8 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 with cyclical guideposts turning negative. 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
Market leading mining stocks have been running ahead of broader sector indicators with negligible trickle down benefits to the remainder of the market. Explorers, after posting three consecutive quarters of negative returns, once again undershot the market leaders. The direction of growth sensitive financial market indicators is at odds with the performance of metal prices suggesting investor confusion and scope for readjustment.  More...

Portfolio Performance and Positioning
Modest gains were made across all portfolio segments with advances running strongly ahead of declines among the Phase III stocks and a more event split among stocks in the earlier development stages. The macro model underperformed the benchmark by 0.5 percentage points over the week due to lagging returns among the Phase II category. The macro portfolio remains tilted toward advanced exploration efforts.  Portfolio adjustments resulted in a higher cash holding.    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.    
More...

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.

Copyright 2018 PortfolioDirect All Rights Reserved.