Yovich & Co. Market Update - 21 May 2018

May 21, 2018 | Commentary

Scales has entered an agreement to sell its cold storage business to Emergent Cold for $151.4m. 

Sky City Entertainment is selling Federal Street Car Park for $40m. 

Trust Power tax paid profit for 2018 year is up $35m at $129m. 

Mercury NZ has acquired an 19.99% stake in Tilt Renewables for $143.895m. 

NZ Refining production for March – April was 6.958m barrels compared with 5.14m last year.  Gross refining margins were down from $9.35 to $6.82 a barrel and processing fees were down from $48.1m to $45.8m. 

Keytone Dairy Corporation is going to list on the ASX around 19 June.  It is making a Public offer at A20c per share.   Keytone is a NZ manufacturer, packer and exporter of dairy and nutrition products with a particular focus on powdered dairy products. 

NZX is having a 5.4% subordinated note issue and is raising $40m. 

Heartland Bank tax paid profit for 9 months ended 31 March is up 8% at $48.6m. 

Ryman tax paid profit for March year is up 14.2% at $203.5m.  The total dividend for the year is 20.4c compared with 17.8c last year.  Final dividend of 10.9c is payable 22 June. 

Kiwi Property tax paid profit for March year was $120.1m.  Its gearing at 31 March 2018 was 29.7% compared with 34.5% last year.  Portfolio value has increased to $3.1 billion and net asset  backing is $1.40 per share. Sheffield Resources has firmed up to high 80’s.  Zircon prices have increased considerably.  South Africa has produced around 25% of global Zircon but the unrest is becoming worse.  This is providing an increasingly positive backdrop for Sheffield’s 100% owned Thunderbird project.  Thunderbird is one of the very few Tier 1 mineral sands assets available for development.  Sheffield has entered into a binding Port Access Agreement to provide it with long term access to a bulk handling facility and associated infrastructure located at the Port of Derby.  Sheffield plans to export its mineral sands bulk products including LTR ilmenite, zircon concentrate and titanomagnetite from its Thunderbird Mineral Sands Project through the Port of Derby to markets around the world.  12 month target price is $A1.89.


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Walter Yovich

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