4 November 2019

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?
Of the five PortfolioDirect cyclical guideposts, two are ‘red’ and three ‘amber’.  The cyclical positioning has been classified as ‘downswing’ with decelerating global growth forcing a negative change to expectations, a loss of output momentum in China, the largest national user of metal, and less supportive monetary policy settings than have prevailed for most of the post-2009 period.     More...

Market Directions
Equity prices pushed higher taking the broader US market to record levels, helped by supportive September quarter earnings results.    Markets seem to have shrugged off worries about trade restrictions amidst growing confidence that central banks are also backing equity prices through more accommodating monetary policies. Higher bond yields have coincided with stronger base metal prices, suggesting some greater confidence about the global growth outlook.    More...

Portfolio Performance and Positioning
Phase III companies made unusually strong gains as broader financial and equity markets took on more risk as some macro risk factors became less prominent.  The sector gains were focused on the largest stocks, rather than those with valuations most leveraged to improved economic conditions.   The flow of funds effect resulted in Phase I and Phase II stocks losing ground. Phase II stocks, in the process of trying to expand production, have been consistent laggards in recent months, displaying neither institutional interest nor discovery surprise while remaining at risk of being unable to meet production targets. No changes were made to the portfolio models which remain tilted toward an exposure to Phase I companies trading at historically depressed prices.     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.

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