(Boursier.com) — Eramet resumed 3% to 112 euros, investors welcoming the latest announcements from the government of New Caledonia. The latter unanimously issued Société Le Nickel’s export authorizations for 2 million tonnes of nickel ore, which brings its annual export authorization to 6 million tonnes. This green light provides SLN with the action framework it needs to implement the mining component of its rescue plan.
This is a major step that could enable Eramet SLN to substantially reduce its unit cash cost, says Oddo BHF. The analyst reiterates his ‘outperform’ opinion on Eramet with a target raised from 120 to 130 euros. The price should benefit from a favorable earnings momentum in manganese and nickel as well as an improvement in AHP. The EV/EBITDA valuation stands at 3.1x 2023e (vs. 4.5x on average over 10 years).
Portzamparc speaks of excellent news for Eramet which will be able to improve the financial performance of its Caledonian subsidiary. The brokerage house raises its target from 125 to 130 euros and maintains its ‘buy’ opinion given the still substantial potential despite the stock’s sharp rise.
©2022 Boursier.com