In March 2017 Ben Griffiths found himself in a deeply uncomfortable position. For the first time since inception 15 years ago his small cap portfolio was badly lagging the benchmark. Sentiment had violently swung against his stocks and Griffiths was facing a tough decision – hold the current course or... Show More
When we last spoke to Andrew Smith from Perennial Value Management and David Allingham from Eley Griffiths Group, small caps were coming off the back of a period of underperformance. It’s a different story now, with the Small Ordinaries rallying hard in the back half of 2017. But are attractive... Show More
This week’s guest on the podcast is Rick Rule, President and CEO of natural resources specialists, Sprott US Holdings. According to Mining Journal, Rick is one of the top five most influential people in mining globally; an honour that he shares with President Xi Jinping and Donald Trump. Show More
The All Resources Index in trend terms has been outperforming the ASX 200 Index since the start of 2016. In this note we compare the performance of the big Australian mining stocks against their international peers on a common-currency basis, as well as comparing their current valuation metrics. Show More
For the last few years the Australian economy has been meandering between 2-3% growth. This remained the case through last year with December quarter GDP up just 0.4%, and annual growth of 2.4% as a bounce a year ago dropped out. In the quarter growth was helped by consumer spending... Show More
Unlike industrial companies such as Amcor or Transurban, profits for mining companies are inherently cyclical. The earnings from mining companies are subject to booms and busts, largely outside the control of their management teams. This occurs as ultimately any company producing a commodity is a “price taker” not a “price... Show More
The sky is not falling was the message in September 2017. Our message was that the overall market did not show excessive valuations, which generally is a precursor to stock market corrections. However, our market outlook dimmed due to recent ‘risk-on’ rally, where most of the year’s return was delivered... Show More
CommSec Advisory’s Justin Wynne speaks with Tom Piotrowski about the upcoming February reporting season, including the factors to focus on in the results of the banks & miners. Show More
There’s an overwhelming sense of déjà vu as far as the gold market is concerned. Two years ago during December 2015, we witnessed the first US Fed rate hike since the 2008 GFC – a 25-basis point increase. This followed years of promises, threats and jawboning by the US Federal... Show More
Mining 101: a good mining company makes money at the low end of a steep cost-curve. This is BHP’s strategy and it is working wonders in iron ore. However, in 2011 BHP forgot this simple rule. Deal hungry and with cash flow burning a hole in the pocket after two... Show More
Given recent headlines and speculation with respect to commodity prices, I thought it worthwhile to outline my views on the near-term picture. Overall, I remain very optimistic with respect to prices and demand. In particular, recent positive Chinese commodity demand data and outcomes from the recent Chinese Communist Party Congress,... Show More
Several significant corporate transactions saw us add Seven Group Holdings (ASX:SVW) to our portfolio during the September quarter. These included: Show More
...but that’s what we expect from politicians. Mineral royalties are a well-established mechanism to provide a risk-free financial reward to the ultimate owners of minerals – ie the nation or the state in which a mineral is produced. This is fair – minerals are non-replaceable and therefore compensation is warranted.... Show More
Commodity prices have surged in recent months, and resource stocks have followed. Has the last pocket of value in the market been discovered, or is this rally overdone? Livewire reached out to three specialists for their view on key commodities, and the mega-cap miners that produce them. Show More
Commodity prices have defied pessimism and rallied solidly over recent months on the back of improved Chinese economic prospects, stability on the European political front, some degree of acclimatisation to Trump-related government volatility in the USA - and a weaker US dollar. Show More
Australia’s largest listed gold producer, Newcrest Mining Limited (NCM) posted a slightly weaker than expected full year underlying profit result. Net profit fell 7% to US$308 million. Underlying profit did increase by 22% boosted by an average lift in US$ per ounce of gold. The lift in price was offset... Show More
Tom Piotrowski speaks with Silver Mines Ltd (SVL) Managing Director, Anthony McClure about the company’s feasibility study for its Bowdens Silver project and the timeline for getting the mine into production. Show More
An element of optimism appears to have crept back into the Australian economic outlook over the past month or so, culminating in the Reserve Bank’s latest above-consensus forecast of above-trend economic growth in 2017. But, as this note points out, the economy still appears to face at least three critical... Show More
Anyone even remotely associated with the resource sector is well acquainted with the concept of patience. One interesting quote that probably sums up what’s required is as follows: “Patience is not the ability to wait, but the ability to keep a good attitude while waiting.” Nowhere is this more relevant... Show More
With reporting season picking up pace, Livewire interviewed Rudi Filapek-Vandyck, Editor of FN Arena. Rudi has kindly allowed Livewire to publish his ‘Reporting Season Monitor’ for Livewire readers each week, and ahead of this, we interviewed him to get his thoughts of how this season might unfold. He makes the... Show More