Toro Energy Limited

Ongoing Development at various project facilities: Toro Energy Limited (TOE) is the small-cap company with the market capitalization of circa 56.19 Mn as of August 06, 2018. Recently, the company released its Quarterly Cashflow report for the quarter ended 30 June 2018 wherein cash outflow from operation recorded US$396.49 Mn which was down by around 3.4 % as compared to the previous quarter. The Company had US $4367.63 Mn in cash at the end of the June 2018 quarter. Total cash receipts during the same period were US$1000k.

During the quarter, the Company advanced to the next stage of its Beneficiation and Process Design studies for the Wiluna Uranium Project under BPD Studies in which the result of the BPD Studies confirmed an opportunity to reduce the capital and operating costs of the Wiluna Uranium Project processing facility which was successfully tested in the scoping study. The key outcome of the BPD Studies to date has been a re-design of the process flow sheet that has the potential to reduce the capital cost of the proposed hydrometallurgical plant by more than 40% to approximately $78 Million and to reduce the processing operating cost to approximately $16/t run-of-mine (RoM) feed.

The company also conducted a share purchase plan (SPP) under which all eligible shareholders were invited to invest up to $ 15,000 per shareholder at the issue price of $ 0.025 per new share. In the response, the company exceeded the aggregated capped amount of A$3.8 million by issuing of 153,222,417 New Shares pursuant to the SPP. The purpose of the SPP is to provide technological advancements to reduce the capital and operating expenses in the uranium process flow sheet for the Wiluna Uranium Project, to activities and studies to advance exploration for gold on Yandal Gold Project and for general working capital.

OZ Minerals Limited and its related bodies, a substantial holder of the group changed its holding from 21.2% of interest to 19.56% of the voting power. Given the backdrop of a mixed scenario, we believe it will be better to wait and watch this stock that trades at the current price of $0.026 as on August 06, 2018 (falling about 27.78% in last six months).
 

Blue Sky Alternative Investments Limited

Short Interest Fall: Blue Sky Alternative Investments Limited (ASX: BLA) has recently reported pre-tax Net Tangible Assets (NTA) of $1.1377 per share for the month of June 2018, representing muted growth of 0.7% since 31 May 2018. The Company (with a market capitalistaion of $216.3m) advised that the actual cash position at 30 June 2018 was $40.0 million with no corporate debt, on an underlying result and unaudited basis. This compares to the $32.3 million forecast provided on 12 June 2018. The main drivers of the improved cash position are the timing of deployment of institutional capital and the associated Blue Sky alignment capital, and stronger capital inflows from wholesale investor funds where Blue Sky had previously provided bridging finance. Besides this, the Company withdrew market guidance for underlying Net Profit After Tax (NPAT) for FY18 which was disclosed on 7 May 2018. The aggregate underlying NPAT impact of all valuation adjustments following independent review is negative $24.7 Million. Of this amount, $16.4 million was related to write-downs in the retirement living and student accommodation platform investments following unanticipated decisions to terminate and defer certain projects.

Recently, the group responded to the media report that the group is in discussions with Oaktree Capital Management in terms of a possible investment by Oaktree in the Company's business. However, the discussions are subject to negotiation and agreement as to investment structure and due diligence and there is no certainty that these will result in a transaction. Meanwhile, the stock is under the short-selling radar with over 4.75 per cent (as per the ASIC report of 31 July 2018), and it might be better to wait and watch out. BLA traded at $2.720 (down by 2.509 per cent) on August 06, 2018.
 

Genetic Technologies Limited

Strategic Alliance with Blockchain Global: Genetic Technologies Limited (ASX: GTG) is a diversified molecular diagnostics company (with a market capitalisation of $26.79m) embracing blockchain technologies across genomic testing platforms. It offers cancer predictive testing and assessment tools to help physicians proactively manage patient health. Recently, the group has entered into a strategic agreement with Blockchain Global Limited with the proposed issue of 486,000,000 shares to BCG in 3 tranches, subject to the achievement of certain milestones. According to the deal, both companies will seek to unlock opportunities that combine genetic screening capabilities with blockchain technology to promote better health outcomes for people around the world. As per the management, the Agreement with BCG will allow GTG to actively collaborate on the projects that use blockchain technology to advance biomedical opportunities including genetic research. Besides this, the group has also entered into an agreement with Swisstec Health Analytics Ltd to establish a JV Company to develop a service platform using blockchain technology. The basic objective of this partnership is to enter new markets and expand adoption of its predictive breast cancer screening test in Asia. Further, this joint venture Company will enable both companies to collaborate to develop a service platform using blockchain technology that will provide a marketplace for medical services and personalized health management and will also facilitate data management and AI-based services to promote better patient outcomes. Meanwhile, the stock has fallen 21.41 per cent in the past six months. It might be better to wait and watch out the stock for further performance drivers while the stock trades at the current price of $0.011.

 
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