Morningstar have just upgraded their fair value estimate to 28c...

Morningstar have just upgraded their fair value estimate to 28c and flagged a further potential upgrade to 35c depending on their ability to further reduce costs.

Their discount to net cash reflects acquisition uncertainty and contingent mine rehabilitation liabilities that they are valuing at $50m. They believe that management is being disciplined in the acquisition process and unrealistic vendor expectations are the primary barrier to a transaction although they state that this is beginning to moderate.