Three FTSE Earning Updates To Ponder On – Elementis Plc, Bacanora Lithium Plc And Beowulf Mining Plc

Following the start of the earnings announcements from the London Stock Exchange listed stocks, markets have picked up the pace and are performing well, primarily because of the good operational and financial performance from companies by the end of 2019. In the first week of March, the indices started showing signs of recovery as major global indices witnessed some fresh bouts of buying at lower levels, after a sharp sell-off in the past few sessions. The following is a brief overview of the financial performances of three such stocks, which announced their annual results this week, that could potentially transform the story of week financial markets on the back of the Coronavirus outbreak.

Elementis Plc

Elementis Plc (LON: ELM) is a diversified chemicals company based out of London, the United Kingdom, that engage in the activity of supporting industries by providing functional as well as rheological additives.

ELM 2019 Preliminary Results

Elementis Plc declared its preliminary results for the period between 1st January 2019 to 31st December 2020. The main highlighting point was strong fundamentals of the business during the period, despite testing the market environment. The company reported the revenue at an year on year increase of around 6 per cent from US $822 million in FY 2018 to US $874 million in FY 2019. The principal reason behind this was the recently made acquisition of the new Talc business by the company. The Statutory operating profit for the year stood at a value of US $101 million, an increase of around 19 per cent year on year as opposed to FY 2018 figure of US $85.00 million. The adjusted operating profit of the company declined by around 7 per cent year on year and was reported to be at US $123 million, while the adjusted profit before tax declined by 17 per cent year on year, to US $94 million for the period. The Adjusted diluted earnings per share were down significantly by 27 per cent year on year and were reported to be at US Cents 12.4 per share for FY 2019. The ordinary dividend per share increased by 2 per cent year on year, as per the aggressive dividend policy of the company and was proposed at US Cents 8.55 per share by the management of the company.

ELM Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 04-March-20, before the closing of the LSE Market

As on 4th March 2020, at 02:05 P.M (Greenwich Mean Time), by the time of writing this report, the Elementis Plc share was trading at a price of GBX 99.50 per share on the London Stock Exchange market, an increase in the value of 1.38 per cent or GBX 1.35 per share, in comparison with the price of the share on the previous trading day, which had been reported to be at GBX 98.15.

The Elementis Plc share had given a negative return of around 43.79 per cent in value, in the previous one year, since March 04, 2019, when the share was trading at a price of GBX 177.00 per share at the time of the close of the market. Elementis Plc’s share has been reported to have given a negative return of approximately 23.93 per cent, in the last one-month time from the share price of GBX 130.80 per share that the share set as on February 04, 2020.

The beta of the share of the company has been calculated at 1.48 by the time of writing this report.

Bacanora Lithium Plc

Bacanora Lithium Plc (LON: BCN) is a London based company which is in the business of operating lithium mineral and fertiliser mines in Mexico.

BCN Half Year Results

The company provided the highlights of its results for a six months period ended 31st December 2019. Operationally, the company highlighted that Ganfeng purchased 29.99 per cent of Bacanora as well as 22.5 per cent of Sonora Lithium Limited which is the holding company for the Sonora Lithium Project, for a consideration of around £14.40 million and £7.56 million respectively. It was also announced that a long-term offtake deal was entered with Ganfeng for 50 per cent of Stage 1 production at the Sonora Lithium Project and also of up to 75 per cent during Stage 2 production, both at a consideration of market-based price per tonne. Financially, the company did not report any revenues as the projects are still in the initial phases of development, but an operating loss of US$ 3.17 million was reported for the six months ended 31st December 2019. This was approximately 61 per cent less as compared to the operating loss reported in FY 2019. The loss before and after tax for the period was reported to be at around US$ 4.94 million, while the net loss per share stood at a value of US$ 0.03 per share.

BCN Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 04-March-20, before the closing of the LSE Market

As on 4th March 2020, at 02:10 P.M (Greenwich Mean Time), by the time of writing this report, the Bacanora Lithium Plc share was trading at a price of GBX 25.00 per share on the London Stock Exchange market, no change as compared with the price of the share on the previous trading day.

The Bacanora Lithium Plc share had given a positive return of around 38.89 per cent in value, in the previous one year, since March 04, 2019, when the share was trading at a price of GBX 18.00 per share at the time of the close of the market. Bacanora Lithium Plc’s share has been reported to have given a negative return of approximately 23.08 per cent, in the last one-month time from the share price of GBX 32.50 per share that the share set as on February 04, 2020.

The beta of the share of the company has been calculated at 1.38 by the time of writing this report.

Beowulf Mining Plc

Beowulf Mining Plc (LON: BEM) is a London based mining company that engages in the exploration as well as extraction of precious commodities and minerals through its operations which are primarily based in Sweden.

BEM Preliminary Financial Results

The company announced its unaudited financial results for FY 2019 as well as Q4 2019 results, for the period ended on 31st December 2019. The company did not report any revenue during the entire year but made some significant operational progress during the period, which could potentially see them reporting some revenue by the end of the current year. The operating loss incurred by the company stood at £462,304, which could have been even higher, if not for a gain on sale of acquisitions worth £563,431. The company also declared a loss before and after taxation of £419,334 in FY 2019, a significant decline, as opposed to the loss declared in FY 2018 at £1.37 million. The loss per share also declined significantly and was reported to be at GBX 0.04 per share in FY 2019, as compared to GBX 0.25 in FY 2018. The company’s key highlighting point in these results was the achievement of profit for Q4 2019, as the profit was declared at £346,476 for the period, again, on the back of the gains made through the selling of acquisition during the period. The Earnings per share for the period was declared to be at GBX 0.07.

BEM Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 04-March-20, before the closing of the LSE Market

As on 4th March 2020, at 02:15 P.M (Greenwich Mean Time), by the time of writing this report, the Beowulf Mining Plc share was trading at a price of GBX 4.80 per share on the London Stock Exchange market, an increase in the value of 5.49 per cent or GBX 0.25 per share, in comparison with the price of the share on the previous trading day, which had been reported to be at GBX 4.55 per share.

The Beowulf Mining Plc share had given a negative return of around 37.25 per cent in value, in the previous one year, since March 04, 2019, when the share was trading at a price of GBX 7.65 per share at the time of the close of the market. Beowulf Mining Plc’s share has been reported to have given a positive return of approximately 6.67 per cent, in the last one-month time from the share price of GBX 4.50 per share that the share set as on February 04, 2020.

The beta of the share of the company has been calculated at -0.85 by the time of writing this report.

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