Macmahon (MAH) - Re-Initiation

August 14, 2019

We reinitiate based on a view the current share price more than discounts risks associated with recent Board changes and operating in Indonesia.  In fact, the latter exposure provides considerable opportunity, and we note contract miners’ significant wins in recent years, particularly in offshore jurisdictions.  Neither our, nor consensus...

Argonaut Metals and Mining: Diggers & Dealers Wrap

August 9, 2019

The annual Kalgoorlie Diggers and Dealers Forum is over for another year. The atmosphere this year was buoyant with a backdrop of record AUD gold prices of ~A$2,200/oz. The conference had the second highest attended ever with 2,450 attendees and 50 presenting companies. The opening speech by former Prime...

Myanmar Metals (MYL) - Bawdwin Reaches 100MT

August 8, 2019

Myanmar Metals’ (MYL) Bawdwin Pb/Zn/Ag project has now surpassed 100Mt with the latest resource upgrade. The resource now stands at 100.6Mt at 5.9% Zn+Pb, 3.1oz/t Ag, and 0.2% Cu. Importantly, the confidence level of the deposit has increased with an Indicated component rising by 222% to 43Mt. MYL is...

Salt Lake Potash (SO4) - Secures Lake Way Project Funding

August 7, 2019

SO4 has secured a funding package on favourable terms for the Lake Way project of US$150m from Taurus Fund Management as well as an additional A$7m equity injection from Fidelity. The addition of high-quality investors such as Taurus and the continued support of Fidelity is a strong validation of...

Independence Group (IGO) - Puttin' On Cash

July 31, 2019

IGO reported June Q and FY19 results. Nova reported lower QoQ production with 7.9kt Ni and 3.5kt Cu at A$2.22/lb cash costs (-6%, -7% and +14% QoQ). Ni and Cu production for FY19 of 30.7kt and 13.7kt respectively were both above guidance. FY19 cash costs of A$2.07/lb were slightly...

Northern Star Resources (NST) - Pushing The limits

July 31, 2019

Northern Star (NST) delivered a mixed June Q with production of 226koz at an AISC of $1,238/oz (+21% on production, -10% on costs QoQ) and 813koz for FY19 at an AISC of $1,296/oz. On an operational basis (pre-recovery), NST produced 250koz for the Q and 900koz for FY19. NST...

Saracen Mineral Holdings (SAR) - Quantifying Upside, Questioning Value

July 31, 2019

Saracen Mineral Holdings (SAR) released its latest round of exploration results, highlighting the organic growth benefits from its $56m exploration expenditure in FY19. The results show tangible Resource/Reserve extensions to Karari/Dervish and Million Dollar, along with further long intercepts at the Atbara discovery. The Company is imminently due to...

Swick (SWK) - Meets FY19 Guidance

July 30, 2019

SWK’s unaudited FY19 performance is at the top of the guidance range, but the key takeaway for us has been recent contract wins / extensions and the positive implications for utilisation in FY20.  The international growth strategy has been particularly successful.  Our longer term forecasts reflect more rigs in...

Pacific Energy (PEA) - Bid Recognises Value And Visability

July 30, 2019

QIC has bid $0.975 cash for PEA, representing a 35% premium to the pre-bid price.  In the absence of a superior proposal, and subject to an Independent Expert concluding it is in the interests of shareholders, the Directors support the proposed Scheme.  This includes KPS founder Ken Hall, who...