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Recent Small and Microcap Company Visits

Here are just some of the most recent company visits that our Small and Microcap analysts have undertaken.

As you can see below, company visits are a vital part of our investment process. It ensures that we uncover facts that the financials don’t necessarily tell us. Our company visit program not only includes operational site visits with company management, but also includes visits with suppliers and customers as well. Through these visits, it is our goal to uncover great investment ideas for our portfolios.

Portfolio Manager and Resources Analyst, Sam Berridge, reports on his recent mining site visit, February 2019.

On site at the King Of The Hills gold mine yesterday. For those interested in how gold comes to be where it is, the rocks were there first, the gold comes afterwards. In this case the lighter colour rock on the left (granodiorite) intruded into the dark rock on the right (ultramafic). Sometime after that, regional shearing forces started to deform the rocks, causing cracks to open up. These cracks were filled by fluids which had been forced though millions of tonnes of rock, dissolving metals along the way. Finding some space, these fluids filled the cracks, precipitating white quartz veins which run across both rock types. These veins also contain most of the gold. Good thing for RED, previous geologists checked some of the veins, but not all of them.

Head of Small & Micro Caps, Andrew Smith, reports on his recent research visit to People Infrastructure in December 2018.

Marni Lysaght and I toured the St Leonards office of the Network Nursing Agency (owned by People Infrastructure) yesterday. We were impressed with the experience and enthusiasm of the leadership team who have remained in the business post acquisition.” We also toured the training facility of the Australian Healthcare Academy as seen below.

 

Head of Small & Micro Caps, Andrew Smith, reports on his recent visit to the Longtable AGM December 2018

Great to see the new labels on display at the upbeat Longtable AGM today (LON.ASX) in Melbourne. Look forward to seeing the products on supermarket shelves before Christmas.

 

Head of Small & Micro Caps, Andrew Smith, reports on his recent visit to the US in November 2018

We are seeing 50 companies in the U.S. this week and next. The highlight so far was the U.S. operations of PWH (they also trade as CNR racing here) in the heartland of car racing, Indianapolis. Great to get an update with Jim the GM of operations in America and to also see the new equipment that has been installed to handle the growing OEM business.

“We toured the North American facilities of Imdex Limited last week in Salt Lake City. I was impressed with the scale of the operation and the considerable growth in the business recently. The Solid Removal Unit shown below is gaining traction given the increasing environmental focus of miners. We also had a demonstration from James Cleverley of a new sample preparation process which is already live with some clients. Thanks to Giesler Troy and the team for hosting the visit.”

Portfolio Manager and Resources Analyst, Sam Berridge, reports on his recent research visit to SKW in August 2018

“An important part of an active mine visit program is catching up with service providers. The SKW team below are setting records for meters-per-shift drilling rates, including 184m of diamond core in 24 hrs. This is an outcome of an enduring R&D program, yielding a range of automation and safety initiatives. As well as great staff. At current prices, SKW continues to offer a free option on Orexplore core analysis technology, which seems to be getting a bit of traction amongst geologically inclines at the diggers and dealers this year”.

 

Portfolio Managers, Damian Cottier and Andrew Smith, visited NZ last week (July 2018), the highlight being visiting the Analytica labs (owned by HRL.ASX) in Hamilton as part of the small cap research company visit program.

Andrew reported: “This has been a great acquisition and it provides exposure to increased regulatory testing in the honey and diary export market as well as testing for drug contamination in properties before sale.”

 

Marni Lynsight, Equities Analyst, recently (July 2018) attended an Investor Site Tour of Huon’s salmon farming operations in southern Tasmania. Marni commented “I was genuinely impressed by Huon’s leadership in innovation and their sustainable farming practices.”

 

Sam Berridge, Portfolio Manager and Resources Analyst, on site with Dacian yesterday (Aug 2018).

Sam’s view:“Everything looks in line here. MAH performing to budget in the open pit and RUC doing a great job underground. Plant was operating well, so looks like another successful project completion by GR Engineering.”

Perennial
perennial@perennial.net.au