- •Contents
- •Revisions to our forecasts, TPs and ratings
- •Investment stance
- •Capital cycle favours rising returns
- •Comfortable balance sheets and supportive dividend potential
- •Value relative to other stocks
- •Yield potential through the cycle
- •Mid-cycle cash generation offers supportive yields
- •Where to hide if you are bearish
- •What to buy if you are bullish
- •Limited lives weighing down IRR
- •Yields should compensate for limited lives
- •Positive earnings momentum continues to support share prices
- •Commodity price revisions
- •Commodity section
- •Commodity section
- •Preference for base metals over steelmaking materials
- •Earnings revisions
- •Risks and catalysts
- •Peer comp charts
- •Commodity price and exchange rate forecasts
- •Important publications
- •African Rainbow Minerals
- •Alrosa
- •Anglo American
- •Assore
- •Exxaro
- •Glencore
- •Kumba Iron ore
- •NorNickel
- •Rio Tinto
- •Rusal
- •Vale
- •Gold Fields
- •Harmony
- •Polymetal
- •Anglo American Platinum
- •Lonmin
- •Northam
- •Royal Bafokeng Platinum
- •Sasol
- •Disclosures appendix
vk.com/id446425943
Peer comp charts
Renaissance Capital
1 April 2019
Metals & Mining
Figure 105: Companies ranked by CY19E EBITDA margins compared with their historical averages
80% |
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69% |
62% |
58% |
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70% |
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60% |
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50% |
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40% |
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30% |
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20% |
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10% |
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0% |
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Polyus |
Fortescue |
Norilsk |
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*Proportionately consolidated. **Excluding marketing business.
57% |
56% |
53% |
52% |
50% |
49% |
48% |
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CY19E EBITDA margins |
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LT average |
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46% |
44% |
42% |
38% |
37% |
36% |
36% |
34% |
34% |
31% |
31% |
29% |
29% |
28% |
27% |
27% |
23% |
20% |
13% |
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Sector average, 35% |
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BHP |
Kumba |
Vale |
Alrosa |
Gold Fields |
Polymetal |
Rio Tinto |
Assore* |
ARM* |
AngloGold |
Russian* |
Exxaro* |
Anglo |
Northam |
Others* |
Harmony |
Amplats |
South32 |
Impala |
Sibanye |
Glencore** |
Sasol |
RBPlats |
Lonmin |
Merafe |
Rusal |
Source: Company data, Renaissance Capital estimates
Figure 106: Companies ranked by CY19E FCF yield compared with their historical averages |
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30% |
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CY19E FCF yield |
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LT average |
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25% |
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25.0%+ |
24.6% |
22.8% |
18.9% |
18.6% |
17.2% |
17.1% |
15.5% |
15.4% |
12.8% |
12.8% |
11.9% |
11.8% |
11.8% |
11.4% |
11.2% |
10.9% |
10.2% |
10.0% |
9.8% |
8.9% |
8.2% |
8.2% |
8.0% |
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20% |
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15% |
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10% |
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5% |
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0% |
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-5% |
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-10% |
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-15% |
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Fortescue |
Merafe |
ARM |
Impala |
Rusal |
Kumba |
Assore |
Exxaro |
Alrosa |
Anglo |
BHP |
Harmony |
South32 |
Sibanye |
Russian* |
Polyus |
Others* |
Rio Tinto |
Vale |
Northam |
Polymetal |
Glencore |
Gold Fields |
Norilsk |
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Sector average, 11.1% |
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7.6% |
6.7% |
1.7% |
AngloGold |
Amplats |
Sasol |
RBPlats-8.9% |
Lonmin-10.0%+ |
Note: Priced at market close on 26 March 2019.
Source: Company data, Renaissance Capital estimates
Figure 107: Miners ranked by CY19E dividend yield compared with their historical averages
25.0% |
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19.7% |
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20.0% |
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14.1% |
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15.0% |
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13.9% |
13.9% |
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10.0% |
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5.0% |
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0.0% |
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Fortescue |
Kumba |
Merafe |
Alrosa |
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Note: Priced at market close on 26 March 2019.
12.6% |
11.6% |
11.5% |
9.0% |
9.0% |
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CY19E Dividend yield |
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LT average |
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8.8% |
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8.4% |
7.0% |
6.3% |
6.0% |
5.9% |
5.9% |
5.8% |
3.7% |
3.7% |
2.9% |
2.6% |
1.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
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Sector average, 6.8% |
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Exxaro |
Norilsk |
Assore |
ARM |
BHP |
Russian* |
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Polymetal |
Polyus |
Others* |
Rusal |
Amplats |
Sasol |
Gold… |
AngloGold |
Vale |
Impala |
Northam |
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Rio Tinto |
South32 |
Glencore |
Anglo |
RBPlats |
Sibanye |
Harmony |
Source: Company data, Renaissance Capital estimates
60