SunMirror AG
Original-Research: SunMirror AG (von Sphene Capital GmbH): Buy
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-of-
the-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
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