LIKE

Michael has a soft spot for Evolution mining (EVN). “At its most recent report, the company detailed lower production and higher costs,” he says.

“A narrowing of the ore body at a shallower-than-expected depth has analyst slashing their reserve estimates, and share valuations with it.

“The more than 30% share price fall in my view more than prices the developments from a single report, and comes despite the fact that gold prices in Australian dollar terms are at historic highs,” he adds.

DISLIKE

Michael, however, doesn’t like Rio Tinto (RIO). “This is a top-tier global miner with a long and usually strong operating history. Its quarterly report was well-received by investors, judging by the 2% lift in Rio shares on the day,” he says.

“However, Rio also announced $2.5 billion in new project approvals, and the share price is approaching post GFC highs near $108.

“New project investment delays cash returns, and increases operating and commodity exposure risks.

“Happy to take profits here,” he adds.

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