WHI Research Note6 Jun 2022 09:14
https://twitter.com/research_tree/status/1533702737120083968
"As Alien positions itself as a DSO operator, with its low capex and simple business model, we expect Alien to rerate. We continue to see fair value at 2.7p/sh but will carefully monitor this as Alien derisks its plans."
"WHI View: The confirmation of high-grade, low-impurity and highly saleable iron ore at
Han**** is very positive news for Alien. DSO operations are technically simple and require
minimum upfront capital and installed infrastructure, Han**** and other projects under the
IOCA umbrella, gives Alien a clear pathway to cashflow. In addition to providing income, the
contract miner model being pursued by the Alien team allows for reduced management focus
and for it to focus its talents on advancing other compelling projects in its portfolio. We see
the addition of a potential second and third site of operation at Brockman and Vivash Gorge
as adding scale to Alien’s ambitions as a DSO producer. We continue to see fair value at
2.7p/sh but recognise the quick development path envisaged by Alien and will look to
reconsider our fair value as Alien reduces its risk profile."