finnCap Research Company Notes - 9 May 2018

May 09, 2018 / Research Notes

Daily research notes from finnCap's leading research analysts.

Sector: Mining

Horizonte Minerals (HZM): Significant nickel and cobalt inventory confirmed

Key data                              

  • Share price (p): 4.4
  • Target price (p): 8.0
  • Market cap (£m): 63.0
  • Enterprise value (£m): 53.6         

Horizonte has announced an initial NI 43-101 Mineral Resource Estimate for the recently acquired Vermelho nickel/cobalt project. The Vermelho Nickel-Cobalt Mineral Resources, in the Measured and Indicated category, are 167.8 million tonnes grading 1.01% nickel and 0.06% cobalt (at 0.9% nickel equivalent cut off). The Mineral Resource Estimate places the Vermelho project as one of the largest, highest grade undeveloped laterite nickel-cobalt resources globally. We retain our medium-term target price of 8p.

Martin Potts | mpotts@finncap.com

finnCap is a leading investment broker to mining industry companies, find out more here.

Sector: Support Services

Cello Health Group (CLL): Strong start to the year

Key data                              

  • Share price (p): 119.5
  • Target price (p): 145.0
  • Market cap (£m): 123.5
  • Enterprise value (£m): 121.9

In a positive AGM statement, Cello has confirmed that the group has had a strong start to the year and this looks set to continue into Q2 based on current visibility. Cello Health had a robust Q1 with good sales growth and profit performance and Cello Signal has achieved a solid operating performance aided by last year’s restructuring in the US, and has a good pipeline of future opportunities in health. Cash conversion has been good and the balance sheet remains strong. Cello has developed a strong, core lead integrated global healthcare marketing services brand, creating a breadth and quality of service that others will struggle to provide under their disparate corporate structures. Cello has to prove the benefits of this move, but with net cash and the potential to also leverage its digital expertise into health, there is clear opportunity to create significant value.

Guy Hewett | ghewett@finncap.com

finnCap finds growth capital for ambitious support services companies, find out more here.