Blackstone Resources receives BB credit rating from AlphaValue

BAAR, Switzerland--(BUSINESS WIRE)--Blackstone Resources AG (SWX: BLS) is pleased to announce that AlphaValue has given Blackstone Resources a BB credit-risk rating in its latest research update. AlphaValue currently covers Blackstone Resources and maintained a BUY rating in June with the target 2020 of CHF 2.61, well above the actual share price.

It considers Blackstone Resources as an “intriguing battery materials play”, due to its ownership of key materials, like lithium, manganese, cobalt, nickel and others. It has also commented favourably on Blackstone’s battery technology investments, which it believes is well-positioned in the actual R&D stages.

AlphaValue has based its valuation model on using GLENCORE (BB), ANGLO AMERICAN (A), BOLIDEN (CC) and ERAMET (CC) as comparable to a sector rating of BBB. Behind Blackstone’s BB credit rating is an attractive P/Book ratio of just 0.38, in comparison to the peer group, which sits at 1.04.

This low figure is despite the equity in the company recently increasing over the past year to owing to a number of successful transactions. Meanwhile the half year earnings 2020E have increased to CHF 0.56 earning per share from CHF 0.13 for the year 2019.

This same story is reflected in Blackstone’s P/E ratio, which sits at strong 1.32 x for 2020E, 1.47 x for 2021E and 0.60 x for 2022E compared to the peer group present average of 15.2 x.

This shows that the actual share price of Blackstone is presently highly undervalued versus the peer groups.

AlphaValue is an independent equity research house that covers over 470 European stocks, split between 32 seasoned analysts. The report is readily downloadable from Blackstone Resources’ website and can be accessed here. It can also be found on AlphaValue’s website or on Bloomberg’s research portal.

Blackstone Resources AG

Blackstone Resources is a Swiss Holding Company, with its legal domicile in Baar, Kanton Zug and is concentrating on the battery metals market as primary metals. In addition, it sets up, develops and manages refineries used for gold and battery metals. It offers direct exposure to the battery metal revolution that is being driven by the demand of electric vehicles that need vast quantities of these metals. These include cobalt, manganese, molybdenum, graphite and lithium. In addition, Blackstone Resources has started a research programme on new battery technologies.

For more information please visit www.blackstoneresources.ch.

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