Resolute Mining (RSG) is a gold mining and exploration company, operating primarily in Africa and Australia. The group’s portfolio focus is on Africa, but the miner also has projects in Australia, Mali and Tanzania. RSG has three operating mines: Golden Pride in Tanzania, Ravenswood in Queensland, and the newly re-developed Syama in Mali, which was once a BHP Billiton operation. RSG’s operations are well-placed, and exploration is likely to lead to further resource discoveries, underground, and in nearby pits. The company continues to benefit from a boom in gold prices. Golden update RSG this week provided its Group gold production and cash cost guidance for FY12. Gold production in the coming year is forecast to increase to 410,000 ounces at a cash cost of $730 per ounce. This cements RSG’s position as the second largest primary listed gold producer on the ASX. It also represents a substantial increase in production and reduction in cash costs. RSG’s continued improvement in outlook is underpinned by ongoing progress being achieved at the Syama operation in Mali. Resolute mining shares surged 7.6% on the back of the news. Click for Daily Top Stocks AdviceJune 30, 2011
Top Stocks News Resolute Mining (RSG)
Resolute Mining (RSG) is a gold mining and exploration company, operating primarily in Africa and Australia. The group’s portfolio focus is on Africa, but the miner also has projects in Australia, Mali and Tanzania. RSG has three operating mines: Golden Pride in Tanzania, Ravenswood in Queensland, and the newly re-developed Syama in Mali, which was once a BHP Billiton operation. RSG’s operations are well-placed, and exploration is likely to lead to further resource discoveries, underground, and in nearby pits. The company continues to benefit from a boom in gold prices. Golden update RSG this week provided its Group gold production and cash cost guidance for FY12. Gold production in the coming year is forecast to increase to 410,000 ounces at a cash cost of $730 per ounce. This cements RSG’s position as the second largest primary listed gold producer on the ASX. It also represents a substantial increase in production and reduction in cash costs. RSG’s continued improvement in outlook is underpinned by ongoing progress being achieved at the Syama operation in Mali. Resolute mining shares surged 7.6% on the back of the news. Click for Daily Top Stocks Advice
June 29, 2011
Iron Ore Shares News Atlas Iron (AGO)
Atlas Iron (ASX:AGO) is an emerging iron ore producer and explorer. With a growing number of high quality iron ore projects and one of the largest landholdings in the lucrative Pilbara region, AGO is now one of the area’s largest iron ore producers. The company’s significant projects include the Pardoo operation, the Ridley project and the Mt Webber Direct Shipping Ore (DSO) project, in the Pilbara region. AGO is on target to achieve its growth target of exporting at a rate 12 Mtpa by the end of 2012. Atlas mapping a deal AGO made a takeover offer for fellow iron ore miner FerrAus Limited (FRS) on Monday. The deal trumped an exsiting takeover offer from Hong Kong-based Wah Nam International, launched in November last year. Wah Nam has failed to gain significant traction on its bid for FRS, and yesterday pulled out of the running for the junior miner, ceding the battle for control to AGO. FRS and AGO shares both gained ground yesterday, with Wah Nam’s withdrawal paving the way for the iron ore miners to complete their own deal. Click for Daily Share AdviceJune 28, 2011
Utilities Shares News APA Group (APA)
APA Group (APA) is Australia’s largest natural gas infrastructure business, owning and/or operating more than $8 billion of gas transmission and distribution assets. Its pipelines span every state and territory in mainland Australia, delivering more than 50% of the nation’s gas usage. Unique among its peers, APA has direct management and operational control over its assets and investments. APA also holds minority interests in energy infrastructure enterprises including Envestra, SEA Gas Pipeline and Energy Infrastructure Investments (EII). Gas volumes are growing at an average annual rate of 3.4% (compared with 1.4% for primary energy sources), driven by population growth, GDP growth and government policies encouraging lower carbon emissions. The high level of mining activity operating in Australia is also a driver of increased gas demand and thus a boon for APA. Investing in wind APA shares fell heavily last week after completing a capital raising and going ex-dividend. The company raised $300 million at $3.85 to help pay for a wind farm acquisition. While the raising was only about 1.5% dilutive, the stock dropped as it went ex-dividend for a juicy 17.9 cents per unit. APA closed the Friday session down 9.6% at $3.95. Click for more Utilites Shares and for FREE Trading AdviceBlue Chip Shares News UGL Limited (UGL)
UGL Limited (ASX:UGL) is an engineering and services company providing industrial maintenance, manufacturing, engineering, transport facilities management and corporate real estate services to blue chip companies and governments across the world. The company has grown aggressively over the past decade via acquisitions and expansion in the engineering and industrial services sectors. Owing to its diversification into the rail, infrastructure, resources and services sectors, UGL has continued to win major projects across the board. Contracts picking up UGL has agreed to new works and contract extensions worth a combined $400 million. The company’s contracts include new long term maintenance agreements with heavyweights such as BHP Billiton (ASX:BHP) and Coal Allied (ASX:CNA). Similar contracts have also been concluded for alumina and fuel refineries. UGL said it continues to experience positive trading conditions across its resources business. Click for Daily Blue Chip Shares AdviceJune 27, 2011
June 24, 2011
Buy Shares News MAP Group (MAP)
Macquarie Airports or MAP Group (MAP) is one of the world’s largest private airport owners and operators with a core portfolio of three major airports - Sydney, Copenhagen and Brussels. In July 2009, MAP announced plans to split from its parent company Macquarie Group (MQG) in a bid to cement its independence, which was applauded by the market. MAP has managed to hold steady in the face of global economic headwinds. Natural disasters, higher oil prices and adverse currency movements are some of the challenges MAP has been facing. MAP has managed to ride out these turbulent times helped by a strong operational model. Continued cost management is driving operational leverage. The company’s airports have performed particularly well whilst MAP has also benefitted from a gradual restoration of airline capacity, continued delivery of new routes and services and revenue initiatives and productivity gains. Mapping profits In February, MAP reported a FY10 net profit of $100.8 million, swinging from a $572.7 million loss from the prior year. Proportionate earnings grew 19.3% supported by 6.9% traffic growth. EPS was up 10.9% to 23.9 cents per share. Revenue increased 6.3% to $1 billion, with strong traffic growth from Sydney and Copenhagen offsetting the negative impacts of last year’s European ash cloud. The group’s balance sheet was also in healthy shape, with no debt maturities until December 2012 and around $830 million of cash. MAP was bullish about the 2011 outlook, saying it expects traffic growth across all of its airports supported by the launch of new routes and services. Shares to Buy Recommendations Traffic numbers For the first quarter, most of MAP’s segments delivered solid operational growth. Brussels was a standout, with a 6.7% rise in traffic numbers. The world’s fastest growing economy, China, became Sydney’s third largest inbound market. Map also experienced significant growth in Copenhagen commercial revenues as a result of the repositioning projects implemented in 2010. With new debt facilities at Copenhagen, MAP’s capex programme is fully funded until March 2015. Sydney continues to enjoy a strong outlook related to both demand and supply side passenger traffic drivers. MAP sounded a positive outlook, saying that all of its airports are in excellent condition and that its current growth initiatives are likely to yield earnings and distribution growth going forward. Looking ahead MAP will benefit from increasing aircraft technology delivering more seats at a lower cost. New and announced capacity increases will continue to drive growth, particularly in the long haul segment. Its EBITDA margin increased from 66.9% in 2009 to 70.4% in 2010. The company is looking to consistently improve this figure which would result in increased profitability. MAP is also enjoying strong traffic growth at its key airports which bodes well for future earnings. Click for Daily Buy Shares AdviceJune 23, 2011
June 22, 2011
June 21, 2011
ASX Energy Shares News Caltex (CTX)
Caltex (CTX) is Australia’s leading petrol refiner and distributor, operating two major refineries at Kurnell in Sydney and Lytton in Brisbane. CTX also operates a convenience store network in association with service station sites. The company is 50% owned by American energy giant Chevron. CTX shares slumped nearly 7% after forecasting a 1H profit drop as a high oil price and strong Australian dollar hurt margins and refinery outages disrupted fuel production. The refiner is forecasting an up to 39% fall in 1H profit. The company forecast a replacement cost of sales operating profit (a closely watched measure that excludes the value of its stockpiles) of $100 million to $115 million for the six months of 2011, down from $163 million last year. Click for Free Daily Shares AdviceJune 17, 2011
June 16, 2011
Gold Stocks News Newcrest Mining (NCM)
Newcrest Mining (ASX:NCM) is Australia’s largest gold producer, with mining and exploration projects in Australia, Papua New Guinea (PNG), Indonesia and the US. The miner also has a smaller exposure to copper, mostly as a by-product of its gold production. Importantly, NCM is working on bringing a few massive projects on stream. It already has six operating mines and five significant development projects. NCM achieved its first gold production at its Hidden Valley gold mine in PNG, and delivered initial production ore at Ridgeway Deeps, a resource below its Ridgeway mine in central New South Wales. In contrast to most miners, NCM mostly focuses on exploration-led production increases rather than acquisitions. However, NCM reversed this trend when it decided to takeover Lihir Gold (LGL). Newcrest Mining this week downgraded its production guidance for FY11 as a result of a production interruption at its Lihir mine and minor production delays at other sites. Australia’s biggest gold miner is now expecting to produce 2.7 million ounces of gold this year, down approximately 3.5% from its previous guidance of 2.75 – 2.85 million ounces. NCM should continue to receive support from surging gold prices. Click forFREE Gold Stocks Advice.June 15, 2011
All Ordinaries Shares News Paladin Energy (PDN)
Paladin Energy (PDN) is a uranium miner, with projects located in Africa and Australia. PDN's long-term goal is to establish itself as a uranium producer through identifying, acquiring and evaluating advanced uranium projects. The group's current focus is on its African projects: Langer Heinrich (Namibia) and Kayelekera (Malawi). PDN shares have slumped in the few months since the Japanese nuclear crisis and the company last week released a reassuring statement aimed at stopping the share price rot. PDN says its financing facilities are in good standing and clarified that it currently has no plans to raise fresh capita – debt or equity – outside of the financing of its stage 3 expansion of its Langer Heinrich project . The uranium miner says the feasibility study on its stage 4 expansion is proceeding as schedule and the company is expecting a positive outcome. PDN also said that key shareholder Newmont Mining (one of the world’s largest gold miners) has indicated it will hang onto its 6.71% stake in PDN in the near-term and that the company has mechanisms in place if Newmont decided to sell out. Click for Daily Shares AdviceJune 14, 2011
June 10, 2011
Rare Earths Shares to Buy Alkane Resources (ALK)
Alkane Resources (ALK) is a multi-commodity explorer and miner focussed in the Central West of New South Wales. Its Dubbo Zirconia Project is a world class resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earths. ALK also has a new gold development planned at Tomingley based upon an 800,000 ounce (oz) resource. Additionally, ALK made a major gold discovery at McPhillamys (3 million oz) with its joint venture partner Newmont. ALK aims to develop multiple operations within a tight geographic area over the next five years. Rare metals and rare earths are a unique proposition given their use in green technology. Demand for many of the metals is being driven by environmental legislation to ensure emissions minimisation and energy consumption efficiency. Demand looking strong Rare Earths have long been considered a strategic resource for China, with LYC the nation’s only major competitor. China controls more than 90% of the accessible resources of rare earth metals. Over the last few years, there has been a trend in Chinese Government policy decisions supportive of government control of the Rare Earths industry in China. ALK shares have soared over the past year following news the Chinese Ministry of Commerce announced restrictions on Rare Earth exports. The total export quota for 2010 (30,259 tonnes) is 40% less than the total export quota for 2009 (50,145 tonnes). In addition, the export quota for 2H10 (7,976 tonnes) is 72% less than the export quota for 2H09 (28,417 tonnes). With China deciding to keep most of the world’s supply to itself, it leaves Alkane Resources and its peers in a good position to cater for buyers elsewhere. China is expected to continue reducing export quotas for rare earths in the coming years. A reduction in the order of 5%-10% is anticipated next year. The trend will likely continue until the Chinese government achieves its strategy of restructuring its rare earths industry, addressing environmental issues and preserving its resources for the long term. Free Shares to Buy Advice Quarterly update In February, ALK completed a $21 million capital raising. The funds will be used to complete its current projects and for further resource evaluations. According to ALK, the potential revenues from DZP products continue to increase assisted by escalating zircon prices, the Chinese Government classification of zirconium as a strategic metals and an indication of future preferences for value added zirconium products, and further restriction of their rare earth exports. Base case revenues at the rate of 400,000 tonnes per annum ore processed are now estimated at US$180Mpa with project open pit life of at least 200 years. The expanded case of 1Mtpa could generate revenues of US$450Mpa. The base case development for its Tomingley gold project confirmed a production of 370,000 oz of gold over a seven and half year life. Operating cash flows for this project are estimated to be $155 million with a capital cost of $95 million. Looking ahead ALK has built a substantial resource base and is proceeding towards several developments. Following the capital raising, the company is well funded to pursue its projects. Alkane Resources is prospecting and mining key commodities at the moment which are experiencing increasing demand and prices. Peers such as Lynas Corp (rare earths) and Iluka (mineral sands) have experienced strong gains over the past few months as investors acknowledge the value of their minerals. Click for more Shares to Buy advice.June 9, 2011
June 8, 2011
Australian Shares News Metcash Limited (MTS)
Metcash Limited (MTS) is a leading marketing and distribution company operating in the food and other fast moving consumer goods categories. MTS operates via three business units: IGA Distribution (retail), Campbells Cash & Carry (wholesale) and Australian Liquor Marketers (ALM; liquor wholesale) Metcash announced solid FY11 results today, with profit up 6.1% to $241.4 million. Underlying earnings rose 6.1%, but operating cash flow was disappointing, sliding 51.6%. The company declared a 16 cent final dividend, bringing total dividends for the year to 27 cents. Despite the mostly positive results, the company did issue a cautious outlook, saying conditions are likely to remain challenging for the rest of 2011. The market was reasonably happy with the results as MTS shares gapped up a couple of percent this morning on the news before pulling back to close up 0.5% at $3.90. Click to Access FREE Daily Shares Advice NowJune 7, 2011
Small Caps Shares News Iluka Resources (ILU)
Iluka Resources (ILU) is a major participant in the global mineral sands sector and is involved in the production, sales and marketing of titanium mineral products (rutile, ilmenite, leucoxene and synthetic rutile) and zircon. ILU is the largest producer of zircon in the world, with an approximate market share of 34% and the second largest producer of titanium dioxide minerals with an approximate market share of 18%. Outside the core mineral sands business, ILU has a royalty interest in specific parts of BHP Billiton's Mining Area C (MAC) iron ore region in the north west of Western Australia. Price jump ILU expects average prices for its titanium dioxide products to rise 75% in the second half of the year and zircon prices by up to 40% for the coming quarter. The agreements reached with its customers will take effect from 1 July. Click for FREE Trading Tips.June 6, 2011
June 3, 2011
Small Caps Stocks to Buy Acrux (ACR)
Acrux (ACR) is an Australian drug business, developing and commercialising a range of pharmaceutical products for global markets. ACR's product pipeline includes treatment of hormonal deficiencies, central nervous system disorders, contraception and dermatological conditions – covering areas including men’s, women’s and animal health. The group’s first product, Axiron, is being marketed in the USA following approval by the US Food and Drug Administration (FDA). Axiron is a spray for men with low sex drive because of decreased amounts of testosterone, restoring the normal level of the hormone in most men. ACR has products in late stage development, follows a low risk development path and is well funded. The company recently won approval to market menopause treatment in Sweden. This has been cheered by the market and could lead to further approvals to sell the treatment elsewhere in Europe. Fundamentally strong As a company, Acrux benefits from a number of strong fundamentals. ACR boasts faster, lower risk, lower cost development than its peers, because its products contain proven drugs. ACR’s products are designed to have strong competitive advantage ("patient-preferred and patent protected") and the group boasts a track record of commercial deals. The company’s lead product, Axiron, has moved successfully through FDA approval, whilst the group has a range of products in clinical development for a range of therapeutic areas. The broader environment for ACR is also supportive. As a pharmaceutical and biotechnology player, ACR is part of a relatively defensive sector. Last year, ACR concluded Australia’s largest ever biotechnology licensing deal by entering into a global and exclusive agreement with Eli Lilly, a top-10 international company with reported revenue in 2009 of US$22 billion. ACR is understandably focused on driving ahead with its landmark product, Axiron. Axiron was the first testosterone replacement product approved for administration under the arm. Click for Free Stock Advice Swedish persuasion Last month, ACR announced it has been granted a marketing authorisation for its Ellavie product by Sweden’s Medical Products Agency. The move has placed ACR in a strong position to actively engage potential marketing partners for the European market. The estrogen therapy market outside the US is valued at US$360 million a year and ACR is looking to get a share of this market. Earnings impress In February, ACR reported a first half profit of $56.7 million, up from a loss of $2.1 million on year. This translated to a diluted earnings per share of 34 cents. Revenue for the period jumped to $90.5 million (from $0.6 million). ACR received US$87 million from Eli Lilly following the Axiron approval. A first distribution of approximately 60 cents per share was declared. Looking ahead The fully year profit after tax is expected to be similar to the first half result which equates to a very strong year. Axiron was launched by Eli Lilly in the US at the end of March and is a significant step for ACR given the potential for the product. Acrux is eligible to receive further sales milestone payments of up to US$195 million and will receive royalties on worldwide sales of Axiron. Further approvals to sell Ellaive in Europe would give the stock significant upside. The company has high cash reserves, sitting at $147 million, leaving it well capitalised for any investments. A threat is the surging Aussie dollar which impacts ACR negatively on its US dollar earnings. ACR continues to deliver on milestone projects which should help in generating significant and sustainable cash flows. Click for Daily Stocks to Buy Advice.June 2, 2011
ASX Top 200 Stocks News Fortescue Metals Group (FMG)
Fortescue Metals Group (FMG) is an iron ore miner, with operations located in the lucrative Pilbara iron ore province in Western Australia. The company is the third biggest iron ore miner in Australia behind BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) – two of the market’s leading blue chip stocks. On 1 June, FMG CEO Andrew Forrest announced plans to step down from his role on July 18. Forrest, who founded FMG in 2003, will assume the new role of company chairman at the board’s next meeting on August 18. Chief Operating Officer Nev Power will become the new FMG CEO upon Forrest’s exit. Separately FMG said it is targeting an annual iron-ore production rate of 155 million tonnes by mid-2013. FMG was previously aiming to achieve the milestone by 2014. The group said key contracts are in place and the strong price of iron-ore has provided it with the means to grow capital spending. Click for FREE Daily Stock AdviceJune 1, 2011
Financial Shares News Westpac Bank (WBC)
Westpac Bank (WBC) is Australia’s oldest bank, operating a significant banking franchise with balance exposures to retail, corporate and institutional sectors. Following its merger with St George Bank, WBC is not too far behind Commonwealth Bank in the battle to be the biggest in Australia. WBC is also among the market’s leading blue chip stocks. WBC recently received final approval to open its second branch in China. The new branch, which will be located in Beijing, follows the 2008 opening of WBC’s first branch in Shanghai. The group has plans to open a further two branches in China. Click for Daily Stock Tips.
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