Investment Matters

Company News

Australian Equities sub-portfolio

Hasting Technology Metals (positive impact) received a State Government commendation for its Yangibana Rare Earths Project and approval for its downstream processing facility in Onslow.

Development approval means Hastings can now enter discussions to lease an area in Onslow at which to construct its hydrometallurgical plant.

The company also gave an update on the development of its mine. A 50-bed fly-in camp has been set up with key staff and contractors beginning the $20m of planned infrastructure works at the site, including the establishment of access roads, an airstrip and 300 bed accommodation village.

It continues to negotiate with lenders to secure project financing for the mine’s construction – both domestic and international.

These developments have seen the unwinding of the discount typically applied to mines that are in development as they de-risk. It has been a strong performer, up more than 20% since first purchased for clients.

The proposed location of Hasting’s hydrometallurgical plant near Onslow, Western Australia

Wheatstone

Source: Hastings Technology Metals

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Property sub-portfolio

Home Consortium Daily Needs REIT (neutral impact) announced it will raise $134.5m for the acquisition of a portfolio of retail and convenience assets.

We elected not to participate in the raise which was conducted at a 3% discount to its last close price, given the small discount and the trust in having a ‘fuller’ price at present.

Garda Diversified (neutral impact)

We caught up with Managing Director Matthew Madsen and Paul Brown from Investor Relations this week. The call followed an excellent FY21 results presentation, and the announcement of another (albeit small) property sale at 22% above immediate prior valuation.

We remain attracted to the way Garda seeks to create a differentiated approach to other listed property companies.

Its “build to own” development pipeline continues to pay off. The company was also amongst the first to embrace important trends in outer urban industrial development, and inner urban (but not CBD) office space. Its strategy to continually look for opportunities to improve properties, trade properties once they are fully valued and to take risks on leasing-up developments in early stages has created real value for shareholders including our clients.

Garda balance

Source: Garda Property Group
Garda performance

Source: First Samuel, IRESS

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