WiseTech's new CEO sucks up to the top
It's not just that the 44-year-old has never been a chief executive of an ASX-listed firm, or as our sister column Chanticleer pointed out, his last role was with a church-affiliated carer website, but Appoo only recently returned to the company where he last worked in 2018.
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News.com.au
6 hours ago
- News.com.au
Criterion: With rates cut looking a sure bet, small-cap stocks are biggest winners
Small caps generally fare well when interest rates fall, because they tend to be exposed to cyclical domestic sectors Rates are heading south to prevent the economy from overheating, rather than avoiding recession Yarra Capital Management names four preferred ASX small-cap plays This week's benign inflation figures have fired expectations that the Reserve Bank will announce an interest rate cut on Tuesday week. It would be amazing if the central bank did a BACO – Bullock Again Chickens Out – and maintained a neutral stance for the second month in a row. Along with mortgage holders, small cap investors will cheer on what's expected to be a series of cuts over the next 18 months. That's because of a strong correlation between lower rates and the health of small caps. 'Smaller companies tend to be exposed to the more cyclical elements of the economy, so benefit from reduced rates which stimulate demand,' says Yarra Capital Management's small caps portfolio co-manager Michael Steele. Wilson Asset Management's Oscar Oberg refers to the 'inherent leverage' of small caps, in that they typically carry more debt. 'This means that even the slightest economic tailwind can fall to the bottom line quickly and drive earnings upgrades.' Lower rates also mean a lower Australian dollar, as foreign investors seek better returns elsewhere. Rates are falling for the 'right' reason Steele says investors should consider why rates are reducing. The current round is more about inflation slowing – and the economy not overheating – rather than the nation falling into recession. That's why investors applauded the jobs numbers showing an uptick in unemployment (not that the affected workers will be cracking out the bubbly). In contrast the rate reductions during the global financial crisis and the pandemic were more about avoiding disaster. Steele adds the rates benefit not just discretionary retailer, but other exposures including construction and real estate income trusts (REITs). Driving higher returns Steele cites Eagers Automotive (ASX:APE), the nation's biggest car dealership, as one of the biggest interest rate beneficiaries. 'Over the last two years, industry profitability has dramatically reduced with selling new cars,' he says. 'But we are now at the bottom of the cycle, with reduced industry inventory volumes.' Lower rates tend to have an instant knock-on effect on new car sales. That's a plus for Eagers, given its franchises include the fast-growing Chinese brand BYD. But about half of Eagers' gross profit comes from servicing, which creates durable annuity income. Steele adds that freehold property accounts for about one-quarter of Eagers' enterprise value. The REIT way to invest in property About half of the property fund manager Centuria Capital's (ASX:CNI) share price is underpinned by it stake in related entities including Centuria Office and Centuria Industrial. Centuria also co-invests in other unlisted property assets. 'About 75% of assets under management are in closed-end vehicles or listed entities where it has effective control,' Steele says. 'That means there's a low level of outflow risks.' Lower rates benefit the overall REIT sector, which is seeing improving asset valuations after years of decline. But Steele says funds management REITs reap extra benefit. "When cycle turns up, they will get upside from fund management fees and property development," he says. 'Those earnings streams are at zero currently.' Construction group's rare appeal Steele describes construction materials play MAAS Group Holdings (ASX:MGH) (pronounced Mars) as a 'really interesting business'. MAAS operates regional quarrying operations (such as asphalt and aggregates) and has civil construction/plant hire and residential property development arms. The company's land bank of 8000 residential plots supports its $1.5 billion market cap. These are in high-growth lots locales such as Dubbo, Orange, Bathurst and Rockhampton. 'MAAS has a diversified business across three markets and all of them are attractive at the moment,' Steele says. MAAS also is an ASX rarity, given buyers swooped on building material plays CSR, Adbri and Boral. Judo moves deftly in SME market Pure-play small business lender Judo Capital Holdings (ASX:JDO) has blipped on investor radars, given the Big Four banks' elevated valuations. By not aligning itself to the hotly competed home loan market, Judo generates superior net interest margins. Of course Judo doesn't have the inherent security of a mortgage, so its risk managers need to be on top of their game. To date, Judo's delinquencies have been low – and risks should only moderate as rates come down. Steele says investors price Judo at book value. "This is a very attractive valuation compared to the big banks which are trading at significant premiums.'
Herald Sun
11 hours ago
- Herald Sun
Asra Minerals wraps up gold drilling at Challenge and Eclipse
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. Special Report: Asra Minerals has completed a 23-hole reverse circulation drilling program at the Challenge prospect, following up on significant shallow gold intersections from historical drilling. Asra Minerals completed 1938m of drilling at Leonora South during the June quarter This includes the recent completion of 17 RC holes at the Challenge prospect The program is following up significant shallow gold intersections from historical drilling The 1362m campaign averaged a rate of ~300m per day. Before drilling the Challenge prospect, Asra Minerals (ASX:ASR) drilled 23 RC holes at the Eclipse prospect for a total 2070m. In total, 40 drill holes were carried out for 3432m to further define and extend known mineralisation at both prospects. Challenge and Eclipse sit within Asra's Leonora South asset in WA's Kookynie region and are within 200m of the 21,600oz at 2.1g/t gold resource at the company's Sapphire deposit. The project covers eight semi-contiguous mining licences over 549km2 of ground near the mining town of Leonora, known for high-grade gold discoveries such as the nearby Ulyssess operation featuring 850,000oz of gold. Asra racks up exploration and corporate wins During the June quarter, Asra knocked off 1938m of drilling at Leonora South targeting extensions at multiple priority targets within the Niagara prospect area, which included 1424m of RC drilling and 514.8m of diamond tails. The company also locked in $3m via a placement to investors to fast-track exploration across Leonora South and completed the sale of its Boorara leases for a cash consideration of $200,000 – streamlining Asra's focus and strengthening its balance sheet. ASR managing director Paul Stephen said the June quarter had been 'exceptionally productive' for the company, marked by significant strides across its exploration programs and a series of corporate initiatives. Asra bolsters leadership and technical teams 'The successful completion of more than 1,300m of drilling at Leonora South represents a critical step in understanding and expanding the high-grade Orion and Sapphire deposits, and we eagerly await results next quarter,' he said. 'Financially, our three million placement has significantly bolstered our balance sheet, providing capital to accelerate our exploration ambitions. 'The divestment of the Boorara leases and the consolidation at Mt Cutmore are further testaments to our disciplined approach to portfolio management, focusing on high-potential, core assets,' he added. Asra also strengthened its leadership and technical teams with key appointments including Stephen as managing director, Lenoard Math as CFO and the addition of Ziggy Lubieniecki as geological consultant. 'We look forward to keeping the market and our valued shareholders updated as we continue to build on this momentum in the coming quarter,' he said. This article was developed in collaboration with Asra Minerals, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Originally published as Asra Minerals wraps up gold drilling at Challenge and Eclipse
West Australian
12 hours ago
- West Australian
Rio2 gold project in Chile on track for 2026 start
Vancouver and Toronto-listed Rio2 Limited has made significant progress at its Fenix Gold Project in the Maricunga belt in Chile's Atacama region, with construction 41 per cent complete as of June 30, keeping the company on track for first gold production in January 2026. The company recently received a US$50 million (A$78 million) third prepayment instalment from United States-based precious metals investment firm Wheaton Precious Metals International, under a precious metals purchase agreement for Fenix. The funding stream has been a continued strong endorsement of Rio2's construction and development of its massive oxide-hosted, heap leach gold project. The latest prepayment is a key marker along the project's path towards launching mine production by the end of the year. From October 2024 to June this year, Rio2 has invested $56.4 million in the venture against a $57.8 million budget, excluding corporate overheads and 2022 pre-construction costs. The 1514-strong workforce is 94 per cent Chilean, including 41 per cent who hail from the surrounding Atacama, highlighting the company's strong emphasis on local employment. Construction milestones include the installation of 12.7 hectares of geosynthetics and 4 hectares of over-liner material on a leach pad, which the company expects will carry production through the first six months. The main haul road is 90 per cent complete, while a second haul road is 40 per cent complete. Both routes are critical for connecting the Fenix South mine pit to the leach pad. At the adsorption, desorption and recovery plant, work has progressed on the adsorption areas, reagent handling and storage facilities, while the process plant's structural assembly is almost complete. Cladding is 90 per cent finished and the first of three electrical switch rooms is in transit from the nation's capital, Santiago. Additionally, Rio2 has nearly finished grade control drilling aimed at the first three years of mine production. An updated mineral resource estimate is expected by September 2025, which will help the company refine its mine planning. Key upcoming milestones include kicking off ore stacking, finalising the pregnant leach solution pond and completing the electrical switch rooms this month. The pond is a key component of Rio2's heap leaching operation and will collect solution enriched with dissolved metals after it percolates through the crushed ore on a leach pad. Other key milestones will include commissioning the ADR plant in November and completing a mine expansion study by the end of the year. The Fenix Gold Project hosts a non-JORC measured and indicated resource of 4.8 million ounces of gold. The project is designed as a run-of-mine heap leach operation, which minimises its environmental impact by eliminating crushing or tailings facilities. The project has an estimated US$235 million in initial and sustaining capital and will employ 1200 people during construction and 800 during its 17-year operational phase, which will significantly benefit the Atacama region. With construction on budget, a robust resource base and Wheaton's strong financial backing, Rio2 is poised to deliver a modern, sustainable gold mine. The Fenix Gold Project is set to become a cornerstone of economic growth in Chile, with first gold in January marking a transformative milestone for the company and the region. Is your ASX-listed company doing something interesting? Contact:
