EVN/SBM
Interesting disconnect between EVN’s thoughts about how the year has started versus the market.
Vs.
You’d never know we were talking about the same company, as you read through the quarterly.
No call to action, specifically. Junior gold miners are great way to make or lose tonnes of money, unless you are very strong in the space.
We are not, and won’t be buying small cap mining stocks any time soon.
Generally speaking, quarterly production updates everywhere have been pretty terrible. Can’t get staff. Diesel costs a lot. Rain. Costs up, most prices down.
That doesn’t bode terribly well for our NCM, our gold and copper mining exposure. We own BHP, which was likewise mixed, but a) it’s BHP, and b) we are underweight, and we own AWC, which is presently, along with everyone else in the industry, making a very skinny margin, and +/- a few percentage points of production isn’t the main driver.
SBM
We wrote a note about SBM just a few days ago, which is background reading if you are interested. I suppose our point here is that it’s looking a bit like oblivion here, if gold weakens further.
Good for everyone else that survives. They are net cash, as of the last result.
Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.
This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.
Please note that past performance is not a reliable indicator of future performance.
General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.
Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.