Independent research from Edison Jan 2010 here www.altonaenergy.files.wordpress.com/2010/01/altona080110outlook.pdf

Sector: Mining
Price: 11.3p
Market cap: 47m
Forecast net cash (m) 1.0
Forecast gearing ratio (%) N/A
Market AIM
Share price graph (p)
Company description
Altona holds a 49% interest in three
exploration licences covering 2,500km
square in the north of the Permian
Arckaringa Basin, South Australia. Its
immediate focus is completing a
bankable feasibility study for a coal to
liquids plus co-generation facility.
Price performance
% 1m 3m 12m
Actual 9.8 36.4 116.3
Relative* 10.6 (13.3) 95.5
* % Relative to local index
Analyst
Michael Starke
Altona Energy (ANR)
INVESTMENT SUMMARY
In early November, energy companies Solena and Rentech agreed to establish a commercial
scale sustainable jet fuel facility in the UK using Rentech's Fischer-Tropsch synthetic fuel
technology. The deal is important for Altona Energy as it highlights the growing importance of
syngas in the production of various synthetic fuel types (including aviation fuels). Altona Energy
plans to use this technology to produce liquid fuels from its flagship Arckaringa coal deposit in
South Australia where it has signed a joint venture deal with CNOOC. The third-largest
state-owned oil company in China, CNOOC, has agreed to provide $40m for a bankable
feasibility study (BFS), which commenced in October this year.
INDUSTRY OUTLOOK
In addition to supplying local demand for fuel and power (including potentially BHP Billitons
nearby Olympic Dam project), the JV is also looking to export fuel and possibly coal to the
Asian markets. The BFS commenced last month and is expected to take around two years.
Y/E Jun Revenue EBITDA PBT EPS P/E P/CF
(m) (m) (m) (p) (x) (x)
2009A 0.0 (1.3) (1.3) (0.31) N/A N/A
2010A 0.0 (2.6) (2.6) (0.64) N/A N/A
2011E 0.0 (1.6) (1.5) (0.38) N/A N/A
2012E 0.0 (1.7) (1.7) (0.41) N/A N/A
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