Investment Rating - The investment rating for Dyno Nobel Limited is Equal-weight with a price target of A2.90,indicatingamodestupsideof132.57 [6]. Core Insights - The report indicates that divestments are progressing towards a full fertilizer separation, although the proceeds from these sales appear light [1][4]. - The underlying performance in explosives is solid, but overshadowed by resegments and turnarounds [1]. - The market is expected to wait for a complete fertilizer separation before making significant moves [1]. Financial Performance - The sale of the Fertiliser Distribution business to Ridley Corporation is expected to yield gross proceeds of A375million,whichisviewedasunderwhelmingat7xEBITbasedontheaverageoverthepastfiveyears[4].−ThePerdamanofftakeagreementisprojectedtogenerategrossproceedsofA145 million, which is considered light given expectations of A45millionperannumofEBIT[4].−Thecompanyreporteda1H25EBITofA174 million, which is a 13% increase compared to Morgan Stanley estimates and an 8% increase versus the previous year [9]. Market Guidance - The guidance for FY25 remains unchanged, with an expected exit run rate of approximately 40-50% of a ~A300millionEBITupliftprogram[9].−TheproductionforecastforPhosphateHillinFY25ismaintainedat740−800kt,withanticipatedgascostsofA40-80 million due to shortfalls [9]. - Contracted fertilizer sales volumes have been deferred into 2H25 due to adverse weather conditions [9].
