Full-year results for platinum and chrome miner Tharisa (THS) were about as good as it gets for a recently listed company. Despite weak platinum prices, which pushed down revenue, operational improvements and above-guidance ore output led to a 200 per cent increase in headline earnings per share, a 129 per cent surge in pre-tax profit to $22m (£18m) and confirmation of a well-trailed maiden dividend.
Management's stated aim for floating in London was to improve liquidity and build the company's brand. On reflection, it's also clear that the company could correctly anticipate how a secondary listing would seriously increase Tharisa's valuation, which now stands at three times its debut price.
There's reason to believe that should increase further. Since the year-end, a drop in physical supplies and critically low inventory levels have sent China-bound chrome prices surging to $370 a tonne, up from February lows of $80.
Against this backdrop, analysts at Peel Hunt are forecasting adjusted pre-tax profit of $112 and EPS of 31.5¢ in the year to September 2017, up from $38.2m and 10.7¢ in 2016.
THARISA (THS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 125p | MARKET VALUE: | £321m | |
| TOUCH: | 122-128p | 12-MONTH HIGH: | 165p | LOW: 35p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 79¢ | NET DEBT: | 20% | |
| Year to 30 Sep | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2013** | 215 | -63.0 | -20.0 | nil |
| 2014** | 241 | -40.3 | -20.0 | nil |
| 2015** | 247 | 9.6 | 2.0 | nil |
| 2016 | 220 | 22.0 | 6.0 | 1.0* |
| % change | -11 | +129 | +200 | - |
Ex-div: tbc Payment: tbc £1=$1.25. *Proposed dividend requires board approval **Prior to London listing. | ||||
