Cadence Capital (CDM) H2 2025 earnings summary

Executive summary

• Achieved a profit after tax of $6.3 million for the year ended 30 June 2025, with the fund up 3.4% for FY25.

• Strong second half performance, up 7.3%, offsetting first half underperformance.

• Top contributors included Evolution Mining, Netflix, QBE Insurance, Robex Resources, Boss Energy, New Gold, West African Resources, and Suncorp.

• Largest detractors were Whitehaven Coal, Alcoa, Yancoal, Capstone Copper, Stanmore Resources, and BHP.

Financial highlights

• Declared a 3.0c final dividend, 50% franked, bringing the full year dividend to 6.0c per share.

• Annualised yield of 8.8% (10.7% gross including franking) based on share price of $0.68.

• Shares trading at a 16% discount to pre-tax NTA; yield based on NTA is 7.5% (9% gross).

• After dividend, 6.5c per share remains in profit reserves for future dividends.

Outlook and guidance

• Global markets face slowing growth, political uncertainty, and central bank policy easing.

• Upside risk to long-term interest rates and inflation anticipated due to monetary and fiscal policy.

• Gold equities remain a core exposure due to safe haven appeal and inexpensive valuations.

• Ex-resources market shows PE expansion outpacing earnings growth, with equities becoming more expensive.

• Increased market volatility expected to provide more trading opportunities.