Three Stocks Under Pressure- MGX, HTA, ASL

Three Stocks Under Pressure- MGX, HTA, ASL

Mount Gibson Iron Limited

Mount Gibson Iron Limited (ASX: MGX), based in West Perth, Australia, is engaged in the exploration, mining, crushing, transportation and commercialisation of hematite iron ore deposits. Its key operations include the Koolan Island mine in the Kimberley coast and the Extension Hill/Iron Hill in the Mount Gibson range. With around 1.13 billion outstanding shares, the MGX stock price settled the day’s trading at AUD 1.120, diving 7.82% with ~ 2.98 million shares traded on May 2nd, 2019. MGX’S YTD return also stands high and positive at 135.92%.

The company recently disclosed its quarterly report for the period ended March 31st, 2019, posting the Mid-West direct shipping ore (DSO) sales of 0.4 million wet metric tonnes (Mwmt) resulting in revenues of $ 29 million Free on Board (FOB). Besides, the Mid-West cash costs of $ 33/wmt FOB was well behind guidance. Subsequently, in April 2019, the sale of iron ore (high-grade) from the Koolan Island operations was also restarted.

Hutchison Telecommunications (Australia) Limited

The North Sydney-based Hutchison Telecommunications (Australia) Limited (ASX: HTA) is a telecommunication service provider in Australia via its 50% interest in Vodafone Hutchison Australia Pty Limited (VHA). Hutchison has a market capitalisation of ~ AUD 2.24 billion with ~ 13.57 billion outstanding shares. May 2nd, 2019, the HTA stock price settled the market trading at AUD 0.160, down 3.03% by AUD 0.005. HTA’s YTD return is also positive at 50%.

In its Annual Report to shareholders for the period ended December 31st, 2019, Hutchison informed that its financial performance was in line with expectation amidst the growing competition among the major mobile network operators. Besides, in November 2018, VHA launched the $5-roaming to around 11 new destinations, thereby increasing the product availability in over 80 countries. The total customer growth reached 3.6% to 6.02 million. VHA recorded a 5.5% rise in the total revenue to $ 1,823.4 million and a 13.4% increase in the EBITDA to $ 551.1 million.

Ausdrill Limited

The Canning Vale, Australia-based Ausdrill Limited (ASX: ASL), operates as a mining services company with worldwide operations in India, Australia, Africa, and the UK. Its services cover the whole life-cycle of a project from exploration and mine development to procurement and logistics. With around 685.64 million outstanding shares and a market cap of AUD 1.15 billion, the ASL stock closed the market at the last trading price of AUD 1.535, nosediving 8.36% by AUD 0.140 on May 2nd, 2019.

On the same day, Ausdrill announced that Ausdrill Finance Pty Ltd (a wholly-owned subsidiary), may potentially issue, subject to market conditions, an aggregate principal amount of USD 500 million in Guaranteed Senior Unsecured Note to qualified institutional buyers in the United States. The proceeds would be utilised to redeem all the outstanding USD 350 million 6.625% Senior Secured Notes due 2022 issued by its wholly owned subsidiary, Barminco Finance Pty Limited, at 103.313%, and the remaining amount would be used to partially repay the USD 141 million and AUD 20 million outstanding under its AUD 300-million Revolving Credit Facilities.


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