SKINBIOTHERAPEUTICS (LON:SBTX)
SECTOR – HEALTHCARE
RATING – CORP*
MARKET CAP – £22.3m
CURRENT PRICE – 18.75p#
ANALYST – LIAM GASCOIGNE-COHEN
Year-end Jun
2016A
2017A
2018A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(0.0)
(0.7)
(1.0)
Adj. pre-tax Profit (£m)
(0.0)
(0.7)
(1.0)
Adj. EPS (p)
(0.03)
(1.11)
(0.71)
DPS (p)
-
-
-
Net Cash/(Debt) (£m)
0.3
3.9
3.2
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Joint Broker to SkinBioTherapeutics and therefore this information should be viewed as a Marketing Communication.
Full year results
NORTHLAND VIEW
§ SkinBioTherapeutics announced its full year audited results for the year to 30 June 2018.
§ There has been strong progress over the year regarding the SkinBiotix® platform, the Company’s proprietary skin-health technology, consisting of extracts taken from beneficial bacteria. Operational highlights include the successful completion of cytotoxicity safety tests, industrial volume scale-up and production of a cream formulation that demonstrated the effectiveness of the SkinBiotix® technology.
§ Loss before tax was £941k (2017: £688k) with R&D costs increasing to £416k (2017: £157k). Operating expenditure was in-line with management forecasts with cash at year-end of £3.2m (2017: £3.9m).
§ In September 2018 (post-period end), SkinBio commenced its human study, which is testing the cosmetic application of the SkinBiotix® platform. The study comprises three segments with data readouts expected between November 2018 and April 2019.
SkinBio continues to make significant operational progress since its IPO in April 2017. The completion of the human study is a key inflection point. Positive data should provide additional proof of efficacy, permit labelling of the cosmetic application as ‘dermatologically tested’ and enable the Company to continue to pursue commercial discussions with potential partners. The Company aims to license the cosmetic application to a third party who can incorporate it into their own products. In April 2017, the Company signed a Material Transfer Agreement with a global consumer goods company and we expect further commercial negotiations if the human studies are successful. The Company is also progressing its eczema programme which may be classed as a medical device, a potentially a shorter route to market than a drug. SkinBio is working with regulatory advisors to prepare a dossier for submission to regulators. If accepted for the medical device approval pathway, the Company anticipates seeking approval in H219 for commencement of a clinical trial.
COMPANY DESCRIPTION
SkinBio Therapeutics is a preclinical healthcare company focusing on skin health.
THOR MINING (LON:THR)
SECTOR – MINING
RATING – BUY*
MARKET CAP – £11.4m
CURRENT PRICE – 1.70p#
TARGET PRICE – 4.2p
Year-end Dec
2017A
2018A
2019E
2020E
Revenue (£m)
-
-
-
23.7
EBITDA (£m)
(1.3)
(1.3)
(1.1)
15.9
Adj. pre-tax Profit (£m)
(1.3)
(1.2)
(2.2)
11.9
Adj. EPS (p)
(0.4)
(0.2)
(0.3)
0.9
DPS (p)
-
-
-
-
Net Cash/(Debt) (£m)
(0.1)
1.0
0.5
4.0
P/E (x)
n.a.
n.a.
n.a.
1.7
Dividend yield (%)
-
-
-
-
EV/EBITDA (x)
(4.1)
(6.0)
(10.0)
0.6
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Joint Broker and provides commissioned research coverage to Thor Mining and therefore this information should be viewed as a Marketing Communication.
Note attached: Seeking development funding for Molyhil
NORTHLAND VIEW
§ Updated Molyhil Definitive Feasibility Study completed: The DFS at Molyhil demonstrated a post-tax NPV5 of A$101m (US$73m) and IRR of 59% with a post-tax payback period of less than 18 months, assuming an average ammonium paratungstate (‘APT’) price of US$460/mtu. Thor (‘the Company’) is now seeking the development finance to move to production.
§ Pilot Mountain Scoping Study (‘SS’) completed: We believe the SS at Pilot Mountain returned an a post-tax NPV5 of US$34m and IRR of 26% with a post-tax payback period of 24 months, assuming an average APT price of US$410/mtu. Thor now plans to undertake a Pre-Feasibility Study at the project.
§ Tungsten production forecast from 2020: Assuming Thor secures the required funding in the expected timeframe, we forecast the Company to produce 200,000mtu of tungsten in 2020 from Molyhil, rising to 250,000mtu in 2023 once Pilot Mountain comes on stream.
§ Revenue: We forecast that Thor will generate revenue of c. US$70m in 2020 and in 2021.
§ APT price rise forecast to continue: We forecast that the APT price will continue to rise from its current level of c. US$325/mtu to between US$445/mtu and US$530/mtu by 2023.
§ Undervalued: We value Thor Mining at 4.2p per share with upside of c. 140% on the current share price.
COMPANY DESCRIPTION
Thor Mining owns 100% of the Molyhil and Pilot Mountain Tungsten Projects, located in Australia and the USA, respectively. The Company is also earning up to a 60% interest of Environmental Recovery that is earning a 75% interest in the Kapunda Copper Project and has a material interest in Hawkstone Mining
Connemara Mining COMPANY (LON:CON)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £2.3m
CURRENT PRICE – 2.1p#
ANALYST – BARRY GIBB
DR RYAN D. LONG
Year-end Dec
2016A
2017A
Revenue (€m)
-
-
No forecasts provided
EBITDA (€m)
0.2
0.2
Adj. pre-tax Profit (€m)
0.2
0.2
Adj. EPS (c)
0.29
0.27
DPS (c)
-
-
Net Cash/(Debt) (€m)
(0.3)
(0.5)
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Connemara Mining and therefore this information should be viewed as a Marketing Communication.
From Yesterday: Further Drilling at Stonepark Zinc Project
NORTHLAND VIEW
§ Connemara Mining announced