Stocks’ Details

Renascor Resources Ltd (ASX: RNU)

Focus on key Projects: Renascor Resources Limited is engaged in exploration of copper, gold, uranium and other minerals in Australia and its projects include Arno Graphite Project, which is associated with four granted exploration licenses - ELs 5618, 5204, 5496 and 5714, covering approximately 1,372 square kilometers in the Eyre Peninsula; Munglinup Project, located within the Albany-Fraser Range province; Eastern Eyre Project located in Southern Gawler Craton (South Australia); Farina Project, in Adelaide Fold Belt (South Australia); Warrior Uranium Project, in Gawler Craton (South Australia); and Carnding Project, in Gawler Craton (South Australia). The Carnding project area includes approximately two tenement blocks located approximately 75 kilometers from Challenger gold mine in the north of South Australia.

The group has completed a review of cobalt and nickel prospects at its Munglinup Project in the Albany-Fraser Range province of Western Australia and identified extensive areas of ultramafic sub-crop which have potential for laterite-hosted nickel-cobalt and nickel-sulphide within the Boanaernup and Young River. Next step of the exploration programs at Munglinup may include soil and surface rock chip sampling and airborne electromagnetics to test for the conductors which are associated with massive nickel and cobalt sulphides prior to the drill testing.  RNU’s main focus continues to be development of its Siviour Graphite Project where current activities include the Siviour Pre-Feasibility Study and also spherical graphite scoping study and preparation of the Siviour mineral lease application. With increasing interest in the commodities that RNU deals in, the group is considering Boanaernup and Young River, as well as its cobalt prospects at Olary Project in South Australia for further exploration.

While the shareholder return has been decent, the return on capital has been in the negative zone over the years. Recently, RNU issued 2,500,000 fully paid ordinary shares at the closing price as the date of issue without disclosure to investors under Part 6D.2 of the Corporation Act pursuant to the terms of the consultancy agreement. On the other hand, RNU is in discussions with its potential offtake partners from China, Europe and US in developing graphite products and for graphite trading. The stock price has increased by 88.89% in the past six months with an 8.8% rise on January 08, 2018. Investors with appetite for risk can consider the stock that looks highly speculative at the current price.
 
 

Munglinup Project (Source: Company Reports)
 

PepinNini Lithium Limited (ASX: PNN)

Completed Borehole drilling: PepinNini Lithium Limited, formerly known as PepinNini Minerals Limited, is an exploration company focusing on exploring and developing a lithium brine resource and production project in Salta Province Argentina within the Lithium Triangle of South America. The Company also holds strategically located exploration tenements in the Musgrave Province of South Australia. The Company’s copper-gold exploration activities in Salta Province, Argentina entail Rincon projects, Pular projects, Incahuasi projects, Pocitos projects, Arizaro project, and Salinas Grandes projects.

Recently, PNN came out with its drilling results from the second completed borehole on the Rincon Project and the Borehole PNN-VI-DW-02 intersected two primary aquifers in two distinct rock type sequences. On the other hand, the group’s project updates were delayed because of Christmas and New Year, and results have been expected by the end of January. The field camp logistics are in the process of drilling on the Pular Project which are yet to commence, and results will be out in February.

The share price has increased by 300% in the past six months but there was a dip in prices in last week by almost 25%. The NTA per share is seen to be decreasing over last one year. However, the stock’s latest update led to a boost of 12.5% on January 08, 2018 and this makes the stock look overvalued at the current price.
 

Anson Resources Limited (ASX: ASN)

Paradox Lithium Development Plan: Up 18.18% on January 08, 2018 while touching high levels, Anson Resources Limited is engaged in exploration for minerals in the mid-west of Western Australia and is looking for key resource projects. The Company, through Iconic Minerals Ltd, owns a range of gold exploration projects in Nevada, including the Hercules Gold Project. In addition to the gold projects, Iconic Minerals Ltd holds a lithium project, the Bonnie Claire Lithium Brine Property, located in Nye County, Nevada. The Company holds interest in Hooley Well Project, E9/2218, which is located 800 kilometres north of Perth and 300 kilometres east of Carnarvon.

Anson has completed the drilling preparation for the Gold Bar Unit 2 and there was a re-entry of its Paradox Lithium Project which is located in the “Lithium Four Corners” area in Utah. Anson is targeting lithium rich brines in the deepest part of the Paradox Basin. Anson also completed the placement of a further 20 million shares to Zhongfan Group at 8.8 cents per share to raise $1.76m and these proceeds will be used to fund the in-field pilot plant construction and further exploration drilling. As ROE is seen to be declining significantly from -87.8% in 2016 to -174.3% in 2017 with bleak earnings trend, while the share price increased by 1000% in the past six months, the stock looks expensive at the current market price.
 

Paradox Lithium Development Plan (Source: Company Reports)
 

Corazon Mining Limited (ASX: CZN)

Focus on Cobalt Ridge Prospects and new cornerstone investor added: Corazon Mining Limited is an Australia-based company engaged in exploration for nickel, copper and gold, and development of mining activities. The company operates through two segments in Australia and Canada with regards to mineral resource and exploration activities. The Company is exploring and developing the Lynn Lake Nickel-Copper-Sulphide (Lynn Lake) project in Canada and Mount Gilmore Cobalt-Copper-Gold project in Australia. Recently, CZN announced its high-grade Cobalt intersections across multiple lodes in latest assays at the cobalt ridge and the results are highly positive. It is also planning a field work in the next phase to test the extensions of the mineralisation under the cover. Results are pending for another two holes which are expected to return additional narrow zones of the mineralisation and these results are expected to be out soon. Corazon undertook a placement to raise approximately $1.8 million, including a strategic investment of $1.68 m by Hanking Australia Investments Pty Ltd which is a special resource investment vehicle. The company’s current focus is on Cobalt Ridge Prospects within the Mt Gilmore Project which coincided with an increase in the market appreciation as cobalt is a significant component within the lithium-ion batteries. The group is thus in the high-risk, high-reward exploration phase. By looking at the overall picture we recommend that the stock is a highly speculative one, and can benefit from improving commodity scenario.
 

Ardiden Limited (ASX: ADV)

Strategically increased the project footprint: Ardiden Limited is an Australia-based mineral exploration company, engaged in the exploration and evaluation of mineral resources. The Company's segments extend across Canada (Manitouwadge, Hinton North, Seymour Lake, Root Lake) and Australia.

Recently, Ardiden came out with an update of an expansion of Seymour Lake Project for a rapid development with its two new mining claims approved by MDNM. While it moves closer to its objective of exercising the Yantai Term Sheet, the group is also progressing well on its fast-tracked development strategy at Seymour Lake. A transport corridor has been developed for the Seymour Lake Lithium Project which created a direct unfettered access to the local transport network at Ferland Train Station which is a vital step towards required development.

It will be early to predict the value of the projects as group’s earnings retention seem to be bleak with return on equity yet to fall on positive side (although improving over years). Though the stock price has increased by 35.7% in the past six months, but looking at the overall picture and prospects, we think that this stock can be watched out in the future while it looks expensive at the current price.


Project Map (Source: Company Reports)

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