MACA well-positioned to weather commodities downturn

Robert Frost

OC Funds Management

Although OC doesn’t invest directly in single commodity or single mine resource stocks, we do have exposure to the commodities thematic through quality mining services business, MACA Limited (ASX:MLD). MLD’s commodity exposure is predominantly across gold and iron ore; the prices of which have each been heading higher in recent months. Additionally, MLD has a well-diversified client base operating across more than 10 mine sites in Australia and at a large gold mining operation in Brazil (Beadell’s Tucano mine). MLD is well regarded as one of the best-in-class contract miners and ore crushers in Australia. Our channel checks suggest MLD has an excellent reputation among its clients and it typically operates in partnership with these clients under long-term contracts. Importantly, MLD has a strong “net cash” balance sheet that positions the business well to weather any protracted commodities downturn. We have lightened our holding in MLD into the ongoing strength of its share price which is at least partially being driven by the strong rebound in the prices of iron ore and gold. (VIEW LINK)


1 stock mentioned

Robert Frost
Head of Investments
OC Funds Management

Robert was appointed Head of Investments in 2009 and has been a Portfolio Manager since joining OC Funds Management in 2001. Robert is also an Executive Director of parent company, Copia Investment Partners.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.