In The Australian , the Iron Ore numbers are the same as ARH , could be on ??
Resourcehouse listing date set
AFTER several false starts, Clive Palmer's Resourcehouse is aiming for a $US3 billion June 9 listing on the Hong Kong stock exchange.
Research sent to potential investors paints Resourcehouse as a China demand story with two projects: the China First Coal project in Queensland, with planned thermal coal capacity of 40 million tonnes per year and reserves of 1.05 billion tonnes; and the China First Iron Ore project in Western Australia, with planned capacity of 12.2 million tonnes annually of magnetite iron ore and reserves of 1.13 billion tonnes.
The two projects have capital expenditure requirements of close to $11bn -- $8bn for coal and $2.7bn for iron ore. It's understood the engineering, procurement, construction and management contractor for the China First Coal project, Metallurgical Corporation of China, has applied to China Eximbank for 70 per cent of the project's capital outlay in loan financing. Resourcehouse has off-take agreements with China Power International and Switzerland's Vitol for 20 million tonnes annually each.
Royal Bank of Scotland estimates the projects could generate annual aggregate operating cashflows of $2.5bn or $1.5bn after interest and tax.
RBS has a $US7.51bn to $US10.68bn valuation on the company on a post-money basis. Its base case assumes the projects start up over two years after construction is completed in 2014, and a long-term benchmark thermal coal price of $US80 a tonne and an iron ore price of $US85 a tonne.
The broker forecasts $1.15bn in earnings before interest, tax, depreciation and amortisation in the 2015 fiscal year and $2.5bn in 2016 on revenue of $2.36bn and $5.15bn, respectively.
UBS values the project at $HK104 ($12.3bn)-$HK148.2bn on a discounted cashflow basis.
ARH Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
