Argonaut | The Natural Choice in Resources

Argonaut is a full service advisory, stockbroking & research and investment house with offices in Perth and Hong Kong. Argonaut is technically driven & focused on natural resource companies & businesses that service the metals, mining, energy and agri-business sectors. Argonaut has an established track record of creating significant wealth for clients.

Morning Notes

The Dow Jones Industrial Average rose after the Federal Reserve said it would hold short-term rates steady. The market widely expected the Fed to leave the benchmark federal-funds rate unchanged. Still, stocks were largely unchanged from ahead of the statement, which some analysts said shouldn't come as a surprise after multiple instances when investors were prepared for rate raises and none happened. With just over 200 companies in the S&P 500 reporting, earnings in the index are on track to drop 4% in the second quarter from the prior year, marking the fifth consecutive quarter of contracting earnings, according to FactSet. That is a smaller decline than the 5.3% drop analysts had expected as of June 30 and marks a stronger result than the first quarter, FactSet data shows.

More >

Latest Research

Independence Group (IGO) announced a $280m equity raising at $3.75/sh representing an 8.1% discount to the last closing price. We regard this raising as accretive, given the premium to Argonaut’s previous valuation of $3.60 and the significant reduction to forecast debt drawdown. The Company also released June Q results incorporating FY17 guidance. Production and costs included: 28.5koz gold @ A$1,135/oz AISC at Tropicana (IGO attributable), 2.0kt nickel at A$3.51/lb cash cost at Long and 8.9kt zinc and 3.2kt copper at A$0.02/lb cash cost at Jaguar. At June 30, IGO had $46.3m cash, $271m drawn debt and $279m undrawn debt. Our valuation increased to $3.75 (from $3.60), but we downgrade from BUY to HOLD based on recent share price performance.

More >

Latest News

Argonaut is pleased to announce the appointments of Andrew Muir and James Wilson. Andrew has joined Argonaut in the role of Associate Director in the Corporate Finance team and commenced on Tuesday 19 July 2016. Andrew has extensive industry experience having worked as both an exploration and mine geologist for 12 years with various companies and as a Metals & Mining research analyst for the past 10 years with Hartleys and JP Morgan. 

More >