Nuix Ltd (NXL) and Grange Resources (GRR)
Good Morning, enjoying the reports and so on. My first question. You removed Nuix (NXL) from Emerging Companies Portfolio,? While I'm here what do you think of Grange (GRR), magnetite! Thanks Hamilton
The Latest Q&A
Answer
Hi Hamilton,
Nuix Ltd (NXL) was removed from the MM “Hitlist” of our Emerging Companies Portfolio this week – we did not own the stock – after CEO Jonathan Rubinsztein stepped down basically immediately. We didn’t like the sudden departure from the troubled data analysis software business with no positive news likely to follow. He had been at the helm over the last 4-years during which time he stabilised a then-failing business – he’s unlikely to have left if the runway ahead was rosy.
We didn’t like the sudden departure and lack of succession planning, it “smells” hence, we’ve adopted an if in doubt stay out approach. We also have a long memory, remembering that NXL got into hot water after their ill-fated float in 2020, downgrading revenue forecasts from its prospectus attracting the attention of ASIC, its simply not a company MM will give the benefit of the doubt to.
Grange Resources (GRR) – is a $295mn Australian mining company that operates the Savage River magnetite iron ore mine and Port Latta pellet plant in Tasmania, producing high-quality iron ore pellets for the steel industry. It also owns the Southdown Magnetite Project in Western Australia, a large development-stage iron ore resource.
The stock popped over +10% this week to a new 2025 high ~25.5c after its 3Q trading update was better than feared with higher concentrate and pellet production, lower unit costs, and a 24% improvement in average realised prices, reflecting stronger market conditions and operational consistency at its Savage River operations in Tasmania.
- We like GRR as a mining “speccy” while it can hold above 24c.
