fees, commissions and other benefits as a result of a transaction arising from any advice mentioned in this report. Patersons as principal, its directors and/or employees and their associates may hold securities in the companies the subject of this report, as at the date of publication. These interests do not influence Patersons in giving the advice contained in this report. Details of any interests may be obtained from your adviser. Patersons as principal, its directors and/or employees and their associates may trade in these securities in a manner which may be contrary to recommendations given by an authorised representative of Patersons to clients. They may sell shares the subject of a general 'Buy' recommendation, or buy shares the subject of a general 'Sell' recommendation.
Stock recommendations: Investment ratings are a function of Patersons expectation of total return (forecast price appreciation plus dividend yield) within the next 12 months. The investment ratings are Buy (expected total return of 10% or more), Hold (-10% to +10% total return) and Sell (> 10% negative total return). In addition we have a Speculative Buy rating covering higher risk stocks that may no be of investment frage due to low market capitalisation, high debt levels, or significant risks in the business model. Investment ratings are determined at the time of initiation of coverage, or a change in target price. At other times the expected total return may fall outside these ranges because of price movements and/or volatility. Such interim deviations from specified rnages will be permitted but will become subject to review by Research Management. This Document is not to be passed to any third party without prior written consent.
Patersons Securities Limited
ABN 69 008 896 311
AFSL 239 052
The Authorising Licensee, Patersons Securities Limited, is a Participant of ASX Group; Participant of National Stock Exchange (NSX); Participant of Chi-X Australia; Stockbrokers and Financial Advisers Association Principal Member.
RESEARCH NOTE – PATERSONS SECURITIES LIMITED
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All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility or liability on any account whatsoever on the part of this firm or any member or employee thereof.