Category

Australia

Nov 16
0

Daily Brief Australia: Atlantic Lithium , SSH Group Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Atlantic Lithium (A11 AU) Knocks Back Major Shareholder’s Offer. Again
  • SSH Group Ltd – Restructured and Poised to Deliver

Atlantic Lithium (A11 AU) Knocks Back Major Shareholder’s Offer. Again

By David Blennerhassett

  • Livent (LTHM US)‘s CEO recently said, regarding its merger with Allkem Ltd (AKE AU), that while falling lithium prices put pressure on marginal producers, the sector’s fundamental outlook remains strong. 
  • And so, another week goes by, and another lithium Offer Down Under unfolds. 
  • African-Focused lithium play Atlantic Lithium (A11 AU) announced this morning it has twice rejected Offers from South African-based Assore International, its major shareholder.  Shares spiked 43% on the news.

SSH Group Ltd – Restructured and Poised to Deliver

By Research as a Service (RaaS)

  • SSH Group (ASX:SSH) is a labour and equipment hire business operating predominantly in Western Australia with a focus on the key growth sectors of construction, resources, and energy.
  • SSH listed in September 2021, issuing 31.25m shares at $0.20/share to raise $6.25m, along with the issue of 20.5m shares to the vendors of a labour-hire group of companies, Site Services.
  • In May 2022, SSH acquired equipment hire group KMH for $15m or 3.9x FY21 EBITDA. 

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Nov 15
0

Daily Brief Australia: National Australia Bank and more

By | Australia, Daily Briefs

In today’s briefing:

  • NAB – Maturing Debt AUD40bn | At Top of Rate Cycle | With High Unseasoned Loans, CRE Loans

NAB – Maturing Debt AUD40bn | At Top of Rate Cycle | With High Unseasoned Loans, CRE Loans

By Daniel Tabbush

  • NAB holds significantly more maturing debt in the coming year than its largest 3 peer banks in Australia and also more than the 3 banks in Singapore, by comparison
  • The bank has grown its business loans aggressively, which can see lumpy bad loans in a poor economy, with high unseasoned loans, yet its HoH credit costs were flat
  • CRE loans are meaningful at NAB, adding another risk to maturing debt at the top of the rate cycle with what appears to optimistic credit costs in recent results

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Nov 12
0

Daily Brief Australia: Boss Resources and more

By | Australia, Daily Briefs

In today’s briefing:

  • Quiddity Leaderboard ASX Dec 23: Three ASX 200 Changes + Origin Energy Question Mark

Quiddity Leaderboard ASX Dec 23: Three ASX 200 Changes + Origin Energy Question Mark

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run up to the December 2023 Rebalance.
  • There are only five more working days left in the 6-month reference period for the December 2023 rebalance event. 
  • The expectations presented in this insight are my final expectations for December 2023.

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Nov 11
0

Daily Brief Australia: Allkem Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Allkem/​Livent Merger: 19th December Shareholder Vote

Allkem/​Livent Merger: 19th December Shareholder Vote

By David Blennerhassett

  • On the 10th May, Aussie lithium miner Allkem Ltd (AKE AU) inked a $US10bn+ “merger of equals” with Livent (LTHM US), ostensibly forming the world’s fifth largest lithium producer.
  • Allkem’s Scheme Meeting is the 19 December, with implementation expected on the 4 January. The IE is supportive and Allkem’s board unanimously recommends the transaction. 
  • This looks done. Buy Livent. And get borrow on Livent to be able to short it into the inclusion or in the days following. 

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Nov 10
0

Daily Brief Australia: Australis Oil & Gas and more

By | Australia, Daily Briefs

In today’s briefing:

  • Australis Oil & Gas Limited – Oil Prices and M&A on the Up

Australis Oil & Gas Limited – Oil Prices and M&A on the Up

By Research as a Service (RaaS)

  • Australis Oil & Gas (ASX:ATS) is an oil and gas producer/developer, with a strategic and controlling position in the emerging Tuscaloosa Marine Shale (TMS) oil play, onshore US.
  • The TMS is an Eagle Ford-equivalent but early-stage oil play with gross recoverable oil potential of around 7bn barrels – this is likely to be the next big thing.
  • Australis represents a highly- leveraged and attractive exposure to the transformational potential of the TMS oil play. 

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Nov 09
0

Daily Brief Australia: Southern Cross Media, Pureprofile Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Southern Cross/ARN Media: Getting Cosy?
  • Pureprofile Ltd – Margin Expansion Delivered in Q1, Ahead of Forecast

Southern Cross/ARN Media: Getting Cosy?

By David Blennerhassett

  • Back on the 18 October, media play Southern Cross Media (SXL AU) announced a non-binding indicative proposal from ARN Media (A1N AU) and Anchorage.
  • SXL shareholders are being offered, by way of a Scheme, 0.83 ARN shares and A$0.296/share in cash. SXL considers the terms to be “complex, and highly conditional”. 
  • Reportedly SXL has now signed a confidentiality agreement to gather more info on ARN, possibly leading to a firm deal. 

Pureprofile Ltd – Margin Expansion Delivered in Q1, Ahead of Forecast

By Research as a Service (RaaS)

  • Pureprofile Ltd (ASX:PPL) is a data analytics, consumer insights and media company underpinned by proprietary technology, servicing business decision makers in brands and media companies as well as market researchers.
  • Pureprofile has reported a 16% lift in revenue from continuing businesses for Q1 FY24 to $12.3m and a 36% jump in underlying EBITDA excluding discontinued businesses to $1.5m.
  • The EBITDA margin increased to 12% in Q1 FY24 compared with a 10% margin in the same quarter a year ago. 

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Nov 08
0

Daily Brief Australia: Rent.com.au Ltd, Amaero International Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Rent.com.au Ltd – Portal Back on Track, Capital Raise to Support RentPay
  • Amaero International Ltd – AGM Confirms Firming Timeline for Production and Revenue

Rent.com.au Ltd – Portal Back on Track, Capital Raise to Support RentPay

By Research as a Service (RaaS)

  • Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through its technology platform and a growing number of aligned transactional services.
  • The company has reported Q1 FY24 revenue of $0.786m, with the search engine, Rent.com.au, returning to positive EBITDA of ~$0.05m.
  • Separately the company has launched a fully-underwritten entitlement offer to raise $1.95m at $0.017/share to support the commercialisation of its fintech platform RentPay. 

Amaero International Ltd – AGM Confirms Firming Timeline for Production and Revenue

By Research as a Service (RaaS)

  • Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
  • The company is developing a 1,000+-tonne a year critical metals alloy powder manufacturing facility in Tennessee, USA, and provided confirmation at its Annual General Meeting last week that it anticipated that on just one eight-hour shift a day the first EIGA gas atomiser, dedicated to the refractory alloy powder, C103 (niobium 89%, hafnium 10%, -titanium 1%), should be able to generate north of A$100m a year in revenue.
  • The Chairman and CEO Hank Holland also noted that as demand for C-103 ramps, Amaero will utilise excess production capacity to produce high-value, specialty alloy powders for next-generation defence systems. 

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Nov 07
0

Daily Brief Australia: Orecorp Ltd, Pioneer Credit and more

By | Australia, Daily Briefs

In today’s briefing:

  • OreCorp/Silvercorp: 8th December Shareholder Vote
  • OreCorp (ORR AU): A Wide Spread Heading into the 8 December Vote
  • Pioneer Credit Limited – AGM Signals Strengthening Position and Seeking Redress

OreCorp/Silvercorp: 8th December Shareholder Vote

By David Blennerhassett

  • Back on the 6 August, Western Australian-based miner OreCorp Ltd (ORR AU) signed a Scheme Implementation Deed with Canada’s Silvercorp Metals (SVM CN).
  • OreCorp shareholders are offered A$0.15 in cash and 0.0967 new Silvercorp shares – or an implied value of A$0.60 – for each OreCorp share held.
  • The Scheme Booklet is out with a shareholder vote on the 8 December. Implementation is the 22 December.

OreCorp (ORR AU): A Wide Spread Heading into the 8 December Vote

By Arun George

  • The Orecorp Ltd (ORR AU) IE considers Silvercorp Metals (SVM US)’s A$0.15 cash per share and 0.0967 SVM shares per ORR share offer fair and reasonable. 
  • The offer is subject to the Tanzanian Fair Competition Commission and shareholder approval. The offer is attractive compared to the adjusted exchange ratios and historical prices.
  • While the offer has suffered from the steep SVM share price decline, there has been no visible dissent from major shareholders. At the last close, the gross spread was 12.1%. 

Pioneer Credit Limited – AGM Signals Strengthening Position and Seeking Redress

By Research as a Service (RaaS)

  • Pioneer Credit Limited (ASX:PNC) is one of the leading acquirers and managers of impaired credit in Australia and has gained its status by maintaining positive customer engagement, an unblemished compliance record with ASIC, and strong relationships with Australia’s largest bank and non-bank lenders.
  • PNC purchases debt from 18 different Australian vendor partners with long-term partnership purchasing arrangements in place with Commonwealth Bank of Australia (ASX:CBA).
  • The company’s AGM updates highlighted the strong position PNC occupies in the marketplace and the expected improvement in NPAT following debt refinancing currently in progress. 

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Nov 06
0

Daily Brief Australia: Origin Energy, State Gas Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Weekly Deals Digest (05 Nov) – Origin, Azure, Tietto, Eoflow, Hollysys, WuXi XDC, Midea, EcoPro Mat
  • State Gas Limited – Growth Starts with the First PJ and That’s Imminent

Weekly Deals Digest (05 Nov) – Origin, Azure, Tietto, Eoflow, Hollysys, WuXi XDC, Midea, EcoPro Mat

By Arun George

State Gas Limited – Growth Starts with the First PJ and That’s Imminent

By Research as a Service (RaaS)

  • State Gas Limited (ASX:GAS) is a junior energy producer and explorer with assets concentrated in the Bowen Basin, Queensland.
  • Having secured some $7mn in equity financing, the company is well progressed in the construction phase of the Rolleston West CNG Project (RW-CNG), with production set to commence in December.
  • First gas is always a critical event driver in demonstrating the commercial potential of the assets and providing a platform from which growth strategies can emanate.

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Nov 05
0

Daily Brief Australia: Origin Energy and more

By | Australia, Daily Briefs

In today’s briefing:

  • Last Week in Event SPACE: Hokuhoku, Origin Energy, KDDI, BoJ

Last Week in Event SPACE: Hokuhoku, Origin Energy, KDDI, BoJ

By David Blennerhassett

  • If you are still long the Financial Group (8377 JP) from before, stay long.If you sold Hokuhoku from before, be long again, and buy on weakness
  • Disaster for arb players as AusSuper rewrites the record books as an investor class and shoots down Brookfield’s sweetened Offer for Origin Energy (ORG AU).
  • Kyocera (6971 JP) announced Q2 results and lowered its full-year forecast. Then the CEO said it was “reconsidering” what to do with KDDI (9433 JP) shares (after an AGM disaster).

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