Morgans assesses lower development risks for Strandline Resources following a $50m placement to fund accelerated work on its three key growth projects.

After the broker reduces its valuation risk discounts on Coburn, Fungoni and Tajiri and factors in additional cash flows from the Coburn expansion, the target price rises to $0.70 from $0.60. The Add rating is maintained.

Sector: Materials.

Target price is $0.70.Current Price is $0.45. Difference: $0.25 - (brackets indicate current price is over target). If STA meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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