Argonaut | The Natural Choice in Resources

Argonaut is a full service advisory, stockbroking & research and investment house with offices in Perth and Hong Kong. Argonaut is technically driven & focused on natural resource companies & businesses that service the metals, mining, energy and agri-business sectors. Argonaut has an established track record of creating significant wealth for clients.

Morning Notes

On US markets, consumer-staples stocks tumbled intraday, pulling the S&P 500 lower as investors showed signs of fatigue after three straight days of gains. Investors were jarred by the weak performance of some of the world's biggest consumer product companies that reported earnings results. That sent shares of those companies into a tailspin. Although investors have been more muted in their response to companies that are reporting stronger-than-expected results so far, those that miss expectations or offer weak guidance have faced a harsh rebuke from investors. The S&P 500 fell 0.6% in recent trading, while the Dow Jones Industrial Average slipped 83 points, or 0.3%, to 24665. The US gold price rose overnight by 0.3% to finish at 1,345.30 US$/oz.

More >

Latest Research

St Barbara (SBM) announced March Q production of 86koz (-14% vs Dec Q) at an all-in sustaining cost (AISC) of $982/oz (+8% on Dec Q). Lower throughput at Gwalia was impacted by mine sequencing and was partly offset by high head-grades running at 15g/t (92% above reserve grades). Cash at bank increased by $50m to $262m after dividend payments of $16m and investments of $4m. Simberi FY18 guidance was updated to 125-132koz (from 115-125koz) to reflect improved operational performance, however costs have rose by 14% on lower grades and work stoppages. Full year group guidance now stands at 375-392koz (prior 365-385koz) at an AISC of $920-970/oz. We view SBM as a high-quality gold miner with significant free cash generation. We move to a HOLD recommendation (from SELL) following revisions to our model to push Gwalia mine life out to 10 years and increase our target price to $3.84 (prior $3.23ps).

More >

Latest News

Argonaut advised 88 Energy Limited (ASX: 88E) (“88E”) on the refinancing of its outstanding loan of US$16.5 million with Bank of America.
Whilst the commercial terms of the agreement remain confidential, the transaction was completed on substantially similar terms to the original loan agreement.

More >