Report

- Material ramp-up in production in H2

Deutsche Rohstoff (DRAG) generated group sales of €32.1m and EBITDA of €23.5m in H117, significantly de-risking consensus full year forecasts, which imply 600% revenue growth in 2017. Sales are to be further enhanced in the coming months with a planned 50-well drilling programme across Cub Creek, Elster and Salt Creek. DRAG’s metals and mining investments saw a strong recovery during the first half of 2017, underpinned by a strong rise in the price of zinc, copper and a number of rare earth commodities.
Underlying
Deutsche Rohstoff AG

Deutsche Rohstoff AG is a Germany-based holding company. Its activities are diversified into three business segments. The Gold and Silver is engaged in extraction of those two materials mainly in Australia. Nevertheless, In September 2014, the Company sold all its shares in Wolfram Camp Mining and Tropical Metals. Moreover it also obtains silver in Germany, from which the Company makes coins. The Oil and Gas business segments is handled through its subsidiary Rhein Petroleum GmbH, Tekton Energy LLC and Salt Creek Oil & Gas LLC, and is focused on the exploration and production of oil and natural gas in Germany and the United States. The High-Tech Metals business segment is engaged in extraction and supply of materials used for production of LEDs (Light Emitting Diodes), flat panel displays, solar cells, hybrid cars and medical indispensable, such as indium, gallium, cobalt and tin. The Company operates subsidiaries in the United States, Australia, Germany and Canada.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts
Sanjeev Bahl

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