UPDATE: BMO Capital Markets Initiates Cardero Resource at Outperform on Valuation, Production

BMO Capital Markets initiated Cardero Resource

with a Outperform (Speculative) rating and a $0.45 price target. BMO Capital Markets commented, "Cardero is rated Outperform (S) based on valuation, near-term production and lower capital requirements. Cardero trades the lowest of the coal group on P/NPV (both BMO's base case and spot) and EV/t of reserves, and among the lowest on implied pricing. BMO would expect development companies to trade below established producers; however, it is notable that Cardero trades in line with SouthGobi, a company with significant geopolitical risk and a selling shareholder factored into its stock price." Cardero Resource closed at $0.32 on Tuesday.