Friday 21 June 2024

What’s Hot – OZM, WMG, LU7, MPK, RDN, BGD

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

What’s Hot – OZM, WMG, LU7, MPK, RDN, BGD
What’s Not – KGN & NXS

What’s Hot
OZM – OzAurum Resources Limited today closed up 50% to finish at 7.2c on $150k stock traded. There was no news out today but last week they announced drilling had commenced at its Boca Rica Lithium Project located in Brazil.

Boca Rica currently consists of 3,871ha covering an area of known Lithium-Caesium-Tantalum (LCT) pegmatite swarms that are extensive along strike and have been observed for up to 1.7km’s.

Rockchip samples were taken of strongly weathered spodumene crystals only from a shallow underground adit that returned results of up to 1.16 % LiO2.

The first hole is being drilled to a planned depth of 150m with an aim of intersecting the spodumene zone below the weathering profile.

WMG – Western Mines Group Limited today closed up another 37% to finish at 43c on $1.2m stock traded. The reason they were up today was because they announced more drilling results from its Mulga Tank Ni-Cu-PGE Project located in WA.

Drilling has intersected a ~700m thickness of high MgO meso-adcumulate dunite ultramafic containing disseminated magmatic sulphides (trace to 2%) that in a number of places coalesce into interstitial blebs (3 to 5% sulphide).

Multiple intersections of high-tenor remobilised nickel sulphide veinlets have been observed in this top portion of the hole, confirmed by spot pXRF readings up to 42.2% Ni.

The first 600m of core has been sampled and submitted to the laboratory for geochemical assay, a ~70kg sample also been taken for preliminary metallurgical test work.

LU7 – Lithium Universe Limited today closed up 27% to finish at 3.3c on $100k stock traded. The reason they were up today was because they announced the submission of an application for up to 18 MW of green electricity to Hydro-Quebec.

Hydro-Québec is a leading supplier of electricity that prioritises the use of clean and renewable energy, it generates just over 99% of its power from water sources.

This milestone follows a comprehensive engineering study conducted by Hatch Engineering, which has finalised the power requirements for train 1 of the proposed lithium refinery.

The application process with Hydro-Quebec, outlines the power needs for construction, commissioning, start-up, and the gradual ramp-up to full production of the first 16,000 tpa battery-grade lithium carbonate train.

MPK – Many Peaks Minerals Limited today closed up 18% to finish at 22.5c on $110k stock traded. The reason they were up today was because they released its quarterly which highlighted the recently acquired Turaco Gold (TCG.asx) & Predictive Discovery (PDI.asx) joint venture which holds the right to acquire an 85% interest in four mineral permits in Cote d’Ivoire.

The permits cover an expansive 1,275km2 land package and includes the Ferke Gold Project which contains a 16km mineralised trend in soils and hosts the recent Ouarigue South discovery.

The Ouarigue South prospect has returned assays of up to 35.95m @ 3.88 g/t gold within 77.6m @ 2.33 g/t gold from 45.9m.

The acquisition also includes the Odienne Project which is immediately along strike from new gold discoveries, Odienne has previously returned 12m @ 1.18g/t gold from 4m.

MPK plans to immediately commence auger drilling and surface geochemistry activity at the Odienne and Ferke projects, focusing on defining additional drill targets at each project ahead of commencing planned RC and AC drilling programs.

Concurrent with auger work, the company will complete mapping, advance ongoing regolith studies and modelling reviews with a focus on identifying extensions to open gold mineralisation.

RDN – Raiden Resources Limited today closed up 12% to finish at 3.7c on $1.9m stock traded. There was no news out today but last week they announced heritage surveys were completed over the Andover North & South Projects located in the Pilbara of WA.

The heritage survey encompasses areas where Raiden has defined priority targets for drilling over the high-grade lithium-bearing pegmatites at Andover South.

Rock chip assays have returned high grades of up to 3.80% Li2O & 3.64% Li2O from Andover South, X-Ray diffraction analysis (XRD) confirms spodumene as the dominant lithium mineral.

BDG – Barton Gold Holdings Limited today closed up 10% to finish at 28.5c on $320k stock traded. There was no news out today but on Monday they announced the completion of drilling at its Tarcoola Open Pit located in South Australia.

Barton will now process assays for current and December RC drilling along with ~600m of diamond drilling completed during September.

Drill planning on priority targets predicted by its recently published regional structural model for the Tarcoola Goldfield is now underway.

Last week, BGD announced a scoping study had commenced for the Tunkillia Gold Project which recently grew its JORC Mineral Resource Estimate to 51.3Mt @ 0.91 g/t Au for 1.5Moz Au.

What’s Not
KGN – today closed down 27% to finish at $5.10 on $36m stock traded. The reason they were down today was because they announced an April business update which revealed a decline of 6.2% on gross sales on the previous corresponding period to $178.3m.

The reduction in revenue follows a recalibration to its quality of revenue and focus on Platform-based Sales, which resulted in a significant reduction in inventories year-on-year (YoY).

Despite the fall in sales, gross margins improved by 5.2pp to 36.8%, underpinned by a larger contribution from platform-based sales and improved profitability of in-warehouse inventory sales after the prior sell-through of excess inventory.

Kogan is now down more than 41% from its highs of $8.73 back in March & more than 79% from its highs of $24.75 back in October 2020.

NXS – Next Science Limited today closed down 25% to finish at 31.5c on $320k stock traded. The reason they were down today was because they released its quarterly which revealed product sales of EXPERIENCE was lower than Q4 FY23.

The decline in sales reflects the expected slowing in sales cadence due to the sales restructure, NXS expects sales growth to return during 2Q FY24.

Next Science reaffirms its guidance for FY24 revenue of US$36m-$40m and continues to expect to be EBITDA and cashflow positive in 2H FY24.

NXS believes it has sufficient working capital to meet its obligations, however they are exploring funding options to provide a buffer against unexpected financial challenges as well as provide flexibility should investment opportunities arise.

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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