2 ideas in 200 words #9
We are Actively Buying…
Metro Mining Ltd (ASX: MMI)

MMI is only capped at $430m, so at this size, there are additional risks.
However, we see a standout opportunity as the company moves to a position of net cash in the current quarter.
MMI is currently landing bauxite on a ship for ~$31/t. This already places MMI in the bottom quartile globally, with current forecasts indicating that this will reduce further to ~$26/t as the operation hits the 7mtpa run rate. Site margin is likely to be close to $35/t this FY, yielding close to $250m per annum. This places MMI on a PER of 3x for the current year, moving to 2.2x FY27.
We are Being Patient with…
IPH Limited (ASX: IPH)

To recap, IPH is the largest intellectual property group in Australia, Canada and Singapore. The company has also established positions in other countries, including China. IPH has had a difficult period since peaking at over $10 per share in early 2023. The last half has been challenging in both Australia and Canada. However, we forecast a notably stronger FY26, particularly in Canada.
Value stocks are actively catching a bid, and we expect this to continue given our expectation that the long end of the yield curve will actually increase.
IPH is on current year PER of 10.8x and a yield of 6.8%.
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