Here's the upgraded Analyst report from NBF. Initial price...

Here's the upgraded Analyst report from NBF. Initial price target revised up from $1.10 to $1.25. Estimated OPEX cut by 10%.

Elemental Minerals Limited
ELM (T) $0.75
Stock Rating: Outperform
(Unchanged)
Target: $1.25
(Was $1.10)
Risk Rating: Above Average
WOW! New High-Grade Potash Seam Expands
Four Holes in “Hangingwall” Reveal 30+%
K2O Less Than 250 m Deep – Raising Target

HIGHLIGHTS

Two more holes at Sintoukola reveal impressive potash
grades. The last two holes of the latest drill campaign for the Kola deposit (of the Sintoukola project) revealed unusually high potash grades in what management is calling the “Hangingwall” seam. These holes grade 37.8% K2O (3.1 m
thick from 222.6 m depth) and 34.2% K2O (3.8 m thick from
196 m depth.) The first two holes of the seam were also
robust, grading 30.6% K2O (2.5 m thick from 210 m depth)
and 33.1% K2O (2.2 m thick from 214 m depth.) Note that
typical grades in Canada’s world-class SK basin are
~18%-26% K2O, though most of the potash lies 1+ km deep.

? Hangingwall seam offers significant opportunity to
enhance project economics. The potash grade of this seam
appears to be at least 50% higher than the previously
highest-grading Upper seam around which management has
been building a Pre-feasibility study (PFS) due in the coming months. Management has indicated that the Hangingwall seam is ~3 m thick, appears to be laterally extensive and is flat to gently dipping, suggesting it will be a relatively simple conventional mining target. To date none of the Hangingwall seam drill hole results have been incorporated in the Kola deposit resource estimate.

? We expect the PFS due circa Q3/12 to help de-risk
Sintoukola and provide a solid foundation for the FS
expected to be completed circa H1/13. The PFS is
expected by Q3/12 and is apt to help de-risk the project and positively re-rate ELM shares. Management also aims to
deliver a Feasibility Study (FS) by H1/13, which should allow the Company to meet our H2/16 initial production assumption.

? Raising DCF-based target to $1.25 from $1.10 on lower
assumed opex; OP maintained. We cut assumed opex
~10% to ~$105/tonne presuming the Hangingwall seam will
cost less to mine. This reduces our calculated fully diluted, fully financed share count to 719 mln from 762 mln previously.

Our NAVPS (fd, ff; 13.5% cost of capital) estimate is
Cdn$1.58, implying 0.24x EV/NAV, in line with peers at 0.20x.

52-week High-Low $1.69 - $0.59
Shares Outstanding - Fully Diluted (mln) 243.8
Shares Outstanding - Fully Diluted, Fully Financed (mln) 719.3
Market Capitalization (mln) $183
Year End: December 31
Key Asset (93% owned) Sintoukola Project, Republic of Congo
Measured & Indicated Resource (sylvinite) 413 Mt @ 20.4% K20
Inferred Resource (sylvinite) 261Mt @ 19.2% K2O
Annual Design Production (KCl) 2.0 Mt
Estimated Start Date H2/2016
Opex (estimated per tonne, incl. transport, USD) $105
Capex (estimated - mln, USD) $1,992
NAV13.5% (estimated - mln, USD) $1,135
NAVPS (fd, ff) $1.58
All amounts in Canadian dollars unless otherwise noted
Financial Data: As at March 31, 2012
Estimated Cash with ITM Warrants and Options (mln) $30.1
Total Debt (mln) none
Enterprise Value (mln) $153