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Wednesday 26 June 2024

What’s Hot – LPE, RCR, HLX, TOR, SS1, VUL, LRS & RNX

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

What’s Hot – LPE, RCR, HLX, TOR, SS1, VUL, LRS & RNX
What’s Not – DDR

What’s Hot
LPE – Locality Planning Energy Holdings Limited today closed up 29% to finish at 11c on $460k stock traded. The reason they were up today was because they announced an updated guidance for CY24.

The updated guidance is for a significant improvement in net profit to the range of $1.95m-$2m compared to a net loss of $12m for FY23, the EBITDA guidance is between $3.3m-$3.5m.

In the short period that the new board has existed, LPE has identified revenue opportunities and cost savings that have already arisen.

RCR – Rincon Resources Limited today closed up 27% to finish at 14c on $2.2m stock traded. There was no news out today but on Tuesday they announced a heritage clearance survey was completed on its high-priority Avalon Nb-REE/IOCG target located within its West Arunta Project, WA.

Detailed planning for an initial phase of RC and DD programs are underway, as are discussions with several drilling contractors regarding availability and potential timing of commencement.

A ground gravity survey has defined the Avalon bullseye target which forms a 3km east-west elongated gravity anomaly high with a high amplitude of ~5mGal and represents either carbonatite-Nb-REE or IOCG mineral target for drill testing.

HLX – Helix Resources Limited today closed up 25% to finish at 0.5c on $350k stock traded. The reason they were up today was because they announced their rights issue to raise $2.3m @ 0.3c had closed oversubscribed.

To accommodate some of the excess demand, the Board has exercised its discretion to accept oversubscriptions and raise an additional $500k.

The funds raised will be used towards a drill campaign which is currently underway to initially test the highest priority geophysics anomaly at the Canbelego copper project near Cobar, NSW.

TOR – Torque Metals Limited today closed up 18% to finish at 20c on $630k stock traded. The reason they were up today was because they announced drilling was completed at its Paris Gold Project located in WA.

Drilling successfully extended mineralisation which was previously identified, previous intersections include up to 35m @ 14.12 g/t gold.

The Paris Gold Project reveals potential to host multiple deposits within a larger mineralised system characterised by parallel structures (2.5km by 1km and open) and splays under the control of the Boulder Lefroy System.

SS1 – Sun Silver Limited today closed up yet another 16% to finish at 62c on $7.6m stock traded. There was no news out today but on Tuesday they listed after raising $13m @ 20c through the boys and girls at Wagtail Capital.

Sun Silver’s flagship Maverick Springs Silver-Gold Project is located in Nevada and hosts a JORC compliant Mineral Resource of 292Moz AgEq (silver equivalent) @ 72.4g/t.

The deposit itself remains open along strike and at depth, with multiple mineralised intercepts located outside of the current resource constrained model.

VUL – Vulcan Energy Resources Limited today closed up 14% to finish at $5.42 on $18m stock traded. The reason they were up today was because they announced an update on its financing process, with the formal launch of the second and final phase of its project-level debt and equity funding package.

Phase one of its finance process is now complete, with VUL receiving significant interest from strategic and financial investors, commercial banks, the European Investment Bank (EIB) and major government-backed export credit agencies.

Vulcan will now enter formal discussions with Tier 1 financing partners who have expressed in principle and non-binding interest.

LRS – Latin Resources Limited today closed up 11% to finish at 25.5c on $3.2m stock traded. There was no news out today but on Monday they announced a resource definition drilling program was completed at the Colina Deposit within its Salinas Lithium Project located in Brazil.

Significant intercepts returned from the latest program including intercepts of 29.13m @ 1.65% Li2O from 241m & 17.72m @ 1.39% Li2O from 344.21m.

Latin is looking to upgrade Colina’s current mineral resource estimate (MRE) which stands at 63.5Mt @ 1.3% Li2O, the updated resource is expected in May, so any day now.

RNX – Renegade Exploration Limited today closed up another 10% to finish at 2.2c on $1m stock traded. There was no news out today but on Tuesday they announced exploration results from its Mongoose Deeps prospect within the Cloncurry Project located in north QLD.

A high-resolution gravity geophysical survey at Mongoose Deeps has returned a dense gravity anomaly with a similar magnitude as the Ernest Henry gravity anomaly.

Evolution Mining’s (EVN.asx $7.8b market cap) Ernest Henry copper-gold operation is a large-scale, long-life asset which achieved FY23 production of 64.7k ounces of gold & 47.3Kt of copper.

What’s Not
DDR – Dicker Data Limited today closed down 13% to finish at $9.25 on $10m stock traded. The reason they were down today was because they released a Q1 market update which revealed a 9.6% fall in revenue to $694.8m.

Gross revenue was impacted on a quarter-on-quarter basis as a result of the large backorder book from FY22 being invoiced in Q123 as supply chain disruptions eased.

Over $300m of backorder books were brought forward and most of it invoiced out in Q1 2023, as at the end of FY23 their backorder book was within normalised levels of approximately $200m.

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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