AU Weekly Wrap | ASX Slips Back Below 8000; DroneShield Shares Tumble Despite Revenue Increase

Macquarie analysts recommend investors interested in the "Trump trade" focus on Australian stocks with high U.S. exposure, such as $Light & Wonder Inc(LNW.AU)$, $ResMed Inc(RMD.AU)$, $Computershare Ltd(CPU.AU)$, $CSL Ltd(CSL.AU)$, $Amcor PLC(AMC.AU)$, and $Aristocrat Leisure Ltd(ALL.AU)$. They note that elections in economic slowdowns typically yield below-average returns. For Australian interest rates, Macquarie suggests the Reserve Bank of Australia might hold rates steady despite domestic pressures to hike, as markets expecting 2024 rate cuts have generally underperformed.

$Droneshield Ltd(DRO.AU)$ shares fell 22% on Monday despite reporting a 110% increase in revenue to AU$24.1 million for the first half of the year, the highest for any first-half period. The drone defense firm narrowed its loss before tax and share-based payment expense to AU$1.9 million from AU$2.1 million the previous year. Cash receipts for the second quarter were AU$14.2 million, with AU$7.4 million recognized as revenue, attributed to US customers' 30-day payment terms. The company will release its reviewed half-year report next month.

$Metals Acquisition Ltd(MAC.AU)$ reported record copper production of 10,864 tonnes for the June quarter, a 24% increase from the previous quarter, with 5,378 tonnes produced in June. This achievement occurred despite a major maintenance shutdown in April. The copper grade also improved by 20% to 4.2%. Operations generated approximately $21 million in free cash flow for the quarter, with costs stable at $4.4 per pound. Cash reserves increased by 25% to $88.6 million, and unaudited preliminary revenue rose by 18% quarter-on-quarter to $78 million.

$Mineral Resources Ltd(MIN.AU)$ reported annual shipments of 487,000 dry metric tons of lithium-rich spodumene concentrate, exceeding guidance despite falling prices. Shipments from the Mt. Marion operation reached 218,000 tons, and from the Wodgina mine, they increased by 41% to 201,000 tons. Lithium prices averaged US$970 per dry ton in Q4 FY 2024, down 15% from the previous quarter. Annual iron ore shipments were 18.1 million wet tons, within the guidance range. The company also agreed to sell a 49% interest in an iron-ore haul road for AU$1.3 billion (US$850 million).

$Woodside Energy Group Ltd(WDS.AU)$ reported a 1% drop in quarterly oil and gas production to 44.4 million BOE due to bad weather and outages, while sales revenue rose 2% to $3.03 billion. The cost of its Scarborough project increased by $500 million to $12.5 billion. Woodside announced a $900 million acquisition of Tellurian and its Driftwood LNG project in Louisiana, aiming for a final investment decision by Q1 2025. This deal bolsters its U.S. presence, complementing the Shenzi oil-and-gas field. Additionally, Woodside progresses the Trion oil project in the Gulf of Mexico for 2028 production and started oil production from Senegal's Sangomar project, with first crude cargo delivered to Europe. Full-year production guidance remains at 185-195 million BOE.