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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: 31.08.2021
Kursziel: EUR 194,70 (bisher EUR 174,30)
Kursziel auf Sicht von: 36 Monate
Letzte Ratingänderung: -
Analyst: Peter Thilo Hasler

Value enhancing takeover of Lat66
 
SunMirror has expanded into Finland, announcing the acquisition of Latitude
66 Cobalt Oy ('Lat66'). Lat66, which started operations in 2017, is an
Australian-Finnish mineral exploration company with a first mover project
portfolio of more than 9,000 square kilometres within the most prospective
greenstone belts in northern Finland, making the company one of the largest
tenure holders in a region with high statistical probability of major
discoveries, according to company information. Lat66 is developing a
cobalt-gold mine in the Juusasuo mining area of Kuusamo and a cobalt-copper
mine in the Haarakumpu area of Posio. Of particular value, in our view, is
K-camp, the largest cobalt resource in Europe not owned by a mining or
processing major, the fourth largest known cobalt deposit in the EU, and
the second largest not yet mined, based on company information.
 
We view the acquisition of Lat66 positively as it provides diversity for
SunMirror outside the existing lithium and gold activities in Australia,
adding another mining friendly jurisdiction as well as promising resources
to its existing portfolio of assets. With the acquisition, SunMirror will
eventually be able to supply the European economy with cobalt, sourced from
sustainable and stable jurisdictions in compliance with applicable laws,
regulations, and ESG requirements.
 
We believe the market should continue to price in SunMirror's existing
resources and their long-term growth potential. We maintain our Buy rating
for the shares of SunMirror and increase our fully diluted price target to
EUR 194.70 per share from EUR 174.30 following the acquisition of Lat66. We
value the equity of the Dusseldorf Stock Exchange-listed company using a
sum-of-the-parts valuation based on a Net Present Value (NPV) entity model,
in-situ values, and peer group multiples. We did not model any future
acquisitions. Our valuation is primarily driven by royalty schemes the
company intends to generate from Cape Lambert North, for which we
calculated an equity value of EUR 101.70 per share (base-case-scenario). We
value Moolyella with EUR 50.80 per share, Lat66 with EUR 30.40 per share,
and Kingston-Keith with EUR 8.30 per share. Higher grade potential at
Kingston-Keith and Moolyella represent further upside to our price target,
in our view.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/22845.pdf

Kontakt für Rückfragen
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de

-------------------übermittelt durch die EQS Group AG.-------------------


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