Latest Research

Genesis Minerals - Extensions

Genesis Minerals (GMD) has released several key updates from its Ulysses Project which continues to show the potential to expand the resource inventory. Drilling at Orient Well, 10km east of Ulysses returned high grade intercepts including 20m @ 9.10g/t Au which remains open along strike in both directions. At Ulysses, zones of mineralisation have been extended outside of the current resource envelope adjacent to existing mineralisation as well as a new zone discovered at Ulysses East over ~350m along strike from the existing 760koz resource. We see strong potential for further discoveries at Ulysses which will
ultimately see growth in the resource inventory in the near term. With the lack of quality near term development assets on the horizon, we continue to believe that GMD remains a strong candidate as an acquisition target which trades on cheap metrics with significant exploration upside. Speculative Buy maintained and $0.10ps target price.

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Agrimin Ltd - Quarterly update and rating review

Agrimin LogoAMN continues to advance its DFS and has completed a number of key activities. AMN is also looking to reduce its upfront costs by trucking LNG to the Lake Mackay project rather than building a gas pipeline. The company is also studying the option of splitting the plant between Lake Mackay and the Wyndham Port to save on capex and opex. The WA government has reduced rents on brine projects due to large tenements holdings. We are upgrading AMN to a Speculative Buy from a Hold with a price target of $0.94.

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Gage Roads - Evolving strategy

Gage Roads LogoGRB has expanded on its vision for greater east coast penetration. By replicating WA’s brand-in-hand success, investing in sales and marketing, and establishing potential eastcoast venues, retail growth is expected to follow. Together with indications of higher output from the Palmyra brewery (up to 14M litres instead of the 11M litres in the original plan), it suggests potential upside to our (largely unchanged) numbers. Our target price of $0.129 continues to back a BUY call, as does the strong momentum, strategy evolution, and the brands’ potential attractiveness as an addition to a larger brewer’s portfolio.

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Atrum Coal - Rapidly building scale

Atrum Coal LogoAtrum Coal (ATU) released an updated resource for its 100% owned Elan South coking coal project in Alberta, Canada with a 170% increase to 97Mt. Elan South abuts Riversdale Resources’ 195Mt Grassy Mountain (unlisted) to the south. Grassy Mountain has attained A$99m cumulative investments from Hancock Prospecting for a 19.99% equity stake equating to ~A$500m on a 100% basis. Teck Resources has five mines to the west of Elan with a ~25Mtpa production profile. This region is an established source of high quality seaborn hard coking coal. Initial quality testing of Elan South shows low ash, sulphur and phosphorous with volatile matter, swell and coal ranking properties suitable for the hard coking coal market. We introduce a SPEC BUY recommendation.

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Dacian Gold - Building up for a big second half

Dacian Gold LogoDacian Gold (DCN) reported preliminary Dec Q production of 38koz (+29% vs 29.3koz in the Sept Q). Commercial production has been achieved with mining rates across the operations achieving Feasibility Study design levels of ~8Ktpd (5ktpd from open pit, 3ktpd from underground). Overall, the Q was in line with expectations vs Argonauts forecast of 40koz. Cash increased to $85.6m in the Dec Q (+$3.5m vs $82.1m in the Sept Q). Argonaut forecasts that production should have risen to ~700kt at 1.7-1.9g/t (from 681kt @ 1.4g/t in the Sept Q) to achieve this production result. Buy maintained and target price of $3.50ps.

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