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Wednesday 26 June 2024

What’s Hot – KTA, BPH, ENV, PVT, VNL, MMC, TRI & LEL

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

What’s Hot – KTA, BPH, ENV, PVT, VNL, MMC, TRI & LEL
What’s Not – BAP

What’s Hot
KTA – Krakatoa Resources Limited today closed up 55% to finish at 1.7c on $1.3m stock traded. The reason they were up today was because they announced exploration results from its Mt Clere tenement located in the north-western margins of the Yilgarn Craton in WA.

Mapping, stream sediment and soil sampling has resulted in the identification of a significant new niobium (Nb) and rare earth element (REE) anomalous catchment area.

The target area incorporates the Stone Tank and Bullbadger prospect areas which reside in the district level Nb-Ce-Y-Th stream geochemical anomaly coinciding with a large 15km long gravity high geophysical signature.

The exploration team are currently undertaking additional infill soil sampling within the 15km regional gravity high, KTA will then look to undertake additional geophysical surveys.

BPH – BPH Energy Limited today closed up 29% to finish at 2.7c on $720k stock traded. There was no news out today but on Monday they released its quarterly report which highlighted the continued progress of its applications for the variation and suspension of work program conditions and related extension of PEP-11.

While the applications are being considered by NOPTA, Asset (BPH’s subsidiary) is investigating the availability of a mobile offshore drilling unit to drill the proposed Seablue-1 well on the Baleen prospect which would take approximately thirty-five days to complete.

Asset is in communication with drilling contractors and other operators who have recently contracted rigs for work in the Australian offshore beginning in the first half of 2024.

BPH’s 15.6% owned (& Advent’s 3.9% owned) Clean Hydrogen is also continuing to scale their carbon composite and hydrogen production.

Clean Hydrogen cracks hydrocarbons from natural gas using a process called thermo-catalytic pyrolysis which combines heat, a catalyst and has no oxygen.

ENV – Enova Mining Limited today closed up 22% to finish at 2.2c on $1m stock traded. There was no news out today but on Tuesday they announced drilling had commenced at its CODA rare earth (REE) project located in Minas Gerais, Brazil.

The CODA hosts rare earth enriched Ionic Absorption Clays (IAC), Phase 1 drilling will be targeting nearby to historical holes and extending out to delineate the extents of a potential orebody.

Previous drilling at CODA has returned intersections of up to 27.4m @ 3,689ppm total rare earth oxides (TREO) with 22.4% NdPr/TREO.

The rocks within this formation are predominantly soft and friable, with an extremely fine particle size, these characteristics are considered advantageous for the exploration of Ionic Clay REE deposits.

Broader spaced scout drilling will also be used to explore undrilled areas in the tenements.

PVT – Pivotal Metals Limited today closed up 18% to finish at 2c on $200k stock traded. The reason they were up today was because they finally announced assay results from its Lake Horden Project located in Quebec, Canada.

Drilling has confirmed broad zones of copper rich Cu-Ni-Au-PGM-Co mineralisation with intersections of up to 37.5m @ 1.31% CuEq including 15m @ 2.15% CuEq.

Assays have only been received from the first 2 of 32 holes, downhole EM surveys will also be released progressively throughout the quarter.

The objectives of the drilling program were to infill missing by-product multi-element assay information, potentially expand the resource (which remains open at depth across its full extent) and collect a distribution of metallurgical sample for a complete test work program.

The project currently hosts 28mt @ 1.5% CuEq indicated and inferred mineral resource estimate, as a result of over 52,464m of drilling has already completed.

VNL – Vinyl Group Limited today closed up 17% to finish at 14c on $230k stock traded. There was no news out today but yesterday they announced Songtradr had issued a conversion notice for a portion of its Tranche 2 convertible note, increasing its beneficial ownership in Vinyl Group to 19.95%.

The resulting conversion means Songtradr will convert a principal balance of $1.62m into 77.5m shares in Vinyl Group at the conversion price of 2.1c per share.

This follows an announcement made last week that RealWise Group Holdings has elected to convert its convertible note into ordinary shares.

The full principal balance of $6.9m will be converted into stock at a conversion price of 4.482c per share, with 100% of the accrued interest on the note being waived by RealWise Group Holdings.

MMC – Mitre Mining Corporation Limited today closed up 14% to finish at 56.5c on $1.2m stock traded. The reason they were up today was because they announced a placement to raise $10.5m @ 45c through the boys and girls at Euroz Hartleys & Canaccord Genuity.

The funds raised will be used towards the development of its Cerro Bayo silver-gold project located in Chile which hosts a high-grade JORC Inferred and Indicated Resource of 50Moz silver-equivalent.

MMC will focus on infill drilling with the aim of driving rapid and substantial resource growth in addition to targeting recently identified extensive high-grade mineralisation outside of its resource.

TRI – TrivarX Limited today closed up 12% to finish at 2.9c on $830k stock traded. The reason they were up today was because they announced a placement to raise $2.5m @ 2.5c through the boys and girls at JP Equity Partners, who were kind enough to offer me a few.  

The funds raised will be used towards the completion of its Phase 2 sleep signal analysis for its current major depressive episode (SAMDE) study.

It will also be used towards US regulatory approval initiatives for its proprietary MEB-001 algorithm which deploys advanced analysis of sleep data to effectively screen for instances of a current major depressive episode (cMDE).

Major depressive disorder (MDD) has been ranked as the third cause of the burden of disease worldwide in 2008 by WHO, which has projected that this disease will rank first by 2030.

LEL – Lithium Energy Limited today closed up 10% to finish at 55c on $2.1m stock traded. The reason they were up today was because they announced the sale of its Solaroz Lithium Project located in Argentina for US$63m (A$97m).

CNGR Advanced Materials was established in China in September 2014 and is one of the world’s largest producers of precursors cathode active materials used by many leading companies in the battery materials supply chain.

The sale is subject to a number of conditions precedent including receipt of shareholder approval and receipt of regulatory approvals to be satisfied within 6 months of the agreement.

The sale is equivalent to 86.5c per share, although I’m not sure if LEL shareholders will be overly happy with today’s result, considering they were trading upwards of $1.60 back in late 2022.

Subject to completion of the sale of Solaroz and completion of the proposed spin-out and IPO of Axon Graphite, LEL will consider new investments in the battery minerals sector and/or a distribution of capital to shareholders.

What’s Not
BAP – Bapcor Limited today closed down 24% to finish at $4.40 on $64m stock traded. The reason they were down today was because they announced a trading update which revealed challenging trading conditions.

The retail business has remained challenging due to weak consumer confidence and lower levels of discretionary spending while the wholesale business is being impacted by competitive pricing.

As a result, Bapcor expects pro-forma net profit after tax (NPAT) for FY24 to be between $93m and $97m, BAP delivered pro forma NPAT of $54.2m in the first half so it is a significant downgrade.

Bapcor is Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions, BAP runs 1100 stores across the Autobarn, Autopro and Burson brands.

Today’s 24% share price fall wiped off more than $467m from its market cap, it is now trading down more than 48% from its highs of $8.60 back in 2021.

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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