Upgrade Now

Berenberg raises target price on Anglo Pacific

By Iain Gilbert

Date: Wednesday 27 Apr 2022

Berenberg raises target price on Anglo Pacific

(Sharecast News) - Analysts at Berenberg raised their target price on mining company Anglo Pacific from 250.0p to 260.0p on Wednesday following a first-quarter earnings beat thanks to coal price tailwinds.
Berenberg stated Anglo Pacific had reported a "strong Q1", with total portfolio contribution coming in at $43.6m, beating estimates of $38.9m, driven mainly by a beat from royalties related to its Kestrel metallurgical coal in Australia.

The German bank, which reiterated its 'buy' rating on the stock, highlighted that the royalty contributed $33.5m versus its $27.2m estimate due to improved metallurgical coal prices.

Elsewhere, Berenberg noted that other portions of Anglo Pacific's portfolio had delivered in line with expectations, with cobalt from Voisey's Bay in Canada contributing $5.2m net, and coming in as the second-largest portfolio contributor.

"We continue to like the company's portfolio for its attractive long-term exposure to energy transition metals and its natural hedge against cost inflation, alongside the company's stable circa 4% dividend yield," said the analysts.

"In the near term, strong metallurgical coal prices are a tailwind, and, if we mark our model to market, our 2022 earnings per share increases to $0.45/share from $0.40/share, and our EBITDA increases to $117.0m from $104.0m, above consensus of $84.0m."

..

Email this article to a friend

or share it with one of these popular networks:


Top of Page