Stock Name: Sakari
Company Name: SAKARI RESOURCES LIMITED
DBS Vickers Securities in a Feb 15 research report says: "4Q11 net profit of US$73 million (up 139% y-o-y and 97% q-o-q) was significantly better than expected owing to (i) higher than expected production at the Sebuku Northern Leases, (ii) higher blended ASP of close to US$100/ton, (iii) lower than expected cash cost of US$34/ ton in Sebuku, compared to US$44/ton in 3Q11, (iv) hedging gains of US$13.9 million under the new risk management policy and (v) lower tax rate of 27% (30% in FY10).
"FY2011 net profit of US$190 million (up 116% y-o-y) was SAR's best FY result to-date. Final dividend of 5.8 US cents declared. Target price is raised to $2.70, pegged to midcycle forward valuation (of blended 12x PE/ 3.5x P/BV). UPGRADE TO BUY."
Company Name: SAKARI RESOURCES LIMITED
| Research House: DBS Vickers | Price Call: BUY | Target Price: 2.70 |
DBS Vickers Securities in a Feb 15 research report says: "4Q11 net profit of US$73 million (up 139% y-o-y and 97% q-o-q) was significantly better than expected owing to (i) higher than expected production at the Sebuku Northern Leases, (ii) higher blended ASP of close to US$100/ton, (iii) lower than expected cash cost of US$34/ ton in Sebuku, compared to US$44/ton in 3Q11, (iv) hedging gains of US$13.9 million under the new risk management policy and (v) lower tax rate of 27% (30% in FY10).
"FY2011 net profit of US$190 million (up 116% y-o-y) was SAR's best FY result to-date. Final dividend of 5.8 US cents declared. Target price is raised to $2.70, pegged to midcycle forward valuation (of blended 12x PE/ 3.5x P/BV). UPGRADE TO BUY."
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