Proactiveinvestors recommends
Additional Information
Market: ASX
Sector: General Mining - Copper
EPIC: EXS
Latest Price: A$0.16  (-3.13% Descending)
52-week High: A$0.73
52-week Low: A$0.15
Market Cap: A$54.49M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Exco Resources
www.excoresources.com.au

Exco Resources Ltd has a clear development strategy for its highly prospective project portfolio. The portfolio currently includes the White Dam Gold Project in South Australia and the Cloncurry Copper Project in NW Queensland.

Full Exco Resources profile here
Is EXS a Buy, Sell or Hold?Get your FREE analysis of EXS
Pdf

Fox-Davies reiterates ' buy ' on Exco Resources after loan repayment

24th Nov 2010, 2:28 pm

London-based broker Fox-Davies Capital welcomed Exco Resources' (ASX:EXS) announcement it has repaid the gold loan to Barclays Capital (NYSE:BRC), which financed Exco’s share of the development cost of the White Dam Gold Production joint venture in South Australia.

The last repayment was completed yesterday, just seven months after the start of production and two months before the first of three scheduled part-delivery dates, which Fox-Davies said was made possible by a combination of better-than-expected production rates and higher gold prices.

Fox-Davies called the news “excellent” as the company was now unencumbered and could benefit from the high gold prices now pertaining.

As a result, it upholds its 'buy' recommendation for the stock.

The broker also noted that the JV partners are currently completing an exploration and resource development programme for the nearby Vertigo deposit and White Dam North, White Dam South and Ambush prospects to extend the life of the mine and increase life of mine production.

Extensions to the current pit are also being investigated.

The White Dam Gold Project (Exco 75%, Polymetals Group Pty Ltd 25%) is located in South Australia approximately 80km west of Broken Hill. The project contains a resource inventory of 9.6 million tonnes (Mt) grading 1.05 grammes per tonne (g/t) of gold for 325,000 ounces contained.

38,900 ounces of gold (Exco’s share 29,175 ounces) have been produced to date at the project, exceeding expectations by approximately 30%.

With costs of A$600/oz, the project is already delivering significant revenues. The relatively short-life project is currently expected to produce a total of 120,000 ounces (Exco’s share 90,000 ounces).

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.