What’s Hot, Not & Doing
Brought to you by TSN Contributor & Wealth Advisor Nick Kelso
What’s Hot – DEL, ME1, QHL, SPR, AW1 & MSB
What’s Not – AXL
What’s Hot
DEL – Delorean Corporation Limited today closed up 72% to finish at 8.1c on $2.6m stock traded. The reason they were up today was because they released its preliminary unaudited results for FY24.
Delorean is expecting to report EBITDA of between $4.5m and $5.1m, revenue between $27m and $28m and a record net profit after tax for the year.
DEL’s strong financial results are primarily driven by the strong performance of its divisions and project delivery across the group.
ME1 – Melodiol Global Health Limited today closed up 33% to finish at 0.4c on $470k stock traded. The reason they were up today was because they announced a non-binding letter of intent (LOI) was entered with Canadian based, Nacerna Life Sciences.
The LOI pertains to the sale of Melodiol’s cannabis production facility, equipment and land, located in Nova Scotia, Canada, for an initial cash consideration of $12m.
The initial consideration is sufficient to repay all of its existing secured debt, significantly improving its balance sheet and allowing for additional working capital to be deployed to Health House and Creso Pharma Switzerland.
QHL – Quickstep Holdings Limited today closed up another 24% to finish at 36c on $520k stock traded. The reason they were up today was because they released a July business update which highlighted the successful completion of restructuring activities.
The restructure has delivered a reduction in direct production headcount of approximately 20% and a reduction in operational support headcount of a similar amount.
QHL will release its audited FY24 results in August but can confirm that the unaudited Group revenue at $99m exceeds the guidance provided in April of $94m-$96m.
SPR – Spartan Resources Limited today closed up 24% to finish at $1.23 on $31m stock traded. The reason they were up today was because they announced an updated mineral resource estimate (MRE) for its Dalgaranga Gold Project located in WA.
The updated MRE has delivered a 47% increase in ounces and a 91% increase in grade to 16.1Mt @ 4.79g/t gold for 2.482Moz.
The significant uplift in the Dalgaranga Project mineral resources is attributed to growth at Never Never and the new Pepper gold discovery.
AW1 – American West Metals Limited today closed up 14% to finish at 12.5c on $440k stock traded. There was no news out today but roughly a fortnight ago they announced drilling results from its Storm Copper Project located in Nunavut, Canada.
Recent drilling has targeted resource upgrade and extensions at the Cyclone and Chinook Deposits, and resource definition/exploration at the Lightning Ridge and Thunder Prospects.
The Lightning Ridge prospect has intersected up to a combined total of 30.5m of visual copper sulphide mineralisation within three zones from 57.9m downhole.
MSB – Mesoblast Limited today closed up 13% to finish at $1.305 on $28m stock traded. The reason they were up today was because they announced the FDA had accepted its Biologics License Application (BLA) resubmission for Ryoncil (remestemcel-L) in the treatment of children with steroid-refractory acute graft versus host disease (SR-aGVHD).
Acute GVHD occurs in approximately 50% of patients who receive an allogeneic bone marrow transplant (BMT).
FDA considers the resubmission to be a complete response and Mesoblast anticipates a decision on or before the FDA’s Prescription Drug User Fee Act (PDUFA) goal date of January 7 next year.
What’s Not
AXL – Axel REE Limited today closed down 38% to finish at 12.5c on $1.5m stock traded. The reason they were down today was because they listed after raising $13.3m @ 20c through the boys and girls at Bell Potter.
Axel’s 1,000km² of REE projects are located amongst globally significant mines and REE discoveries
Axel’s flagship Caladáo Project makes up just one of their four prospective REE projects located in the world-class Poços de Caldas Alkaline Complex in Brazil.
The funds raised will be used to fast-track Caladão towards a maiden resource and commence extensive drilling in Caldas.
Rats Rant – IMPORTANT INFORMATION
The idea of this report is to be informative and hopefully point out some stocks that you wouldn’t ordinarily have seen during the day, maybe even have a laugh too.This report IS NOT personal advice. Sanlam Private Wealth Pty Ltd DOES NOT PROVIDE personal advice, Sanlam Private Wealth provides General Financial Product Advice.All advice included in The Rat’s Rant is General Advice. Please refer to the General Advice Warning. The views expressed in this report are my views and may not necessarily reflect the same views as Sanlam Private Wealth.It is very important to refer to the ASX website for information on any companies / stock that are contained in this report and as always please consult your financial adviser before acting.
Important Notice
Rat Consulting Pty Ltd (ABN 81 148 181 588 ) Authorised Representative (No 001281456) of Sanlam Private Wealth Ltd (ABN 18 136 960 775) holder of Australian Financial Services Licence (AFSL 337 927).