Swick (SWK) - 1Q20 Update, FY20 Guidance

November 11, 2019

A step change in the number of rigs deployed during 1Q20 boosted revenue, although impacted margin due to mobilisation costs.  With steady state operation at new projects taking longer than we previously expected, we have pared back FY20 forecasts to match guidance (EBITDA similar to FY19).  SWK’s focus is...

Perenti (PRN) - Security Incident

November 8, 2019

The tragic and serious security incident near the Boungou mine in Burkina Faso has resulted in a number of fatalities and injuries to PRN’s and SEMAFO’s workforces.  The mine’s operations have been suspended.  While Boungou in isolation is not material to the PRN group, this incident is of a...

Decmil (DCG) - Review

November 8, 2019

At the AGM this morning DCG remained upbeat on the outlook, with opportunities seen across all sectors.  Contracted and preferred work in hand sits at ~$900m, and the Company has maintained guidance for construction revenue ~$700m in FY20.  Indications that FY20 margins would be similar to 2H19 and that...

SCEE (SXE) - Strategy Execution Underappreciated

October 30, 2019

We reiterate a view that the market is yet to recognise the success of SXE’s strategic diversification.  M&A to fill geographic and/or service gaps may still be on the cards, yet the broadening of the business already provides scope for more opportunity and less volatility than before.  Current trading...

Matrix (MCE) - Property Sale & Leaseback

October 29, 2019

The $20m sale and leaseback of MCE’s Henderson property will strengthen the balance sheet and provide the working capital funding required to take advantage of potential growth opportunities.  It comes with a short term rental expense, but given the operating leverage, it wouldn’t take much extra revenue to cover...

Regis Resources (RRL) - September Quarter Production

October 25, 2019

Regis Resources (RRL) reported an in-line Sept Q production of 87koz at an AISC of $1,234/oz (vs June Q 91koz @ $1,189/oz). Production was below the previous Q, against higher costs, due to lower production and grades at Duketon South (DSO) due to a six-day shutdown at Garden Well...

Gage Roads (GRB) - Busy Year

October 25, 2019

This year will be busy as the Perth brewery is upgraded and efforts are made to drive east coast brand awareness and growth.  We expect more sales & marketing expenses in FY20, and inventory build to impact working capital in the first half, but note additional capex and opex...

Botanix (BOT) - Secures Its Synthetic CBD Supply

October 22, 2019

BOT has executed a supply agreement for cannabidiol API’s with Purisys for its ongoing clinical programs and planned commercial scale-up once FDA approval has been secured. Purisys was recently spun out of Noramco and the company is a world leader in the manufacture of cannabidiol APIs. We expect BOT...

St Barbara Ltd (SBM) - September Quarter Production

October 21, 2019

St Barbara (SBM) pre-reported September production and guidance downgrades earlier this month. Group production finished the September Q with 88koz at an all-in sustaining cost of $1,421/oz (vs June Q 109koz @ $1,175/oz, -20% on production, +21% on costs). The weaker result came after revisions to Gwalia FY20 guidance...