Good afternoon
https://www.youtube.com/watch?v=PFgTt9KkpIY
This is the man who had the headlines during my early years working for Australia! Prime Minister from 1983-to 1991, Bob Hawke shaped the country, and with Paul Keating, changed a lot of things to the better. Bob died yesterday at the age of 89 - what a legend! The world in 2019 needs politicians like him - even though he was Labor and a strong Union man - brush, emontional, charismatic - but also smart and a friend of human being! But not all of this is necessarely bad ( even though most of the time! )…..and he made Australians proud …
The trade war as other geopolitical issues are depressing markets….Trump´s foreign policy is a major desaster, and the danger is, that he will use the ancient instrument of war to hide…
European car sales were down by another 1% last month.
Iron ore hits 100$ today, and the large producers move up strongly!
Metro Mining - the stock continues to languish…and this has not been helped by recent press reports, that one of the 6 Alumina refineries of their major offtake-partner, Xinfa, has been closed for enviromental reasons. The company made clear today, that MMI never delivered any bauxite to this inland refinery, but all of it to a refinery based in Shandong. The long term offtake agreement is not being risked in anyway by the recent closure. Poetntially the contrary does apply - alumina prices might go up, which forms the basis for the price received by MMI for their bauxite. I believe, that the recent move to owner-mining has gone well, as well as the current, gradula expansion. Both should help lower the costs further…and over the next 6 weeks or so, we will see the results of the final feasibility study for the large expansion. This is a low-risk stock, with a very simple mining operation ( if there is something like low-risk in mining! ), and excellent cash flow.
Sheffield - I continue to get a few questions re their dismal performance in the market! Honestly - I think there is nothing negative at all her….the project is as good as it was when the share price was 1,30$; the zircon price has not changed, nor have it´s positive longer term outlook. I am pretty sure, though, that the main brokers behind them cannot really talk about them ( chinese walls? ), and teh company cannot say a lot either, being in the middle of their sales process via UBS. BlackRock and Commonwealth Bank continue to be mighty backers, according to the share register…and the quality of the project has been underlined by the massive debt-offer from Taurus. I think the current 45ct-level provides an outstanding buying opportunity for investors, and a third of the share price just a few month ago!!
Ausdrill - tried to re-finance some of it´s debt with a 500 mill$ bond issue in the States - but fell victim to the recent volatility in world markets, which reduced appetite for second-line bond issuers. Unlucky, but not major drama…I think the stock is pretty cheap down here - order book looks good, despite them loosing the Edekan contract recently ( for Perseus ), and free cash flow will grow srongly over the next few years following the Barminco aquisition. Funny enough, the stock move up today on the enws - perhaps a few guys had hedged a few bonds via shorts in the stock? ASL are tarding on nearly 5% yield - not bad for a sector, which generally had problems to produce a lot of free cash due to heavy depreciation every year.
Have a good weekend
WS
WS
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