Edison Investment Research - Zamanco Minerals (ZAM) Update: Margins under pressure

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Edison Investment Research

Update: Margins under pressure

Zambeef continues to make progress towards becoming one of the leading food producers across sub-Saharan Africa rather than solely Zambia. This progress is currently overshadowed by several adverse external effects, which have resulted in Zambeef posting a $3.2m adjusted pre-tax loss in H114. Our revised estimates look for a return to profitability in FY15. We revise our valuation range from 26-41p to 16-36p.

26/06/2014 8 EN

Underlying

Zamanco Minerals

Zamanco Minerals Limited is an Australia-based company, which continues to seek a transaction of merit capable of becoming the primary undertaking of the Company. The Company focuses on identifying and evaluating a business opportunity. It has undertaken evaluation of a range of prospects in various industries.

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AU000000ZAM5 Australia

Provider

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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Edison Investment Research

Update: Growth in cold chain business drives turnaround

During H115, Zambeef has made significant progress in improving the profitability of its core cold chain food distribution businesses. Gross profits from the beef, chicken, pork, milk, eggs and fish operations rose by 29% year on year to $21.3m (48% in kwacha terms), resulting in the group generating $0.1m profit before tax (adjusted for unrealised forex) compared with a $3.2m loss in H114. Following the disposal of the non-core Zamanita business which completed earlier this month, we reinstate our estimates and see fair value at 17-30p.

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Update: Termination of coverage

Edison Investment Research is terminating coverage on Zambeef Products (ZAM). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

June 22, 2015 June 22, 2015 1 EN

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Flash note: Disposal of Zamanita completed

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Update: Margins under pressure

Update: Growth in cold chain business drives turnaround

Update: Termination of coverage

Flash note: Disposal of Zamanita completed

Games Workshop Group - A notable acceleration in Q225

Altron - Further margin expansion in H125

Sayona Mining - Catching up with majors

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