CRK: Weather Thwarts Production

GARY BASCHUK, Raymond James (02/28/2011)
"This morning CRK released. . .guidance lower than our expectations due to a combination of heavy rains and permitting delays. . .[thus] we are decreasing our target price on CRK to $2 (from $2.40).

Long-term Outlook Remains Positive: We expected Q410 and Q111 to have poor production numbers with higher costs but also expected Cosmo's high-grade ore to come onstream sooner; the company has maintained production guidance of >200 Koz. in 2012 (we model 193 Koz. at US$783/oz.), leaving our long-term outlook for the company intact."

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