Battery Minerals Limited (ASX: BAT)

RCF pulls out $30 million funding: Battery Minerals Ltd (ASX: BAT) was seen to nose-dive by about 35% on June 13, 2018 as Resource Capital Funds (RCF) has shrugged off the $US30 million debt and equity funding agreement with BAT. This has led BAT announce for a delay in the development of the flagship graphite project in Mozambique. RCF has advised the company that the graphite market does not meet its investment criteria any longer. On the other hand, Battery Minerals has assured that broader market outlook for graphite prices and demand is still attractive, and it now aims to look for alternative financing options for its Montepuez project. The group’s stage one project has been slated to yield 50,000 tonnes of graphite concentrate per year to have operating cashflow of US$20 to $25 million. The market has slammed the stock while fund’s decision has come post completion of first-phase due diligence. As a result of this update, the first shipment of graphite concentrate from Montepuez has been indicated to be postponed from June 2019 for at least 3 months, and about 12 months after completion of project financing, while its cash on hand is of the order of $14.8 million. BAT is now focusing on its capital raising event and also expects to receive a further $9 million to $14 million in proceeds. While we give a “Hold” on the stock at the current price of $ 0.032, all eyes are on the annual general meeting scheduled for June 27, 2018.
 

Donaco International Limited (ASX: DNA)

Injunction obtained on Star Vegas casino business land: Leisure and entertainment company, Donaco International Limited (ASX: DNA) witnessed a stock price fall of 20% in last five days (as at June 12, 2018) while investors have been worried on the update of its legal dispute with the vendors of the Star Vegas casino business in Cambodia. Primarily, Banteay Meanchey Court of First Instance, has granted an injunction to DNA on the threatened termination of lease of the land where Star Vegas business operates in Cambodia. Though DNA has been able to receive favourable decisions in its kitty, but the legal costs can have an impact. Particularly, injunction has been granted to prevent threatened termination of lease (50-year) of the land in question. The land is owned by the lessor, Lee Hoe Property Co., Ltd, jointly owned by the vendors of the Star Vegas business. The lessor is now known to threaten to terminate the lease on some spurious grounds. Accordingly, Donaco has obtained an injunction in its favour complementing the previous injunction granted in Donaco’s favour, to prevent the vendors from getting into an illegal competition in the Poipet area, in breach of the sale agreements for Star Vegas. While arbitration proceedings are going on in Singapore, Donaco has lifted the size of its damages claim from USD120 million to USD190 million. The group’s Star Vegas business has been still recovering from impact of the Thai vendor’s breaches of contract while Aristo International Hotel Casino visitation has been up as per March quarter update. We put a “Hold” on the stock at the current price of $ 0.155.

 
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.