SECTOR: MINING; ENERGY
W RESOURCES (LON:WRES) SECTOR – MINING RATING – BUY* MARKET CAP – £28.5m CURRENT PRICE – 0.52p# TARGET PRICE – 1.2p ANALYST –BARRY GIBB
|
|
Year-end Dec |
2016A |
2017A |
2018E |
2019E |
|
Revenue (£m) |
0.1 |
- |
- |
28.8 |
|
EBITDA (£m) |
(0.6) |
(0.5) |
(0.7) |
15.1 |
||
PBT/(LBT) (£m) |
(0.9) |
(0.7) |
(4.2) |
7.6 |
||
Basic adj. EPS/(LPS) (p) |
(0.0) |
(0.0) |
(0.1) |
0.1 |
||
DPS (p) |
- |
- |
- |
- |
||
Net Cash/(Debt) (£m) |
(0.7) |
(0.8) |
(26.1) |
(15.2) |
||
P/E (x) |
n.a. |
n.a. |
n.a. |
4.8 |
||
Dividend yield (%) |
- |
- |
- |
- |
||
EV/EBITDA (x) |
(34.5) |
(53.8) |
(78.0) |
2.9 |
||
|
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited provides commissioned research coverage to W Resources and therefore this information should be viewed as a Marketing Communication. |
First Tungsten Export Shipment from the La Parrilla Mine |
NORTHLAND VIEW |
W Resources announced on 20 November 2018, that it had commenced early start-up of production of tungsten and tin concentrate at its La Parrilla mine in Spain. This was part of a planned staged build-up to full mine production in H119, with first crushed mine feed being taken to the existing concentrator. As expected, this has now resulted in a first shipment of concentrate to its major European offtake customer which was successfully delivered on 30th November. In turn, this should pave the way for production from a new larger scale concentrator in Q219. Having secured a US$35m debt finance facility from Blackrock in Q120 along with two major offtake agreements (firstly with Europe’s leading tungsten processor and secondly with a leading US supplier) against a background of firm product pricing, WRES’s strategic planning now appears well advanced. Against this, last week’s minor fund raise was designed simply to provide working capital independent of the debt finance facility, while also introducing new, highly credible investors to the share register. Despite this positive news, La Parrilla’s quality concentrate and excellent geographical location, the share price has failed to respond to the Project delivering on its advanced development stages, which makes them appear significantly undervalued. Northland has set a price target of 1.2p per share along with a Buy recommendation. |
COMPANY DESCRIPTION W Resources is in the process of constructing the La Parrilla Tungsten Mine, located in Spain. |
ACTIVE ENERGY GROUP (LON:AEG) SECTOR – RENEWABLE ENERGY RATING – CORP* MARKET CAP – £11.9m CURRENT PRICE – 1.1p# ANALYST – MIKE JEREMY |
|
Year-end Dec |
2016A |
2017A |
|
|
|
Revenue (US$m) |
- |
- |
No forecasts provided |
||
EBITDA (adj) (US$m) |
(2.20) |
(5.24) |
||||
Rptd. Net Loss (US$m) |
(4.66) |
(8.60) |
||||
EPS (US$c) |
(0.48) |
(1.87) |
||||
DPS ($c) |
- |
- |
||||
Net Cash/(Debt) (US$m) |
(5.5) |
(13.3) |
||||
P/E (x) |
N.M. |
N.M. |
||||
Dividend yield (%) |
- |
- |
||||
EV/EBITDA (x) |
N.M. |
N.M. |
||||
|
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited Acts as Nomad to Active Energy Group and therefore this information should be viewed as a Marketing Communication. |
Equity placing to raise £1.495m |
NORTHLAND VIEW |
Following the announcements and progress in October and November, AEG is now moving towards commercial realisation of its CoalSwitch™production plans. |
COMPANY DESCRIPTION Active Energy Group (AEG) is an international, vertically-integrated forestry management and renewable resource energy provider. The group combines management of forestry resources with the commercial development of a proprietary solution (CoalSwitch™) to the integration of wood-based (biomass) fuel into existing coal-fired thermal power plants. |