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.
Exco Resources receives BUY recommendation at $1.20 by Fox Davies
Exco Resources (ASX: EXS) has received the bullish $1.20 BUY recommendation from Fox Davies, due to the excellent March quarter gold production.
The target is almost double the last traded price of $0.61 for Exco.
Extract below from the Fox Davies report
The attributable production from the White Dam mine in South Australia was 18,928 gold ounces and 22,573 were sold.
Cash costs for the quarter were A$388 an ounce.
Comment
This was another excellent quarter for the mine, which exceeded our optimistic expectations.
Sales were substantially higher than production due to the grades being treated at the end of the December quarter.
The attributable production for the quarter was produced from the processing of 757,370 tonne of ore at 1.06g/t.
Only 294,919 tonne of waste was mined, giving a very low strip ratio.
With the pit due to be mined out by around September 2011, we anticipate that the production figures will not materially change in the current June quarter.
Recommendation
We retain a BUY recommendation with an increased price target of A$1.20 a share, formerly A$0.88.
The increase is due to the better than expected MQ gold production and the fact that it is expected to continue at current levels and costs in the JQ.



















