I just got this ...Excerpts From Today's Broker CallThursday, 15...

I just got this ...

Excerpts From Today's Broker Call

Thursday, 15 April 2021

RRL - REGIS RESOURCES LIMITED

Morgans rates RRL as Add (1) - Morgans believes the agreement to purchase a 30% interest in the Tropicana gold mine for $903m is transformational for the long-term outlook and an immediate lift for production and cash flow. The Add rating is unchanged and the target price falls to $4.01 from $4.44.

The broker sees substantial long-term potential for the asset with a number of deposits open at depth and a large land package with minimal exploration to date.

Anglogold, the manager and majority owner, maintains its right to match any offer for the 30% stake. Regis Resources has guided that if the bid is successful operating cash flow will be sufficient to internally fund development of McPhillamys.

Target price is $4.01 Current Price is $3.22 Difference: $0.79 If RRL meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges). Current consensus price target is $3.98, suggesting upside of 25.6%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 8.00 cents and EPS of 20.00 cents . At the last closing share price the estimated dividend yield is 2.48%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.10. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 29.7, implying annual growth of -24.4%. Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 2.9%. Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY22:

Morgans forecasts a full year FY22 dividend of 12.00 cents and EPS of 48.00 cents . At the last closing share price the estimated dividend yield is 3.73%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.71. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 36.2, implying annual growth of 21.9%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 8.8.

Market Sentiment: 0.7All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources