From Canaccord's Morning Report, May 21/99
Aber Resources (ABZ : TSE : $11.20) STRONG BUY
Target price: $30.00
52-week price range: $17.40-6.80
Shares O/S: fully diluted 48.0M
Working capital: (30/06/98) $123.6M
Market capitalization: $537.6M
Strength related to press report
A Canadian Press report in the Vancouver news yesterday entitled
Conditional approval for Diavik project" appears to have quoted David
Livingstone, a senior NWT government representative, as saying "no
significant or unmitigable environmental or socio-economic effects"
were seen in the Diavik diamond project. The actual approval process
will follow the formal final submission of the "Comprehensive Study
Report" to the Minister of the Environment, probably in June, with
Cabinet approval expected in July. We have read through Chapter 8 of
the 500-page draft report from the Department of Indian Affairs and
Northern Development, and on balance discern a positive stance by the
regulatory authorities, with certain recommendations to Diavik.
Considering the detail of this report and the number of agencies and
interested parties, the go-ahead decision for Diavik will be, as with
the Ekati Mine development, unprecedented in Canadian mining history.
Aber remains a STRONG BUY.
Happy investing,
andras
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