Pluton credibility deficit hobbles attractive value
May 22 - 28, 2013
PLUTON Resources claims to be coming back in better shape than ever: better funded, producing for the first time, growing and highly competitive. It edged excruciatingly close to trading again on Friday but, after raising hopes, announced another delay, this time until Tuesday. The balance between value and credibility will be tested this week.
Market continues search for cycle bottom
May 8 - 14, 2013
MIRABELA Nickel, Kasbah Resources, NuCoal Resources and Lynas Corporation have little in common apart from their shared sectoral background. That is a glimmer of good news for mining investors looking for signs of an end to the cyclical downturn in mining stocks.
Chequered Pinto Valley history points to more copper price pain
May 8 - 14, 2013
THE trade in Arizona copper assets has been tied to cyclical conditions for nearly a century. The new owner of Pinto Valley is joining a long queue of optimistic miners hoping for longevity in profitable copper prices.
Gold industry fails the growth test
May 1 - 7, 2013
THE gold mining industry’s growth profile implies share prices are too high for gold miners to be competitive alternatives to direct bullion holdings in investment portfolios.
ICAC asks, why is mineral valuation not objective?
April 24 - 30, 2013
THE seedy world of public corruption came face-to-face with the more genteel practices of corporate valuation methodology at the NSW ICAC last week. The ICAC lawyers, used to dealing with binary outcomes like guilt or innocence, appeared distinctly uneasy about the rubbery nature of mining valuations. Surely, the lawyers seemed to be saying, there must be something unsavoury happening if the value of a mine cannot be pinned down more precisely.
A new day dawns for Sundance
April 17 - 23, 2013
DESPITE an immediate slump in the Sundance Resources share price, there is a chance investors in the company are better off having cut themselves loose from China’s Hanlong group.
CEO mentors could help plug industry skill gap
April 10 - 16, 2013
THE growth in the number of ASX listed resources companies has perilously overstretched the industry’s managerial skill base. For commercial success, the industry needs to look at alternative management models.
Corporate performance fails to impress in market rout
April 3 - 9, 2013
DESPITE producing its first rare earths products after the drama of an ongoing battle with environmental and social activists in Malaysia that raised questions about its continuing operations, movements in the Lynas Corporation share price have been little different to that of other companies. Performance differentiation within the sector is hard to find.
Nucoal Resources withstands first ICAC encounters
March 27 - April 2, 2013
THE Nucoal Resources share price slumped as much as 30% last week as the Independent Commission Against Corruption in New South Wales started hearings into how its Doyles Creek coal exploration licence had been granted. Investors have a range of possible scenarios to consider as they try to fathom what the ebb and flow of evidence means for the investment prospects of the company.
Nucoal Resources withstands first ICAC encounters
March 20 - 26, 2013
THE Nucoal Resources share price slumped as much as 30% last week as the Independent Commission Against Corruption in New South Wales started hearings into how its Doyles Creek coal exploration licence had been granted. Investors have a range of possible scenarios to consider as they try to fathom what the ebb and flow of evidence means for the investment prospects of the company.
Disclosure loophole to stay after ASX review
March 20 - 26, 2013
STEPS by the Australian Securities Exchange to tidy up its continuous disclosure rules have left untouched one glaring inconsistency. The ASX says it wants continuous disclosure but permits companies to jettison their disclosure obligations through lengthy voluntary suspensions.
Let fund managers do the diversifying
March 13 - 19, 2013
DIVERSIFICATION is a frequently touted attribute of mining and energy companies but a corporate tactic few fund managers treat with enthusiasm.
S&P indices aggravate share price cyclicality
March 6 - 12, 2013
SINCE demand for individual stocks will depend on whether they are included in market indices, cutting the weighting of cyclical stocks in the major market indices after their share prices have fallen, as S&P did last week, encourages selling near the bottom of the market and buying near the top.
Why BHP needs to shrink to succeed
February 27 - March 5, 2013
BHP Billiton remains the most fortunate company on the Australian stock market: no growth, a board that has failed to satisfactorily implement a corporate strategy in two decades, chief executives habitually leaving with clouds over their heads and, yet, it remains a compulsory investment for all Australians because superannuation funds are compelled to buy size.
Large-versus-small stock performance differences widen
February 20 - 26, 2013
THE performance difference between large cap mining stocks and the smaller resources companies is hovering around unprecedented levels. The critical investment question is whether the elastic has been stretched to its limit or whether the market is rightly devaluing the smaller miners.
December quarter Dogs and Stars show funding pressures
February 13 - 19, 2013
EXPLORATION success drove the strongest share price performances while the pressure on undercapitalised companies to develop new projects pushed prices lower at the other end of the market in the December quarter. In any event, only the largest of Australia’s resources companies fared well in the quarter.
China risks damage from Sundance delays
February 6 - 12, 2013
THE capital market equivalent of long running radio soap opera ‘Blue Hills’ has extended its run as the protracted takeover of Sundance Resources pushes into a third calendar year.
Summer holiday sets scene for 2013 market optimism
January 30 - February 5, 2013
A lot happened over the summer holiday. The possibility of global financial ruin seems to have receded as 2013 commences. Financial markets appear far more inclined to accept the possibility of a global economy making gradual headway against the most serious macroeconomic adjustment problems.
Poor sector returns pose 2013 challenge for junior miners
December 12 - 18, 2012
AS THE year ends, ASX-listed resources stocks are facing their second consecutive year of double-digit negative investment returns giving risk averse investors little encouragement to take a more positive view of the sector.
Investors empowered by new voting rules
December 5 - 11, 2012
AFTER having their remuneration report rebuffed for a second time, Overland Resources (ASX: OVR) directors have been ignominiously called to account by shareholders who voted to spill the board. Whether shareholders have gone feral or inept directors got their comeuppance will be debated. One thing is certain: investors have been empowered by the new rules.
