finnCap Research Company Notes - 2 May 2018

Sector: Consumer & Other

PPHE Hotel Group (PPH): Solid Q1 against strong comparatives

Key data                              

• Share price (p): 1160.0
• Target price (p): 1350.0
• Market cap (£m): 490.1
• Enterprise value (£m): 1081.1    

PPHE has highlighted a solid Q1 with sales up +2.9% to £59.4m (our full-year forecast +2.8%) driven by average room rate down -2.8% and occupancy up +240bps. The lower average room rate was affected by a slightly softer London market against a strong comparative. We make no changes to our forecasts or target price and reiterate that there is a strong pipeline of renovations and developments across the portfolio and the group has £240m of gross cash to finance both these and other opportunities.

Contact: Guy Hewett | 020 7220 0549 | ghewett@finncap.com

Sector: Mining

Savannah Resources (SAV): Increased Mineral Resource at Mina do Barroso

Key data                              

• Share price (p): 5.6
• Target price (p): 11.0
• Market cap (£m): 35.7
• Enterprise value (£m): 34.0         

Savannah Resources has released an updated Mineral Resource for its Mina do Barroso lithium project in northern Portugal. This takes the total Inferred Resource for the first three pegmatites out of eight being explored to 14.0Mt at 1.1% Li₂O containing 149,300t of Li₂O. This is now the largest known spodumene deposit in Western Europe. Most of the uplift has come from the Grandao deposit, where 10.3Mt at 1.1% Li₂O containing 111,600t of Li₂O has now been identified. We retain our 11p price target.

Contact: Martin Potts | 020 7220 0544 | mpotts@finncap.com