Orica/ORI
Orica is the large explosives company. A (broad) market comparable to Incitec.
You know the result is going to be good when the headline summarises everything you want to know. ORI is a big position for one of our active managers (IML).
The key bit the market liked was the upgrade to the RONA target (return on net assets).
ORI are decent company, and give a “second derivative” play on commodities; volume growth from mining, but without the pricing risk (from commodities jumping around).
We use IPL as our primary exposure to explosives and fertilisers. To that end, the ORI presentation calling out the surge in the ammonia price is well received.
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