Expert Analysis
Andrea Rubakovic, Salman Partners (11/12/12) "We recently had the opportunity to visit Allana Potash Corp.'s Dallol potash property at the Danakil Depression in northern Ethiopia. . .as a result of the site visit, we are increasing our 12-month target price to CA$1.40 per share. . .key drivers for our increased target are 1) a better understanding of the Ethiopian government's support for companies such as Allana Potash. . .2) significant progress toward completion of the bankable feasibility study expected late this year or early next year and 3) extensive infrastructure work conducted in the area around the project. . .we believe that Ethiopia is a politically stable country with ambitious but well-defined growth plans. . .in our view, Allana Potash in particular stands to benefit by being one of the most advanced resource development companies in the country."
Steve Hansen, Raymond James (11/2/12) "We are increasing our target price for Allana Potash Corp. to $1.25 (previously $1) and upgrading our rating to Outperform, predicated upon our belief that many of the key technical risks facing Danakhil, while not entirely resolved, are rapidly being addressed. . .a large number of key milestones will transpire over the next six months and the company's risk-reward proposition has improved considerably. . .we came away from our Ethiopian tour with far greater confidence in Allana's ability to further advance its flagship Danakhil potash deposit toward production. . .it has set the stage for a favorable DFS report by year-end."
Andrea Rubakovic, Salman Partners (11/2/12) "Allana Potash Corp. closed the acquisition of Nova Potash yesterday, which holds a potash license adjacent to Allana's project in the Danakhil Depression in Ethiopia. . .we see this as a very strategic and positive acquisition for Allana. . .with this acquisition, in our view, the company will have the best access to a fresh water source of any potash developer in the Danakil basin, which we believe may put it in a preferred negotiating spot in case of any consolidation in the basin. We reiterate our Buy recommendation and CA$1.20 target price."
Andrea Rubakovic, Salman Partners (10/16/12) "This morning, Allana Potash Corp. provided an update on its ongoing feasibility study, on schedule to be completed by year-end 2012, on its 100%-owned Danakhil potash project in Ethiopia. . .holes intersected Sylvinite zone and the management remains confident that the drill results may add to all mineral resource categories and upgrade from Inferred to Measured and Indicated categories, previously estimated in April 2012. . .we reiterate our Buy recommendation and our 12-month target of CA$1.20/share."
Marc Robinson, Cormark Securities (9/6/12) "Acquiring Nova-Ethio Potash Corp. (Nova) with stock and limited upfront risk, allows Allana Potash Corp. to double its contiguous land position, potentially increase its Sylvinite resource by over 40% and materially increase critical water rights, all for just 21% dilution. . . with [our] target implying a near double from current levels, we reiterate a Speculative Buy recommendation. . .we expect the majority of gains to be realized over the back half of our 12-month time horizon."
