Investment firm out of London - cheers.

Mart is the only company under our coverage paying a quarterly dividend. A forecast dividend of C$0.15/share for 2012 and C$0.20/share in 2013e translates into extremely attractive dividend yields of 10.0% and 13.3% respectively at the current share price.

Our DCF-derived Total NAV for Mart Resources is US$774m or C$2.17/share at current exchange rates. As such we are initiating coverage of Mart Resources with a TP of C$2.15/share, which represents upside of 43% from the current share price. Although the discount to our estimated Total NAV is narrower than for some other coverage companies, Mart has very attractive dividend yield support and P/Core NAV is below 1x. Hence we are initiating coverage of Mart Resources with a BUY recommendation.