|Over a quarter ago|
JPMorgan calls Tronox 'the forgotten cyclical' » 09:4106/0506/05/20
JPMorgan analyst Jeffrey…
JPMorgan analyst Jeffrey Zekauskas calls Tronox "the forgotten cyclical" and keeps an Overweight rating on the shares with a $12 price target. Titanium dioxide prices should drift lower this year but should not be down sharply, Zekauskas tells investors in a research note. The major titanium dioxide producers are benefiting from changes in contractual arrangements which is providing a "measure of price stability," adds the analyst. Tronox trades at a 5.7 times multiple of EBITDA for 2021, at a 6.5x multiple the shares would be priced at $12, says Zekauskas.
Tronox to acquire Norwegian titanium smelting facility » 05:3105/1405/14/20
Tronox Holdings announced…
Tronox Holdings announced that it has signed a definitive agreement to acquire the TiZir Titanium and Iron, or TTI, business from Eramet S.A., for approximately $300M. TiZir's TTI facility, located in Tyssedal, Norway, upgrades ilmenite to produce high-grade titanium slag and high-purity pig iron with an annual capacity of approximately 230,000 tons and 90,000 tons, respectively. As part of the transaction, Tronox will enter a supply agreement with Eramet's Grande Cote Operations mineral sands mine in Senegal to provide Grande Cote's ilmenite to TTI. For the first two years, Tronox expects the Grand Cote mine will supply substantially all of TTI's requirements, but the volumes sold reduces throughout the term of the agreement, allowing Tronox the flexibility to supply TTI from its own mineral sands assets or other sources. The $300M purchase price represents a synergy-adjusted multiple of approximately 5.2x FY 2019 Adjusted EBITDA and will be funded with cash from the balance sheet. The transaction is expected to achieve $15M-$20M in run-rate synergies in year three. The transaction has received the unanimous approval of the Tronox and Eramet boards and is subject to certain consents and customary closing conditions including regulatory approvals.
Tronox price target lowered to $12 from $20 at SunTrust » 09:2005/0805/08/20
SunTrust analyst James…
SunTrust analyst James Sheehan lowered the firm's price target on Tronox to $12 from $20 but keeps a Buy rating on the shares. Given the negative pre-announcement last month, the analyst believes that yesterday's stock price decline was due to a more cautious outlook on Q2 volumes due to incremental demand headwinds and logistics constraints emerging in recent weeks. Sheehan maintains that Tronox is well positioned to drive long term margin expansion through "synergy capture and vertical integration benefits" as TiO2 demand normalizes over the next 12-18 months.
Tronox reduces FY20 CapEx by at least $50M to $225M » 17:0405/0605/06/20
Working capital to…
Working capital to $40M-$50M from $75M-$100M.
Tronox reports Q1 adjusted EPS 29c, consensus 19c » 17:0305/0605/06/20
Reports Q1 revenue $722M,…
Reports Q1 revenue $722M, consensus $713.67M.
Tronox files automatic mixed securities shelf 16:5404/2404/24/20
Tronox rises 24.6% » 12:0004/1704/17/20
Tronox is up 24.6%, or…
Tronox is up 24.6%, or $1.22 to $6.18.
Tronox rises 21.2% » 09:4704/1704/17/20
Tronox is up 21.2%, or…
Tronox is up 21.2%, or $1.05 to $6.01.
Tronox to reduce CapEx 'by at least $50' » 08:0604/1704/17/20
The company said,…
The company said, "We are proactively managing our cash flow through cost reductions, harvesting of working capital, and reducing capital expenditures by at least $50 million. We have ample levers available to ensure sufficient cash across a wide range of economic scenarios."
Tronox says all sites 'currently running to planned production levels' » 08:0504/1704/17/20
Jeffry Quinn, Chairman…
Jeffry Quinn, Chairman and CEO of Tronox commented, "We continue to prioritize the safety, health and well-being of our employees and their families while preserving and protecting our business. Our operations have been designated as essential to support the continued manufacturing of products such as food and medical packaging, medical equipment, pharmaceuticals, and personal protective gear. All of our sites are currently running to planned production levels, excluding South Africa where we elected to leverage our inventories on hand and not operate our mines and concentrators and run our smelters at a near-full rate with a reduced workforce through the initial 21-day countrywide lockdown period. In the coming days, we expect to restart our mines and concentrators. Our balanced geographic sales, vertically integrated business model with operations across six continents and integrated business planning capabilities enable us to rapidly respond to changing regional market conditions. Demand for TiO2 in North America has been the most resilient, as we benefit from our exposure to do-it-yourself coatings and packaging applications. Regions hit hardest by the virus have experienced lower than normal demand, but we are seeing signs of certain markets picking back up in areas within Europe. Asia Pacific remains mixed, with China continuing to show strength, while we continue to monitor the developments in countries such as India. Based on our current forward order book, we expect our TiO2 volumes in the second quarter to be only 4-7 percent below the volumes we achieved in the first quarter, which were up 7 percent from the fourth quarter last year. We are monitoring the changing market conditions daily but continue to believe that Tronox is well positioned to meet the challenges of the current situation. Zircon demand remains mixed, with demand recovering in China offset by weaker demand in Europe. Zircon volumes for the first quarter were in-line with fourth quarter 2019 volumes."