Reported Earnings • Feb 23
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 8.5% p.a. on average during the next 3 years, compared to a 1.4% decline forecast for the Metals and Mining industry in Europe. 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 48% 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. Valuation Update With 7 Day Price Move • Aug 01
Investor sentiment improved over the past week After last week's 17% share price gain to €12.94, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 5x in the Metals and Mining industry in Europe. Total returns to shareholders of 145% over the past three years. Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €12.90, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 5x in the Metals and Mining industry in Europe. Total returns to shareholders of 123% over the past three years. Board Change • Jun 04
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 09
Now 25% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be AU$22.40, 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. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment improved over the past week After last week's 17% share price gain to €18.09, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 6x in the Metals and Mining industry in Europe. Total returns to shareholders of 198% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €23.99 per share. Recent Insider Transactions • Feb 25
Independent Non-Executive Chairman recently bought €64k worth of stock On the 23rd of February, Rebecca McGrath bought around 4k shares on-market at roughly €16.06 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 21
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 7.7%, compared to a 12% growth forecast for the mining industry in Germany. 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 31% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jan 24
Now 21% undervalued Over the last 90 days, the stock is up 3.3%. The fair value is estimated to be AU$21.32, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% per annum over the last 3 years. Earnings per share has grown by 8.5% per annum over the last 3 years. 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 08
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 €89k worth of stock On the 2nd of September, Sarah Ryan bought around 6k shares on-market at roughly €14.89 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold €492k more in shares than they bought in the last 12 months. Reported Earnings • Aug 21
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. Valuation Update With 7 Day Price Move • Jul 27
Investor sentiment improved over the past week After last week's 17% share price gain to AU$14.80, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 8x in the Metals and Mining industry in Europe. Total returns to shareholders of 168% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €5.98 per share. 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 German dividend payers (3.5%), and is lower than industry peers (4.3%). Analyst Estimate Surprise Post Earnings • Feb 20
Revenue beats expectations Revenue exceeded analyst estimates by 1.9%. Over the next year, revenue is forecast to grow 28%, compared to a 20% growth forecast for the Metals and Mining industry in Germany. 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. Is New 90 Day High Low • Feb 18
New 90-day high: €13.55 The company is up 55% from its price of €8.75 on 19 November 2020. The German market is up 10.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Metals and Mining industry, which is up 71% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €3.18 per share. Is New 90 Day High Low • Jan 20
New 90-day high: €13.11 The company is up 40% from its price of €9.35 on 22 October 2020. The German market is up 11% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Metals and Mining industry, which is up 54% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €5.63 per share. Is New 90 Day High Low • Jan 06
New 90-day high: €12.13 The company is up 41% from its price of €8.58 on 08 October 2020. The German market is up 7.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Metals and Mining industry, which is up 44% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €5.32 per share. Is New 90 Day High Low • Dec 17
New 90-day high: €11.75 The company is up 33% from its price of €8.80 on 18 September 2020. The German market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 16% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €5.39 per share. Recent Insider Transactions • Dec 15
Independent Non-Executive Director recently sold €581k worth of stock On the 9th of December, Charles Sartain sold around 50k shares on-market at roughly €11.62 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of €214k more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Dec 07
Market bids up stock over the past week After last week's 16% share price gain to AU$11.62, the stock is trading at a trailing P/E ratio of 31.3x, up from the previous P/E ratio of 26.9x. This compares to an average P/E of 13x in the Metals and Mining industry in Europe. Total returns to shareholders over the past three years are 147%. Is New 90 Day High Low • Nov 26
New 90-day high: €9.63 The company is up 12% from its price of €8.60 on 27 August 2020. The German market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €4.93 per share. Is New 90 Day High Low • Oct 26
New 90-day high: €9.41 The company is up 15% from its price of €8.17 on 28 July 2020. The German market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €13.01 per share.