Stocks’ Details

Telix Pharmaceuticals Limited

Poised for Growth: Telix Pharmaceuticals Limited (ASX: TLX) has recently presented its business prospects at the Wilsons Rapid Insights Conference and highlighted about upcoming catalysts such as synergistic acquisition with Atlas SAS, expectation to complete FDA review of the manufacturing package for prostate imaging program in the month of June or July, beginning of its commercial activity for prostate program, and an update on Phase III for TLX250 imaging in Europe which is expected to complete by 2019, and 2-3 other important commercial / partnering opportunities which will be concluded by Q3 FY18. According to the presentation, the company has raised a total of AUD $58.5 Mn since listing on ASX with the objective of initiating a number of manufacturing and clinical activities aiming to unlock the clinical and commercial value of the Company’s pipeline. On the financial front, the current ratio substantially increased from 15.11x in June 2017 to 33.74x in December 2017 while debt to equity ratio stood at 0.01x in 1HFY18.


Product Mix Development over the next 24 Months (Source: Company Reports)

On the other hand, the company declared that a consortium of industry teammates including CSIRO, GE Health and ThermoFisher and Telix have been awarded an AUD $1.1m Science and Industry Endowment Fund to help the foundation of a progressed biopharmaceutical manufacturing footprint in Australia. Besides this, there is a joint meeting with ANMI SA for the Ga-PSMA kit which will be conducted on June 25, 2018 at Society of Nuclear Medicine and Molecular Imaging (SNMMI) in the United States. We expect that this meeting will support to debottleneck its growth path ahead. Meanwhile, the company appointed Ms. Jann E. Skinner to the Board as Non-Executive Director as she has rich experience in audit and accounting and governance and risk management. Although, the stock climbed up 28.0 percent in the past three months, but it fell by 9.9 percent in last one month. The stock currently trades at the reasonable price. Hence, we maintain our “Speculative Buy” recommendation on the stock at the current market price of $0.660 (up 3.125% on June 21, 2018), considering that TLX is expected to start generating first sales from some of its programs, over the next 12 months, and will find support from clinical milestones and commercial data points.
 

Battery Minerals Limited

Update on Montepuez & Balama Projects: Battery Minerals Limited (ASX: BAT) has earlier disclosed its update on Montepuez & Balama Projects which were on fast track to achieve key milestone. Project finance was said to be the next milestone as the group has been focusing on its capital raising event and expected to receive a further $9 million in proceeds. Further, the group thought of exporting its first shipment of graphite concentrate in next 12 months after the completion of project finance. On the other hand, the group recently outlined about the delivery of a scoping study on its Balama Central project, which comprises a Stage 1 production rate of 55,000tpa (B1) and Stage 2 rate of an additional ~55,000tpa (B2) for an aggregate of 110,000tpa from Balama. Balama is currently the subject of a feasibility study and expected to conclude by H2 FY18. The Company has signed 4 offtake agreements that cover 80 per cent of Montepuez stage 1. It has set a production target for 200ktpa+ by end of 2023.  The current ratio stood at 5.21x in H1 FY18.Meanwhile, the stock has fallen 59.21 per cent in last three months as on June 20, 2018 as Resource Capital Funds (RCF) pulled off the $US30 million debt and equity funding agreement with BAT. This is now expected to derail some plans while the group is looking for alternate options. Hence, we maintain our “Hold” recommendation on the stock at the current price of $ 0.031, in view of upcoming AGM meeting scheduled on June 27, 2018.


Balama Scoping Study Outcomes (Source: Company Reports)
 

BrainChip Holdings Limited

Decent Outlook: BrainChip Holdings Ltd (ASX: BRN) has provided an update on the Company’s License and Development Agreement with Gaming Products International. In January 2018, the group has entered into a global licensing, development and revenue sharing agreement with Gaming Partners International Corporation to develop technology in support of GPI’s advanced automated table solution to collect and analyze real-time data. This deal is related to the joint development of video analytic products for worldwide deployment in casino currency security, game table operations and player behaviour applications. Besides this, the Board of Directors appointed Julie H. Stein as a Lead Independent Director of the company and is expecting her support to advance shareholder value through excellence in governance and oversight and in working closely with management on strategy and execution. In the past one year, the stock price fell by 18.75 per cent as at June 20, 2018 and is trading near to 52-week low levels ($0.110). The stock was further down 3.8% on June 21, 2018.  We maintain our “Speculative Buy” recommendation on the stock at the current market price of $ 0.125, considering the positive outlook based on foregoing developments.
 

iSignthis Limited

SWIFT Membership: iSignthis Ltd.’s (ASX: ISX) stock climbed up 3.226 per cent on June 21, 2018 following the announcement of central banking facilities and SWIFT membership wherein the company signed a certification agreement for Eurosystem Central Bank Facilities & Account. As per the announcement, the group has now become a “usership” member of SWIFT which will enable the identity verification and payment services company to issue International Bank Account Numbers (IBAN). Additionally, the group will further benefit from SWIFT message interconnectivity with over 11,000 others financial institutions globally. Besides this, the Company has also announced that it has entered into certification arrangements with a Euro system Central Bank for a EURO based Account with the objective of funds settlement of incoming and outgoing SWIFT, STEP2, and RT1 payment systems, as well as Cards, SEPA Instant, Direct Debit and Credit Transfer. As per the agreement, funds from SWIFT, SEPA, Cards and other payment systems will be allowed to flow into the Company’s central bank account. Further, the Company will be able to allocate these funds to client segregated IBAN accounts generated under its own BIC of ISEMCY22. Meanwhile, the share price was up by 10.71 per cent in the past one year but down by 13.89 per cent in the last one month as at June 20, 2018 while we put a “Hold” recommendation on the stock at the current market price of $ 0.160, considering above deal which will allow its corporate and merchant customers to facilitate payments from one IBAN account to another internally at low service cost.
 

Yojee Limited

Appointment of Chief Operating Officer: Yojee Limited (ASX: YOJ) has appointed Mr. Carl Hemus to the Board as a Chief Operating Officer, effective from September 01, 2018. He has rich exposure, spanning over 25 years, working within the logistics, global supply chain and eCommerce sectors in Europe and more recently, Asia, and is the ideal appointment for the group as it enters a significant growth phase in the Asian region and beyond. To attract talent like Carl reflects the standing YOJ now has in the industry as a leader in the digitization of global supply chains. On balance sheet front, the current ratio stood at 20.16x in 1HFY18, representing healthy liquidity position of the firm. Account receivable days substantially decreased from 1558.5 days to 60.3 days in the past six months which is likely to be inline with the industry median (62.4 days).We expect that the company will continue to maintain its receivables days at the back of strategic management policy. Based on the foregoing development and trading volatility, we maintain our “Speculative Buy” recommendation on the stock at the current market price of $ 0.150 (up 3.45% on June 21, 2018).
 

Argosy Minerals Limited

Positive Estimates for maiden lithium resource at Rincon:Argosy Minerals Limited (ASX: AGY) is an Australian company with a current 77.5% interest in the Rincon Lithium Project in Salta Province, Argentina. Recently, the group disclosed about its estimates formaiden JORC Mineral Resource for its Rincon Lithium Project. Following this, the grouphas estimated a maiden JORC resource of 207,957 tonnes of lithium carbonate equivalent (LCE) within the brine aquifers of its Rincon Lithium Project. For instance, the weighted average lithium concentrations were between 324 mg/L and 369 mg/L, with a maximum recorded concentration of 490 mg/L, and estimated specific yield varying between 1% and 13%. These resource estimates exceed the company’s expectation and build a decent basis to advance the PEA for the Rincon Lithium Project. Although, the next exploration stage will involve Argosy testing the brine aquifers further to extend the resource. This will incorporate deep bore pumping tests along with shallow exploration including test bores and more pumping trials. The current ratio came at 13.56x in 1HFY18. Meanwhile, the stock has fallen 28.57% in three months as on June 20, 2018 and is trading close to the median of 52-week high and low levels. Hence, we maintain our “Hold” recommendation on the stock at the current market price of $ 0.245, considering the foregoing estimates which will support project production targets.


Summary of JORC Mineral Resource Estimate (Source: Company Reports)

 
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.