"Building Good Momentum; Stock poised for a strong build during 2009"
Vikas Ranjan

(416) 605-7024

vikas@ubikacorp.com
Tushar Handiekar

(416) 822-3722
tushar@ubikacorp.com
 
   
 
RATING: SPECULATIVE BUY
12-MONTH TARGET: $1.02
SHARE HIGHLIGHTS

Stock Information

AAA.V

Price Date

Last Price

52-Wk (H)

52-Wk (L)

July 13, 2009

$0.15

$0.27

$0.08

 

FY07A

FY08A

FY09E

Sales ($M)

$0.13

$0.04

$0

EBITDA / Sh ($) ($0.03) ($0.04) ($0.00)

P/Sales

NMF

NMF

NMF

EPS (FD)

FY07A

FY08A

FY09E

Q1

($0.00)

($0.00)

($0.00)

Q2

($0.00)

($0.00)

($0.00)

Q3

($0.00)
($0.00)

($0.00)

Q4

($0.03)

($0.04)

($0.00)

Total

($0.03)

($0.03)

($0.00)

As at Jan 31, 2009

Cash ($M)

$1.18 M

Sh O/S(M)

57.7 M

LT Debt ($M)

$0

M Cap ($M)

$10.9 M

LT Debt/Total Cap.

0%

Div / Share

$0

BV per share ($)

$0.07

Div Yield

0%

 
 

Company Snapshot : Allana Resources Inc. (TSX-VEN: AAA) is a Canadian potash company focusing on the exploration and development of a previously explored Dallol potash property in the Danakil Depression, Ethiopia. The Danakil depression had small-scale potash production in the 1920’s and was extensively explored in the 1960’s with nearly 300 potash drill holes. The Company has a strong management with experience in potash industry and 43-101-compliant resources of over 100 million tonnes.

 
MANAGEMENT

The company is managed by a strong group of leaders with experience in the resource and mining industry. Two directors, including the CEO, have extensive experience in the potash industry. The company has an experienced exploration team to carry out future drilling programs.

 

LOCATION

Alllana Resources Inc.
65 Queen Street West
Suite 805, P.O. Box 75
Toronto, ON M5H 2M5
Canada.

Tel: (416) 861-2260

Email: info@allanaresources.com
Website: www.allanaresources.com
CORPORATE OVERVIEW

Allana Resources Inc. (TSX-VEN: AAA) is a Canadian exploration company. The company’s principal business segment is the acquisition, exploration and development of mineral properties. The company has a strong management team with experience in potash industry. The company is currently focused on the exploration and development of a previously explored Dallol potash property in the evaporite basin of Danakhil Depression, Ethiopia. The Danakil Depression is one of the largest evaporite basins in the world with known potash resources and has been attracting lots of interest from some major mining companies including BHP Billiton. The Danakhil Depression had small-scale potash production in the 1920s and was extensively explored in the 1960s with nearly 300 drill holes completed by the Ralph M. Parsons Company. Altogether, the company has NI 43-101-compliant resources of 105,200,000 tonnes with a composite grade of 20.8 % KCl.

 
Allana Resources Report
  Download the Full Report (Date of Issue: February 26, 2009)
  Download the Update Report (Date of Issue: 13 July 2009)
Download the Research Bulletin(Date of Issue: 6 November 2009)
 
 
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INVESTMENT HIGHLIGHTS

  • Initial Reconnaissance Complete and 2009 Drilling program announced: Allana Resources (AAA:TSX-VEN) recently concluded its initial reconnaissance program, which highlighted the potential that the Danakhil Depression in Ethiopia holds. Upon conclusion of its reconnaissance program, Allana announced a further exploration program that includes 2,500 metres of diamond drilling, down hole seismic studies and 2-D seismic surface studies, all to be completed in 2009.

  • Potential to become the lowest quartile cost producer of potash: Allana’s potash deposit at Dallol is near surface and amenable to solution or open pit mining. Both these methods require less capex. Possible use of solar evaporation and geothermal power, lower local wages and absence of known environmental and permitting issues can result in significantly lower operating cost.

  • Funding secured: Allana also secured C$2.5-million funding through sale of Units (share and warrant) to help fund its 2009 drilling program. Its private placement announcement was very well received, which resulted in Allana increasing the size of its initial fund-raising to $2.5 million from $1.5 million.

  • Strong Upside Potential: Allana currently has NI 43-101 compliant resource estimates of 105.2 million tonnes with a composite grade of 20.8% KCl. The near surface nature of potash deposit makes its amenable to solution or open pit mining, both low capex methods. We therefore continue to rate Allana Resources a SPECULATIVE BUY, with a 12-month target price of $1.02 per share (a 580% return).


  • All dollar amounts in Cdn$, unless noted.
 
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