Thoughts on ZIP Co & AIC Mines please

Hi Debra,

• Zip Co Ltd (ZIP) – We liked their recent trading update even though the market didn’t on the day (covered here), with the US clearly accelerating. The $267m capital raise (including non-underwritten SPP) is being used to 1. pay down expensive debt & 2. take further advantage of this acceleration by going harder at their new pay in 8 product designed for more expensive items.
• While ZIP has rallied strongly in 2024, we think this is justified, with the SPP at $1.56 providing a good opportunity for holders to top up at an attractive level. Zip remains on our Hitlist, and we are considering adding it to the Emerging Companies Portfolio to replace another payments stock.
• AIC Mines (A1M) – Copper stocks are enduring a tough time as the industrial metal falls. While the seemed market negative on their recent quarterly, we thought it was strong from a production and cash generation perspective. Given their size and stage of production, this is a highly leveraged Copper play, and buying leverage to a theme we like into weakness makes total sense to MM. We are now considering the best way to play Copper in our more Emerging Companies Portfolio.

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AIC Mines Ltd (A1M)

LAST UPDATED 19/07/2024 15:22

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AIC Mines Ltd (A1M)

LAST UPDATED 19/07/2024 15:22