Daily Roundup

GQG.ASX AVH.ASX DRR.ASX SGR.ASX WAF.ASX

A Strong Year for GQG Partners as Assets Surge to $153 Billion

It's been a banner year for GQG Partners, with the investment firm reporting a staggering $153 billion in Funds Under Management (FUM) as of December 31, 2024. That's a remarkable increase of over $32 billion compared to the previous year, driven by a stellar $20.3 billion in net inflows.

Despite facing some moderate redemption pressure in the institutional channel, GQG Partners managed to maintain positive gross and net sales throughout the fourth quarter. The company's global distribution capabilities and strong long-term risk-adjusted returns have clearly resonated with investors.

AVITA Medical Adjusts Guidance, but Remains Bullish on Future Growth

In other news, AVITA Medical provided an update on its fourth-quarter and full-year 2024 revenue guidance. The company now expects Q4 revenue to come in around $18.4 million, down from its previous range of $22.3 million to $24.3 million. For the full year, AVITA is projecting revenue of approximately $64.3 million, a reduction from the earlier guidance of $68 million to $70 million.

The revision is attributed to slower-than-expected purchasing activity, with some hospital accounts adjusting their inventory levels at the end of the fiscal year. However, AVITA remains confident in its long-term growth trajectory, with plans to scale the business, integrate an expanded sales force, and launch new products like PermeaDerm, RECELL GO, and Cohealyx. In fact, the company is guiding for a robust 55% to 65% revenue growth in fiscal year 2025, targeting $100 million to $106 million in sales.

Deterra Royalties Celebrates Thacker Pass Lithium Expansion

Deterra Royalties is celebrating a significant milestone for the Thacker Pass Lithium Project, in which it holds a lucrative royalty interest. The project, operated by Lithium Americas, now boasts the largest measured lithium reserve and resource in the world, with an impressive 14.3 million tonnes of lithium carbonate equivalent in proven and probable reserves.

Even more exciting, Lithium Americas has outlined an expansion plan targeting 160,000 tonnes-per-year of battery-quality lithium carbonate production, doubling the previous capacity. The project's economics have also been optimized, with an extended 85-year life of mine and exceptionally low operating costs of just $6,238 per tonne.

As Deterra Royalties CEO Jane Smith noted, "For no additional capital outlay, Deterra's economic interest has increased substantially as Thacker Pass has grown to have the largest global lithium resource and reserve, doubled the planned production profile, and increased the life-of-mine to 85-years while maintaining an exceptionally competitive operating cost profile. We look forward to further updates as Lithium Americas advances toward becoming one of the world's largest lithium producers."

The Star Faces Liquidity Challenges, but Remains Focused on Solutions

In less positive news, The Star Entertainment Group has reported a significant reduction in its available cash position, from $149 million at the end of September 2024 to just $79 million as of December 31. The company cited difficult trading conditions, capital expenditures, and other significant items as the drivers behind this $70 million decline.

The Star continues to work towards fulfilling the conditions required to draw down an additional $100 million in financing, though some of these conditions remain challenging given the group's current circumstances. In the meantime, the company is exploring other liquidity solutions to shore up its financial position.

Despite these near-term headwinds, The Star remains committed to its ongoing transformation and remediation activities, as it works to navigate the path forward.

West African Resources Shines, Exceeding 2024 Production Guidance

Rounding out the day's news, West African Resources has announced that it has exceeded the upper end of its 2024 gold production guidance, churning out an impressive 206,622 ounces for the full year. The company's Sanbrado Gold Operations delivered a strong fourth quarter, with production of 51,178 ounces, driven by a 32% increase in open-pit mined ounces compared to the previous quarter.

This stellar performance underscores West African Resources' operational excellence and ability to consistently deliver results, even in the face of industry-wide challenges. Shareholders will no doubt be delighted with the company's ability to outperform its own lofty targets.