This week's article is all about quarterly reports.
Always an insightful update into how a company is travelling through the year, and occasionally a reality check after a positively or negatively received annual report, the latest reports from these four companies have sent all parties involved to new 52-week lows
Here's why:
BC Iron Ltd (ASX: BCI) – last traded at $1.15, down 77% for the year
There has been a series of unfortunate events for BC Iron shareholders, with yesterday's quarterly report revealing that higher clay content in mined ore had slowed operations, with the company revising production guidance downwards to 5.2-5.6Mtpa from 5.6-6.2Mtpa previously.
The delay also materially affected cash costs with BC Iron's new total cash costs of AU$64-70 per wet metric tonne perilously close to the average realised price of US$72 per tonne.
However the company does have $92 million in cash, before adding Iron Ore Holdings Ltd's (ASX: IOH) cash of $42.3m at September 30 (IOH has since been compulsorily acquired by BC Iron).
In the absence of further declines in the iron ore market, BC Iron appears to be approaching a price floor, but I again warn investors to steer clear of the sector until the dust settles.
Cooper Energy Ltd (ASX: COE) – last traded at $0.40, down 1.3% for the year
Lower production and revenue dragged Cooper Energy down recently despite the company being on track to meet its FY15 guidance.
It's the same story at Beach Energy Ltd (ASX: BPT), with shares in that company also declining following lower revenues and production.
The difference between the two is that Cooper should be able to scale up production more rapidly than Beach and with lower capital expenditure; it also looks to have a significantly longer reserve life than its larger competitor.
Despite that both companies are at an appealing price and I'd say that Cooper looks to have gone as low as it will go in the absence of further declines in the oil market.
Silver Lake Resources Ltd (ASX: SLR) – last traded at $0.31, down 61.6% for the year
Silver Lake Resources sank to its lowest point all year yesterday after announcing – you guessed it – lower production and revenues from its gold assets.
While the company managed to achieve a comparatively high A$1,472 per ounce of gold sold (inclusive of hedging), it came from all-in costs of $1,185 an ounce which would make the results even less appealing were it not for the positive effect of US$ revenues on AU$ results.
Costs rose to a number of factors, including increased exploration outlay, pre-production costs at Wombola Dam, and one-off demobilisation costs at Maxwells.
Like Cooper Energy, Silver Lake appears to have a brighter future ahead of it once 2015 is out of the way, although its prosperity relies considerably on the company's exploration success and the fluctuations in the gold price.
Silver Lake looks to have gone roughly as low as it will go in the absence of further declines in the price of gold bullion.
