Stocks’ Details

Axiom Mining Limited (ASX:AVQ)

Mixed Performance of the Company - Axiom Mining Limited focuses on tapping into the resource potential within the mineral-rich Pacific Rim. The Company recently received Development Consent for the San Jorge nickel deposit following approval of its Environmental Impact Statement by Solomon Islands Government’s (SIG) Ministry of Environment. The Company also announced that it had received the conditional approval of SIG’s Ministry of Mines for its two mineral rights applications which included the MLA for the San Jorge deposit and for a PL for Tenement D. Further, a third application has been fully approved by SIG, with an LOI for a PL over Kolosori issued to Axiom. The LOI allows Axiom to use its exclusive right to negotiate and obtain agreements from the landowners of Kolosori. If we talk about from the financial perspective, the Group recorded a net loss of $4.1 million for the half-year ended 31 March 2018, had net cash outflows from operations of $3.9 million for the half-year ended 31 March 2018 and currently has no ongoing source of operating income.


Map showing the location of the San Jorge MLA, Kolosori PLA (Source: Company Reports)

The Group had net assets of $1.87 million on 31 March 2018 with a working capital deficiency of $4.33 million. The major milestone achieved by the Company was that the application which the Company submitted was conditionally approved by the Solomon Islands Government’s (‘SIG’) Ministry of Mines’ Minerals Board, subject to formal endorsement by SIG for a mining lease (MLA) over the San Jorge tenement in December 2016. Moreover, the Company also received approval from the Minerals Board for its Prospecting Licence Application (‘PLA’) over Kolosori. The Group is almost through with its government licencing process for its pending applications as these government approvals validate its strategy and reaffirm its leading commercial position in the Solomon Islands. ROE moved from (13 per cent) as on 30 September 2017 to (48.7 per cent) as on 31 March 2018 and Debt to Equity Ratio increased from 0.21 on 30 September 2017 to 0.57 on 31 March 2018. The stock price has been declining since one month that is by 23.53 per cent as on 2 July 2018. The stock was down by 7.69 per cent as on 3 July 2018 and was trading at $0.12. The stock looks “Expensive” at the current market price of $0.12, but can be watched for improvement in nickel prices and more positives on its nickel projects including Isabel Nickel Project.
 

Eden Innovations Limited (ASX: EDE)

Lapse of ESOP options- Eden Innovations is a clean technology solutions company that makes life better and the planet more sustainable. The Company announced that 150,000 ESOP options(Expiring on 28 February 2019, exercisable at $0.095) and 615,000 ESOP Options (Expiring 28 February 2020, exercisable at $0.27) got lapsed as the employees were no more the part of the Company. EdenCrete® is one of the Company’s product and is a carbon nanotube enriched admixture for concrete that significantly improves tensile and flexural strength without compromise to compressive strength, permeability, or corrosion resistance. The Group received its first long-term result from the field trial of EdenCrete® for its possible future use. One further trial is still left to be undertaken. These results will provide further support to the Company’s ongoing efforts to expand the marketing footprint of EdenCrete® throughout the US infrastructure market. The first GDOT (Georgia Department of Transportation) Federal/State funded a repair project that was advertised in April and anticipated that it may require US$525,000 worth of EdenCrete®. Further Current Ratio  decreased from 3.89 in June 2017 to 1.53 in December 2017 and Debt to Equity increased from 0.07 in June 2017 to 0.08 in December 2017 . For the past one year the stock price has been falling and was down by 76.17 per cent as on 2 July 2018. As per the overall outlook and high volatility, the stock can be avoided as of now and can be kept in the watchlist while we wait for any positive catalysts that may help the stock to grow down the line. The stock was trading at $0.056 on ASX as on 3 July 2018.


EdenCrete®-enriched concrete being laid in the Field Trial (Source: Company Reports)

 
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