Bellvue Gold (BGL) - Fresh Eyes Under Value - Site Visit

December 19, 2019

Argonaut recently visited Bellevue Gold’s (BGL) self-titled project in the Leonora region of Western Australia. After acquiring the project in H2 2016, the Company has rapidly amassed a high grade 1.8Moz @ 11g/t gold Resource. BGL challenged historical geological concepts that constrained exploration upside, leading to the discovery of...

Northern Star Resources (NST) - Supercharge Me

December 19, 2019

Northern Star (NST) has reached a binding agreement to acquire Newmont Goldcorp’s 50% interest in the Kalgoorlie Consolidated Gold Mines Joint Venture (KCGM JV). The acquisition price is US$775m plus an additional US$25m for a total consideration of US$800m / A$1,168/oz (excl. stamp duty). In addition, NST has paid...

Perenti (PRN) - Contract & Guidance Update

December 17, 2019

The loss of the Ghana Manganese Company (GMC) contract had previously been flagged, but the extent of the earnings impact surprised us.  With developments at Boungou and Bissa “not material” to prior NPAT guidance, the $20-25m downgrade appears to have been meaningfully impacted by the loss of this contract. ...

West Africa - Elephant County Can Be Dangerous

December 13, 2019

Investing in Africa comes with a higher level of risk, although sometimes it takes a tragic event, such as the incident en route to SEMAFO’s Boungou mine in Burkina Faso last month, to remind investors of the fact.  In this note we examine ASX-listed mining companies that have exposure...

Decmil (DCG) - Sunraysia Update

December 12, 2019

The Sunraysia update highlights a solar construction sector unappealing to contractors in our view.  Despite DCG having performed the physical works necessary under its EPC contract, an inability for Sunraysia to obtain R1 registration and achieve Substantial Completion has delayed ~$14m in progress payments to DCG.  Further, Sunraysia has...

PT Merdeka Copper Gold, Tbk Pani Consolidation With J-Resources

December 11, 2019

An agreement has been struck to consolidate the two deposits at Pani into a single Joint Venture. MDKA acquired a 66.6% stake in the Pani Gold deposit in Sulawesi for US$55m in November 2018. Pani has a resource of 90Mt @ 0.82g/t Au for 2.4Moz Au and abuts the...

SRG Global (SRG) - Boosting Recurring Revenue

December 11, 2019

SRG has continued to build its order book thanks to wins in the Asset Services segment, the latest of which is a $90m preferred tenderer award from Alcoa for work at its Kwinana alumina refinery.  The addition of recurring revenue streams to the higher margin Asset and Mining Services...

Perenti (PRN) - Addressing Risks

December 5, 2019

PRN will continue operating its contracts in lower risk regions in Burkina Faso, but will not renew the Bissa contract with Nordgold, and will potentially terminate the Boungou contract with SEMAFO.  The latter two contracts are not considered material to NPAT guidance, and the gear potentially released would have...

Agrimin (AMN) - AMN Enters Into A JV For Haulage

December 5, 2019

AMN has formed a JV with an experienced logistics operator which will allow it to control its logistics chain, maximise and protect it from contracting risks. AMN is hoping to maximise the employment of local and indigenous people in the haulage operation and to facilitate this will be establishing...