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.
Companies: thyssenkrupp AG
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
After months of opposing any structural changes to the group, the union seems to have accepted the split of ThyssenKrupp into two separately-listed entities. One might call this a kind of revolutionary mind change.
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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
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
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
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.
Trinity has received FDP approval from the Ministry of Energy and Energy Industries (MEEI) for the Phase 1 development of the Galeota licence. The submitted development plan has the potential to add additional peak production of c4,000 bopd; however more recent modelling suggests that intra-year peak production could be significantly higher, up to 7,000 bopd. Whilst the current development concept comprises the installation of a low-cost eight well platform (Echo), we note that Trinity is also w
Companies: Trinity Exploration & Production Plc
European gas prices are never far away from the headlines at the moment, although Parkmead’s results to end-June did not capture this surge in prices – that is yet to come. Parkmead is well placed to benefit from the current strength in European gas prices, while the potential for another commodity super-cycle suggests there is further progress to come on its major GPA oil project. A strong net cash position also puts it in the driving seat for potential acquisitions.
Companies: Parkmead Group PLC
Atlantic Lithium* (ALL LN) – Shareholders approve demerger of gold assets
Castillo Copper (CCZ LN) – Extension of options to acquire the Litchfield and Picasso lithium projects
Cornish Lithium (Private) – $18m funding package secured from TechMet
Hochschild (HOC LN) – Shares rise as government appears to back away from closure plans
Hummingbird Resources (HUM LN) – Updated mineral reserves extend Yanoflila LOM and delivers maiden estimate at Kouroussa
Phoenix Copper* (PXC LN) – Deep drilli
Companies: HOC HUM PXC PREM CCZ ALL
Q3 2021 results; new Romania drilling planned
Companies: Serinus Energy plc