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Umicore has taken a huge step by adding fresh orders for battery material of 35GWh for the North American market to the order book by 2027. By signing the contract with AESC, Umicore improved its global customer footprint and overfulfills its plan to deliver battery material volumes of 230 GWh by 2030.
Companies: Umicore (UMI:EBR)Umicore SA (UMI:BRU)
AlphaValue
Umicore broadly confirmed our cautious view by providing a soft full guidance as H2 will be weaker than H1. Catalysis should see some volume progression, whereas Energy & Surface Technologies will be negatively impacted by the normalisation in cobalt prices. Lower pgm prices and less available scrap is likely to dampen Recycling’s performance. The outlook provided by management fits with ours. Profitability for the full year will depend on how pgm prices evolve for the rest of the year.
As usual, Umicore provided only qualitative comments about the business performance for the first three months and also provided a qualitative outlook, Despite the management’s ambition to be supportive, some more transparency is needed. Making reference to the current consensus is not that helpful as the consensus lacks divisional details.
… profitability took a break and is set to soften in 2023. Umicore reported in-line figures, but the management issued a moderate outlook for 2023 as some of the positives are expected to leave the stage while cost inflation will remain. We see 2023 as a transition year as the global battery materials business becomes more regional, thereby helping car manufacturers to keep up with the targets for their fleets.
At first sight, Umicore’s H1 results look odd, but from a multi-year semester perspective they are far from it. H1 22 was the second most profitable half year in the company’s history after the even-stronger H1 21. For the second half, the management was upbeat although we do not fully share this optimism given the ongoing constraints. H1 sales came in €6m above consensus, but the adjusted EBITDA fell short by -2.4%.
Companies: Umicore SA (0RUY:LON)Umicore SA (UMI:BRU)
Ariana Resources (AAU LN) – Preliminary drilling results confirm gold component to Klirou mineralisation Cora Gold (CORA LN) – 7,000m Sanankoro infill and step out drilling launched Greatland Gold (GGP LN) – Highlighting exploration and infill drilling progress at Havieron Resolute Mining (RSG LN) – Updated MRE increases M&I contained Au by 40% at Tabakoroni Umicore (UMI LN) – Results highlight strong performance in automotive, fuel cells and stationary catalysts
Companies: RSG AAU GGP 0RUY UMI CORA
SP Angel
Umicore reported a mixed set of figures, which did not miss consensus on the adjusted metrics (top line: -1.2%; adjusted EBIT: -0.3%). As usual, the one-offs summed together for the miss, with EBIT 5.6% below our expectations and -3.8% below consensus. Management points towards the same direction as our figures. We very much like the new CEO’s ambition to provide a higher degree of transparency and hope to see this at the Investors day on 22/06/2022.
The higher volatility in pgm prices helped Umicore’s profitability, which was already expected by the market. Management lifted profitability’s bar a bit, but wiped this out immediately by guiding for a weaker H2 compared to H1. Business-wise, the company benefits from the strong trend in the electrification of mobility and the tightening legislation around emission control around the globe. The reported figures were broadly in line with our expectations, but beat consensus (sales: +1.9%; pr
Like other chemicals companies with a link to automotives or precious metals, Umicore also had a good start into the year. This and the positive development of precious metal prices made management confident enough to give a very strong FY guidance reflecting the pgm price triggered boom. Unfortunately, the company did not provide any figures relating to the Q1 performance.
Against the backdrop of 2020’s turmoil, Umicore’s FY figures look mixed but not too bad as the adjusted figures broadly fit with consensus. The idea of a tidy-up came into our minds as the ‘adjustments’ were stronger than guided and there are plans to find a successor for the long-term CEO. Management showed quite strong confidence in profitable growth at today’s analysts call.
Umicore’s H1 figures were a notch above our expectations, but the divisional pattern has led us to remain cautious. As expected, automotive was the party-pooper in many perspectives. Sales of combustion cars as well as electric vehicles were more than subdued and the recovery will be highly linked to consumers’ confidence. And this will be function of how the pandemic evolves. Earnings came in 21% below consensus, which has to be revised downwards.
Companies: Umicore SA
Despite the more than difficult business environment in automotive, (including e-mobility), Umicore was in a position to manage its business better than expected, partly helped by higher precious metal prices and favourable legislation. Nevertheless, profitability suffered a bit. The outlook presented is quite cautious given the current business uncertainties. This view is clearly supported by the unchanged dividend. As we had been quite cautious, Umicore’s figures beat them and were above conse
Umicore’s H1 report was balm for the recently heavily-punished shareholders. Despite being more or less in line with the consensus, the provided insights made the tone more positive (e.g. the positive development in China). Our expectations were more than fulfilled.
Umicore has extended and broadened the ‘path’ from the cobalt mine to battery materials with the supply agreement of the essential transitional metal cobalt, which we value very positively.
Profit warning due to postponed growth momentum Umicore seems to be between a rock and a hard place as the overall automotive industry (combustion and electrical mobility) deteriorated since demand for both types of power train has come down, especially in China and Europe. Management’s clarification of the FY guidance is a confession of lower profitability on a recurring level as midpoint guidance is below 2018 recurring EBIT.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Umicore SA. We currently have 77 research reports from 7 professional analysts.
Jubilee today reports its Q3 and third quarter operational results from its expanding operations in Zambia (copper) and South Africa (chrome and PGM). South Africa is on a growth trajectory with record chrome production of 409kt in the quarter (Q2 FY2024 381kt) and a monthly record in March of 145kt and production YTD of 1.13Mt (0.94Mt). Jubilee is well underway to its annual target capacity of 2,1Mt/yr especially with the new 300kt/yr chrome plant at Thutse expected to be operational in August
Companies: Jubilee Metals Group PLC
WHIreland
Trinity has announced a c28% reduction to its 2P reserves following a YE23 review. Despite the decrease in the Company’s 2P reserves, Trinity’s core business remains robust, with a reserves/production ratio of >12.5 years at YE23. Whilst there is significant potential for growth within the current portfolio, this will be difficult to unlock from the current balance sheet and we believe further financing will be required. We update our target price to 76p (from 202p), a c85% premium to the curren
Companies: Trinity Exploration & Production Plc
Cavendish
Companies: BILN ELCO NXQ CUSN ATG
• The Nong Yao-13 exploration well in the new Nong Yao D area that was targeting multiple zones has encountered >30 feet of new oil play across several new shallow intervals which have not been produced elsewhere on the concession. These reservoirs are believed to be recurring across the Nong Yao D area. • The drilling result confirms that oil has successfully migrated into this area of the block (a factor that was seen to be a risk in the Nong Yao D area) and open the opportunity for further a
Companies: Valeura Energy Inc.
Auctus Advisors
I3 has announced the sale of the majority of its royalty interests in Canada, for US$24.8m cash. This allows the company to fully repay amounts drawn on its debt facility and create a working capital surplus, giving I3 significant additional funding flexibility going forward
Companies: i3 Energy Plc
Zeus Capital
NextSource is uniquely positioned to build a leading vertically integrated position, ex China, in the supply of Lithium-ion battery anode material which is essential for the Energy Transition. The company is commissioning phase 1 of its world-class Molo graphite mine in Madagascar and is in the final permitting process for its first Battery Anode Facility (BAF) to be located in Mauritius. The company is backed by Vision Blue, established by Sir Mick Davis, former CEO of Xstrata. On our calculat
Companies: NextSource Materials Inc
Capital Access Group
Companies: 88E RNO TRIN KRM EXR BOOM
DEC reported FY23 results which were in line with expectations and announced the acquisition of joint venture assets from Oaktree along with an updated capital allocation framework.
Companies: Diversified Energy Company PLC
Dowgate Capital
Chariot, Energean, Touchstone Exploration, Longboat Energy, Hartshead Resources, BP, Helix Exploration, PetroTal, Pantheon Resources, Caspian Sunrise, Petrofac, DNO ASA, Valeura Energy, Aker BP, Var Energi Source: FactSet, weekly change 08/04/24-12/04/24 Oil rose as Israel braced for a possible attack from Iran, a development that would threaten major disruptions in a region that accounts for a third of the world’s crude output. An assault is expected to come as soon as the next 48 hours, which
Companies: HHR TXP LBE CHAR
Union Jack has released an update on its Wressle asset, reporting maturing production from Wressle-1, alongside progress for significant further development activities on the field going forward.
Companies: Union Jack Oil Plc
Companies: PLL TLG HZM SAV KAV KP2 SVML
Pharos Energy reported FY23 results on 27 March. Group net production of 6,508 boepd (FY22: 7,166 boepd) was in line with guidance, assisted by successful development drilling in Vietnam and exploration successes in Egypt. Pharos’s strong cash generation resulted in a stronger balance sheet, with net debt reduced to US$6.6m (from US$28.9m at the end of 2022) and cash balances totalling US$32.6m. This left the group free to return more cash to shareholders, including a 10% increase in dividends,
Companies: Pharos Energy PLC
Progressive Equity Research
Shore Capital
Hunting has released its Q1 trading statement, reporting a strong period for OCTG and Subsea, steady growth in Advanced Manufacturing, and a softening in Perforating Systems.
Companies: Hunting PLC
Union Jack announced an operational update on its onshore UK Wressle field and confirmed plans to announce the payment of a cash dividend to shareholders along with the FY23 results in May. Wressle continues to deliver material revenues to the Company, generating positive cash flow and providing it with sufficient cash resources to fund shareholder returns and invest in new development projects.
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