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CENTRAL
AMERICA |
Inmet Hurt By Panama Project
Fears
By David Pett, Financial Post
Inmet Mining Corp. shares slipped, as
questions arise about the financing of its
100% owned Cobre Panama copper project in
Panama.
On Monday, Inmet said that LS-Nikko, through
its wholly owned subsidiary, Korea
PanamaMiningCorp., has decided to keep its
option to acquire an equity interest in
Minera Panama, S.A. (MPSA), owner of the
Cobre Panama project, at the current 20%
level. An option agreement previously
announced provided KPMC with the ability to
elect to increase its option interest in the
project to 30%.
"The Koreans' staying at 20% instead of 30%
does raise some financing questions for
Cobre Panama," said Raymond James analyst
Tom Meyer. "However, demand for world-scale
copper projects is increasing, in our view,
and we believe management is in a favourable
position to bring in a third partner for the
project to share the technical and financing
risk."
He reiterated his "outperform" rating and
recommended investors buy on any potential
pullback in shares.
UBS analyst Onno Rutten maintained his "buy"
rating, saying Inmet could could attract
alternative funding through partnerships,
project finance or royalties. He said
further clarity on the financing structure
will be provided once the Cobre Panama
feasibility study is ready at the end of
March.
"We believe that clarity on Cobre Panama's
financing and the anticipated ramp-up of Las
Cruces in H2/2010 will support IMN after the
anticipated near-term challenges," he wrote
in a note to clients. |
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