Decmil (DCG) - Interims & Updates; Ceasing Coverage

March 30, 2020

After significant provisions DCG delivered a net loss of $74.9m in 1H20.  The balance sheet deterioration since then is the key focus, threatening the firm’s viability and its ability to win work.  Likely dilution from new capital initiatives, our earnings downgrades, heightened risk, and a current net debt position...

Gage Roads (GRB) - Draughty Headwinds

March 30, 2020

The hospitality sector has been hit hard by COVID-19 and we pencil in zero draught or brand-in-hand sales for 7 months.  GRB is reasonably well-prepared given stock supplies and an efficient brewery.  Cash flow will be the 2H focus, although there are levers to pull and ATO excise relief. ...

Saracen Mineral Holdings (SAR) - Best Placed For Covid-19

March 27, 2020

Saracen Mineral Holdings (SAR) provided an operations update with commentary on its preparedness in case the business incurs disruptions from the COVID-19 pandemic. Production for the March Q is forecast at 150-155koz gold and cash and billion at 31 March is expected to be $325-330m. This is in line...

Northern Star Resources (NST) - Downgrades And Deferrals

March 26, 2020

NST announced it has implemented pre-emptive measures in light of the Covid-19 virus. These measures have been enacted to protect NST’s workforce, suppliers and local communities. NST believes its precautionary measures, and the likelihood of upcoming government restrictions will have an impact on production. As a result of the...

Argonaut Metals & Mining - Gold Sector: The Spectre Of Shutdowns

March 26, 2020

Gold as a defensive investment remains a key theme. We take the view that market shockwaves related to the Coronavirus (COVID-19) pandemic will continue to feed into an almost perfect storm for gold near term. The US Fed has announced a QE bazooka consisting of “unlimited asset purchases”, similar...

Botanix (BOT) - Atopic Dermatitis Study Results - Fails To Meet Endpoints

March 26, 2020

BOT has announced that its Atopic Dermatitis (AD) Phase 2 clinical study did not reach its primary or secondary endpoints. We downgrade our SPEC BUY recommendation to a HOLD with a reduced-price target of $0.06 (from $0.29). To access the full report please log in under the Client Area at...

De Grey Mining (DEG) - Hemi - A New Gold Paradigm For The Pilbara

March 26, 2020

The scale of De Grey Mining’s (DEG) Hemi discovery looks to be something previously unseen in the Pilbara region of Western Australia. Argonaut has increased its estimate for this discovery from 1.9Moz to 2.8Moz gold. The deposit remains open in most directions, with indications that mineralisation is improving to...

Perenti (PRN) - Review

March 25, 2020

In this note we highlight the assumptions behind our revised forecasts but note the range of potential scenario outcomes is materially broad.  A proactive approach to liquidity and capital management is prudent, and contract diversity by geography and client provides some comfort.  We maintain a BUY call on a...

Botanix (BOT) - Fighting The Tough Bugs With CBD

March 20, 2020

BOT and Queensland Institute for Molecular Bioscience have confirmed that CBD has antimicrobial properties, particularly in the fighting of antibiotic resistance. BOT has now advanced its BTX1801 antibiotic formulation to the clinic and will be commencing a Phase 2a clinical study on S.aureus or Golden Staph. The aim of...