SMR – Credit Suisse rates the stock as Neutral

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The 1H loss was pretty much in line with the broker. There’s still a bit in the bank, but the broker expects the accounts and debt facilities will be tapped by the end of June as the company pushes to fund the Range DFS and Belview Pre-Feasibility Study.

The DFS for the 5Mtpa Range project is expected by the end of this month, with management hoping for environmental approval some time in the 2H. That said, the broker notes the real problem is the uncertainty about the development of the 22Mtpa Wandoan project, which is needed if the Surat Basin Rail is to be built.

Given the long dated nature of first production, probably no coal from Range for ten years, and the still substantial funding requirements, the Neutral call is maintained.
Sector: Materials.

Target price is $0.20.Current Price is $0.20. Difference: $0.00 – (brackets indicate current price is over target). If SMR meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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