First Berlin Equity Research has published a research update on Deutsche Rohstoff AG (ISIN: DE000A0XYG76). Analyst Simon Scholes reiterated his BUY rating and decreased the price target from EUR 139.00 to EUR 124.00.

Abstract
Late on Wednesday 1 April DRAG announced the disposal of 9m shares in Almonty (38% of its holding diluted for bond conversion). DRAG will book a gain of almost €100m on the sale. Based on a book value of €0.75 per share, we estimate total proceeds of €106m. DRAG plans to invest the proceeds in new wells. Management’s new base-case 2026 CAPEX guidance is €220m-€230m (previously: €90m-€100m)–double the 2025 figure of €110m. 2026 base-case EBITDA guidance is now €290m-€310m (previously: €115m-€135m). Our valuation of DRAG uses 15 day VWAP (volume-weighted average price) for the Almonty shares. At USD15.87, this is now 19% below the price level of USD19.61 used in our most recent note of 18 March. The average sale price for the Almonty shares was ca. USD13.50. We calculate the combined value of the sales proceeds and DRAG’s remaining shares and debt in Almonty to be €111m below the value of its holdings in the tungsten miner on 18 March. On our forecasts, the value created by the €130m increase in CAPEX does not match this figure, and so we reduce our price target to €124 (previously: €139). We maintain our Buy recommendation however, as the upside to our new price target is 33%.