Clean TeQ Holdings Limited
Ongoing Development Augurs Well for Growth:Clean TeQ Holdings Limited’s (ASX: CLQ) stock inched slightly up on April 11, 2018 while traded flat on April 12, 2018. The company’s activities report for the March quarter revealed that the group has raised A$150 Mn at A1.15 per share through oversubscribed institutional placement. This included Fidelity Investment acquiring around 6 per cent stake in the company and becoming a third main shareholder of the company. The group has plans to use the proceeds to fund early works and long lead items to accelerate the development of the Company’s 100% owned Clean TeQ Sunrise Nickel/Cobalt/Scandium Project. Besides this, the group is tracking well on its Sunrise Project with regards to completion of the Definitive Feasibility Study (DFS) for the Project, with substantial work completed to date. It will be completing the Definitive Feasibility Study in Q2 2018. During the quarter, the company has achieved an important milestone with NSW development of Planning and Environment formally issuing the Mining Leases (MLs) over the project area (ML 1770) and proposed limestone quarry (ML 1769). Receipt of the Mining Leases will provide secured tenure over the primary mining area as well as source of limestone for processing operations and it will allow Clean TeQ to start full scale construction activities on the site, following final investment decision (FID). At the end of quarter, CLQ has A$116.7 Mn cash at bank and this amount does not include proceeds of Tranche 2 Placement, circa A$50 Mn which is due to settle on April 20, 2018 (subject to shareholder approval).
Further, the business development work continued during the quarter with number of feasibility and pilot programs underway for various clients interested in leveraging Clean TeQ’s Ion Exchange technology. This development includes a range of projects in industrial waste water, process water and tertiary treatment in China, South America, Africa and Australia. The share price has been down by 23.08 per cent in the past three months as on April 11, 2018. Based on ongoing development, we expect that the group will be benefited from Cobalt and Scandium trends in years to come given the its strategic partnerships (with Pengxin Mining, Ionic Industries and Monash University) and use of commodities of interests in electric vehicle batteries. We give a “Hold” recommendation on the stock at the current market price of $1.150.
.png)
Mining Lease ML 1770 Map (Source: Company Reports)
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.