DNL: 1H26 Result - 17% ahead of market; reaffirms full year guidance despite temporary headwinds

Research evidence excerpt

DNL: 1H26 Result - 17% ahead of market; reaffirms full year guidance despite temporary headwinds

Dyno Nobel Limited

Target/Upside/Downside Scenarios Investment summary

Dyno Nobel (ASX: DNL) is a leading technology supplierDyno Nobel Limited

to the resources sector committed to helping create a

4.5 125 Weeks 19DEC23 - 11MAY26 sustainable and decarbonised world. With iconic brands,

TARGETTARGET 4.004.00 leading technology solutions and 5,800 employees, it operates 4

3.5 CURRENTCURRENT 3.543.54 in the resilient markets of mining, quarry and construction.

An ASX100 company, Dyno Nobel is based in the Americas,

3 Europe, Middle East, Africa (EMEA) and Asia Pacific. It

2.5 is an international business with world-scale explosives

2 and ammonium nitrate manufacturing, leading technology

1.5 solutions, marketing and servicing operations. Its explosives

80m 60m are used to unlock resources ranging from gold, iron ore and

40m 20m copper, to quarry and construction materials.

2024 2025 2026

D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M

DNL AU Rel. AUSTRALIAN ALL ORDINAIRES MA 40 weeks Risks to rating and price target

Source: Bloomberg and RBC Capital Markets estimates for Target Changes in mined volumes - Dyno Nobel is exposed to the

Valuation amount of material moved, which is largely determined by

Our price target of $4.00 is based on a blended DCF and underlying commodity prices and mine complexity.

SOTP valuation. Our SOTP valuation applies 1-year forward

Changes in average selling prices - Dyno Nobel is exposedpeer average multiples to each division and our DCF valuation

to the spread between the globally traded market price ofdiscounts future cashflows utilising a WACC of 8.5% and a

ammonium nitrate and the contract price.terminal growth rate of 3.0%.