14 October 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
Reduced risks to global trade flows and positive comments from central bankers about monetary policy being eased are supporting equity prices, at least for the time being. The recently appointed head of the International Monetary Fund foreshadowed a cut back in its near term growth forecasts. Metal prices have remained relatively strong against the backdrop of widespread concerns about slowing global growth and, for some, a rising threat of global recession. Restraints on metal supply have been an important element in stabilising market balances.  Gold prices remain tied to movements in financial market prices rather than deriving support from any structural shift in gold demand.    More...

Portfolio Performance and Positioning
Phase I companies continue to produce relatively strong gains.  Phase II stocks have been lagging the other development categories as they must rely on execution skills to boost market sentiment without having the broader equity price support evident among the market leaders or the benefit of potential exploration successes among Phase I companies. Minor changes to the portfolio were made to take account of recent relative price movements. Portfolio models 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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