RE: GSA29 Jun 2015 18:54
Panmure Gordon has kept a 'buy' rating on Wentworth Resources and reduced its target price to 50p from 65p, citing a reduced production profile.
"We remain buyers of the stock, but take a more cautious view in light of the continuing delays getting to first production and the use of equity, rather than debt financing," Smith said in a note.
The researcher said while Wentworth appeared well placed, if Tanzanian authorities do not contract further gas supplies in the near term, it is not clear how over-supply would be managed, which it believed could impact gas sales.