IGO reported December Q activities and first half FY20 financial results. Both Tropicana gold and Nova nickel/copper are tracking ahead of full year guidance. In H1, Nova produced 15.2kt Ni and 6.8kt Cu at A$2.51/lb cash costs (vs guidance: 13.5-15.0kt Ni, 5.5-6.25kt Cu @ A$2.00-2.50/lb) and Tropicana produced 257.3koz Au at A$1,007/oz AISC (vs guidance:Read more
Gold Road Resources (GOR) has reported December Q production from the Gruyere JV in Western Australia. Production of 70.0koz at $1,102 AISC in the first quarter of commercial production (vs September Q 29koz, no costs reported). CY19 production of 99.1koz was at top end of guidance (guided at 75-100koz). CY20 guidance is expected in theRead more
OZ Minerals (OZL) released December Q results with group production of 28.7kt Cu and 36.8koz Au at an all-in sustaining cost (AISC) of US$0.94/lb (+16% Cu, +21% Au and -27% on costs QoQ). OZL finished the year at the upper end of production guidance with 109.3kt Cu and 128.9koz Au (vs guidance: 101-111.5kt Cu andRead more
2019 Reflection: It was a tough year for oil stocks in 2019, and this performance was in sharp contrast to the performance of oil, which was the second-best performing commodity in 2019 with a 34.46% gain (2018 -24.84%). Some oil stocks in the North American market struggled over the year due to increased oil priceRead more
Western Areas (WSA) reported December Q results with 5.4kt Ni in concentrate at a C1 cost of A$3.10/lb (before payability), broadly in line with Argonaut’s forecast of 5.3kt Ni at A$3.10/lb. Cash at 31 December was $184.9m, up from $165.9m at the end of the previous Q. The Company is tracking within the FY20 guidanceRead more
Saracen (SAR) released December Q results with record production of 120.2koz at an all-in sustaining cost (AISC) of A$1,098/oz (up 25% on ounces and up 14% on costs). This incorporated the Kalgoorlie Consolidated Gold Mines Joint Venture (KCGM JV) production for the month of December of 20.6koz, following the 50% acquisition from Barrick for US$750mRead more
We believe SXE could provide an offset to less impressive interim results from some other construction exposed contractors. In our view the broadening of the business provides more opportunity and less volatility than before, while M&A may fill remaining geographic and/or service gaps. We maintain a BUY call on an unchanged $0.80 valuation. To accessRead more
Argonaut regards copper as a key commodity pick into the 2020’s based on a recovery of underlying demand from China, improving trade relations between China and the US, and a looming supply deficit based on low discovery rates of new deposits and declining mine grades. Copper remains an exploration and M&A focus for mid toRead more
The $20m property sale and leaseback was a key transaction in 1H20, positioning MCE to take advantage of potential growth opportunities should they eventuate. Order book growth during the half is less clear, and we will need to wait for the 1H20 results for more outlook detail. While our unchanged valuation of $0.45 is aheadRead more
Regis Resources (RRL) reported an in-line Dec Q production of 91koz at an AISC of $1,219/oz (+3% on production, -1% on costs QoQ and vs Argonaut 88koz). The result was in-line despite an unplanned three-day mill outage. FY20 Guidance is unchanged at 340-370koz however FY20 cost guidance has crept up incrementally to $1,125-1,195/oz. Cashflow fromRead more
