What’s Hot, Not & Doing
Brought to you by TSN Contributor & Wealth Advisor Nick Kelso
What’s Hot – ENR, MRQ, MYR, WMG, PXX & SRZ
What’s Not – CTT & CCX
What’s Hot
ENR – Encounter Resources Limited today closed up 80% to finish at 62c on $13m stock traded. The reason they were up today was because they announced assay results from its Aileron project located in the West Arunta region of WA.
Drilling intersected continuous near-surface carbonatite with assays of up to 52m @ 3.0% Nb2O5 from 81m to the end of hole, including 16m @ 6.0% Nb2O5.
These results have extended the mineralisation at Crean by 800m and this trend appears to be strengthening to the west and remains open.
MRQ – MRG Metals Limited today closed up 33% to finish at 0.4c on $520k stock traded. There was no news out today but roughly a fortnight ago they announced a binding joint venture agreement was entered with Shenzen (SLC) to develop its Mozambique Corridor Sands Projects.
MRG will be free carried, including all capital expenditure and operating expenditure, through to 440Kt of annual concentrate production.
MRG shall retain 30% of the JV through mine start-up at 110Kt of annual concentrate production, reducing during production expansion to a floor equity of 20% when the JV production has grown to 440Kt of annual concentrate.
MYR – Myer Holdings Limited today closed up 20% to finish at 77.5c on $11m stock traded. The reason they were up today was because they announced an ongoing strategic review for the company.
Myer will explore a potential combination with Premier Investments’ (PMV.asx $5.1 billion market cap) Apparel Brands business to accelerate strategic priorities.
Who would have picked this when private equity listed Myer @ $4.10 around 15 years ago (time flies), sadly flying was not in the MYR share price.
Apparel Brands is a leading clothing business with a retail network of 717 stores across Australia and New Zealand, generating revenues of $845m in FY23.
WMG – Western Mines Group Limited today closed up 17% to finish at 40.5c on $69k stock traded. The reason they were up today was because they announced the completion of a placement to raise $1.53m @ 32c through the boys and girls here at Sanlam Private Wealth.
My broking buddy down in Melbourne who we will call ”Stick a Fork in me” to keep him anonymous was kind enough to offer us a few but Crocodile Dundee took most of it as you will read below.
Over $550k was placed to international mining investor Dundee Corporation and existing shareholders including Blue Spec Drilling.
PXX – Polarx Limited today closed up 17% to finish at 1.4c on $150k stock traded. There was no news out today but roughly a fortnight ago they announced the completion of earn-in requirements for an 80% controlling JV interest in the high-grade Caribou Dome project and a 90% JV interest in the Senator Project located in Alaska.
The Caribou Dome and Senator projects adjoin its 100% owned Stellar copper-gold project which form its Alaska Range Copper-Gold Project.
Caribou Dome’s mineral resource was updated in June last year to 7.2Mt @ 3.1% copper and 6.5 g/t silver for 224Kt of contained copper & 1.5Moz of contained silver.
SRZ – Stellar Resources Limited today closed up 11% to finish at 2c on $210k stock traded. There was no news out today but roughly a month ago they announced a placement to raise $10m @ 1.9c through the boys and girls at Taylor Collison Limited & Bell Potter Securities.
The raise was corner-stoned by Paradice Fund committing $3.9m and Regal Funds Management committing $3m, the raise was completed at a 4.6% premium to the 10-day VWAP.
The funds raised will allow Stellar to accelerate drilling and complete feasibility studies at the Heemskirk Tin Project located in western Tasmania.
The Heemskirk Tin Project continues to rank as the highest-grade undeveloped tin resource in Australia and the third globally.
What’s Not
CTT – Cettire Limited today closed down 49% to finish at $1.135 on $47m stock traded. The reason they were down today was because they announced an FY24 update which revealed further challenging market conditions.
Cettire expects sales revenue for FY24 to increase from 77%-79% on FY23 to $735m-$745m and adjusted EBITDA to increase by 24%-36% to $32-$35m.
Although a recent softening demand environment and an increase in promotional activity has to lead to an increase in marketing costs relative to sales and a decline in delivered margin percentage.
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).