The mid-term targets of the group look rather ambitious at first sight.
The group’s statements were rather general, as is often the case in CMDs.
Another specific CMD will be held on 13 January on the UCE segment.
We will not change our numbers at this stage.
Companies: thyssenkrupp AG
The results came in at the upper range of guidance.
The improvement is rather strong in fiscal Q4 as expected and seen across the board.
The outlook is rather supportive, in particular if free cash flow is to break even (at last).
The group confirms that an IPO is the preferred solution for the electrolyser business.
This set of results confirms our positive view and target price.
The next step/trigger is the CMD on 2 December.
The Q3 numbers are improving as expected and ended up slightly higher than consensus for sales and EBIT
The improvement in EBIT was mainly attributable to Steel Europe, Materials Services and Multi-Track
Free cash flow was also marginally above expectations, with also the Mining and Infrastructure businesses being currently sold
The guidance was somewhat upgraded (not a big wonder though)
No big changes to be expected to our forecasts. The numbers were marginally better but the recovery stor
Q1 20/21 came in above expectations
A better performance was witnessed across the board in the many group segments
Free cash flow was still negative, albeit improving
The group raises its guidance for F20/21 for the second time in a row
We will fine-tune our numbers and valuation after the release
Q1 20/21 showed clear signs of improvement proftability-wise
Almost all segments were profitable at EBIT level
The cash generation was also satisfying, with net free cash flow positive again
Management raised its FY20/21 guidance
We will revise our numbers and valuation upwards
The Supervisory Board has decided to accept the offer of Advent, Cinven, and the RAG foundation (Germany’s holding company for the former hard coal mines). In addition, tk’s pension fund will inject €1.25bn into Elevator.
Thyssenkrupp continued to regard Elevator as a continuing operation in Q1 of its current fiscal year. Simultaneously, it has adjusted last year’s Q1 numbers as Steel Europe was then regarded as a discontinued operation. Based on the revised numbers for last year, revenue was down and operating and net earnings turned around from a small profit to a loss.
The above numbers suggest that thyssenkrupp stands with its back to the wall. The group’s earnings were lower than we had anticipated, but equity has fallen by clearly more than we had pencilled in. This is the result of other comprehensive income that amounted to a loss of €842m (loss of €51m in the previous year). Consequently, no dividend will be paid.
After the turmoil at the helm in mid-2018, Thyssenkrupp’s top is in new shambles. Last year, the CEO stepped down and, subsequently, the Chairman of the Supervisory Board left as well. As the company was unable to attract a new CEO from the outside, the then CFO was promoted to the CEO position.
The company’s apparent new strategy of selling Elevator will prolong its fight for survival, but it cannot be in the interest of the foundation as it needs regular and stable dividend income. However, this requirement cannot be fulfilled by ThyssenKrupp’s remaining activities. Therefore, the fighting between different interested parties is likely to continue.
Management’s strategy of merging its Steel Europe with Tata’s European operations and splitting the remains into two separately listed companies is called off. The new strategy is now to sell Elevator in an IPO.
EU cartel authorities had asked the companies to release their response to the EU requests by 20 March but the companies had asked for a grace period of another eight business days. They are expected to publish their response today.
It remains to be seen whether the EU’s requests have been too demanding or whether the two companies are willing to fulfill them and will then start the integration of ThyssenKrupp’s and Tata’s European carbon steel operations. According to the German partner, this
The new ThyssenKrupp-Group (i.e. Steel Europe is shown as discontinued) generated earnings that were pretty much in line with consensus expectations but were slightly lower than we had expected. Order inflow and revenue were up by 6% to €8.13bn and 3% to €7.94bn, respectively. EBIT fell by 40% to €142m and net earnings after minorities (including €87m profit from discontinued operation) increased by 68% to €136m. Our revenue, EBIT, and net profit projections had been €8.12bn, €195m, and €168m.
The group’s new 2017/18 accounts show Steel Europe as a discontinued operation that contributed a net profit of €258m, whereas the group’s continuing operations contributed a net loss of €200m. After deducting minority charges of €51m, the bottom line shows a tiny profit and management proposes an unchanged dividend of €0.15 payable early next year.
As proposed last week (see our comments on 27 and 28 September), the Board has unanimously approved management’s decision. Shareholders will have the final vote at a shareholders’ meeting in 2020, i.e. it will take almost another two years before the two companies (ThyssenKrupp Materials and ThyssenKrupp Industrial) will actually be listed.
In addition to the above, shareholder representatives of the Supervisory Board elected Professor Pellens to the helm of the Board. Pellens has been a member
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Jubilee today announce the full year results for FY 2021 ending in June 21. It was a year of continued progress with revenues up 143% to £133m (from FY 2020), adjusted PBT up 324% to £52m and eps up 93% to 1.8p/sh – an extraordinary year – but still only the beginning of the progression in our view. Continued developments in South Africa have led to a fully flexible chrome and chrome tailings solution at Inyoni. Supply from a wide variety of sources (Run-Of-Mine, new tailings from own operati
Companies: Jubilee Metals Group PLC
Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
Phoenix copper today announces an update on its deep drilling program below the proposed Empire oxide open pit resource and into the deeper sulphide zone. Phoenix is roughly 1/4 the way through a 4,500m drilling programme and has once again shown that high-grade zones of copper, zinc and lead sulphide mineralisation exist, nearly always associated with gold and/or silver and often with elevated concentrations of tungsten and molybdenum.
Companies: Phoenix Copper Ltd. (United Kingdom)
Savannah today announces that it is amicably terminating its JV arrangement with Rio Tinto over the Mutamba Minerals Sands project in Mozambique. Savannah has been paid $9.5m (which translates into 0.4p/sh) in cash to relinquish the 20% it has earned in the project and will cease all activity in country. All staff will transfer to Rio Tinto.
Companies: Savannah Resources Plc
Across a broader market sell off EQTEC have shown resilience and is trading at 1.55p, above its placing in May, up 25% from one month ago.
Companies: EQTEC PLC
No joiners today
No leavers today
What’s cooking in the IPO kitchen?
Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
SolGold (“SOLG”) has published the first partial assay results from its drilling programme at the Varela target on the Rio Amarillo concession, 35km from the flagship Cascabel project. Hole 1 has been assayed to a depth of 1,052m, revealing an intercept of 72m @ 2.16 g/t Au from 639.7m, including 24m @ 5.77 g/t Au. More interestingly assay results are pending from 1,052m to 1,708.1m (EOH) where free gold and porphyry mineralisation have been identified. Intersections of porphyry style mineralisa
Companies: SolGold Plc
West Newton planning update
Companies: Union Jack Oil Plc
Initiating Coverage: Price Target 20p
Potential Beyond Tin
AfriTin Mining Limited (ATM) is one of only three listed tin producers in Western markets. It has a large (820km2) land package in Namibia comprising 5 prospective licenses of which the Uis mine is the most advanced and already in production. Near term growth is being delivered with an 80% increase in tin production between 2022 and 2024. However, this is only scratching the surface and there are more than conceptual plans being fo
Companies: AfriTin Mining Ltd.
Savannah Resources has sold its interest in the Mozambique mineral sands project (Mutamba) to JV partner Rio Tinto for $9.5m in cash. The payment has already been made to one of Savannah’s UK subsidiaries.
Given Barroso’s importance and capital requirements over the coming months, we view this as very good news. It allows management to dedicate all its time to Barroso and reduces future SAV equity dilution. Despite the strong lithium price and exceptional performance of ASX and TSX lithium sto
Savannah Resources is a hardrock lithium exploration and development company with a 100% interest in the Barroso Lithium Project in the Northern Portugal hosting 27mt at 1.06% Li2O for ~700kt LCE, the largest spodumene lithium resource in Western Europe. Project environmental permitting is currently in progress paving the way for the completion of the Feasibility Study and eventual project financing. The project benefits from the strategic location as Europe rapidly expands it Li-ion batteries a
Cornish Metals has now released the results of 10 drillholes at its continuing exploration programme at United Downs near Camborne. Including two holes drilled on the property by Cornish Lithium the drilling shows up to 5 mineralised structures with a total of twenty-two individual mineralised intercepts.
Even though the area has been mined intermittently between the early 1700s and the late 20th century, the drilling evidence bodes well for the delineation of additional mineral resources wh
Companies: Cornish Metals Inc.
Shanta Gold (AIM: SHG), the East Africa-focused gold producer has today announced a drilling update on its West Kenya Project (WKP) based on its Phase 2 drilling program which aims to infill 17 modelled zones across both Isulu and Bushiangala deposits up to 450-500m below surface. The Company has also reported drilling results from a regional exploration target, Ramula, where assays have been received from the first of 12 holes drilled, as part of the resource drill-out programme, totalling 451m
Companies: Shanta Gold Limited
IN OTHER NEWS
Canadian Overseas (COPL LN/XOP CN): Raising US$8 mm of new equity – Canadian Overseas has raised US$8 mm of new equity priced at 20p per share. The net proceeds of the placing are intended to be used for a bid for Cuda Energy LLC, or its assets, through a receivership process.
Southern Energy (SOUC LN): 3Q21 results – 3Q21 production in the USA was 12.3 mmcf/d with
Companies: ZEN SOU AOI XOP CHAR EQNR EQNR JSE LUPE RDSA SEPL SEN SOU
i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM. Following Admission, the Company intends to use the net proceeds of the proposed Fundraising to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide work
Companies: TGN AFC COIN COIN HL/ OMI