Australian Broker Call *Extra* Edition – Oct 12, 2022

This story features ALUMINA LIMITED, and other companies. For more info SHARE ANALYSIS: AWC

Today's is a Special Edition containing only Goldman Sachs updates on ASX-listed resources companies. This Report should be read in conjunction with the story https://www.fnarena.com/index.php/2022/10/12/material-matters-recession-pains-ahead-for-commodities/, published a few moments ago.

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

AWC   BHP   BSL   CIA   CRN   DRR   FMG   ILU   LYC   MIN   NHC   OZL   RIO   S32   SFR   SGM   WHC  

AWC    ALUMINA LIMITED

Aluminium, Bauxite & Alumina – Overnight Price: $1.25

Goldman Sachs rates ((AWC)) as Upgrade to Neutral from Sell (3) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

The broker lowers aluminium and nickel price forecasts after reducing European demand forecasts. It’s noted the industrial supply chain is currently undergoing an aggressive destocking cycle, given extreme uncertainties over demand conditions into winter. 

Despite the lower aluminium price forecasts, Goldman increases its rating for Alumina Ltd to Neutral from Sell on valuation, as shares have fallen by -22% since June 9, when the rating was originally downgraded to Sell. 

The target price falls to $1.30 from $1.35.

This report was published on October 11, 2022.

Target price is $1.30 Current Price is $1.25 Difference: $0.05
If AWC meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $1.66, suggesting upside of 32.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.45 cents and EPS of 6.05 cents.
At the last closing share price the estimated dividend yield is 6.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.65.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.9, implying annual growth of N/A.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 14.0.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 6.90 cents and EPS of 7.74 cents.
At the last closing share price the estimated dividend yield is 5.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.9, implying annual growth of -22.5%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 18.1.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BHP    BHP GROUP LIMITED

Bulks – Overnight Price: $39.92

Goldman Sachs rates ((BHP)) as Buy (1) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. 

Overall, the broker prefers bulks over base metals on a three-to-six-month view, based on recent conversations with Chinese steel mills, which suggest a recent uptick in demand. 

Goldman's lower copper price forecast is partly offset by currency movements.

The broker increases its price target for BHP Group to $43.50 from $40.50. It's felt a valuation premium to global mining peers will be maintained. Buy.

This report was published on October 11, 2022.

Target price is $43.50 Current Price is $39.92 Difference: $3.58
If BHP meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $41.35, suggesting upside of 3.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Current consensus EPS estimate is 482.6, implying annual growth of N/A.
Current consensus DPS estimate is 352.7, implying a prospective dividend yield of 8.8%.
Current consensus EPS estimate suggests the PER is 8.3.

Forecast for FY24:

Current consensus EPS estimate is 432.5, implying annual growth of -10.4%.
Current consensus DPS estimate is 318.9, implying a prospective dividend yield of 8.0%.
Current consensus EPS estimate suggests the PER is 9.2.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BSL    BLUESCOPE STEEL LIMITED

Steel & Scrap – Overnight Price: $16.25

Goldman Sachs rates ((BSL)) as Buy (1) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

The broker lowers its target for BlueScope Steel to $20.90 from $24.30 on lower US hot-rolled coil (HRC) steel prices partially offset by lower scrap prices and a lower Australian dollar.

This report was published on October 11, 2022.

Target price is $20.90 Current Price is $16.25 Difference: $4.65
If BSL meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $20.83, suggesting upside of 28.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Current consensus EPS estimate is 249.9, implying annual growth of -56.3%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 6.5.

Forecast for FY24:

Current consensus EPS estimate is 213.3, implying annual growth of -14.6%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 7.6.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CIA    CHAMPION IRON LIMITED

Iron Ore – Overnight Price: $5.15

Goldman Sachs rates ((CIA)) as Buy (1) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. 

Overall, the broker prefers bulks over base metals on a three-to-six-month view, based on recent conversations with Chinese steel mills, which suggest a recent uptick in demand. 

The Buy rating for Champion Iron is unchanged and the target rises to $7.00 from $6.80 as a lower Canadian dollar has aided the analyst's valuation.

This report was published on October 11, 2022.

Target price is $7.00 Current Price is $5.15 Difference: $1.85
If CIA meets the Goldman Sachs target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

This company reports in CAD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CRN    CORONADO GLOBAL RESOURCES INC

Coal – Overnight Price: $1.94

Goldman Sachs rates ((CRN)) as Buy (1) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

The broker notes strong September quarter results for Coronado Global Resources on strong price tailwinds on contract lags.

The Buy rating is retained and the target increases to $2.25 from $1.85 on a fall in the Australian dollar and a slight lift in met coal price forecasts.

This report was published on October 11, 2022.

Target price is $2.25 Current Price is $1.94 Difference: $0.31
If CRN meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $2.71, suggesting upside of 39.9%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 76.00 cents and EPS of 90.36 cents.
At the last closing share price the estimated dividend yield is 39.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.15.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 77.5, implying annual growth of N/A.
Current consensus DPS estimate is 50.8, implying a prospective dividend yield of 26.2%.
Current consensus EPS estimate suggests the PER is 2.5.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 25.33 cents and EPS of 11.26 cents.
At the last closing share price the estimated dividend yield is 13.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.23.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 81.0, implying annual growth of 4.5%.
Current consensus DPS estimate is 53.2, implying a prospective dividend yield of 27.4%.
Current consensus EPS estimate suggests the PER is 2.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DRR    DETERRA ROYALTIES LIMITED

Iron Ore – Overnight Price: $4.12

Goldman Sachs rates ((DRR)) as Upgrade to Buy from Neutral (1) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. 

Overall, the broker prefers bulks over base metals on a three-to-six-month view, based on recent conversations with Chinese steel mills, which suggest a recent uptick in demand. 

Goldman Sachs raises its rating for Deterra Royalties to Buy from Neutral, with the company relatively less exposed to escalating industry operating and capital expenditures.

In addition, there’s now some expectation for increased production at BHP Group’s ((BHP)) South Flank, from which Deterra receives ongoing royalties, explains the broker.

The target price rises to $4.70 from $4.50.

This report was published on October 11, 2022.

Target price is $4.70 Current Price is $4.12 Difference: $0.58
If DRR meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $4.85, suggesting upside of 17.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 31.50 cents and EPS of 31.50 cents.
At the last closing share price the estimated dividend yield is 7.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 33.1, implying annual growth of -2.0%.
Current consensus DPS estimate is 35.1, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 12.4.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 26.20 cents and EPS of 26.20 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.6, implying annual growth of -16.6%.
Current consensus DPS estimate is 28.3, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 14.9.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

FMG    FORTESCUE METALS GROUP LIMITED

Iron Ore – Overnight Price: $17.24

Goldman Sachs rates ((FMG)) as Sell (5) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. 

Overall, the broker prefers bulks over base metals on a three to six month view, based on recent conversations with Chinese steel mills, which suggest a recent uptick in demand. 

The analyst raises the target price for Fortescue Metals to $13.40 from $12.10 after a positive marking-to-market for the September quarter and after allowing for a weaker Australian dollar.

This report was published on October 11, 2022.

Target price is $13.40 Current Price is $17.24 Difference: minus $3.84 (current price is over target).
If FMG meets the Goldman Sachs target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $15.72, suggesting downside of -8.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Current consensus EPS estimate is 233.3, implying annual growth of N/A.
Current consensus DPS estimate is 154.1, implying a prospective dividend yield of 8.9%.
Current consensus EPS estimate suggests the PER is 7.4.

Forecast for FY24:

Current consensus EPS estimate is 180.6, implying annual growth of -22.6%.
Current consensus DPS estimate is 123.2, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 9.5.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ILU    ILUKA RESOURCES LIMITED

Mineral Sands – Overnight Price: $9.51

Goldman Sachs rates ((ILU)) as Buy (1) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

The broker's Buy rating for Iluka Resources is unchanged, though the price target falls to $12.90 from $13.30 on reduced rutile price forecasts for 2023, partially offset by a lower Australian dollar.

This report was published on October 11, 2022.

Target price is $12.90 Current Price is $9.51 Difference: $3.39
If ILU meets the Goldman Sachs target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $11.24, suggesting upside of 18.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Current consensus EPS estimate is 138.0, implying annual growth of 59.7%.
Current consensus DPS estimate is 37.4, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 6.9.

Forecast for FY23:

Current consensus EPS estimate is 112.2, implying annual growth of -18.7%.
Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 8.5.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

LYC    LYNAS RARE EARTHS LIMITED

Rare Earth Minerals – Overnight Price: $7.81

Goldman Sachs rates ((LYC)) as Neutral (3) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

Goldman lowers its target for Lynas Rare Earths to $8.10 from $9.10 on lower NdPr prices, partly offset by a lower Australian dollar.

This report was published on October 11, 2022.

Target price is $8.10 Current Price is $7.81 Difference: $0.29
If LYC meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MIN    MINERAL RESOURCES LIMITED

Iron Ore – Overnight Price: $72.78

Goldman Sachs rates ((MIN)) as Buy (1) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. 

Overall, the broker prefers bulks over base metals on a three-to-six-month view, based on recent conversations with Chinese steel mills, which suggest a recent uptick in demand. 

The analyst points to a lift in spodumene shipments by Mineral Resources and improvement in low grade iron price realisations. The target is raised to $76.10 from $69.50 and the Buy rating is unchanged.

This report was published on October 11, 2022.

Target price is $76.10 Current Price is $72.78 Difference: $3.32
If MIN meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $82.24, suggesting upside of 13.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 212.00 cents and EPS of 678.00 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1122.5, implying annual growth of 507.2%.
Current consensus DPS estimate is 483.7, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 6.5.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 116.00 cents and EPS of 289.00 cents.
At the last closing share price the estimated dividend yield is 1.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.18.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1070.4, implying annual growth of -4.6%.
Current consensus DPS estimate is 479.0, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 6.8.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NHC    NEW HOPE CORPORATION LIMITED

Coal – Overnight Price: $6.60

Goldman Sachs rates ((NHC)) as Sell (5) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

The broker retains its Sell rating for New Hope and the target increases to $4.40 from $3.80 on a fall in the Australian dollar and higher thermal coal prices.

This report was published on October 11, 2022.

Target price is $4.40 Current Price is $6.60 Difference: minus $2.2 (current price is over target).
If NHC meets the Goldman Sachs target it will return approximately minus 33% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $6.25, suggesting downside of -5.3%(ex-dividends)
The company's fiscal year ends in July.

Forecast for FY23:

Current consensus EPS estimate is 249.8, implying annual growth of 111.5%.
Current consensus DPS estimate is 165.0, implying a prospective dividend yield of 25.0%.
Current consensus EPS estimate suggests the PER is 2.6.

Forecast for FY24:

Current consensus EPS estimate is 184.3, implying annual growth of -26.2%.
Current consensus DPS estimate is 114.3, implying a prospective dividend yield of 17.3%.
Current consensus EPS estimate suggests the PER is 3.6.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OZL    OZ MINERALS LIMITED

Copper – Overnight Price: $25.75

Goldman Sachs rates ((OZL)) as Neutral (3) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view. 

The broker raises its target for OZ Minerals to $20.00 from $18.90 as lower copper and gold prices are offset by a weaker Australian dollar.

This report was published on October 11, 2022.

Target price is $20.00 Current Price is $25.75 Difference: minus $5.75 (current price is over target).
If OZL meets the Goldman Sachs target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $25.48, suggesting downside of -1.0%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Current consensus EPS estimate is 74.0, implying annual growth of -53.6%.
Current consensus DPS estimate is 17.5, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 34.8.

Forecast for FY23:

Current consensus EPS estimate is 96.2, implying annual growth of 30.0%.
Current consensus DPS estimate is 15.2, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 26.8.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RIO    RIO TINTO LIMITED

Bulks – Overnight Price: $96.90

Goldman Sachs rates ((RIO)) as Buy (1) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. 

Overall, the broker prefers bulks over base metals on a three-to-six-month view, based on recent conversations with Chinese steel mills, which suggest a recent uptick in demand. 

Goldman's lower copper and aluminium price forecasts for Rio Tinto are partly offset by favourable currency movements.

The price target falls to $113 from $121.50. Buy.

This report was published on October 11, 2022.

Target price is $113.00 Current Price is $96.90 Difference: $16.1
If RIO meets the Goldman Sachs target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $103.36, suggesting upside of 6.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY22:

Current consensus EPS estimate is 1373.5, implying annual growth of N/A.
Current consensus DPS estimate is 827.7, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 7.1.

Forecast for FY23:

Current consensus EPS estimate is 1204.8, implying annual growth of -12.3%.
Current consensus DPS estimate is 864.0, implying a prospective dividend yield of 8.9%.
Current consensus EPS estimate suggests the PER is 8.0.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

S32    SOUTH32 LIMITED

Mining – Overnight Price: $3.67

Goldman Sachs rates ((S32)) as Downgrade to Neutral from Buy (3) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

While South32 has a supportive dividend yield, a current share buyback program and compelling long-term base metals growth, the broker lowers its rating to Neutral from Buy on lower base metal price forecasts.

The target price falls to $3.70 from $4.70.

This report was published on October 11, 2022.

Target price is $3.70 Current Price is $3.67 Difference: $0.03
If S32 meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $4.97, suggesting upside of 35.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 20.13 cents and EPS of 28.71 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.78.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 58.5, implying annual growth of N/A.
Current consensus DPS estimate is 29.0, implying a prospective dividend yield of 7.9%.
Current consensus EPS estimate suggests the PER is 6.3.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 38.28 cents and EPS of 54.61 cents.
At the last closing share price the estimated dividend yield is 10.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 55.7, implying annual growth of -4.8%.
Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 6.6.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SFR    SANDFIRE RESOURCES LIMITED

Copper – Overnight Price: $3.69

Goldman Sachs rates ((SFR)) as Downgrade to Sell from Neutral (5) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

Partly due to a forecast drop in copper and zinc prices, the broker lowers its rating for Sandfire Resources to Sell from Neutral.

Other reasons for the downgrade include the growth capex required for the Motheo copper mine in Botswana and elevated gas prices at the Matsa operations in Spain, explains the analyst.

The target price falls to $3.50 from $4.30.

This report was published on October 11, 2022.

Target price is $3.50 Current Price is $3.69 Difference: minus $0.19 (current price is over target).
If SFR meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.99, suggesting upside of 35.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 123.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is -1.6, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 8.20 cents and EPS of 44.60 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.3, implying annual growth of N/A.
Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 283.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SGM    SIMS LIMITED

Steel & Scrap – Overnight Price: $12.98

Goldman Sachs rates ((SGM)) as Neutral (3) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

The broker lowers its target for Sims to $14.40 from $16.70 on lower near-term scrap prices partially offset by favourable currency movements.

This report was published on October 11, 2022.

Target price is $14.40 Current Price is $12.98 Difference: $1.42
If SGM meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $16.57, suggesting upside of 27.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Current consensus EPS estimate is 145.3, implying annual growth of -52.1%.
Current consensus DPS estimate is 50.3, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 8.9.

Forecast for FY24:

Current consensus EPS estimate is 125.7, implying annual growth of -13.5%.
Current consensus DPS estimate is 45.2, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 10.3.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WHC    WHITEHAVEN COAL LIMITED

Coal – Overnight Price: $10.37

Goldman Sachs rates ((WHC)) as Neutral (3) –

Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.

The broker notes strong September quarter results for Whitehaven Coal on strong price tailwinds on contract lags.

The Neutral rating is retained and the target increases to $9.60 from $7.60 on higher thermal coal prices and a weaker Australian dollar, explains the analyst.

This report was published on October 11, 2022.

Target price is $9.60 Current Price is $10.37 Difference: minus $0.77 (current price is over target).
If WHC meets the Goldman Sachs target it will return approximately minus 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $9.98, suggesting downside of -3.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY23:

Current consensus EPS estimate is 360.7, implying annual growth of 82.5%.
Current consensus DPS estimate is 103.3, implying a prospective dividend yield of 10.0%.
Current consensus EPS estimate suggests the PER is 2.9.

Forecast for FY24:

Current consensus EPS estimate is 228.5, implying annual growth of -36.7%.
Current consensus DPS estimate is 85.8, implying a prospective dividend yield of 8.3%.
Current consensus EPS estimate suggests the PER is 4.5.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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