Metals X Limited (ASX: MLX)
Metals X Limited surged after the major financial groups of Australia acquired substantial stakes in the company. In today’s trading session, Metals X stock price jumped as high as 6.329% to last trade at $0.420 as on 29 November 2018.
Recently, the company notified that Morgan Stanley and Mitsubishi have purchased such number of shares in the past four months that they have become the substantial holder of Metals X on 22 November 2018.
Mitsubishi UFJ Financial Group, Inc. now holds 42,620,829 shares in Metals X with the voting power of 6.19% as on 22 November 2018. Whereas, Morgan Stanley & Co. International plc, Morgan Stanley & Co. LLC, and Morgan Stanley Australia Securities Limited, have acquired a total of 42,620,829 shares with 6.19% voting rights in Metals X.
In the past five days, the stock price of Metals X Limited surged 3.95%. These bullish market sentiments seem to be also driven by the tailwind in copper price.
Currently trading at higher levels, copper price has gone up by 2.82% over the past three months. At the time of writing, 29 November 2018 (7:24 PM AEST), copper is trading at a price of USD 6235.32/mt, up 1.55%.
Coronado Global Resources Inc. (ASX: CRN)
Coronado Global caught investors eye at Goldman Sachs’ Mining and Metals Conference after the company pitched its expectation of 27.5% rise in FY19 earnings.
The Group stated that its FY19 earnings before interest tax, depreciation, and amortization (EBITDA) is forecasted to increase by 27.5% to US$737 million. Cost efficiencies drive the earnings growth guidance at Curragh, higher realised pricing and expected increase in sales tonne from 20.9Mt in FY2018 to 21.5 Mt in FY2019.
Further, the company expects its free cashflow to increase to US$347 million in FY2019 on the back of higher operating cashflow which offsets an increase in capital expenditure. Based on this, the company targets dividend policy to distribute between 60% to 100% of free cash flow post FY2019. Moreover, the company intends to pay out 100% of free cash flow relating to the period from Settlement to 31 December 2019.
Coronado positioned as a largest US met coal producer by production volume mainly exports its coal production to steelmakers across Europe, South America and Asia. Currently, the company is witnessing a strong coal market fundamental. It is primarily because Spot Queensland’s Hard Coking Coal (HCC) coal price of US$220/t is higher than the Company’s Queensland HCC price forecasts for FY2019 by approximately US$44/t.
In Australia, the company expects to achieve higher average realised pricing per tonne on the back of significant blending opportunities. Therefore, the company expects its EBITDA margin to grow by approximately 24% from FY2018 to FY2019.
In today’s morning session, Coronado stock traded at higher price level of $3.18 before concluding its day at $3.050, down 0.327% as on 29 November 2018.
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