Hi Darren,
Coronado Global Resources (CRN): CRN’s latest report this week again disappointed the market after the stock initially rallied following its quarterly update. The coal miner reported fourth quarter revenue of $558 million, taking its full year revenue to $2,508mn. This led to the miner finishing the period with a strong cash balance of $340 million and available liquidity of $468 million. Another positive was that its fourth quarter average mining costs per tonne sold was down 17% quarter on quarter to $97.30. Management said this is “a reflection of success delivered from the productivity improvement and cost reduction program at the Curragh Complex.”
- We believe the markets been harsh on CRN and it looks good ~70c.
- In terms of which we prefer out of CRN and Whitehaven Coal (WHC) they are very different propositions but if we had to choose it would be WHC.
Treasury Wine Estates Ltd (TWE): The winemaker has struggled over the last 18-months, every time we think it’s going to break clear of $12 it’s failed miserably, a frustrating situation/position. A recent 3Q report from Constellation Brands added to recent market concerns around U.S. wine although TWE’s premium branding should fare better but the market continues to adopt an “if in doubt stay out” view towards TWE. We remain positive on TWE looking for upside from its DAOU & Frank operations in the US plus growth in its flagship Penfolds business.
- We are not considering adding to our TWE position, but we’re holding it for now – MM owns TWE in its Active Growth Portfolio.