Ferrexpo: Downgrade on weaker iron ore and higher investment needs

Ferrexpo: Downgrade on weaker iron ore and higher investment needs



27 вересня 2012 года
Конкорд Капитал

Ferrexpo’s license for its key growth project, Yeristovo Mining (FYM), was extended for 20 years at the end of August, according to the company. This, in our view, removes the uncertainty with finalizing the construction and launch of FYM. On the other hand, iron ore spot prices plunged at the beginning of September and the overall outlook for the market has worsened. We cut our projection for Ferrexpo’s selling prices, which combined with our revised, higher net debt estimate in 2013 prompts us to slash our 12M target price from USD 3.79/share (GBp 244) to USD 2.37 (GBp 146), implying 29% downside. We downgrade our recommendation from HOLD to SELL.

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Источник: Конкорд Капитал

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