3 Stocks Trading In Red – RRL, FMG And TWE

  • May 08, 2019 AEST
  • Team Kalkine
3 Stocks Trading In Red – RRL, FMG And TWE

Regis Resources Limited

Regis Resources Limited (ASX: RRL), based in Subiaco, Australia, in engaged in the exploration, evaluation, and development of gold projects in Australia. It owns 100% interests in the Duketon project in Western Australia ‘s (WA) Eastern Goldfields, and the McPhillamys project located in Central West New South Wales. At the close of the trading session on Wednesday, May 8th, 2019, the RRL stock was down 2% at AUD 4.400.

The company recently presented at the Macquarie Securities Conference held in Sydney where it reported 7.9Moz in Resources and 4.1 Moz in Reserves. The company re-iterated that it expects gold production to be in the mid to upper range of 340k-370k oz with AISC to be in the lower range of $985-1055/oz for FY19.

As per the recently released Quarterly Report for the three months to March 31st, 2019, the gold production stood at ~ 91,087 ounces, is in line with the previous quarter’s figure and over midpoint of FY19 guidance. Around 76,817 ounces of gold was sold at an average price of $ 1,838 per ounce. Regis Resources’ cash flow from operations was ~ $ 89.3 million while it also paid out fully franked interim dividend of $ 40.6 million (8 cents per share).

Fortescue Metals Group Ltd

Fortescue Metals Group Ltd (ASX: FMG), based in Perth, is engaged in the exploration, production , processing and commercialisation of iron ore in Australia, China and globally. With a market capitalisation of ~ AUD 23.4 billion and ~ 3.08 billion outstanding shares, the FMG stock was down 1.447% to AUD 7.490 at the close of day’s on May 8th, 2019. However, FMG has generated a positive YTD return of 86.34% so far.

According to Fortescue’s quarterly production results for the three months to March 2019, the total total shipments of 38.3 million tonnes were recorded with a cash production costs (C1) of USD 13.51 per wet metric tonne. Besides, the average price received increased to USD 71 per dry metric tonne , up 47% relative to the December 2018 quarter price of USD 48/dmt. The company received approval for the development of Stage 2 of the Iron Bridge Magnetite Project; the Eliwana Mine and Rail Project are progressing on schedule and budget and the Fortescue Future of Mobility Centre has been launched in Karratha, WA.

Treasury Wine Estates Limited

Treasury Wine Estates Limited (ASX: TWE), operates as a wine company in Australia, New Zealand, Asia, Europe, and the Americas and engaged in the viticulture, winemaking, marketing, sale, and distribution of wine under brands like Beaulieu Vineyard, Beringer, Lindeman’s, and others. On May 8th, 2019, the TWE stock dived 6.62%, settling at AUD 15.100.

This plunge in stock performance is perhaps a repercussion of the recent news stating that Bayberry Capital Partners, a US hedge fund manager, delivered a scathing assessment of the company’s business at a high profile Sohn Investment Conference in New York. The fund claims that Treasury shares were overvalued by more than 50 per cent, charging the company of "channel stuffing".

In response, Treasury defended its business practices, noting it recently recapitulated its guidance for growth in earnings to ~25% for fiscal 2019, and ~15 -20 % for fiscal 2020.


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