Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
NMDC buys 50% in Legacy Iron ore for `92cr
NMDC has agreed to purchase a 50% stake in Australia-based Legacy Iron Ore (Legacy)
as cornerstone investor for `92cr. The proposal is subject to approval of Legacy’s
shareholders and other regulatory approvals. Legacy is an iron ore and gold exploration
company. It holds highly prospective iron ore tenements in Central Yilgarn and Pilbara
regions of Western Australia. All project areas are located close to the established
infrastructure. NMDC can leverage its expertise in developing Legacy’s mining assets over
the medium term. NMDC’s cash and equivalents stood at `17,364cr as of March 31,
2011.
We like NMDC’s strategy to utilise its excess cash and purchase undeveloped mining
assets. However, currently we lack clarity on the iron ore reserves, capex requirement and
production timelines. We maintain our Neutral view on the NMDC stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
NMDC buys 50% in Legacy Iron ore for `92cr
NMDC has agreed to purchase a 50% stake in Australia-based Legacy Iron Ore (Legacy)
as cornerstone investor for `92cr. The proposal is subject to approval of Legacy’s
shareholders and other regulatory approvals. Legacy is an iron ore and gold exploration
company. It holds highly prospective iron ore tenements in Central Yilgarn and Pilbara
regions of Western Australia. All project areas are located close to the established
infrastructure. NMDC can leverage its expertise in developing Legacy’s mining assets over
the medium term. NMDC’s cash and equivalents stood at `17,364cr as of March 31,
2011.
We like NMDC’s strategy to utilise its excess cash and purchase undeveloped mining
assets. However, currently we lack clarity on the iron ore reserves, capex requirement and
production timelines. We maintain our Neutral view on the NMDC stock.
No comments:
Post a Comment