Skip to main content

1. It’s a deal!

The Newcrest Mining Board has agreed to a takeover bid by Newmont Mining this week. Newcrest shareholders will receive 0.4 Newmont shares per Newcrest share, plus a US$1.10 per share fully franked dividend. Newcrest is a high conviction position in the Firetrail Australian High Conviction and Firetrail Absolute Return Funds. We have long believed Newcrest’s high-quality portfolio and growth assets have been underappreciated by the market.

We expect similar deals in the future where private buyers swoop in to buy undervalued listed companies with attractive assets. Origin Energy, Allkem, Estia Health and SILK Laser Clinics are other examples in the Firetrail portfolios currently under takeover proposals.

Source: Newcrest
Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.

2. Household costs are rising… but so are incomes…

There have been ample headlines about rampant inflation and Australia’s cost of living crisis. Many are wondering why we haven’t yet seen a meaningful fall in consumer spending. The chart below is one reason why the Australian consumer is holding up so well. Yes, costs for Australian households have risen. But, on average, incomes have risen by more.

Change in average household income / costs by financial year

Source: ABS, Firetrail

3. Turning over stones…

The Firetrail S3 Global Opportunities team are turning over stones across the world at the moment. From site tours with existing portfolio companies, to meetings with exciting new opportunities. Here are some highlights from their trips so far:

  • James Miller has been pounding the pavement across the US. His research agenda has covered topics like battery technology, carbon capture and storage, and cybersecurity.
  • Oscar Hutchinson has been in London and Barcelona checking the pulse of global financials, copper for electrification, and energy infrastructure companies.
  • Annabel Riggs has been to the US, UK and Switzerland so far. Most interesting meetings have been in heating, ventilation, and air conditioning (HVAC), waste management, and biotech. As well as being a great analyst, Annabel is also our premier photo taker on overseas trips!


This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Links to the Product Disclosure Statement: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

Links to the Target Market Determination: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance.

Whilst Firetrail, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Firetrail, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.

Any opinions and forecasts reflect the judgment and assumptions of Firetrail and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.

Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Firetrail. Pinnacle and its associates may have interests in financial products and may receive fees from companies referred to during this communication.

This may contain the trade names or trademarks of various third parties, and if so, any such use is solely for illustrative purposes only. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with, endorsement by, or association of any kind between them and Firetrail.