Hjalmar Ahlberg » Analyser

Intex Resources has been developing the Mindoro Nickel project for several years. A recently signed development agreement indicates that the project finally is being materialized. The development agreement signed with Chinese MCC8 and financing proposal from CITIC-GEM is central for the realization of the project. The Mindoro mine will be a large scale low cost operation with LOM of >30 years. The mine will have a leading environmental characterization including potentially a carbon neutral operatopn. Full production is expected to yield more than 100k lb of nickel at a cash cost of around 1.1 USD per lb. Current valuation of Intex Resources does not realize the full value of the Mindoro project. With only a few obstacles remaining we see a high potential reward (Rating 7.5). Our fair value for Intex Resources is 21.8 NOK per share, which implies a substantial upside.