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Wednesday 26 June 2024

What’s Hot – BUR, ERW, ANX, RDN, LV1, MGU, GTR, D3E, PNT, LMG, SUM & DTR

What’s Hot, Not & Doing
Brought to you by TSN Contributor & Wealth Advisor Nick Kelso

What’s Hot – BUR, ERW, ANX, RDN, LV1, MGU, GTR, D3E, PNT, LMG, SUM & DTR
What’s Not – BYE

What’s Hot
BUR – Burley Minerals Limited today closed up 80% to finish at 15.5c on $320k stock traded. There was no news out today but last week they announced the successful completion of a share purchase plan to raise $1m @ 5c.

This follows a recently completed placement to raise $1.3m @ 5c, the funds raised will be used towards its maiden drilling programs at both Broad Flat Well and Cane Bore Iron Ore Projects in the world leading Hamersley Iron Ore Province.

Burley’s Cane Bore Iron Ore Project is located adjacent to M4M’s iron ore projects which have helped push the share price up from 0.2c to as high as 5.2c today.

Some 18 rock chip samples were collected over the extent of the exploration license application area, returning assay results between 45% and 54.3% Fe.

The exploration licence application is going through the process towards the grant of an exploration licence, once granted, Burley intends to complete further detailed on-ground mapping, sampling and then drilling.

During the chocolate wheel (the match) they were handed a speeding ticket from the ASX, which didn’t allow any traders to get out at the end of the day.

BUR responded that they were unaware of any unknown information, however noted the strong trading performance of other Iron Ore juniors in the West Pilbara during 2024, particularly with the iron ore price rebound over the last 6 weeks.

Burley also noted the price action in M4M over the last month which owns the iron ore project directly along trend from its Cane Bore Iron Ore Project.

ERW – Errawarra Resources Limited today closed up 63% to finish at 9.8c on $3.4m stock traded. The reason they were up today was because they announced exploration results from its Andover West Project located in the Pilbara, WA.

ERW has identified a 1.6km x 1km stacked pegmatite swarm with a highly anomalous lithium soil trend that has a peak of 325ppm Li2O.

This trend appears to be along strike of the Raiden Resources’ (RDN.asx) pegmatites where Li2O values including 3.8% were reported from rock chips.

The project is also located in proximity to Azure Minerals (AZS.asx) 60% owned Andover project which has returned intercepts of up to 209.4m @ 1.42% Li2O and was recently acquired for $1.7 billion.

Heritage clearance surveys are scheduled to be completed this month over selected portions of the anomalous Li zones, this will clear the way to undertake planning for future drill programs.

ANX – Anax Metals Limited today closed up 36% to finish at 6c on $4.2m stock traded. The reason they were up today was because they announced an update on its Whim Creek Copper Project located 115km southwest of Port Hedland in the West Pilbara region of WA.

Strengthened copper prices have enhanced the Whim Creek economics by 32% providing a pre-tax NPV7 (net present value) of $357m and an internal rate of return (IRR) of 74%.

Copper futures surged above $4.71 for the first time in over two years, ahead of the $10,000 per tonne threshold, as markets continued to gauge the extent of supply deficits against bullish near and long-term demand.

RDN – Raiden Resources Limited today closed up 24% to finish at 5.1c on $4.7m stock traded. There was no news out today but last Thursday they announced a binding earn-in agreement was entered with Mallina in regard to the Arrow gold project in the Pilbara.

Mallina will have the option to earn up to 75% of the project by sole funding 47,000m of drilling or completing a pre-feasibility study, RDN will keep all the LCT rights.

Raiden remains focused on the primary objectives, namely drilling the Andover North and South lithium projects.

Roughly a fortnight ago, RDN announced preliminary heritage reports have been received in regard to the Andover North and Andover South Projects.

The preliminary heritage report indicates that all the key target areas, where drilling is planned are clear of any culturally sensitive areas, final reports are expected in the coming weeks.

On receipt of the final report for Andover South, management will commence with engagements with drilling contractors with the objective of commencing with the drilling program as soon as possible.

LV1 – Live Verdure Limited today closed up 23% to finish at 51.5c on $530k stock traded. There was no news out today but roughly a fortnight ago they released its quarterly report which highlighted the incorporation of the R&D entity Decidr.ai.

This AI enablement strategy gained considerable momentum with the release of the Decidr V1.0 operating platform and subsequent commencement of scoping for implementation of Decidr technology into Edible Beauty.

The Edible Beauty business began implementation scoping with Decidr.ai, identifying six pilot areas across multiple business areas for AI enablement.

These areas have been selected as they offer promising cost and revenue leverage points for the Edible Beauty business and represent common workflows for many companies.

MGU – Magnum Mining and Exploration Limited today closed up 21% to finish at 1.7c on $800k stock traded. The reason they were up today was because they announced they entered into an agreement with V Capital Consulting Limited (VCCL) and 2×1.Digital Private Limited (2×1.Digital) to undertake a capital raising.

The capital raising will be no less than US$210m to advance its Green Pig Iron Project located in Saudi Arabia.

Midmetal, the vehicle for the Project, is currently 50% owned by Magnum and 50% owned by its original Saudi investors.

Midmetal is pursuing the development of a Green Pig Iron making facility in the KSA through the construction and operation of a HIsmelt based technology.

It is intended that the HIsmelt plant use both high grade magnetite concentrate from its Buena Vista Iron Project in Nevada, USA.

On successful completion of the project funding agreement (PFA), the shareholders in Midmetal will be its original Saudi investors 15%, Magnum 15%, VCCL 10%, 2×1.Digital 10% and investors who participate in the capital raising 50%.

A minimum of US$10M will be retained by Magnum as working capital for its Buena Vista Project in return for a 19.99% interest in Magnum to investors in the capital raising, valuing the raise at 7.4c per share.

GTR – GTI Energy Limited today closed up 20% to finish at 0.6c on $170k stock traded. There was no news out today but roughly a fortnight ago they announced they contracted its preferred Wyoming based exploration drilling contractor for its 2024 drill program at Lo Herma located in Wyoming, USA.

The planned 2024 drilling program at Lo Herma includes 71 drill hole locations and construction of up to 5 groundwater monitoring wells.

The program will be focused on expanding the resource areas and where possible, upgrading the current mineral resource classification.

D3E – D3 Energy Limited today closed up 18% to finish at 23.5c on $330k stock traded. The reason they were up today was because they listed after raising $10m @ 20c through the boys and girls at Peloton Capital & Originate Capital who were kind enough to offer me a few.

The D3 project is a high-quality helium and natural gas exploration project in located in the Free State province, onshore South Africa.

The D3 Project currently contains a 2C contingent resource of 547.45 BCF (billion cubic feet) of recoverable gas, this includes 474.64 BCF of recoverable methane & 22.445 BCF of recoverable helium.

Today D3E announced that its first two well drilling program has been safely completed on time and on budget.

World class helium concentrations were measured in RBD10 & RBD11 of 5.0% & 5.1% respectively, RBD10 flowed gas at a stabilised flow rate of 126 million standard cubic feet per day (Mscfd) for a 36-hour period with no evidence of decline.

PNT – Panther Metals Limited today closed up 15% to finish at 4.5c on $160k stock traded. The reason they were up today was because they announced scoping study results from its Coglia Nickel-Cobalt Project located in WA.

The study shows a net present value discounted at 8% (NPV8) of $409m, an internal rate of return of 31.8% and a payback period of 3.2 years.

The project also has a low capital expenditure (CAPEX) of $376.9m and a globally competitive all-in sustaining cost (AISC) of US$4.68/lb.

The scoping study only considered 32.3Mt of the mineral resource estimate (MRE), with the bulk of the 102.8Mt nickel-cobalt MRE excluded, allowing further upside potential.

Mining is intended to be undertaken via open pit by standard truck and excavator operations, it is expected that drilling and blasting will be required for ultramafic material only.

After today’s share price increase, Panther has a market cap of $3.92m – you work that one out yourself and tell Dan the Rat sent you.

LMG – Latrobe Magnesium Limited today closed up 14% to finish at 5.8c on $700k stock traded. The reason they were up today was because they announced they achieved the first magnesium oxide (MgO) production from brown coal fly ash in the world.

LMG has commissioned the first phase of its 1,000 tonnes per annum, Stage 1 Demonstration Plant, successfully producing the world’s first environmentally sustainable MgO from fly ash – a waste resource from brown coal power generation.

LMG is the only new magnesium producer in the western world since 2015 with sustainable production emitting 60% less CO2 than the industry average.

LMG can now officially commence a bankable feasibility study and financing discussions, in relation to the 100%-contracted, 10,000 tonnes per annum Stage 2 Commercial Plant.

SUM – Summit Minerals Limited today closed up 14% to finish at 12.5c on $300k stock traded. There was no news out today but last Thursday they announced exploration results from its recently acquired Equador Nb-REE Project located in Brazil.

Multispectral analysis targeting niobium mineralisation has been completed at Equador with 30 targets identified.

Previous surface sampling results at Equador have returned assays of up to 355,400ppm or 35.54% (Nb2O5) + 14,080ppm partial rare earth oxides (PREO) or 1.408% PREO.

DTR – Dateline Resources Limited today closed up 10% to finish at 1.1c on $120k stock traded. There was no news out today but roughly a fortnight ago they released its quarterly which highlighted recent drilling results from its Colosseum Project located in California.

Drilling aimed at expanding upon the high-grade sedimentary breccia zone at Colosseum returned assays of up to 76.2m @ 8.62g/t Au.

High-grade gold was also intersected in the felsite breccia unit, outside of the targeted high-grade sedimentary breccia unit.

This included intersections of up to 88m @ 4.18g/t including 22.8m @ 8.17g/t Au.

What’s Not
BYE – Byron Energy Limited today closed down 22% to finish at 4.7c on $800k stock traded. The reason they were down today was because they announced a formal request was lodged to de-list from the ASX.

In the Board’s view, the trading price over the past 2 years in particular, does not fairly represent the value of its underlying oil and gas assets and exploration and evaluation assets.

This disparity is hindering Byron’s ability to attract investments on reasonable terms for development and exploration of its assets and for working capital purposes.

The Board believes that share price performance in both price and liquidity terms, is an impediment to Byron seeking to raise capital, including by way of a farmout and/or partial sale of oil and gas assets.

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).

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