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Additional Information
Market: AIM / ASX
Sector: General Mining - Uranium & Lithium
EPIC: FTE
Latest Price: 1.72p  (5.52% Ascending)
52-week High: 5.20p
52-week Low: 1.63p
Market Cap: 11.96M
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Forte Energy
www.forteenergy.com.au

Forte Energy NL is an Australian-based minerals company focused on the exploration, evaluation and development of uranium and energy-related projects worldwide.

The Company changed its name from Murchison United NL on 25 November 2008.

Forte Energy has secured an extensive portfolio of uranium projects in the Republics of Guinea and Mauritania in West Africa, where it is pursuing intensive exploration programs. The Company also holds copper and cobalt interests in Queensland and Western Australia, Australia.

Full Forte Energy profile here
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Canaccord Genuity initiates Forte Energy with 'speculative buy' rating, 6.4p target

9th Nov 2011, 10:20 am by Sergei Balashov Canaccord has set a 12 month target price of 6.4 pence for Forte Energy, which is nearly three times greater than Tuesday’s closing price of 2.2 pence

Canaccord Genuity has initiated coverage of Forte Energy (LON:FTE, ASX:FTE) with a “speculative buy” rating and a 12 month price target that offers an upside of over 200 percent to the current share price.

The note focused on Forte’s current drilling campaign in a “highly prospective” area of Mauritania, which offers short-term resource growth.

Canaccord analysts led by Peter Mallin-Jones said Forte’s cumulative target strike length of 140 kilometres at its Mauritanian blocks means drilling campaigns should find sufficient resource to supply a processing plant for “several decades”.

Forte is currently valued at US$0.9 per lb of measured, indicated and inferred resource, based on its current inferred resource of 28.5 million lbs. The company historically traded at US$0.85-US$9.8/lb, while its peer group traded at US$0.94-11.4/lb and is currently valued at US$1.05/lb.

Forte set to update its resource by mid-2012, expecting it to double to 57 mmlbs of uranium. The company has previously targeted a range of between 50 and 70 mmlbs.

The anticipated increase is likely to come from the A238 and A284 prospects.

According to Canaccord’s estimates, a resource of 70 mmlbs could be worth up to 10.1 pence per share, offering a potential upside of 381 percent from the current market value.

Furthermore, Mallin-Jones noted that companies with feasibility studies or in construction are currently value at US$5.3 per lb of resource, while the historic range stands at between US$3.7 and US$11.3/lb and progressing a deposit into development could propel the shares to 34 pence on an undiluted basis.

The analyst added that even after a share issue to fund the studies, it expects the company to be worth 26 pence per share, a premium of 1,152 percent to the current share price.

For now, Canaccord has set a 12 month target price of 6.4 pence, which is nearly three times greater than Tuesday’s closing price of 2.2 pence.

Forte currently has a market cap of £15.3 million.

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