Deutsche Rohstoff

DB: DR0

€71.6m market cap

€14.15 last close

Deutsche Rohstoff identifies, develops and monetises resource projects in North America, Australia and Europe. The company’s current focus is on the development of oil and gas opportunities in the US.

Investment summary

Deutsche Rohstoff’s (DR0) main focus is the development of oil and gas production in the US. At end FY18, DR0 held interests in 44 operated horizontal wells and 40 non-operated wells in Colorado, with minor interests in numerous wells in North Dakota and Utah. DR0 almost doubled production from 5.1kboed in FY17 to 9.6kboed in FY18. A c $60m drilling campaign was initiated in Q219 at Cub Creek, Colorado. FY18 was marked by the $59.6m sale of Salt Creek, delivering c 40% ROIC. DR0’s management sees a point of inflexion in the metals unit, with Almonty Industries (12.8% stake) generating a profit in for the nine months ended 30 June 2019 and nearing Sangdong mine financing. Management guides to FY19 sales of €40–50m and EBITDA of €25–35m, lower than FY18, mainly due to natural well depletion and new investments expected to come online in early 2020. For FY20, it guides sales of €75–85m and EBITDA of €55–65m.

Sector
Oil & gas
Share price graph
Price performance
%
1m
3m
12m
Actual 1.4 (15.3) (26.3)
Relative* (5.3) (17.2) (27.8)
52-week high/low €20.5/€12.4
*% relative to local index
Key management
Thomas Gutschlag CEO
Jan-Philipp Weitz Head of Business Development
Patrick Pohl Analyst

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