APRIL 2024
APRIL 2024

Cadence Opportunities Fund returned a gross performance of -1.7% in April outperforming the All Ordinaries Accumulation Index by +1.0% for the month. The top contributors to performance during the month were Whitehaven Coal, Capstone Copper, Alumina, Red 5, Pantoro and Evolution Mining. The largest detractors from performance were Meta Platforms, Dubber, Netflix and Zillow.

During the month Whitehaven Coal completed the acquisition of the Daunia and Blackwater metallurgical coal mines.  The acquisition will transform Whitehaven from producing predominantly thermal coal to producing both thermal and metallurgical coal, with 70% of their revenue expected to be from metallurgical coal post this acquisition. Whitehaven Coal is trading on a PE of 9 if we annualise their first half profit, which does not include the substantial earnings accretion from the acquisition.

Alumina recently released improved results for the first quarter of 2024. This was primarily driven by a higher realised alumina price of USD 362/t which was up USD 18/t compared to the prior quarter. The takeover of Alumina by Alcoa remains on track to be implemented during the third quarter of 2024.  The Alumina share price continues to trade in step with the Alcoa share price, reflecting shareholders expectations that the scrip for scrip takeover will go ahead.

Fully Franked Half-Year Dividend

On the 30th April the Company paid its 6.5 cents per share fully franked interim dividend. This interim dividend equated to an 8.1% annualised fully franked yield or a 11.6% gross yield (grossed up for franking credits) based on the share price on the date of the announcement of $1.60 per share. After paying this dividend the Company has 22.5 cents per share of profits reserves to pay future dividends. The DRP was operational for this dividend.

Discount to NTA and On-Market Buy-Back

At the time of writing this newsletter, CDO is trading at a pre-tax NTA discount of around 16% whilst holding some cash balances. CDO has implemented an on-market buy-back to buy back the shares it has issued under the DRP. This buy-back will operate whilst the CDO share price is trading at a discount to the Pre-Tax NTA.

Half-Year Audiocast

To watch CDO’s Half-Year Audiocast please click here. In this half-year audiocast, Karl Siegling first provides an update on the Company’s half-year performance, the 6.5c fully franked interim dividend and DRP, the composition of the portfolio and the current investment themes. Karl Siegling and Chris Garrard then discuss two of the Company’s current investments and then finish with the outlook for the rest of the year.

Fund NTA

Fund Performance

Historic Portfolio Exposure

Portfolio Sector Analysis

Franked Dividends Declared


To view all previous Cadence webcasts and interviews please visit the Media Section of the website.

We encourage you to visit our 52 books you should read before buying your next stock page on our website. We have compiled a list of books/ documentaries that have influenced our investment style or helped provide insight into the investment process.

10 Books To Read Before Buying Your Next Stock

10 Books To Read Before Buying Your Next Stock

Funds management involves a lot of synthesis of information and reading. Over the years we all end up reading many investment books and refer to them from time to time.

The team at Cadence has compiled a list of books that have influenced our investment style, or helped provide insight into the investment process.

Whilst not an exhaustive list, the 10 titles contained in this eBook provide a good starting point for any interested investor.

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