Thursday 25 July 2024

What’s Hot – RAU, SUM, PLG, RCR, CE1 & TAH

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

What’s Hot – RAU, SUM, PLG, RCR, CE1 & TAH
What’s Not – OPT

What’s Hot
RAU – Resouro Strategic Metals Limited today closed up 34% to finish at 67c on $710k stock traded. The reason they were up today was because they dual listed after raising $8m @ 50c through the boys and girls at Taylor Collison.

Resouro holds a 90% ownership interest in the Tiros Rare Earth Project located in Minas Gerais, Brazil.

The funds from the public offer will be used for a targeted drill program with an aim to delineate a JORC compliant Mineral Resource in addition to metallurgical test work & preliminary technical studies.

SUM – Summit Minerals Limited today closed up 33% to finish at 38.5c on $4.4m stock traded. There was no news out today but on Monday they announced rock chip assays from its Equador Project located in Brazil.

The assays have confirmed high grade niobium and tantalum over a 1.2km strike length with highlights of 40.84% Nb2O5, 34.16% Ta2O5 & 9,070 ppm partial rare earth oxides (PREO).

Assays have now been sent to another lab so that a full suite analysis on the sample can be contacted, enabling them to announce the TREO percentage as well as potentially other elements contained within the samples.

PLG – Pearl Gull Iron Limited today closed up 21% to finish at 2.3c on $150k stock traded. The reason they were up today was because they announced a binding agreement was entered to acquire Huemul Holdings.

Huemul Holdings has the right to earn up to an 80% interest in NeoRe SpA, the holder of the La Marigen Project which is highly prospective for ionic adsorption clay (IAC) rare earth elements (REEs).

La Marigen is located in a region known to host mineralised clay horizons that are highly enriched in REE elements such as (Nd+Pr & Dy+Tb) as demonstrated at the nearby advanced IAC REE project, Penco.

RCR – Rincon Resources Limited today closed up 20% to finish at 7.9c on $1.1m stock traded. There was no news out today but roughly a fortnight ago they announced an update on exploration activities at its West Arunta Project located in WA.

Drilling contractors have been locked-in to drill the high priority Avalon target; the program will encompass up to 6,000m of combined RC and DD drilling.

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

CE1 – Calima Energy Limited today closed up another 17% to finish at 0.7c on $480k stock traded. There was no news out today but yesterday they went ex-dividend after distributing $80m to shareholders.

Calima returned 12.64c per share as a result of the sale of Blackspur Oil Corp to Astara Energy Corp (previously trading at 13c).

Post distribution, Calima will have ~A$5-6m cash and a 100% interest in the Paradise Field in British Columbia which generates approximately A$350k in free cash flow annually.

TAH – Tabcorp Holdings Limited today closed up 10% to finish at 65.5c on $15m stock traded. The reason they were up today was because they announced the NSW Government would establish a formal process to consider reforms to the NSW wagering tax regime, regulation and industry funding.

If the reform was implemented it would create a level playing field and modernise retail exclusivity, similar to recent reforms in Victoria and QLD.

This is a positive step towards ensuring the sustainability of the NSW Racing Industry.

What’s Not
OPT – Opthea Limited today closed down 18% to finish at 36.5c on $3m stock traded. The reason they were down today was because they announced the completion of a placement and institutional entitlement offer to raise $171.5m @ 40c with the retail entitlement offer opening next week to raise a further $55.9m.

The funds raised will be used towards the anticipated Phase 3 topline data readouts for COAST (Combination OPT-302 with Aflibercept Study), and ShORe (Study of OPT-302 in combination with Ranibizumab).

These studies were designed to assess the safety and superior efficacy of sozinibercept in combination with standard-of-care anti-VEGF-A therapies compared to standard of care alone.

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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