Argonaut Coverage Update

September 14, 2020

We recently welcomed John Macdonald to the Argonaut research team.  Personnel movements, together with a review of companies covered, has resulted in adjustments to our coverage list.  The table below highlights the stocks affected, including where there has been a change in analyst responsibility.  Dropped coverage is effective as...

Argonaut Metals & Mining - The Running Of The Gold Bulls

September 11, 2020

The Running of the Bulls is a famous festival in Spain where raging bulls are set loose down the streets of a small town, mowing down pedestrians in their path. We use this as an analogy for the current gold bull market, where a rising gold price is charging...

Salt Lake Potash (SO4) - Project Completion In Sight

September 11, 2020

SO4 has completed the financing package for Lake Way, and the project is on track to be completed early next year and produce the first saleable product. The Lake Way project is now fully funded to completion thanks to the finalisation of a $203m debt arrangement and a $98m...

Matrix (MCE) - Examining Options

September 3, 2020

With a depressed oil & gas market and COVID recently impacting operations, MCE is targeting more stable recurring revenue and an exposure to brownfield sites.  The outcome of a broad independent review is due by November and will help inform strategy options and their execution.  Cash provides breathing space,...

De Grey Mining (DEG) - A Falcon Swoops In - Another New Zone For Hemi

September 2, 2020

De Grey Mining (DEG) has discovered yet another major zone of gold mineralisation at Hemi (100% DEG). The new northwest-southeast trending Falcon Zone sits to the west of the Aquila Zone. Falcon consists of altered brecciated intrusion, analogous to Aquila, and has been defined over 1.8km. This is already...

CTI Logistics (CLX) - Up To The Challenges

September 2, 2020

Given FY20 headwinds CLX’s result was commendable and ahead of our expectations.  The 2H performance was only slightly down on the 1H, and full year EBITDA (pre AASB 16) of $14.0 was down 7.9% on FY19, while positive operating cash flow of $11.7m (pre AASB 16) saw net debt...

SCEE (SXE) - Diversity Pays Off

August 31, 2020

SXE’s FY20 EBIT of $16.4m was in line with our expectations.  The Company ended the financial year with a healthy balance sheet (cash $55.3m and no debt) to address organic and inorganic growth options.  The current order book of $440m and a tender pipeline of more than $900m supports...

Genesis Minerals (GMD) - Value Creation Options Aplenty - Site Visit

August 31, 2020

Argonaut recently visited the Ulysses Gold Project to the south of Leonora in the WA goldfields. We were impressed with the operations and the infrastructure in place. In our view, the project is well located geographically and offers compelling upside in terms of value creation via the drill bit...

Valmec (VMX) - Broadening Offering

August 31, 2020

VMX delivered FY20 underlying EBITDA of $5.8m, in line with update in July.  The positive outlook commentary was also maintained on the back of a $74m order book and strong tender and pipeline opportunities.  The Company expects to improve the cash position in the near term following a deterioration...