Olam (O32.SG) +1.6% at $3.20, extending Friday’s 2.6% gain, as proposed US$200 million ($260.6 million) sugar refinery project in Nigeria continues to underpin sentiment.

Facility, due to operate by mid-2013, expected to generate 27% EBITDA margin vs Olam’s existing single-digit margins.

“We believe Africa could represent an attractive market for the group, given its experience and presence in the continent, where it is sourcing 1.2 million metric tons of commodities a year,” says Kim Eng Securities, which has Buy call with $3.88 target, “This project could represent Olam’s biggest prize when sealed, and crystallise its long-term growth.”