Stanmore Resources: Clear growth mandate and capability
About the author:
- Author name:
- By Tom Sartor
- Job title:
- Senior Analyst
- Date posted:
- 15 May 2023, 8:00 AM
- Sectors Covered:
- Junior (Emerging) Resources, Bulk Materials
- Stanmore Resources (ASX:SMR) has grown into Australia’s fourth largest Australian met coal producer, and the seventh largest globally, transforming its significance to investors.
- We trim our production/ sales assumptions and adjust our HCC price forecasts following recent events/ moves.
- We think SMR’s equity is being discounted for both acquisition risk (Daunia) and macro risks affecting steel/HCC market sentiment.
- However, a P/NPV multiple of only 0.63x suggests to us that this discounting is excessive, meaning SMR is far too cheap, offering an opportunity here. Add.
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