Magnis Resources Ltd



MNS Details

Finalized all regulatory and environmental permits for Nachu:  Magnis Resources Ltd (ASX: MNS) reported that the cash flows relating to operating activities have been of the order of (A$2,136,000) at the end of the quarter June 2016 while the cash at the end of the quarter is A$7,208,000. MNS had signed the Power agreement with US based Symbion Power for its Nachu Graphite Project. Moreover, the group got the letter of Intent from the Tanzania Ports Authority for further steps regarding the acquisition of a long term lease at the port of Mtwara. Meanwhile, MNS finalized all regulatory and environmental permits for Nachu and expects initial site works to finish by fourth quarter of CY16 before the Tanzanian wet season in January 1Q CY17.
 


Nachu Graphite project (Source: Company Reports)
 
Additionally, MNS has achieved exceptionally high purity 99.99% total graphite content (TGC) material in the production of a coated anode graphite for lithium-ion batteries indicating solid prospects. Nachu graphite anode with silicon indicates scope for the next generation Lithium-ion performance. Given such positive prospects of Nachu Graphite Project, MNS stock has already risen 122.97% in the last six months (as of August 02, 2016). Accordingly, we give a “Hold” recommendation on the stock at the current price of $0.795
 

MNS Daily Chart (Source: Thomson Reuters)
 
Syrah Resources Ltd



SYR Details

Raising funds for Balama Project:Syrah Resources Ltd (ASX: SYR) became a substantial holder from National Australia Bank (NAB) on July 28, 2016. SYR has successfully raised A$194 million capital at A$6.05 per share for funding the Balama Project which is on schedule to finish by August 2016 in terms of engineering and design. Moreover, SYR continues to get major customer interest from China, Europe and North America. SYR is conducting further process in engineering test work, optimization and product sample preparation for customers at its spherical graphite pilot plant in China. The group has finalized a five-year offtake agreement with Marubeni Corporation (Marubeni), a major Japanese integrated trading and investment conglomerate. Marubeni would buy a total of 50,000 tonnes of product per annum and supply the product to its customers, which include the largest battery and anode producers in the world. Meanwhile, SYR stock has fallen over 29.23% in the last four weeks (as of August 02, 2016) due to commodity price volatility. Accordingly, we give a “Hold” recommendation on the stock at the current price of $4.40
 

SYR Daily Chart (Source: Thomson Reuters)
 
Black Rock Mining Ltd



BKT Details

Update from Mahenge mineralized zones: Black Rock Mining Ltd (ASX: BKT) recently reported that they would make the final payment of AUD$250,000 to Mahenge North PL7802/2012 following the rise in company’s stock price over the daily VWAP of $0.10 for 10 consecutive days. BKT stock was in uptrend this month and generated over 176.12% in the last four weeks (as of August 02, 2016) as the group reported for 99%-99.1% TGC flake concentrate purities for all size fractions >75 microns in all Mahenge mineralized zones. The comprehensive spherical and expandable graphite test programs are underway and the initial tests are expected in August 2016. The Pre-Feasibility Study results are expected by October 2016. Moreover, BKT has completed the Ulanzi infill drill program and the drilling is underway at Cascades. The upgraded JORC resource is expected in September 2016. But, we believe that BKT stock rally of over 374.36% in the last six months (as of August 02, 2016) placed the stock at unreasonable valuations. We give an “Expensive” recommendation on the stock at the current price of $0.17
 

BKT Daily Chart (Source: Thomson Reuters)
 
Ardiden Ltd



ADV Details

New lithium projects and graphite project update: Ardiden Ltd (ASX: ADV) reported for A$4,032,000 of cash at the end of the June quarter 2016. ADV has finished two Canadian lithium projects acquisitions after positive drill campaigns. Accordingly, the group strengthened its balance sheet with $2.9 million of capital raising. For the Seymour lake lithium project (Ontario, Canada), the group witnessed solid grades of up to 5.4% lithium oxide (Li₂O) from due diligence diamond drilling program.
 

 
Location of Root Lake, Root Bay, Seymour Lake and Manitouwadge projects (Source: Company Reports)
 
Major grades of Li₂O were returned in all 150 drill core samples with 30% returning results greater than 2.0% Li₂O. As per Root lake lithium project (Ontario, Canada), the Maiden due diligence diamond drilling was finished having all eight drill holes intersecting spodumene-bearing structures and delivered grades of up to 3.8% lithium oxide (Li₂O) from 151 core samples. ADV’s metallurgical work commissioned on the Manitouwadge Project indicated that 16.2% of the graphite concentrate has +425 μm size fraction (jumbo flake obtained without gravity or flotation), 10.3% of the sample has -425 to +300μm (jumbo flake), 29% has a -300 to +180μm (large flake) size fraction and 11.1% was reported to have -180 to +150μm (medium flake) size fraction. The company plans to commence a channel sampling program to confirm graphite grades and grain size distribution in the existing trenches. On the other hand, the stock has been correcting over 41.67%in the last three months given the lithium price movement (as of August 02, 2016). The stock is “Expensive” at the current price of $0.02
 

ADV Daily Chart (Source: Thomson Reuters)

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