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

Gains in Boeing's shares helped offset Apple's losses in the Dow Jones Industrial Average during choppy trading Wednesday. Corporate earnings have driven some of the largest moves in stocks over the past week. More than a third of S&P 500 companies have reported quarterly results, according to FactSet, with energy, industrial and technology companies posting the weakest earnings growth so far. Elsewhere, share markets were hit by weak U.S. earnings from companies including Under Armour and Whirlpool. The disappointing news sent the Nasdaq down 0.5% on Tuesday, while the Dow Jones Industrial Average was off 0.3%. Additionally, consumer-confidence data out of the U.S. suggested that households there remain cautious in a year of lagging growth and looming presidential elections. The U.S. Conference Board said Tuesday its index of consumer confidence dropped to 98.6 in October from 103.5 in September. Economists surveyed by The Wall Street Journal had expected 101.2.

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Latest Research

Independence Group (IGO) released September Q results with 30koz gold from Tropicana (IGO 30% attributable basis), 2.2kt Ni in ore from Long and 10.3kt Zn and 1.9kt Cu from Jaguar (vs Argonaut forecast of 30koz gold, 2.1kt Ni, 9.9kt Zn and 1.7kt Cu). Total cash generation was $203m, incorporating a $282m equity raising, $45m development capex on Nova and a $12m dividend payment. The unaudited NPAT was $10m. Free cash generation from Tropicana and Jaguar was down Q-on-Q due to increases in saleable products (FCF $4.8m and -$10.8m respectively). Long’s free cashflow doubled to $9.5m on higher production and lower costs. At 30 September, IGO had $249m cash and $271m debt. The Company also announced first Ni and Cu concentrate production from the Nova mine. The project was completed four weeks ahead of schedule and remains on budget with $95-100m capex remaining.

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Latest News

Argonaut, as Lead Manager to the Placement and Underwriter to the Entitlements Offer, has successfully raised A$10.1 million for Gage Roads Brewing Co Limited (ASX: GRB) (“Gage Roads” or “the Company”) via a placement to institutional investors of $1.6 million in September and a fully underwritten 4 for 5 non-renounceable entitlement issue to existing shareholders to raise a further $8.5 million.

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