1 October 2018

Remuneration Report Analysis and Commentary: PortfolioDirect scores annual remuneration reports from ASX listed companies against a consistent analytical framework designed to help assess which reports are most worthy of shareholder support. 
Contents

Where are we in the Cycle?
Peak metal prices were recorded in February 2018 in an already mature metal price cycle. Unusually prolonged supply side constraints which have been offsetting the effect of weak demand growth are losing their impact as newly initiated production starts to flow in some metal categories. Monetary policy settings are tightening as weak productivity constrains global growth potential leading to a deceleration in activity growth rates with an adverse effect on metal use.     More...

Market Directions
Sector equity and commodity price indicators sit toward the lower end of their levels from the past year with the exception of the prices of the market leaders which continue to benefit from their correlation with rising US equity prices. The smallest stocks in the sector have been especially leveraged to weakening background conditions.  Explorers have posted three consecutive quarters of negative returns.    More...

Portfolio Performance and Positioning
Higher sector prices in the past week were reflected in modest gains across all portfolio segments with advances and gains evenly split. The macro model underperformed the benchmark by 1.4 percentage points over the course of September due to lagging returns among the Phase I category. The macro portfolio remains tilted toward advanced exploration efforts.  No portfolio adjustments were made.  More...

Stock Reviews and Rating Analysis 
PortfolioDirect rating reports analyse the quality and risk attributes of proposed mineral developments.  Rating criteria apply to mining and oil and gas stocks at any stage of development.  PortfolioDirect uses a five point rating scale to measure the risk adjusted quality of proposed mineral developments or companies.    
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The 'Steak or Sizzle' blog provides summary judgements on the top performing ASX-listed resources stocks. More...

Although the statements of fact in this report have been added from and are based upon sources the authors of the report believe to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.  To the extent permitted by law, the authors of the report are not liable for any loss or damage arising as a result of reliance placed on the contents of this report.  

All opinions and estimates in this communication constitute judgments by the authors at the report date and are subject to change without notice.  The report publisher is under no obligation to make public any change in view about any matter referred to in this document.    

No references to past investment performance should be taken to indicate anything about future performance.

This communication is directed only to Australian wholesale investors and licensed financial advisers for information purposes and is not intended as an offer or solicitation with respect to the purchase or sale of a security.

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