Friday, 22 October 2021

I just got this ... Fri, 22 Oct at 9:34 am

Friday, 22 October 2021

29M - 29METALS LIMITED

Macquarie rates 29M as Outperform (1) - 29Metals' September quarter featured weak production at Golden Grove offsetting a better result at Capricorn Copper. Managagement has nonetheless retained 2021 production guidance but the broker believes costs will be higher than guidance suggests.

However better grades at Golden Grove should lead to significant improvement in earnings and cash flow in the December quarter and in to 2022, the broker believes, with valuation suggesting a 20% free cash flow yield for 2022.

Target falls to $3.30 from $3.60, Outperform retained.

Target price is $3.30 Current Price is $2.65 Difference: $0.65 If 29M meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges). Current consensus price target is $3.18, suggesting upside of 20.1%(ex-dividends)The company's fiscal year ends in December.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of 10.60 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.00. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.9, implying annual growth of -0.1%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 38.4.

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 4.30 cents and EPS of 14.30 cents . At the last closing share price the estimated dividend yield is 1.62%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.53. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.1, implying annual growth of 31.9%. Current consensus DPS estimate is 4.1, implying a prospective dividend yield of 1.5%. Current consensus EPS estimate suggests the PER is 29.1.

Market Sentiment: 1.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources