30 September 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 turned lower as the ebbs and flows of the US-China trade dispute continued to disrupt daily market movements.  Mounting evidence of slowing global growth brought fears of subdued US manufacturing conditions finally filtering into employment growth, the one bright spot in the global economic picture. Resource sector equity prices reflected the broader market with modest losses once again defying expressions of pessimism about the global growth outlook. Evidence persists that the most recent rise in the gold price has been a product of changes in financial market relative prices rather than a longer duration structural shift in gold market conditions.     More...

Portfolio Performance and Positioning
Phase I companies continued to produce the relatively strong gains evident over the past three months with an added impetus, in the past week, from a single stock reporting a copper-gold discovery. Larger companies in the sector contributed negatively.  Phase II stocks are lacking exposure to improved metal market conditions without the offsetting benefit of the potential exploration interest among Phase I companies. No additional changes were made to 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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