Highfield Resources has one of the least ambiguous investment propositions
John Robertson
PortfolioDirect
Highfield Resources has one of the least ambiguous investment propositions. It is holding out the prospect of a 40-50% annual return between now and 2020 from development of its Spanish potash deposits in recent presentations to investors. The projected return comes from applying current EBITDA multiples attaching to comparable businesses to the results from a recently completed feasibility study. Taking this analysis at face value still leaves an investor with an important decision: whether to buy now with the accompanying opportunity cost risks over more than five years or wait until closer to the first earnings when the price is more likely to be re-rated. This is a key investment judgement being highlighted in the upcoming PortfolioDirect rating review of Highfield Resources.
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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 strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
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...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
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...
Expertise
No areas of expertise
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