In today’s briefing:
- USD Divisions – AUD Bearish
- Selected European HoldCos and DLC: March’23 Report
- Mincor Backs Wyloo’s Offer After BHP Offtake Uncertainties
USD Divisions – AUD Bearish
- AUD and NZD bear patterns stand out versus the Euro’s rebound which is at the top end of the range as the DXY finds a foothold at 102/101.
- Sterling met our 1.24 rally objective where we reversed to short. USD/JPY rise from 130 reaching for 134. USD/ZAR near our buy zone.
- Yield basing needed to support any sort of meaningful USD rise (DXY 104 near resistance) but there are tradable patterns to work with. USD shows a firmer tone in Asia.
Selected European HoldCos and DLC: March’23 Report
- Discounts to NAV of covered holdcos have shown mixed performance during March, with spreads widening until short after the UBS/CS deal, now tightening.
- Discounts to NAV: C.F.Alba, 51.2%; GBL, 35.8%; Heineken Holding, 14.6%; Industrivärden C, 11.1%; Investor B, 9.7%; Porsche Automobile Holding, 49.6%. The spread of Rio Tinto DLC widened to 18.9%.
- Recommended trades: Heineken Holding, Investor AB (long Investor B/short main holdings) and Rio DLC.
Mincor Backs Wyloo’s Offer After BHP Offtake Uncertainties
- Last week, Mincor Resources NL (MCR AU) said BHP Group Ltd (BHP AU) would not agree to amend off-take agreement specifications, and therefore would no longer accept lower-quality ore.
- Mincor subsequently withdrew its earnings guidance, and Wyloo Metals shortly followed by declaring its A$1.40/share unconditional on-market Offer best and final.
- This morning (4 April), Mincor released its Target Statement, and recommends shareholders accept the Offer from Wyloo.
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