Original-Research: SunMirror AG - von Sphene Capital GmbH
Einstufung von Sphene Capital GmbH zu SunMirror AG
Unternehmen: SunMirror AG
ISIN: CH0396131929
Anlass der Studie: Update Report
Empfehlung: Buy
seit: 21.04.2021
Kursziel: EUR 174,30 (bisher EUR 68,90)
Kursziel auf Sicht von: 36 Monate
Letzte Ratingänderung: -
Analyst: Peter Thilo Hasler
Placement of a convertible bond and LOI for a capital increase
We reiterate our Buy rating for SunMirror and increase our fully diluted price target to EUR 174.30 per share from EUR 68.90 on lower discount rates and a strong raise in peer group multiples. We see additional short- and medium-term upside potential, should the management decide for a trade sale of its most valuable mineral reserve, Cape Lambert South, to a strategic investor or succeed in exploiting that asset in a capital-efficient manner. Additional upside to our price target could arise, should the company use the proceeds from the capital increase for acquiring further strategic mineral assets significantly below market values.
Last week, SunMirror announced the issuance of convertible bonds with a nominal value of USD 10.0 million. With a conversion price of CHF 70 per share, the convertible bonds entitle their holders to acquire 133,305 bearer shares with a par value of CHF 1.00. According to the management, the convertible bonds which will run until 30 May 2022 have been fully allocated. The net proceeds will be used for general operational purposes, for the expansion of the company's portfolio and business activities in tier-one jurisdictions, namely in Australia and Europe, according to company information.
In addition, SunMirror has received a letter of intent from Barracuda Group to subscribe to 1 million new shares from a capital increase in a private placement. Similar to the convertible bond, the subscription price of the shares is CHF 70, excluding subscription rights of current shareholders. According to the company, the proceeds from the capital increase will be used for an expansion of the current portfolio and business activities in tier-one jurisdictions.
We value SunMirror by using a proprietary sum-of-the-parts valuation of the three mineral assets (primary valuation method). Eliminating our previous discounts which reflected the low transparency of the company's business model and applying up-to-date peer group multiples, we calculate a sum-ofthe -parts value of EUR 216.9 million (previously EUR 78.4 million) which translates into an equity value of EUR 174.30 per share (based on 1.244 million outstanding shares, fully diluted count of the convertible bonds but excluding the shares from the capital increase which has not yet been executed). Given the strong share price performance following our initiation report published in September 2020 with a price of EUR 1.70 per share, our new price target represents a further share price performance of 11.7%. We reiterate our Buy rating for the shares of SunMirror AG.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/22335.pdf
Kontakt für Rückfragen
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de
-------------------übermittelt durch die EQS Group AG.-------------------
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.
The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.
If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.
For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.
1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.