Fat Prophets > Australasian Equities
October 27, 2020 •

Fed up with the lockdown With much of the world still in varying stages of their lockdowns, ‘stay at home’ stocks continue to do well. This includes many of the well branded ‘quick service restaurant’ operators, who are enjoying strong take-away and delivery demand as many people literally get ‘fed up’ with cooking. This has also provided a strong earnings offset in most cases to dine-in operations which largely remain shuttered. This has certainly remained the case for our two…

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In the nick of time Nickel has not been spared from the ravages of the COVID-19 pandemic. The measures taken globally by governments to combat the spread of the virus were blunt; halt person to person contact. Populations went into “lockdowns” as 2020 rolled out and economic activity went into a nose-dive. The following chart shows real global Gross Domestic Product (GPD) growth highlighted is the Global Financial Crisis: Source: International Monetary Fund [emaillocker] As Members can see from the…

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Speculative
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An early peek St Barbara has released an early update on its June quarter and 2020 full year operational results. The announcement revealed a rise in June quarter and 2020 gold production that came within guidance for the year, but toward the bottom end of the range. On the individual mine performances against 2020 guidance, one came in ahead, one within and one below. While a glimpse of the balance sheet to end June 2020 shows that it remains in…

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Core
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2Q20; iron ore to the fore Rio Tinto has reported its operational results for the second quarter to 30 June, and despite what has been a challenging, COVID-19 driven global environment, we consider the overall result as reasonable Rio Tinto’s key operational segment in iron ore was the standout for the quarter, as was bauxite and mid-stream alumina. Copper and aluminium were again thorns for the quarter, on lower production numbers, with a majority of Rio Tinto’s minor product offerings…

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A fist full of dollars Since our March look at the iron ore market, the price has marched onward and is now trading around US$111 a tonne and up from the US$90 a tonne at the time of our last review. Over the past 12-months, iron ore has endured a US/China trade war and the ravages of COVID-19, with its beginnings in China, on the global economy and populace. We wrote at the time that “the iron ore price appears…

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Gold hits a new record It was only a month ago that we upgraded our end of year price target for gold to a price range of US$1,925 to US$2,000 an ounce from our previous target range of US$1,625 to US$1,675 an ounce. The gold price at the time of writing in June was trading around US$1,780 an ounce. The gold price in recent trading hit a new record at circa US$1,970 an ounce to compress six months of price…

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