Fund Manager Summary on 29Metals Ltd (ASX:29M)
29Metals Ltd (ASX:29M) has experienced notable challenges, with fund manager Ausbil Investment Management highlighting a sharp decline in share price, dropping 41.9% in March 2024 after a 47.3% decrease in January 2024. These declines are attributed to unmet production expectations at the Golden Grove and Capricorn mines, which were anticipated to drive an operational recovery. While Ausbil noted that the position was strategically minimized to mitigate impact on overall portfolio performance, the consensus view reflects significant disappointment in investment returns. Investors are cautioned about ongoing operational issues and market pressures but should remain alert to any potential future improvements in production that could mitigate these risks.
Commentary From The Managers
There are 2 insights from 1 fund managers regarding their investment in 29Metals Ltd (ASX:29M) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Ausbil Investment Management
31 Mar 2024
$0.37
Summary
- 29Metals Ltd (29M) experienced a significant decline of -41.9% over the past quarter.
- Despite this downturn, Ausbil had proactively reduced the position size in the portfolio.
- This strategic adjustment minimized the impact on overall fund performance.
- Ausbil continues to hold 29Metals due to its long-term potential.
- The fund manager remains optimistic about future developments in the sector.
Ausbil Investment Management
31 Jan 2024
$0.30
Summary
- 29Metals (29M) experienced a significant decline of -47.3%, marking it as a disappointing investment for Ausbil.
- Ausbil had anticipated an improving production profile at Golden Grove and hopes for recovery at Capricorn to support operational turnaround.
- Unfortunately, these anticipated improvements did not materialize.
- The size of the position in 29Metals was relatively small, which mitigated the impact on Ausbil's overall fund performance.
- Ausbil proactively reduced the position size prior to the decline.
- Despite the challenges with 29Metals, the overall month for the Fund remained positive.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in 29Metals Ltd (ASX:29M)?
Fund managers including Ausbil Investment Management have invested in 29Metals Ltd (ASX:29M).
Why do fund managers invest in 29Metals Ltd?
Fund managers invest in 29Metals Ltd primarily due to its asset base and growth potential in the mining sector, specifically focusing on properties like Golden Grove. Analysts had hoped for an operational turnaround driven by an improved production profile, but recent performance has been disappointing, with significant declines in share price. The relatively small position size in portfolios has helped mitigate losses, while the company's recovery efforts remain a point of interest for future investment consideration.
What happened to 29Metals Ltd (ASX:29M)?
There have been no recent updates from fund managers regarding 29Metals Ltd although fund managers including Ausbil Investment Management have previously commented.
What is the short interest in 29Metals Ltd (ASX:29M)?
The short interest in 29Metals Ltd (ASX:29M) is 0.46% which makes it the 289th most shorted stock on the ASX. Of the 1.4B shares that 29Metals Ltd has on issue, 6.4M have been sold short.
What does 29Metals Ltd (ASX:29M) do?
29Metals Ltd. engages in the exploration, development, and production of minerals and ancillary services. It operates through the following segments: Golden Grove, Capricorn Copper, and Exploration. The Golden Grove and Capricorn Copper segments include base and precious metals mining, mineral production, and associated activities. The Exploration segment involves in the exploration for mineral resources at Redhill (Chile), and regional exploration at Golden Grove (Western Australia) and Capricorn Copper (Queensland). The company was founded on May 27, 2021 and is headquartered in Melbourne, Australia.