Needle On 5 Metals And Mining Stocks – CRN RRL AQG SGM SBM

S&P/ASX 200 Resources index at the time of writing was reported at 4553.30. It recently bounced from an important resistance zone of $4450-$4500, where it made low of $4450.30 on August 26. 2019. From there, the index has climbed by ~2.3% to the present level. With the macro-economic concerns cooling down, resource sector is expected to see growth in the coming period. Five important metal and mining stocks under resources sector are Coronado Global Resources Inc. (ASX: CRN), Regis Resources Limited (ASX: RRL), Alacer Gold Corp. (ASX: AQG), Sims Metal Management Limited (ASX: SGM) and St Barbara Limited (ASX: SBM).

Coronado Global Resources Inc. (ASX: CRN)

Coronado Global Resources Inc. (ASX: CRN) is involved in the development and operation of premium quality metallurgical coal mines in Queensland, Australia (Curragh) and in the states of Pennsylvania, Virginia and West Virginia (Buchanan, Logan, Greenbrier) in the United States of America. Recently, the company provided profit guidance information to the market, where it reaffirmed its production, operating cost and capital expenditure for the FY19 period, reflecting ongoing improvements in the operating performance of its assets. However, the company revised its EBITDA guidance range downwards to US$687 Mn to US$737 Mn (A$995 Mn to A$1,068 Mn), predominantly due to present weakness in benchmark prices for metallurgical coal.

Updated FY19 Guidance (Source: Company Reports)

 

Key Highlights for the half-year period ended June 30, 2019: Sales Revenue increased by 10.6% (on prior corresponding period) to US$1,234.3 Mn, mainly due to improved realised prices, a higher percentage of metallurgical coal sold, and increased sales volumes. Reported Net Income After Tax for the period increased by 92.7% (on prior corresponding period) to US$214.3 Mn. The Board of Directors declared a total interim distribution of US$0.41 per CDI, which comprised a franked dividend of US$0.112 per CDI and capital return of US$0.298 per CDI.

On the stock information front

On October 4 2019, CRN settled the day’s trade at $2.340 up 1.299%, with the market cap of ~$2.23 Billion. Its current PE multiple is at 7.310x with an annual average daily volume of 740,046. It has generated an absolute return of -11.63% for the last six months, -23.22% for the last three months, and -15.38% for the last one month.

Regis Resources Limited (ASX: RRL)

Regis Resources Limited (ASX: RRL) is primarily involved in the production of gold from the Duketon Gold project; exploration, evaluation and development of gold projects in the Eastern Goldfields of Western Australia. The company is also involved in the exploration and evaluation of the McPhillamys Gold project in New South Wales (NSW).

Key Highlights for the year ended June 30, 2019: Revenue for the period was reported at $654.8 Mn, where 369,721 ounces of gold were sold at an average price of $1,765 per ounce. EBITDA for the period was reported at $306.8 Mn. Net profit after tax for the period was reported at $163.1 Mn. Operating cash flow for the period was reported at $275.5 Mn. Cash and bullion for the period was reported at $205.3 Mn, after the payment of $81.2 Mn in fully franked dividends. The Board of Directors declared final dividend (fully franked) of 8 cps, taking the full year dividend (fully franked) to 16 cps for FY19.

FY19 Key Financial Metrics (Source: Company Reports)

On the stock information front

On October 4, 2019, RRL settled the day’s trade at $4.910, flat against the prior close, with the market cap of ~$2.5 Bn. Its current PE multiple is at 15.260x and annual dividend yield is 3.26%. It has generated an absolute return of -3.73% for the last six months, -9.41% for the last three months, and -6.12% for the last one month.

Source:

Alacer Gold Corp. (ASX: AQG)

Leading low-cost intermediate gold producer Alacer Gold Corp. (ASX: AQG) has an 80% interest in the world class Çöpler Gold Mine in Turkey operated by Anagold Madencilik Sanayi ve Ticaret A.S. and the remaining 20% owned by Lidya Madencilik Sanayi ve Ticaret A.S.

Recently, AQG announced positive drill results for the Çöpler Saddle where additional oxide ore would be converted quickly into production by leveraging its existing infrastructure.

Key Highlights for the second quarter and six-month period ended June 30, 2019: The company sold 192,260 ounces of gold through the six months ended 30 June 2019, which resulted into gold sales proceeds of US$252 Mn. Operating cash flow (excluding the precommercial sulfide plant production) for the period was reported at US$59.8 Mn. Attributable earnings for 2Q 2019 was reported at US$4.8 Mn, whereas normalized attributable earnings for 2Q 2019 was reported at US$23.3 Mn.

Q2FY19 Income Statement (Source: Company Reports)

Stock Performance:

On October 4, 2019, AQG settled the day’s trade at $6.300, up 1.613%, with a market cap of ~$2.37 Bn. Its current PE multiple is at 77.4x. It has generated an absolute return of 64.46% for the last six months, 24% for the last three months, and -4.62% for the last one month.

Sims Metal Management Limited (ASX: SGM)

Sims Metal Management Limited (ASX: SGM) is involved in buying, processing and selling of ferrous and non-ferrous recycled metals and it also offers free-for-service business opportunities in the environmentally responsible recycling of negative value materials including electrical and electronic equipment.

Recently, Cooper Investors Pty Limited ceased to be the substantial holder in the company, effective from September 16, 2019. In another update, the company announced that the recent and significant falls in ferrous and non-ferrous prices will negatively impact H1FY20, and the result will be materially lower than H1FY19.

FY19 Key Highlights for the period ended June 30, 2019: Sales revenue for the period increased by $192 Mn to $6,640 Mn. Statutory EBIT for the period decreased from $279 Mn in FY18 to $225 Mn in FY19. Underlying EBIT for the period decreases from $275 Mn in FY18 to $230 Mn in FY19. The Board of Directors declared final dividend (fully franked) of 19 cps for FY19, taking the total dividend for FY19 to 42 cps.

FY19 Key Financial Metrics (Source: Company Reports)

On the stock information front

On the stock information front

On October 4, SGM settled the day’s trade at $2.310 down 1.98%, with the market cap of ~$2.23 Bn. Its current PE multiple is at 7.310x and its last EPS was noted at $0.316. Its 52 weeks high and 52 weeks low stand at $3.163 and $2.110, respectively, with an annual average volume of 772,441. It has generated an absolute return of -5.67% for the last six months, -25.34% for the last three months, and -13.16% for the last one month.

St Barbara Limited (ASX: SBM)

St Barbara Limited (ASX: SBM) is involved in mining and the sale of gold, mineral exploration and development.

FY19 Key Highlights for the period ended June 30, 2019: Statutory net profit after tax for the period was reported at $144 Mn, as compared to $227 Mn in the previous year. Underlying net profit after tax for the period was reported at $142 Mn, as compared to $202 Mn in the previous year. Annual production from Simberi mine for the period was reported at 142,177 ounces, as compared to 134,661 ounces in FY18. Consolidated All?In Sustaining Cost for the period was reported at $1,080 per ounce, as compared to $891 per ounce in the previous year. Total cash at bank and term deposits at the end of the period was reported at $110 Mn. The Board of Directors declared a fully franked dividend of 4 cents per ordinary share which was paid on September 25, 2019.

FY19 Income Statement (Source: Company Reports) 

Stock Performance:

On October 4, SBM settled the day’s trade at $2.750, down by 3.169% intraday, with the market cap of ~$1.99 Bn. The stock is trading at a PE multiple of 10.520x with annual dividend yield of 1.41%. Its 52 weeks high and 52 weeks low stand at $5.152 and $2.480, respectively, with an annual average volume of ~6,641,852. It has generated an absolute return of -10.86% for the last six months, -8.97% for the last three months, and -12.35% for the last one month.


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