Takeover target Resource Pacific (RSP) has corrected the ore reserve figure for its Newpac mine, released in the valuation report of the company in light of the bid from Xstrata.
In its target's statement on 31 December the company used a reserve figure for the Newpac mine of 111.5 million tonnes, which represents 100% of the current mine reserves.
However, RSP only has a 90% interest in the reserves at Newpac, an underground coal mine in New South Wales' Hunter Valley.
This means Resource Pacific's share of the reserve is 100.4 million tonnes.
However, the new figure does not change the expert's valuation of Resource Pacific.
"Interfinancial remains of the view that the valuation range for RSP shares is $3.56 to $4.09, with a preferred valuation of $3.82… and that the offer is neither fair nor reasonable based on our valuation," InterFinancial said in a statement.
Sydney-based Resource Pacific reiterated its recommendation to shareholders to reject the Swiss-giant's offer.
"Your directors continue to recommend unanimously that you REJECT Xstrata's offer", RSP said.
Xstrata made an unconditional cash offer on 5 December of $2.85 per share for shares in Resource Pacific, a bid which Pacific's directors say undervalues the company.
Resource Pacific released a target's statement on 4 January detailing a plan to double output from its Newpac mine to eight million tonnes per annum.
Xstrata labelled this plan as ‘overly optimistic' last week.
Shares in RSP fell 3 cents to $3.01.
