Reported Earnings • Feb 22
Full year 2022 earnings released: EPS: AU$0.62 (vs AU$1.60 in FY 2021) Full year 2022 results: EPS: AU$0.62 (down from AU$1.60 in FY 2021). Revenue: AU$1.92b (down 8.4% from FY 2021). Net income: AU$207.3m (down 61% from FY 2021). Profit margin: 11% (down from 25% in FY 2021). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Australia are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Brazil Advisory Board of Board Member Jose Luiz Oliveira Martins was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Nov 08
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Brazil Advisory Board of Board Member Jose Luiz Oliveira Martins was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Jun 05
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Brazil Advisory Board of Board Member Jose Luiz Oliveira Martins was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Apr 27
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 4 experienced directors. 1 highly experienced director. Independent Non-Executive Chairman Rebecca McGrath is the most experienced director on the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Buying Opportunity • Mar 05
Now 22% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be AU$33.82, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% per annum over the last 3 years. Earnings per share has grown by 40% per annum over the last 3 years. Recent Insider Transactions • Feb 25
Independent Non-Executive Chairman recently bought AU$100k worth of stock On the 23rd of February, Rebecca McGrath bought around 4k shares on-market at roughly AU$25.08 per share. This was the largest purchase by an insider in the last 3 months. This was Rebecca's only on-market trade for the last 12 months. Reported Earnings • Feb 22
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: AU$1.60 (up from AU$0.65 in FY 2020). Revenue: AU$2.10b (up 56% from FY 2020). Net income: AU$530.7m (up 150% from FY 2020). Profit margin: 25% (up from 16% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 9.9%, compared to a 741% growth forecast for the mining industry in Australia. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Board Change • Jan 01
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 4 experienced directors. 1 highly experienced director. Independent Non-Executive Chairman Rebecca McGrath is the most experienced director on the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Dec 07
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 4 experienced directors. 1 highly experienced director. Independent Non-Executive Chairman Rebecca McGrath is the most experienced director on the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Recent Insider Transactions • Sep 04
Independent Non-Executive Director recently bought AU$143k worth of stock On the 2nd of September, Sarah Ryan bought around 6k shares on-market at roughly AU$23.86 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold AU$799k more in shares than they bought in the last 12 months. Reported Earnings • Aug 22
First half 2021 earnings released: EPS AU$0.81 (vs AU$0.25 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: AU$986.1m (up 71% from 1H 2020). Net income: AU$268.6m (up 237% from 1H 2020). Profit margin: 27% (up from 14% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Mar 04
Upcoming Dividend of AU$0.17 Per Share Will be paid on the 26th of March to those who are registered shareholders by the 11th of March. The trailing yield of 1.1% is below the top quartile of Australian dividend payers (5.5%), and is lower than industry peers (5.0%). Reported Earnings • Feb 19
Full year 2020 earnings released: EPS AU$0.65 (vs AU$0.51 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: AU$1.34b (up 21% from FY 2019). Net income: AU$212.6m (up 30% from FY 2019). Profit margin: 16% (up from 15% in FY 2019). The increase in margin was driven by higher revenue. Production and reserves: Copper Production: 97,620 t Proved and probable reserves (ore): 548 Mt (175 Mt in FY 2019) Number of mines: 5 (2 in FY 2019) Gold Production: 257.99 troy koz Proved and probable reserves (ore): 548 Mt (175 Mt in FY 2019) Number of mines: 6 (2 in FY 2019) Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Feb 19
Revenue beats expectations Revenue exceeded analyst estimates by 1.7%. Over the next year, revenue is forecast to grow 28%, compared to a 136% growth forecast for the Metals and Mining industry in Australia. Is New 90 Day High Low • Feb 18
New 90-day high: AU$21.65 The company is up 46% from its price of AU$14.84 on 20 November 2020. The Australian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 23% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$4.66 per share. Is New 90 Day High Low • Jan 05
New 90-day high: AU$19.78 The company is up 37% from its price of AU$14.46 on 08 October 2020. The Australian market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$8.15 per share. Is New 90 Day High Low • Dec 21
New 90-day high: AU$19.75 The company is up 37% from its price of AU$14.43 on 23 September 2020. The Australian market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$8.26 per share. Recent Insider Transactions • Dec 15
Independent Non-Executive Director recently sold AU$942k worth of stock On the 9th of December, Charles Sartain sold around 50k shares on-market at roughly AU$18.84 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$306k more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Dec 08
Market bids up stock over the past week After last week's 17% share price gain to AU$19.39, the stock is trading at a trailing P/E ratio of 31.3x, up from the previous P/E ratio of 26.8x. This compares to an average P/E of 12x in the Metals and Mining industry in Australia. Total returns to shareholders over the past three years are 157%. Valuation Update With 7 Day Price Move • Dec 05
Market bids up stock over the past week After last week's 15% share price gain to AU$18.78, the stock is trading at a trailing P/E ratio of 30.4x, up from the previous P/E ratio of 26.3x. This compares to an average P/E of 12x in the Metals and Mining industry in Australia. Total returns to shareholders over the past three years are 153%. Is New 90 Day High Low • Nov 25
New 90-day high: AU$15.99 The company is up 11% from its price of AU$14.42 on 27 August 2020. The Australian market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$7.87 per share. Is New 90 Day High Low • Oct 20
New 90-day high: AU$15.19 The company is up 13% from its price of AU$13.47 on 22 July 2020. The Australian market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$22.42 per share. 