What’s Hot, Not & Doing
Brought to you by TSN Contributor & Wealth Advisor Nick Kelso
What’s Hot – MCM, NKL, ATP, DEL, NIM, DOW, BOT & AUC
What’s Not – MOZ
What’s Hot
MCM – MC Mining Limited today closed up another 68% to finish at 21c on $910k stock traded. There was no news out today but yesterday they announced an agreement was reached with Kinetic Development Group (KDG), which you would have read about in here last night.
KDG has proposed to acquire a 51% interest in MCM for US$90m by initially subscribing for 13.04% for US$12.9m at an implied price of 30.83c followed by a second tranche of US$77m.
KDG is an integrated coal mining and trading group incorporated in the Cayman Islands with extensive operational experience and expertise.
NKL – NickelX Limited today closed up 40% to finish at 2.8c on $350k stock traded. The reason they were up today was because they announced the acquisition of the Penny South Gold Project located in WA.
Penny South lies only 550m south of Ramelius Resources’ (RMS.asx) operating Penny West/North gold mine project which is estimated to contain 440Kt @ 22g/t Au (320Koz Au).
Those that once owned Spectrum (SPX.asx) before it became Ramelius would know the Penny West story very well, like my broking mate who we will call ”The Adam’s Family” to keep him anonymous.
ATP – Atlas Pearls Limited today closed up 32% to finish at 14.5c on $1.3m stock traded. The reason they were up today was because yesterday after market they released its FY24 results which highlighted a 53% increase in revenue to $41.7m.
ATP delivered a record financial performance, achieving a net profit after tax of $31.5m which is quite remarkable for a company which was valued at $48m this morning before open.
I told the young wheelbarrow today that there was plenty of money in pearls as he’s a little young to understand & he was wondering why they looked so cheap.
DEL – Delorean Corporation Limited today closed up 24% to finish at 10.5c on $360k stock traded. The reason they were up today was because they released its preliminary final report which highlighted a 148% increase in net profit after tax to $4.77m.
Construction of Australia’s largest bioenergy facility was under way in FY24 for Yarra Valley Water delivering contracted revenues into FY25 with follow on operation and maintenance with contracted revenues.
Secured key strategic relationships with industry partners supporting Australia’s decarbonisation through the energy transition, including ATCO (C$5B market cap).
DEL expects to continue to generate additional positive earnings into FY25 from its existing large scale generation certificate forward contracts.
NIM – Nimy Resources today closed up 21% to finish at 8.5c on $100k stock traded. There was no news out today but on Wednesday they announced drill results and plenty of pictures of core, core and more core.
The three drill holes completed have tested recent electromagnetic survey anomalies and indicate that the mineralised zone is increasing with depth and dipping to the west as they thought.
I can’t be bothered getting into all the drilling details but I spoke with one of the boys from the board today and let’s just say I’m pretty keen to know more.
DOW – Downer EDI Limited today closed up 17% to finish at $5.59 on $44m stock traded. The reason they were up today was because they released its FY24 results which highlighted a 24.5% increase in net profit after tax (NPAT) to $193.9m.
Pro forma revenue of $11.7 billion increased by 5.5% and work-in-hand of $38.5 billion remains robust with an increase of 1.0% over the prior period.
Operating cash flow increased by 71% to $544.1m as a result of its improved focus on working capital management, cash collection and resolution of contractual variations and claims.
BOT – Botanix Pharmaceuticals Limited today closed up 14% to finish at 40c on $7.4m stock traded. The reason they were up today was because they released its preliminary final report which highlighted a 484.7% increase in revenue to $601k.
Revenues include net royalties received from the Japanese licensee of its Sofpironium Bromide product.
Botanix recently received FDA approval for Sofdra which is the first and only new chemical entity approved for the treatment of primary axillary hyperhidrosis (excessive underarm sweating), in adults and children 9 years of age and older.
AUC – Ausgold Limited today closed up 13% to finish at 43.5c on $640k stock traded. There was no news out today but earlier this month they announced the settlement of tranche 2 of its institutional placement to raise $38m @ 3c (30c equivalent after recent 10 to 1 consolidation).
Newly appointed Executive Chairman, Mr John Dorward, has agreed to subscribe for $1m under the placement while Jupiter Asset Management increased its holding to 12.7% & Dundee Corporation retained a 10.9% holding.
The proceeds will be used to underpin ongoing work programs at the Katanning Gold Project (KGP) through to a final investment decision (FID).
What’s Not
MOZ – Mosaic Brands Limited today closed down 22% to finish at 3.6c on $100k stock traded. The reason they were down today was because they announced it is not in a position to lodge its FY24 report.
In the process of completing the results, MOZ has determined that more time is needed to resolve a number of matters prior to finalisation of the results.
As a result, Mosaic anticipates that its ordinary shares& convertible notes will be placed into a compulsory trading suspension next Monday.
MOZ expects this consultation process to be undertaken as quickly as practically possible and currently anticipates that it will be able to provide an update to the market along with its FY24 annual results by the 30th of September (almost a month).
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).