UK stockbroker Fox Davies has revised upward its valuation on Exco Resources (ASX: EXS) in a revised Commodity and Currency forecast.
"Exco Resources is focusing on developing its Cloncurry Copper Project in Queensland, Australia. Further, the recent strong improvement in the A$ gold price has resulted in much more attention being paid to its other asset, the White Dam gold project which has been successfully brought into production."
FD said, "Exco has benefitted from the higher gold and copper prices plus the lower valuation now being given to the Australian dollar. This valuation of Exco is based on a stand alone 3Mt pa copper mine, 100% owned by Exco.
52-wk Range: A$0.18-0.36
Market Cap (M): A$80.5
12 month target A$0.77
EV (M): A$60.6
Shares Outstanding (M): 328.6
Current Price (AUD): A$0.25
Fully Diluted Shares (M): 345.0
Recommendation
FD commented, "We retain the Buy recommendation with an increased target price of A$0.77/share, formerly A$0.67/share.