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Original-Research: Almonty Industries Inc. - von Sphene Capital GmbH
Einstufung von Sphene Capital GmbH zu Almonty Industries Inc.
Unternehmen: Almonty Industries Inc.
ISIN: CA0203981034
Anlass der Studie: Aufnahme der Coverage
Empfehlung: Buy
seit: 15.11.2022
Kursziel: CAD 1,67
Kursziel auf Sicht von: 24 Monate
Letzte Ratingänderung: -
Analyst: Peter Thilo Hasler, CEFA
The revival of the Sangdong tungsten project
We are initiating research coverage of Almonty Industries with a Buy rating
and a CAD 1.67 price target, which is derived using a blended NAV- and
two-stage DCF-based approach. Considering the expansion of its own value
creation by building a vertically integrated nano-tungsten oxide processing
plant to supply the South Korean battery anode and cathode manufacturing
industry would unlock additional value creation potential for Almonty,
allowing the company to generate significant earnings growth, which is not
yet reflected in the current share price, in our view. Almonty's shares are
currently trading at 1.82x and 5.5x 2024e revenues and EBIT, respectively,
and we believe the stock needs to re-rate to reflect the company's value
creation prospects.
Almonty Industries is a Canadian-based mining, exploration, and development
company that controls a portfolio of four high-grade tungsten projects in
stable Tier 1 jurisdictions in South Korea and the Iberian Peninsula. The
Group's flagship tungsten deposit is Almonty Korea Tungsten ('AKT'), which
was one of the world's leading tungsten producers for more than 40 years,
under the former name Sangdong Mine. After a planned restart in 2023e, AKT
is expected to be the largest tungsten mine outside China.
Almonty Industries was able to conclude an off-take agreement for the South
Korean production facility with The Plansee Group-one of the world's
leading tungsten suppliers with 11,000 employees in 35 production
facilities in 50 countries-at what we consider attractive conditions: With
a minimum term of 15 years and a floor price of USD 235 per MTU, Almonty
Industries expects a minimum estimated operating cash flow of USD 580mn
over the term of the agreement. Since the agreement covers only ~50% of the
production, this is for only half of the potential cash flows from the
Sangdong Mine. Given South Korea being the largest per capita tungsten
consumer globally, Almonty could hold the balance back for sale, f. ex. to
the South Korean battery markets, in our view.
By commissioning its own vertically integrated nano-tungsten oxide
processing plant ('Sangdong Downstream Extension Project') to supply the
South Korean battery anode and cathode manufacturing industry, Almonty
Industries would substantially enhance its value creation and
profitability, according to our view. Annual production capacity is
reported between 3,000 and 4,000 tonnes. Completion and commissioning are
expected in the second half of 2023e. Once the downstream plant reaches
full capacity from 2026e, it will provide up to 30% of non-Chinese and up
to 10% of global tungsten supply, according to the company estimates.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/25941.pdf
Kontakt für Rückfragen
-übermittelt durch die EQS Group AG.-
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
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