The S&P/ASX 200 (ASX: XJO) is expected to trade up Wednesday with the Sydney Futures Exchange pointing to a positive open following strong gains on US markets overnight.
Making investment headlines today is Newcrest Mining Limited (ASX: NCM), RPMGlobal Holdings Ltd (ASX: RUL) and Computershare Limited (ASX: CPU).
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ASX News Today
1. Newcrest Mining Limited
Newcrest is the largest gold producer listed on the Australian Securities Exchange and one of the world’s largest gold mining companies. As of 2020, its major operations in New South Wales’ Cadia Valley, Telfer in Western Australia, and Lihir in Papua New Guinea (PNG).
In an update to the ASX this morning, the ASX’s largest gold mining company provided an exploration and guidance update at its Havieron project and updated FY20 guidance following the sale of the Gosowong project.
“I am extremely pleased with these high grade drill results which validate the potential that we saw in both Red Chris and Havieron,” Newcrest CEO Sandeep Biswas said.
“These grades are amongst the most impressive seen in recent history and we are very excited about the potential to bring these ounces into production as soon as possible.”
Looking towards the full year Newcrest expects to produce between 2,100 and 2,200 thousand ounces of gold. This updated guidance reflects the commercial production efforts at Fruta del Norte and Lihir.
2. RPMGlobal Holdings Ltd
RPMGlobal is an IT company within the mining industry that has traditionally provided advisory services and technical support in regards to mine preparation and planning. Questions of where, when and how to dig are the types of questions RPMGlobal’s technical consultants and mining software addresses when dealing with miners looking to extract their commodity in the most efficient way possible.
Today, RPMGlobal provided an update on its subscription sales to mining clients by saying it has now achieved total contracted value (TCV) of $25.4 million, an increase of $3.9 million on the number announced to the market in February.
The company said this puts it on track for $11.4 million of annualised recurring revenue (ARR) from software subscriptions.
The company will now only update the market if or when TCV is greater than $30 million.
3. Computershare
Computershare is best known for its share registry services and employee share plans, but also provides mortgage services. It was founded in Melbourne in 1978 and has now become a global business with over 75 million customer records and 12,000 staff.
Australia’s largest sharemarket registry and administration company today revised its 2020 profit guidance.
In its statement to investors, Computershare said it expects to report “management EPS” (earnings per share) down 15% in FY20 versus FY19 (PCP). While the company had been expecting a 5% decline year over year, the recent cut to interest rates in the US and Canada have tempered expectations.
“Trading results for the group were strong in January and February with Management EPS growth of 8% versus the PCP,” Computershare CEO Stuart Irving said.
“This gave us confidence in achieving the guidance for the year which we gave in February. However, we are now being impacted by recent interest rate changes and are therefore revising earnings guidance for FY20.”
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