Equity Analysis /

AU : Coronado Global Resources - Leverage on show

    Tom Sartor
    Tom Sartor

    Senior Analyst - Resources & Metals

    16 May 2022
    Published by

    Further upgrades to our met coal price deck drives EPS/NPV upgrades. Dividend upside risk is now clearly coming to the fore. CRN can ably fund the building of M&A dry powder/optionality while also distributing material surplus cash. Our Base case valuation adjusts to $2.82ps. Upside leverage to our valuation of $3.59ps under a bullish pricing scenario is clear. Our $2.97ps target applies a premium to reflect upside risk to our coal price forecasts. Maintain Add.