Gresham "Group 150" - August 2011Document Transcript
AUGUST 2011 Gresham Group 150 August 2011 Darren Martin Gresham Advisory Partners email@example.com +61 8 9486 7077 +61 412 144 719 ASX RESOURCES - GROUP 150 We are pleased to present the August edition of ‘Group 150’, a ranking of the top 150 ASX listed resources companies (excluding oil and gas), by market capitalisation. This edition has been held up by the attendance (and paced recovery) at Diggers and Dealers and the new spectator sport of watching the global markets melt at record rates. Whilst sentiment at Diggers and Dealers was positive overall for resources, the political topic of sovereign risk linked to MRRT and carbon tax were central topics for discussion during the day and early parts of the evening. There appeared to be an increased proportion of “dealers” in attendance, which increased the level of competition in the late night boat races which will surely flow to Kalgoorlie economy. The most common question in the past four weeks relates to views on the direction of the market and in the current environment, it would be a brave investor to catch the falling knife and predict the bottom of the current plunge. That said, the performance of the ASX in the final session of trading yesterday did see a rebound of approximately 5% or $15 billion, but this is only relatively minor given the $100 billion lost in the past week. Ongoing global weakness is likely to see the signal from Wall Street to Bernanke that it wants QE3 gets louder. The overnight announcement in relation to interest rates seems to have provided a floor…but will this be enough? In this edition we have included the current forward curves for gold, silver, copper, nickel, oil and the AUD:USD exchange rate. Separately the consensus commodity price forecasts have been rolled forward 12 months. July was again a challenging month for resource stocks and was the fifth consecutive months the value of the Group 150 has fallen. The market value of the Group 150 at the end of July was $538.5 billion and the entry point into the Group 150 for July was $119.0 million versus $109.9 million for June. The ASX/S&P 200 Resources Index decreased 2.2% for the month, while both the ASX All Ordinaries and ASX/S&P 200 Index decreased 3.4% and 4.0% respectively. Gresham Advisory Partners Limited Gresham Advisory Partners is a leading Australian mergers and acquisitions/corporate advisoryEdition 17 business and one of Australia’s largest and highest ranking independent corporate advisors. 1
recenT resources TransacTions Group 150 Mergers and Acquisitions Mergers and Acquisitions 2010 2009 GRAM 2009 2009 2008 2008 2006 Advised BHP Advised BG Advised Guandong Advised Allied Gold Advised Kalahari Advised Gem Advised IAMGOLD Billiton on its Group on its $1bn Rising on its $216m on its $54m Minerals on its Diamonds on its Corporation on its $204m offer for takeover offer for cornerstone acquisition of $140m proposed $300m acquisition $265m acquisition United Minerals Pure Energy investment in Pan Australian merger with of Kimberley of Gallery Gold. Corporation. Resources Aust. Solomons Gold. Extract Resources. Diamonds. Limited. TakeoverDefence Takeover Defence 2010 2010 2010 2009 2009 2007 2007 Advised Polaris Advised Indophil Advised Advised Energy Advised Brandrill Advised Summit Advised Tethyan on Metals NL on on $545m Centaurus Metals on its $86m Limited on its Resources on its its $220m $178m takeover recommended Resources on its proportional takeover $45m takeover A$1.2bn takeover competing takeover offer by Mineral offer from Zijin $20m merger offer by China offer by Ausdrill by Paladin Energy. offer by Crosby and Resources with Glengarry Guangdong Nuclear Limited. Antogafasta/Barrick. Limited. Resources. Power Group. Strategic Advisory, JointJoint Ventures and Capital Markets Strategic Advisory, Ventures and Capital Markets 2010 2010 2009 2008 2009/08 2008 2008 Advised BHP Introduced Advised BHP Advised Advised Iluka on its Advised Advised Iluka Billiton on its Denham Capital to Billiton on the Bannerman $114m Murchison Metals Resources on its US$116bn iron Trans Tasman disposal of the Resources on its institutional on its joint venture $54m Narama coal ore production Resources resulting Yabulu Nickel financing with placement and with Mitsubishi. divestment to joint venture with in NZ iron sands refinery. Resource Capital $353m accelerated Xstrata. Rio Tinto. investment. Funds. right issue. Gresham Advisory Partners Limited A.B.N. 97 003 344 269 Level 17, 167 Macquarie Street, Level 10, 1 Collins Street, Level 3, 28 The Esplanade, Sydney NSW 2000 Melbourne VIC 3000 Perth WA 6000 Telephone: 61 2 9221 5133 Telephone: 61 3 9664 0300 Telephone: 61 8 9486 7077 Facsimile: 61 2 9221 6814 Facsimile: 61 3 9650 7722 Facsimile: 61 8 9486 7024 Website: www.gresham.com.auTerms and ConditionsInformation contained in this publicationThe opinions, advice, recommendations and other information contained in this publication, whether express or implied, are published or made by Gresham Advisory Partners Limited (ABN 88 093 611 413), Australian financial services license (247113), and by its officers and employees(collectively “Gresham Advisory Partners”) in good faith in relation to the facts known to it at the time of preparation.Gresham Advisory Partners has prepared this publication without consideration of the investment objectives, financial situation or particular needs of any individual investor, and you should not rely on the publication for the purpose of making a financial decision.To whom this information is providedThis publication is only made available to persons who are wholesale clients within the meaning of section 761G of the Corporations Act 2001. 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