(BFM Bourse) – Imerys is moving against the trend, benefiting from the support of Oddo BHF, which has raised its price target by 10 euros for the number one title in mineral specialties. The latter has undertaken a rotation of its business portfolio to refocus on specialty materials for the green mobility, sustainable construction and consumer goods markets.
Imerys is cleaning up to revitalize its business portfolio. In the space of a few months, the number one mineral specialty company has sharply reduced its exposure to declining or more traditional activities (paper, refractories) in favor of more sustainable businesses that are closer to everyday consumption.
Last September, the French group announced that it was entering into discussions with the Syntagma Capital fund to sell its activities for the paper industry, for an amount of approximately 390 million euros. This sale followed the sale a few weeks earlier of its carbonates factory in Arizona to the American Cimbar. This site produces, among other things, calcium carbonate for customers from industrial sectors such as cement manufacturers and agriculture for animal feed.
A new impetus in green mobility and sustainable construction
But the most emblematic sale is that of its high-temperature solutions activity, which supplied 6,000 customers in the steel, thermal and foundry markets. As part of its strategic review of its activities, Imerys announced last July that it wanted to part with the world leader in refractory solutions in favor of Platinum Equity for 930 million euros.
The transaction – which should be finalized in the coming weeks – will provide the group with new financial resources to continue its expansion, particularly in markets such as green mobility, sustainable construction and natural solutions for consumer goods.
Lithium, a source of growth for an analyst
The group plans to give more details on the occasion of its investor day scheduled for November 7, during which Imerys will present its development plan. 2023-2025. For Oddo BHF, the number one in mineral specialties will take advantage of this meeting to unveil its lithium potential in its Beauvoir mine, in Allier.
In May 2021, the government granted Imerys a first extension until May 23, 2025 of the exclusive exploration license for lithium, tin, tantalum, niobium, tungsten, beryllium and related substances under the “Permis de Beauvoir. ” The design office now values this deposit at 1.69 billion euros, or 20 euros per title.
Oddo BHF also estimates that Imerys’ lithium reserves “are much higher than the estimates of the BRGM (Bureau of Geological and Mining Research) for 2018”. The design office is also betting on a return to shareholders and does not rule out the payment of “an exceptional dividend” “after the sale of Calderys (in refractory materials, particularly for the steel industry) and paper.” Oddo analysts deem the portfolio low valued at around 7 times 2023 Ebitda, leading them to revalue the portfolio from 45 to 55 euros while maintaining their recommendation to overweight.
The leader in mineral specialties for industry is benefiting from this mark of interest from Oddo BHF. Its share price rose 4.8% to 34.66 euros while the CAC 40 fell 0.4% at the same time, in the red for the fifth session in a row.
Sabrina Sadgui – ©2022 BFM Bourse
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