The Globe and Mail reports in its Tuesday, Aug. 30, edition that Credit Suisse analyst Ralph Profiti
downgraded Nautilus Minerals
to "neutral" from
"outperform" based on greater
uncertainty surrounding financing
and timing of its project milestones.
The Globe's David Leeder writes in the Eye On Equities column that the move comes after the
Toronto-based company entered
into a subscription agreement
with a pair of major shareholders
for gross proceeds of $20-million. One of the stakeholders is a joint venture partner in its Solwara 1 project.
Mr. Profiti lowered his target to
20 cents from 30 cents. Mr. Profiti
is currently the lone analyst of
the stock.
Mr. Profiti says in a note: "We estimate alternative funding may still be required to meet 2018 commitments. With the termination of contracts for the construction of sea floor production equipment that were in early stages and implementation of workforce reduction measures, we have reduced our estimated cash burn rate to $7-9-million/quarter (from $20-35-million/qtr) for 2H16-2017 vs. cash at end-2Q16 of $51-million, leaving NUS with sufficient liquidity in the near-term. Additional funding may be required ahead of commitments in 2018-2020."
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