Sector reports

Below is a list of sector reports.

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Mining

27/08/2015
Bauxite sector report: Opportunities for Australian suppliers
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There has been a structural change in the aluminium industry, which has led to a greater separation of bauxite mining, alumina refining and aluminium smelting. This has been driven by both merger and acquisition activity and the massive expansion of aluminium production in China, with the associated construction of alumina refineries dependent on highquality bauxite imports. The ban on bauxite exports by Indonesia has led to uncertainty and created opportunities for new suppliers. Junior bauxite companies with credible projects have emerged in Australia.

Companies mentioned

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Oil & Gas

27/08/2015
Exploration watch - Gulf of Mexico: stepping up to the challenges
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The Gulf of Mexico has always been an attractive area for the oil industry, offering the ability to hold material positions and substantial running room in a region with large resources. The industry has successfully pushed the boundaries of deepwater technology to keep growing production in a technically demanding region. Having recovered from the post-Macondo slump, companies must now adapt to the lower oil price environment while continuing to develop new technology to tackle the high pressure, high temperature (HP/HT) challenges of the promising Lower Tertiary play. A focus on cost reduction has seen the continuing approval of projects, most recently Shell’s Appomattox development. Meanwhile, although the deepwater rig count has so far remained resilient, activity is moving away from exploration and concentrating on appraisal and development.

Companies mentioned

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Oil & Gas

03/07/2015
Exploration watch - Senegal basin: Senegal and beyond
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Back-to-back oil discoveries offshore Senegal in 2014 have opened up a new basin in the Atlantic Margin. Cairn/FAR’s SNE-1 well was one of the largest discoveries in the world last year and a stream of newsflow is expected from Q415 when a follow up, three-well exploration and appraisal campaign is due to commence. The MSGBC basin is not limited to Senegal, however, and Kosmos Energy’s 8tcf gas discovery in Mauritania has further highlighted the potential of a region that also includes Gambia and Guinea-Bissau. Other companies with acreage in the basin are now taking another look to identify analogous prospects and hope to drill in the near term. Smaller companies with exposure to the region include FAR, African Petroleum and Cap Energy.

Companies mentioned

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Consumer Support Services

01/06/2015
Flavours and fragrances - Identifying opportunities in a highly rated market
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This report reviews the highly rated flavours and fragrances sector. The sector’s massive re-rating over the past three years reflect its attractive qualities – 3.5% annual structural growth, significant barriers to entry and high cash conversion rates. However, at current valuations, stock selection is of increased importance. In addition, although stretched valuations mean fewer opportunities for transformational M&A deals, we expect continued consolidation.

Companies mentioned
Show companies...Givaudan, Symrise, IFF, DSM, Croda, Kerry Group, Robertet, Frutarom, Treatt, Naturex, GLG Life Tech, PureCircle, Evolva

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Mining

25/03/2015
Tungsten sector update
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In this report we provide our feedback on the recent site visit to Wolf’s Hemerdon tungsten project. We also discuss the latest sector news, with Wolf upgrading mineral reserves, Ormonde signing a funding agreement with Oaktree Capital, while Almonty has made another approach to Ormonde as well as reporting mixed Q115 financial results. At the same time, Northcliff continues to make progress on the permitting front.

Companies mentioned

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Mining

06/02/2015
Mining sector report: Gold: The value of gold and other metals
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In past publications, Edison has derived differentiated values for Measured, Indicated and Inferred gold resource ounces listed in London, Canada and Australia. This report updates these numbers and extends the methodology to other metals and minerals. In addition (and in collaboration with BDO), it calculates unit costs of discovery for uranium resources on both a differentiated and an undifferentiated basis.

Companies mentioned

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Consumer Support Services

19/01/2015
The Social Stock Exchange – Connecting impact companies with investors
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Impact Investment is a small but fast-growing investment approach within the larger socially responsible investment field. This report surveys the characteristics of this approach as well as the role played by the Social Stock Exchange (SSX) in connecting investors and companies, via increased transparency and awareness of its member companies and soon also by providing capital raising opportunities. Finally, we present the 12 member companies of the SSX

Companies mentioned
MITIE

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Mining

09/12/2014
Tungsten - Small sector for big returns
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Global tungsten demand has enjoyed strong historic growth due to the metal’s increasing usage in tooling and a variety of other engineering solutions. Despite slower growth ahead, we expect global tungsten consumption to expand at a CAGR of 3.5% in 2014-18e. Coupled with lagging supply, this leads us to see potential for an APT price recovery. Our view is supported by incentive price analysis suggesting that an APT price above US$350/mtu is required to bring new mine capacity into production. At the equities level, we see a number of producing and advanced tungsten projects that offer good industry exposure.

Companies mentioned
Show companies...Carbine Tungsten (CNQ), King Island Scheelite (KIS), North American Tungsten (NTC), Northcliff Resources (NCF), Tungsten Mining (TGN), Vital Metals (VML)