Research reports

Canaccord Adams
Report
24 January 2006

Recommendation: BUY

On January 18, 2006 first Quantum announced that it is to make an unsolicited all share offer for Adastra on the basis of one First Quantum share for each 17.5 Adastra shares held. Although the bid was valused at a 24% premium at the time of the announcement, it now stands at C$2.16 per share, or a 13% discount to Adastra's current share price.
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Orion Securities
Report
19 July 2005

Recommendation: Overweight (Speculative)

Adastra has the potemtial to become one of the largest, lowest cost cobalt producers. The economics of processing copper and cobalt from the Kolwezi tailings in the Congo are attractive even at low cobalt prices. We initiate coverage with Overweight (Sepculative) rating. Our target price is C$3.00. There are challenges ahead, but we belivev the reward is worth the risk.
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McFarlane Gordon
Report
23 June 2005

Stock Rating: Speculative Buy

Adastra owns 65% of the Kolwezi Tailings cobalt-copper project in the Democratic Republic of Congo. Along with partners IFC (7.5%) and IDC (10%), and state interest (17.5%), Adastra plans to develop the project as a low-cost cobalt-copper producer by 2007. We are initiating coverage of Adastra Minerals with a Speculative Buy rating and a target price of C$3.10 per pro forma post financing share.
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Investec Securities
Report
26 May 2005

Recommended: BUY

Adastra controls one of the world's largest unexploited sources of cobalt. During 2005 it will complete a bankable feasibility study and arrange financing for the $300 m Kolwezi ailings project (KTP) ahead of construction beginning Q1 2006 with first production expected by end of 2007. We initiate coverage with a BUY recommendation and a target price of 130p.
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Canaccord Capital
Report
17 May 2005

Recommended: BUY

The World Bank, through its private sector arm the International Financial Corporation, has confirmed that it is to take a 7.5% direct investment in the Kingamyambo Musonoi Tailings SARL, the company that owns 100% of the Kolwezi Cobalt and Copper Tailings Deposits in the DRC. Together with the IDC - which already elected to a 10% direct stake - these two institutions offer substantial endorsement to the project, the company and the country. They will also be expected to be major participants in future debt financing of the project.
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TD Newcrest
Report
26 April 2005

Recommended: Speculative BUY

Canaccord Capital
Report
25 February 2005

Recommended: BUY

At a presentation given in the City on February 23, Adastra outlined a revised production plan that will reduce initial production from the planned 8,000tpa of cobalt tp 5,500t, but expanding later to 11,000tpa. GRD Minproc and Murray and Roberts are leading its Definitive Feasibility Study (DFS) for the development of the Kolwezi Tailings Retreatment project in the south east of the Democratic Republic of the Congo; Umicore is supporting offtake, marketing and technology; Rothschilds is arranging finance; and the IDC has taken a direct 10% stake in the project (IFC still to exercise its 10%). Timeline is unchanged expecting DFS completion in late Q3 2005, with financing following, and construction (18 months) commencing Q1 2006 for a Q4 2007 commissioning.
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Canaccord Capital
Report
3 December 2004

Recommended: BUY

The IDC has decided to exercise its option to earn a 10% equity stake in Kingamyambo Musonoi Tailings SARL (KMT) by paying contributions to previous expenditures with a 25% uplift. KMT Owns 100% of the Kolwezi Tailings Deposits. The IDC will also then pro rate fund all further development costs, including debt and equity contributions.
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Canaccord Capital
Report
2 September 2004

Recommended: BUY

Following on from the appointment of a consortium of GRD Minproc and Murray and Roberts to lead its Definitive Feasibility Study (DFS) for the development of the Kolwezi Tailings Project in the south east of the Democratic Republic of Congo, the company now confirms it has signed a Memorandum of Understanding with leading international metallurgical company Umicore for cobalt offtake, marketing and technology.
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Canaccord Capital
Report
15 July, 2004

Recommended: BUY

Since our last research piece on March 17, several small steps have been taken by the company that together paint a picture of good progress, and we are thus using this opportunity to reflect on our valuation.
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Canaccord Capital
Report
17 March, 2004

Recommended: BUY

Yesterday the company announced the long awaited news that it had obtained a Presidential Decree approving the incorporation of Kinganyambo Musonoi Tailings SARL (“KMT”), the Congolese operating company that will hold the company’s key asset, the Kolwezi Tailings Exploitation Permit.
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Canaccord Capital
Report
November 19, 2003

Recommended: BUY

Following the successful closing of the US$20 million fundraising for the company in late August, the stock price has performed exceptionally well, running up from around C$1.12 to peak at C$1.90 a couple of days ago.
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Canaccord Capital
Report
August 12, 2003

The 112Mt Kolwezi cobalt / copper tailings deposit in the Democratic Republic of the Congo – 97% of which is in the measured resource category – contains a total metal value at current prices of almost US$12 billion, with an in situ value of over US$100/t. Cash operating margin (EBITDA) is expected to be 67%.
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