Original-Research: SunMirror AG (von Sphene Capital GmbH)
Original-Research: SunMirror AG - von Sphene Capital GmbH
Einstufung von Sphene Capital GmbH zu SunMirror AG
Unternehmen: SunMirror AG
ISIN: CH0396131929
Anlass der Studie: Update Report
Empfehlung: Buy
seit: 27.05.2022
Kursziel: EUR 122,40 (vorher EUR 194,70)
Kursziel auf Sicht von: 36 Monate
Letzte Ratingänderung: -
Analyst: Peter Thilo Hasler
Half year 2021/22 figures impacted by one-off effects
After the publication of H1/2021/22, we maintain our Buy rating for the
shares of SunMirror but cut our fully diluted PT to EUR 122.40 from EUR
194.70 per share given (i) lower peer group multiples, (ii) expected delays
in the commissioning of the Australian assets, (iii) higher net debt, and
(iv) higher discount rates not at least due to ongoing uncertainties about
the takeover of Lat66. In H1/2021/22, SunMirror reported operating losses
of USD -6.7m (H1/2020/21: USD -1.3m) and after-tax losses of USD -10.4m
(H1/2020/21: USD 1.3m). Profitability was impacted (i) by the full
depreciation of an exclusivity premium of USD 2.8m, which SunMirror has
agreed to pay as part of the acquisition price for Finnish Latitude 66
Cobalt Oy (Lat66), and (ii) by the expiry of a right to repay a loan
granted to Lat66 in the amount of USD 1.5m. Driven mainly by issuing a USD
4.2m convertible bond, the company's cash position improved to USD 2.8m by
12/31/2021 from USD 0.4m after 06/30/2021, while net debt deteriorated to
USD 22.9m from USD 9.2m.
In April, SunMirror agreed with Latitude 66 a further 10-week extension to
the outstanding takeover offer in respect of all of the outstanding
ordinary shares of Lat66. For this extension, a loan of EUR 4m has been
granted to Lat66 that becomes non-repayable if the takeover will not be
completed. The Tender Offer will be extended to 21 June 2022. According to
the company, more than 98% of all issued shares have been tendered by
Latitude 66 shareholders.
We value the equity of the Dusseldorf Stock Exchange-listed company using a
sum-of-the-parts valuation model based on a Net Present Value (NPV) entity
model, in-situ values, and peer group multiples. We did not factor in any
future acquisitions. Our price target is primarily driven by royalty
schemes the company intends to generate from Cape Lambert North, for which
we calculated an equity value of EUR 67.10 per share (base-case-scenario).
We value Moolyella with EUR 30.30 per share, Lat66 with EUR 28.10 per
share, and Kingston-Keith with EUR 6.20 per share. Together with net debt
of EUR 9.40 per share, this approach calculates an equity value of EUR
122.40 per share. Higher grade potential at Kingston-Keith and Moolyella
could represent substantial upside to our target price. Additional short-
and medium-term upside potential could be identified, in our view, should
the management decide for a trade sale of its most valuable mineral
reserve, Cape Lambert, to a strategic investor or succeed in exploiting
that asset in a capital-efficient manner. Upside to our price target could
also arise, should the company use the proceeds from the capital increase
for acquiring further strategic mineral assets significantly below market
values.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/24293.pdf
Kontakt für Rückfragen
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de
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