Hazelwood Resources, operator of a ferrotungsten plant in Vietnam, is one of the few upstream processors of raw materials available to investors in the...

John Robertson

PortfolioDirect

Hazelwood Resources, operator of a ferrotungsten plant in Vietnam, is one of the few upstream processors of raw materials available to investors in the Australian resources industry. It went into a trading halt on Wednesday pending a funding initiative just a few days after PortfolioDirect had concluded a rating review of the company. The PortfolioDirect rating identified insufficient working capital as a business risk that could constrain production expansion in a business that must buy raw materials. More positively, the report also highlighted the possibility that investors could anticipate an unusually lengthy period of value accretion as existing operations expanded and, subsequently, mine capacity was added. The current rating takes account of the shorter term funding risk but also highlighted a path to a positive re-rating in the event this financial constraint could be loosened.


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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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