The Match Out: ASX edges into the week, ends flat, Weak production at Oz (OZL), EML hit again
- The ASX 200 finished down -1pt/ -0.02% at 6789
- The Material & Utilities sectors (+1.08%) were best in ground while Industrials (+0.68%) were also strong.
- IT (-1.51%) and Communications (-1.15%) the weakest links.
- More big moves on the stock level with quarterly updates/broker moves and stock-specific ‘confessions’ hitting the tape
- EML Payments (ASX: EML) -22.18% wacked again after it announced issues with its remediation program on the back of Anti-money laundering concerns.
- Flight Centre (ASX: FLT) +2.98% announced an upgrade to guidance for FY22 on the back of a strong second half
- Oz Minerals (ASX: OZL) -3.74% fell after saying quarterly production was down, costs were up and they also lowered their guidance – the negative trifecta.
- Appen (ASX: APX) -15.02% hit after Citi says it sees risk to Appen’s guidance for a 2H skew to revenue due to digital advertising weakness and Facebook, Appen’s largest customer, transitioning to a new AI engine. This reliance on big tech in the US is a huge risk for APX.
- Insurance Australia Group (ASX: IAG) +5.94% bounced back after flagging some issues on Friday to lead the ASX 200 today.
- Dicker Data (ASX: DDR) -10.51% after a H1 FY22 update that was a record but below where the market was positioned for both in revenue & EBITDA – about a ~14% miss.
- Iron Ore Futures were~7% higher in Singapore today supporting Fortescue (ASX: FMG) +2.36%.
- Gold was flat at~US$1726
- Asian stocks were weaker Hong Kong down -0.61%, Japan -0.68% while China was off -0.52%
- US Futures are all lower, around -0.10% - a quiet start to trade.
Oz Minerals (ASX: OZL) $17.00
OZL -3.74%: The predominantly Copper producer released quarterly production numbers today with production down, costs up and they also lowered their guidance – the negative trifecta. Q2 copper production was 27,423 tonnes vs quarter-ago 30,322 tonnes; Gold production 51,184oz vs quarter-ago 48,773oz; All-in Sustaining Costs $2.10/lb vs quarter-ago $1.75/lb. For the 12 months, they are guiding towards Copper production of120-135Kt; Gold production 208-230Koz and an AISC $1.60-1.80/lb. Covid absenteeism partly to blame while price inflation in the mining space is also have a decent impact – something we’ve seen right across the mining space. We now suspect they could defer their decision on West Musgrave given said cost pressures, however ultimately, OZL has followed the Copper price in an amplified way – Copper down ~30%, OZL down ~40% - we’ve recently bought Oz.
Oz Minerals (ASX: OZL)
EML Payments (ASX: EML) 93c
EML Payments (ASX: EML)
Flight Centre (ASX: FLT) $17.62
Flight Centre (ASX: FLT)
- Pilbara Minerals (ASX: PLS) Rated New Outperform at CICC; PT A$2.81
- Evolution (ASX: EVN) Raised to Accumulate at Ord Minnett; PT A$2.90
- Global Lithium Resources (ASX: GL1) Rated New Buy at Shaw and Partners
Major movers today
Have a great night,
The Market Matters team.
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James is Portfolio Manager & Primary Author at Market Matters, a daily investment report with over 2500 subscribers that offers real market insight. He is also Senior Portfolio Manager within Shaw and Partners heading up a team that manages...