Argonaut | The Natural Choice in Resources

A rally in US Treasuries sent benchmark yields briefly below 2.4% for the first time since December 2017. Stocks were mixed and the USD retreated. The Dow Jones and S&P 500 gained and lost 0.1% respectively.; Theresa May is braced to lose control over the Brexit process after conceding she doesn’t have the votes to get her unpopular divorce agreement sanctioned in Britain’s Parliament; The end of the first quarter is close and commodities are set for a solid showing. Supply-side constraints are driving prices higher, with OPEC’s curbs fuelling crude’s rally and palladium’s deficit spurring record prices. Still, the demand side is on unstable ground as markets grapple with China’s softer growth, the trade war, and concerns about a U.S. recession; 

MOD Resources (MOD) recently received an unsolicited, non-binding indicative offer from Sandfire Resources (SFR, BUY, $7.80/sh TP) of ~$0.38/sh. While this is yet to materialise in a formal offer, we believe the Company is in-play and one of the few acquirable quality copper development plays globally. Despite this corporate interest, the Company is maintaining its course on the Botswana Copper Project and is due to release a Bankable Feasibility Study (BFS) on its 100% owned T3 deposit in the coming weeks. Argonaut is expecting throughput to remain at the revised 3Mtpa rate and pre-production capital intensity to be roughly in-line with the PFS Base Case equating to ~US$230m. The Company is also working on financing options which may include a mix of debt and equity capital with a potential project or TopCo minority investment. BUY maintained.

Argonaut is pleased to announce the successful $12.5 million Initial Public Offering (“IPO”) on the ASX of Stealth Global Holdings Ltd (“Stealth” or “the Company”). Stealth is a fast-growing sales and distribution group supplying safety, industrial, workplace and healthcare consumable products and customised supply solutions to business customers across the resources, engineering, transport and general industrial sectors.