The company has received the regulatory approvals required to restart the Ranger processing facility. First uranium is now expected early in the September quarter.
CIMB has reduced 2014 earnings estimates to a los of $200m from a loss of $11m, largely from higher depreciation and processing suspension costs. Despite the resolution of the processing issues, Ranger 3 Deeps remains the key value driver for the company and currently makes up 79% of the broker’s target price.
CIMB retains a Hold rating and reduces the target to $1.36 from $1.38.
Target price is $1.36.Current Price is $1.30. Difference: $0.07 – (brackets indicate current price is over target). If ERA meets the CIMB Securities target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).