Endeavour Mining meets production guidance, Alphawave posts strong quarter
London open
The FTSE 100 is expected to open 21 points higher on Monday, having closed up 0.04% on Friday at 7,461.93.
Stocks to watch
Endeavour Mining achieved production guidance in 2023 and pointed to a further 18% output growth this year, as it promised to increase shareholder returns once its two ongoing growth projects are wrapped up. Fourth-quarter production was flat over the preceding three months at 280 thousand ounces (koz), taking full-year output to 1,072koz, towards the lower end of the 1,060koz to 1,135koz target. This was the 11th straight year of achieving or beating production guidance, the company said. Looking ahead, production is estimated to rise to 1,130koz to 1,270koz in 2024, helped by project start-ups in the second quarter of the year.
Alphawave IP Group reported a strong fourth quarter on Monday, with record quarterly bookings of $128.7m, driven by a 245% increase in quarterly licence and non-recurring engineering bookings to $121.1m. It also announced a significant intellectual property development and licensing extension deal with an Asia-Pacific customer, a custom silicon design win, seven new design wins in various regions, and a partnership with ARM, indicating a positive outlook for 2024.
Thermal processing specialist Bodycote said it would start a $60m share buyback programme after spending less than planned on acquisitions. The programme is expected to commence on March 18, with full details published on March 15 at the time of Bodycote's full year 2023 results. It also said it had completed the acquisition of US firm Lake City HT on 19 January 2024 for $66.5m (£52m) on a cash and debt free basis.
Newspaper round-up
Homeowners in England and Wales who sold their property in 2023 netted an average profit of £102,000 despite house prices falling last year, according to new data. The data, issued by estate agent Hamptons, shows that while 2023 was challenging for the UK property market, years of strong price growth meant those who sold a home last year typically banked a sizeable profit or had a decent sum to put towards their next purchase. – Guardian
The UK’s fruit and flower growers face an “existential threat” from new post-Brexit border checks that could damage business and affect next year’s crops, the country’s biggest farming body has said. The National Farmers’ Union (NFU) warned that changes to import rules in April, which will impose checks at the border for nearly all young plants coming into the country, could cause long delays and result in plants being damaged or destroyed. – Guardian
Britain’s stock market is tipped to outperform US and EU benchmarks this year as money managers across the City predict a bounceback for the unloved assets. British equities will deliver 9pc returns over 2024, Goldman Sachs has predicted, beating projected returns from the S&P 500, leading eurozone markets and Japanese stocks. – Telegraph
Soaring energy and raw material prices since Russia’s invasion of Ukraine are set to have increased losses at British Steel. Britain’s second biggest steel maker warned in its delayed accounts for 2021, which were published only last week, that the war in eastern Europe had led to a period of “significant volatility in both the levels of the absolute price and cost, but also the level of steel margins”, which had contributed to the company making “significant losses” in 2022. – The Times
All eyes in the City this morning will turn to Compass and its share price after a report that the catering company is set to strike a multimillion-pound deal for a rival. The world’s largest catering group is said to be closing in on a £400 million-plus acquisition of CH&Co, according to Sky News. It would be Compass’s largest British purchase in years. – The Times
US close
Stocks on Wall Street closed in the green on Friday, with the Dow Jones Industrial Average up 1.05% at 37,863.80.
The S&P 500 added 1.23% to 4,839.81, and the Nasdaq Composite was ahead 1.7% at 15,310.97.