Ann: Azimuth Appoints Russell Clark as CEO , page-5

Fosters gave him the "thumbs up" also......

01-Feb-2013
Morning Report\

Azimuth Resources (AZH, $0.34, Mkt Cap $146M). Astute MD appointment to drive stock. Buy PT $0.60/share.

Today’s Top Picks.

Azimuth Resources (AZH, $0.34, Mkt Cap $146M). Astute MD appointment to drive stock. Buy PT $0.60/share.

•Azimuth Resources (AZH) this week announced the appointment of Russell Clark as its Managing Director. Mr Clark was previously MD of Grange Resources. We view his appointment as a big positive for a number of reasons:

­ Profile of AZH to be enhanced. Mr Clark was successful at Grange in lifting the profile of the company in the investment community. When Grange merged with Savage River, it created Australia’s only listed pure magnetite and pellet producer. However the market‘s familiarity with iron ore producers was limited mostly to direct shipping ore operators. Mr Clark successfully embarked on educating the investment community on the dynamics and specifics of magnetite ad pellets, via hosting site visits and market presentations.

­ We believe in Azimuth’s case, he will focus on educating the market on the attractiveness and potential of Guyana as a gold producing region, given the Australian market’s unfamiliarity with the country especially when compared to the more familiar West African and South East Asian locales.

­ Transforming AZH from explorer to developer. The appointment of Russell Clark provides Azimuth with a full time MD, as well as one that has had experience in running operations, including gold during his tenure at Normandy and Newcrest. We believe this is critical for the company if it wants to transition from explorer to developer/producer. We would expect a scoping study sometime later this year to provide the market more clarity on production, costs, and capex.

•AZH’s current resource ay Smarts-Hicks is 1.2Moz at 3.1g/t. Azimuth expects to announce a resource increase during 1Q13 following further drilling, while initial drilling at West Omai looks promising.

•We reiterate our Buy PT $0.60/share

http://www.fostock.com.au/announcements/azimuth-resources-azh-asx