Stocks’ Details

Golden Mile Resources Limited

New Gold Discovery at Benalla Gold Trend:Golden Mile Resources Limited (ASX: G88) owns several resource tenements in Western Australia and is actively exploring the tenements for gold, nickel and cobalt and related resources. The company recently announced that it has now received all assay results from an extensive auger sampling program over the Benalla Gold Trend (BGT) on the Leonora East Project in the North-Eastern Goldfields of Western Australia. Sampling has outlined coherent gold anomalism stretching over more than 10 kilometres of strike, confirming that the Benalla Gold Trend contains significant gold mineralised system and verifying further exploration potential for discovery of significant gold deposit within the company’s tenement area. In another update, G88 announced that it has entered into a binding purchase agreement with Legend Resources Pty Ltd to acquire a 100% interest in the Yuinmery Gold Project, located in the Youanmi Gold Mining District of Western Australia.

Key Highlights of June’19 Quarterly Activities Report:Cash outflows from operating activities for the period was reported at $231K. Cash and cash equivalents at the end of the period were reported at $1,127K.


June’19 Quarter Operating Cash Flow Statement (Source: Company Reports)

What to expect:With the ongoing exploration program in the North-Eastern Goldfields and the Company’s Quicksilver nickel-cobalt project in the South-West Mineral Field of Western Australia, the company is expected to deliver favourable results in the coming times.

Stock Recommendation:G88’s share generated a positive return of 27.59% and 32.14% in the last 1-month and 3-months, respectively. Despite negative profitability margins, its current ratio for H1FY19 stood at 19.92x, better than the industry median of 1.89x. On July 18, 2019, the stockmade its 52-week low level of $0.044 and since then it has risen around ~70.45% to the current levels. Acquisition of Yuinmery Gold Project is an important addition to the project portfolio of the company. Considering the progress of projects, new acquisition, price movement in the last one-month and current trading levels, we suggest investors to take a wait and watch stance on the stock at the current market price of $0.075, up 1.351% on September 9, 2019.
 

Auris Minerals Limited

Encouraging Drilling Results at Cashman, Feather Cap and Horseshoe Well:Auris Minerals Limited (ASX: AUR) is involved in the exploration of high-grade copper-gold deposits in the highly prospective Bryah Basin region of Western Australia. The company recently announced that it has received encouraging results from the Regional Air Core drilling campaign, completed to test new targets defined at Cashman, Feather Cap and Horseshoe Well projects within the company’s Bryah Basin tenements in Western Australia. The gold targets defined by the new significant intersections will be incorporated into a review of the gold prospectivity and target generation process, covering the Bryah Basin tenements that the company is currently undertaking. In a previous update, AUR announced that it has applied for an exploration license (ELA52/3740) of around 288 km², located immediately to the west of current tenement, E52/3248 which forms part of the Horseshoe Well Project.

June’19 Quarter- Key Highlights:Net cash outflow from the operating activities for the period was reported at $560K. Net cash inflow from the investing activities for the period was reported at $436K. Cash and cash equivalents at the end of the period came in at $1,859K.


June’19 Quarter Operating Cash Flow Statement (Source: Company Reports)

What to expect:Ongoing exploration and developments at Forrest and Wodger Drilling, Cashman, Horseshoe Well, Morck Well West Project and Morck Well JV - Managed by Sandfire Resources NL (Earning 70% Interest), are likely to support the company in delivering value to its customers and shareholders in the coming times.

Stock Recommendation:Auris Minerals Limited’ share generated a negative return of 31.58% in the last 3-months. The stock is currently trading close to its 52-week low level of $0.011. Profitability margins for H1FY19 have improved over the prior corresponding period. Current ratio for H1FY19 stood at 5.92x, better than the industry median of 1.89x. The company has consolidated tenement portfolio of 1,520km², comprising the seven well-defined project areas. The company is focused on unlocking the value of the current tenement package in the Bryah Basin along with the assessment of new strategic project opportunities as they arise. Hence, considering the aforesaid facts coupled with development of ongoing projects, quarterly progress, and current trading levels, we put our wait and watch stance on the stock at the current market price of $0.013 with no change on September 9, 2019.
 

Calix Limited

CXL Successfully Commissioned Advanced Battery Facility at Victoria:Calix Limited (ASX: CXL) has developed patent-protected, platform technology that produces new materials and processes, targeted at solving some significant global challenges. The company recently announced about the successful commissioning of its advanced battery materials reactor – BATMn at its industrial site at Bacchus Marsh, Victoria.BATMn project is a $2.7 Mn new reactor for producing advanced battery materials, part-funded by the Australian Government through the Advanced Manufacturing Growth Fund.With this project, CXL aims to find safer, more recyclable alternatives to current lithium-ion battery materials, which are largely depend upon expensive, poisonous and hard-to-recycle materials such as cobalt. With explosive growth predicted in electric vehicles in the coming decade, this development is vital to improve the sustainability of the transition to electric vehicles. In another update, CXL announced that its 8,360,287 fully paid ordinary shares will be released from escrow on September 12, 2019, in accordance with voluntary escrow deeds signed by the shareholders at the time of the listing.

FY19 Key Highlights:Total revenue and other income for FY19 came in higher by 14% to $13.9 Mn. Core product sales for the period decreased by 18% to $3.3 Mn. Product gross margins for the period was reported at 39.4%, an increase of 5% on previous period. Other revenue for the period was reported at $10.6 Mn, an increase of 31% on previous period. Pro-forma EBITDA for the period increased by 9% to $2 Mn.


FY19 Financial Snapshot (Source: Company Reports)

What to expect:The company expects a great potential in Asia and the US for organic and portfolio growth and is progressing well to expand its top-line in these markets, which is likely to flow through FY20. The company also witnessed a strong growth in newer, higher margin products, which generated an expansion in its gross profit margins. Start to FY20 has been encouraging for the company, with year-to-date to end-August ACTI-Mag sales already up by nearly 40%, and AQUA-Cal+ sales up by around 100%.

Stock Recommendation:CXL’s share generated a negative YTD return of 5.66%. Its gross margin for H1FY19 was reported at 84.7%, better than the results in H1FY18 at 71.1%. However, its net margin for H1FY19 stood at negative of 58%, as compared to negative of 37.7% in H1FY18. Its current ratio for H1FY19 stood at 2.74x, better than the result in H1FY18 at 0.92x. The stock is currently trading slightly below the average of its 52-week trading range of $0.640 - $1.020. Hence, consideringthe aforesaid facts, commissioning of BATMn successfully,and current trading levels, we suggest investors to take a watch stance on the stock at the current market price of $0.820, up 9.333% on September 9, 2019 on updating the markets about the successful commissioning of BATMn.
 

Marindi Metals Limited

Commencement of Spudding Program at the Kit Kat Gold Prospect:Marindi Metals Limited (ASX: MZN) is involved in the exploration and development across all its projects in Western Australia and the Northern Territory, resulting in, drill programs at both its Forrestania and Newman projects. The company recently announced that its maiden Reverse Circulation (RC) drill program will commence at the Kit Kat gold prospect, part of its 100%-owned Forrestania Gold-Lithium Project in Western Australia. It has designed the drill-holes to target several interpreted parallel shear structures running along the same structural corridor that hosts the high-grade Kat Gap prospect, which is likely to provide a unique opportunity to explore for high-grade gold in a historically overlooked region. In another update, the company informed about the issuance of 4,999,998 fully-paid ordinary shares at $0.06 per Share in full satisfaction of the Convertible Notes, totalling $300,000 and 10,000,000 Advisor Options, following shareholder approval granted at the General Meeting held on August 23, 2019. Earlier, the company informed the market about the completion of its shares consolidation wherein every 60 shares would be consolidated into 1 share and every 60 options would be consolidated into 1 option, as approved in the general meeting.

June’19 Quarter Key Highlights:Net cash outflow from the operating activities for the period was reported at $431K. Net cash outflow from the investing activities for the period was reported at $50K. Net cash inflow from the financing activities for the period was reported at $496K, wherein proceeds from issue of shares were reported at $531K. Cash and cash equivalents at the end of the period stood at $239K.


June’19 Quarter Operating Cash Flow Statement (Source: Company Reports)

What to expect:At Gem Pegmatite Prospect, evaluation of both lithium and gold potential are being continued ahead of potential reconnaissance drilling. At Great Southern Gold Prospect, program-of-work is on track and drill-pad clearances over the GS19 target is in progress. At Kit Kat Gold Prospect, program-of-work is on track and drill-pad clearing has been submitted to DMIRS (Department of Mines, Industry Regulation and Safety).

Stock Recommendation:MZN’s share generated a whopping return of 66.67% in the span of one month. The stock is currently trading close to its 52-week low of $0.050. Moreover, its current ratio for H1FY19 stood at 3.14x, better than the industry median of 1.89x, which implies that the company is in a better position to address its short-term obligations. Hence, considering the aforesaid facts and current trading levels, we recommend a “Speculative Buy” rating on the stock at the current market price of $0.105, up 5% on September 9, 2019, taking cues from the announcement of drilling, initiated at Forrestania’s Kit Kat Gold Prospect.
 

Azure Minerals Limited

AZS Regains 100%-ownership of Alacrán Project:Azure Minerals Limited (ASX: AZS) is involved in the exploration for precious and base minerals in Mexico. The company recently announced that Teck Resources Limited has become a substantial holder in the company with the voting power of 19.9%, effective from September 27, 2019. In another update, the company highlighted that its agreement with Minera Teck S.A. de C.V. for Azure’s acquisition of all of Teck’s rights and interests in the Alacrán Project has been executed. Teck is a 100%-owned subsidiary of Canada’s largest diversified resource company, Teck Resources Limited. Azure’s discoveries of the Mesa de Plata and Loma Bonita deposits together, contain resources of more than 32 million ounces of silver and 150,000 ounces of gold. Going forward, the company expects further silver and gold discoveries to be made at Alacrán in coming times.

June’19 Quarter Key Highlights:Net cash outflow from the operating activities for the period was reported at $1,108K. Cash and cash equivalents at the end of the period was reported at $650K.


June’19 Quarter Operating Cash Flow Statement (Source: Company Reports)

What to expect:As per the release, Alacrán offers potential for hosting large porphyry copper deposits and additional high-grade precious metal deposits like Azure’s discoveries at Mesa de Plata and Loma Bonita. The company believes that, in addition to Mesa de Plata and Loma Bonita, it has the potential to host more high-grade precious and base metal deposits.

Stock Recommendation:AZS’s share generated a decent YTD return of 30.43%. The stock is currently trading above the average of its 52-week high and low levels of $0.215 and $0.089. Its current ratio for H1FY19 stood at 5.83x, better than the industry median of 1.89x, which implies that the company is in a better position to address its short-term obligations. Hence, considering the aforesaid facts, latest developments and current trading levels, we recommend a “Speculative Buy” rating on the stock at the current market price of $0.160, up 6.667% on September 9, 2019.
 
 
 Comparative Price Chart (Source: Thomson Reuters)

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