Align Research - Initiation of Coverage - Shefa Yamim
Paul Kettle
Align Research Note -2 min read
15:34, 18th March 2019

Shefa Yamim (A.T.M.) Limited listed on the LSE in December 2017. After 19 years of exploration in greenfield terrain in Israel, the company has found commercial quantities of some exquisite and rare coloured gemstones which are destined to fetch fancy prices.

Early cash flow expected with the start of commercial mining in 2020

Trial mining is scheduled to begin later on this year, with commercial mining of the Kishon Mid-Ranch Zone 1 in 2020. The granting of a mining licence will allow the company to sell the gemstones found in bulk sampling and other exploration work, which provides the prospect of early cash flow.

Capturing high margins with a Gemfields-style

Mine to Market strategy World renowned jeweller Yossi Harari is creating an exclusive collection using these gems. Shefa Yamim is pursuing a similar strategy to that successfully pursued by Gemfields, which was acquired for £200m+ in 2016.

Gemstone market growing fast with prices outperforming diamonds

Over the last five years, the coloured gemstone market has grown by 145% to US$6 billion and outperformed the price of diamonds by 37% since 2005.

- Risked conservative NPV suggests upside of more than 600%

Our conservative valuation shows the potential. We initiate coverage of Shefa Yamim with a target price of 376p and Conviction Buy stance.

Key data
Share price 52.5p
52 week high/low 112p/52.5p
Exchange LSE
EPIC SEFA
Shares in issue 14.236m
Market Cap £7.5m
Sector Mining
IMPORTANT: SEFA is a research client of Align Research. Research owns shares in SEFA. For full disclaimer information please refer to the last page of the full document.

 

This is a marketing communication and cannot be considered independent research. Nothing in this report should be construed as advice, an offer, or the solicitation of an offer to buy or sell securities by us. As we have no knowledge of your individual situation and circumstances the investment(s) covered may not be suitable for you. You should not make any investment decision without consulting a fully qualified financial advisor.

Your capital is at risk by investing in securities and the income from them may fluctuate. Past performance is not necessarily a guide to future performance and forecasts are not a reliable indicator of future results. The marketability of some of the companies we cover is limited and you may have difficulty buying or selling in volume. Additionally, given the smaller capitalisation bias of our coverage, the companies we cover should be considered as high risk.

This financial promotion has been approved by Align Research Limited. Align Research has made every reasonable effort to ensure the accuracy of the information in our research reports although this cannot be guaranteed. Align Research is authorised & regulated by the Financial Conduct Authority. FRN No - 768993.

 

Advertisement
Comments
info
Login or register to post comments

Advertisement
Recent Articles
Watchlist