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Additional Information

Market:	ASX
Sector:	Gold Mining
EPIC:	EXS
Latest Price:	0.21 (0.00%)
52-week High:	0.73
52-week Low:	0.18
Market Cap:	72.07M

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Exco Resources Full Exco Resources profile here

Exco Resources (ASX: EXS) is extremely well funded after the recent sale of the Cloncurry Copper Project in north-west Queensland to Xstrata for $175 million.

Post the sale of the project, Exco’s focus will be to add further value to the company's assets, with the board having already approved an initial exploration program of up to $10 million for the company's remaining tenements in the Cloncurry, Hazel Creek, and Soldiers Cap project areas.

Fox-Davies sees interesting period ahead for Exco Resources, maintains 'buy', ups target to A$0.67

Tuesday, March 16, 2010

Fox-Davies Capital said that Exco Resources (ASX: EXS) is about to start an interesting period, as it moves from being an explorer to a producer with first gold production from its White Dam mine expected to begin within the next month. The stockbroker reiterated its 'buy' recommendation and upped its price target to AU$0.67 per share, due to its valuation model rolling forward 6 months following last week’s interim results.

According to Fox-Davies its price target is based on a stand alone 3Mtpa operation, plus the production of magnetite. The broker noted that its model remains largely unchanged from its last note, published earlier this month. Previously on 4 March, the stockbroker had a AU$0.65 price target.

The White Dam project is being developed through a joint venture between Exco and privately held Polymetals Group Pty. Polymetals, which is acting as project manager, owns 25% interest in the project, while Exco owns the remaining 75%.

During the quarter ended 31 December 2009, the White Dam reserve was upgraded by 14% to 21,400 ounces, including an 86% conversion of Indicated Resources to Probable Reserve. New financing arrangements for the project were completed as a result of the upgrade, and the project commenced construction in early October.

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