Bellevue Gold (BGL) - Expansion And Increased Confidence

February 18, 2020

Bellevue Gold (BGL) released further exceptional, high grade drill results from multiple lodes within the Bellevue Project in Western Australia. The majority of the intercepts were from infill drilling, which will result in a material uplift in the confidence level of the Mineral Resource. Importantly, BGL’s geological and structural...

Contract Mining - Better Prospects

February 13, 2020

Production-exposed contractors have more top-line visibility and consistency than those construction-exposed.  In our view smaller cap contract miners may also reap some benefits from a period of consolidation in the contract mining space, while a likely extended period of low interest rates makes their capital intensity more palatable.  We...

Perenti (PNR) - Strategic Options

February 6, 2020

In this note we jot down some thoughts on the potential acquisition of DOW’s mining business.  It may not progress and it’s too early to consider numbers, but we see positives from a strategic perspective.  PRN’s share price has dropped 11% since our last note and we upgrade to...

Gage Roads (GRB) - Interim Update

February 5, 2020

The $0.3m 1H20 EBITDA was disappointingly weak given the new Good Drinks strategy has only just kicked off.  It was caused by a double whammy; sales to the national chains were down (for explainable reasons) while expansion costs were higher (creating some uncertainty over the cost growth required to...

Otto Energy (OEL) - Quarterly Report December 2019

February 3, 2020

OEL’s hydrocarbon sales were down 27% QoQ due to production interruptions. Two new wells have been drilled and completed and will contribute to the production profile this year. There are three exploration wells left to go in the Hilcorp program that will potentially provide some exploration upside. We maintain...

Construction - Risky Business

February 3, 2020

We expect a weak interim reporting period for construction contractors, and a 2H skew will be met with some skepticism.  For better results we highlight SCEE (SXE) and Valmec (VMX) as ones to watch.  Coming resource and infrastructure spend should help longer term sector top-line growth, and we eye...

Botanix (BOT) - 31 December 2019 Quarterly Report

February 3, 2020

BOT is going to take its acne treatment BTX1503 forward to a Phase 3 study and start two new studies on rosacea and testing the anti-microbial properties of CBD. The results of the BTX1204 Atopic Dermatitis Study is expected in the current quarter. We maintain our SPEC BUY recommendation...

Salt Lake Potash (SO4) - 31 December Quarterly Report Update

February 3, 2020

SO4 is making impressive progress on its Lake Way SOP project. Construction of the ponds system, trench system and gathering infrastructure is progressing well. The project is well-funded thanks to the Taurus debt facility and shareholder funds. We expect the pace of work to continue as SO4 completes the...

Independence Group (IGO) - Mounting Cash

January 31, 2020

IGO reported December Q activities and first half FY20 financial results. Both Tropicana gold and Nova nickel/copper are tracking ahead of full year guidance. In H1, Nova produced 15.2kt Ni and 6.8kt Cu at A$2.51/lb cash costs (vs guidance: 13.5-15.0kt Ni, 5.5-6.25kt Cu @ A$2.00-2.50/lb) and Tropicana produced 257.3koz...