Triton Minerals (TON)

Business description

Triton Minerals is an exploration and development company with assets in Australia and Africa. Its main focus is the development of its graphite exploration licences in Mozambique, initially the Ancuabe graphite project, which is being investigated specifically to feed into the nascent, but high-growth lithium-ion battery sector.

Stock data

Market cap.A$36.8m
Last closeA$0.06
High / Low (52 weeks)A$0.1 / A$0.0
Stock market listingAU
Forecast net cash (A$m)6.5
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual19.1(5.1)(7.9)
Relative *18.6(5.2)(11)

* % Relative to local index

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Y/E Dec Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (c) P/E (x) P/CF (x)
2015A 0.0 (5.2) (5.2) (3.6) N/A N/A
2016A 1.8 (2.1) (2.1) (0.5) N/A N/A
2017E 0.0 (2.5) (2.5) (0.4) N/A N/A
2018E 0.0 (4.6) (4.6) (0.5) N/A N/A

Last updated on 25/07/2017

Latest research

Investment summary

Triton Minerals plans to develop its Ancuabe graphite project in Mozambique to feed the established and high-growth expandable graphite market. In our view, this is a prudent way forward in a sector dominated by graphite companies tussling with the vagaries of battery-ready graphite production and an end-market yet to mature. An important market is China, where some producers are aiming to outsource raw graphite to clean up old, inefficient graphite mines as well as secure expandable graphite for the recently revised (2015) fire-retardant cladding regulations.

Last updated on 03/08/2017

Industry outlook

Our SOTP base case valuation is 22c per share, based on the Ancuabe scoping study (13c) with a further 9c added based on a discounted valuation of the company’s very large additional resources at Balama and Nicanda Hill/West. Our base case valuation uses a notional 75/25 debt/equity structure to fund Ancuabe’s development, assuming equity at the current share price (5c). Our valuation is sensitive share price assumptions of the equity component: at a 10.0c share price, our base case valuation becomes 26c; at 15c it becomes 28c. Our Ancuabe valuation uses a weighted graphite concentrate basket price of US$1,369/t and a 10% discount rate to reflect general equity risk.

Last updated on 03/08/2017

Key management

Peter Canterbury, MD
David Edwards, CFO

Company address

Ground Floor 10 Outram Street
West Perth
Perth
WA 6005
Australia
+61 8 6489 2555
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