Tri-Star Resources (TSTR) : Corp

First antimony metal produced

Key data

  • Share price (p) 43.0
  • Target price (p) 68.0
  • Market cap (£m) 40.5
  • Enterprise value (£m) 44.3

Tri-Star Resources has announced that the SPMP antimony plant in Oman has produced its first antimony metal. It is not yet at the required purity for commercial sale but this is expected to improve as production increases. Tri-Star’s principal asset is its 40% shareholding in SPMP; this in turn owns the antimony and gold production facility in northern Oman. We maintain our 68.0p price target.

Martin Potts 020 7220 0544

Tristel (TSTL) : Corp

FY trading update and Italian acquisition

Key data

  • Share price (p) 300.0
  • Target price (p) 325.0
  • Market cap (£m) 131.1
  • Enterprise value (£m) 126.9

Tristel provided a positive trading update for the year ending 30 June 2019, indicating revenues of £26m (+17%), some £0.3m above expectations, driven by a stronger UK performance, and adjusted pre-tax profit of at least £5.5m (+18%), in line with current forecasts. Tristel also announced the buy-out of its associate in Italy (80% of Tristel Italia) for c.£0.6m (3.3x EBITDA), for which it intends to invest in a sales force to drive future growth. This should be broadly neutral to FY 2020 earnings but accretive thereafter. This is a well-trodden path that Tristel has followed over the past two to three years, taking greater control of its overseas markets, and underpins the solid and sustained performance that we have seen over the past five years. We make minor changes to forecasts and increase our target price to 325p.

Mark Brewer 020 7220 0556

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