Mining is Australia’s one of the most established sector. Not only it is one of the highest contributors to the GDP, the industry is export-oriented. After China, Russia, and the United States, Australia is the fourth largest mining country in the world. Few stocks in the mining sector which investors continue to watch are discussed here. In addition, two sectors that have been catching investors’ attention have been the infant formula one and the cryptocurrency one; and a few stocks from these categories have been enlisted herein.
Australian Mines Limited (ASX: AUZ) – An extension drilling across historic Greenvale mine extends nickel-cobalt resource potential at Sconi Project, meanwhile project financing negotiations are also accelerated. From US fund Bergen Global Opportunity Fund II, LLC, the company secures $12 million investment. Producing cobalt sulphate and nickel sulphate products for potential off-take with 54,500 tons of cobalt resource, it is expected to become one of the only emerging cobalt companies in Australia. The company has recently announced in Western Australia, the update from the Marymia Project for base metal and gold exploration. The stock was at a market price of $0.047 with a daily price change of -4.082%, as at September 14, 2018. The stock has risen by 206.25% over the period of 12 months.
Argosy Minerals Limited (ASX: AGY) – The company has incurred a loss of ($1,668,972) as at June 30, 2018. No dividends have been declared, provided for or paid with respect to the half-year. On the goods shipped by Argosy internationally, Argentina has decided to impose the tax of 3 pesos per US dollar of export value. Argosy holds a current cash and cash equivalent balance of $8.101 million at the end of June 30, 2018 quarter and with no debt facility it has a decent balance sheet status. Argosy was trading at a flat market price of $0.250 as at September 14, 2018 and has undergone a performance change of 45.95% over the past 12 months. As compared to the peers the company has a negative EPS of -0.007 AUD with no dividend history.
Altura Mining Limited (ASX: AJM) – The company’s cash and cash equivalents are at $28.999 million, as at the end of the period June 30, 2018. Altura mining has secured an additional US$15 million for its project ‘Altura Lithium’ as it has arranged an Amendment Deed with its existing Loan Note Holders. The group has however made an operating loss of $12,816,965 and during the year ended June 30, 2018, there were no dividends paid or declared. From a funding facility of US $110 million and a $26 million in placement the funds were sourced during the year. With a flat daily price change, as at September 14, 2018, the stock was at a market price of $0.245. The stock has risen by 28.95% over the period of 12 months.
First Growth Funds Limited (ASX: FGF) – The company, which is now venturing into cryptocurrency, has reported that it will assist HCash Tech to invest up to $15 Million in the most innovative companies listed on the ASX, FGF will act as a broker and receive 6% or up to $900,000 in fees for facilitating the investment in other listed companies. Under the placement terms, there is no dilution or direct investment in FGF. First Growth Funds Limited has recently announced that it has been recommended on August 24, 2018, that the Acudeen Token will be listed on currency exchange, BTCEXA. The revenue from ordinary activities are up by 896.36% at $785,184, however, net loss is down by 24.56 at $658,090. The cash and cash equivalents at the end of the financial year is $8,024,964. As at September 14, 2018, the stock was at a market price of $0.019. In the last one year, the stock has noted a performance change of 28.95%.
Galaxy Resources Ltd (ASX: GXY) – As of June 30, 2018, the group had a cash balance of US$45.1 Mn which will support to fund the required ongoing project development and optimization initiatives. Significant free cash flow from operations will help to fund optimization and expansion initiatives organically. On the financial side, the company reported a solid 1H FY18 performance in which revenue and NPAT grew to US$88.4 Mn and US$11.5 Mn up by 682% and 331%, respectively in 1HFY18 as compared to the prior corresponding period (PCP). The most significant change from the previous year was in EBITDA, which was of 2,878% to US$ 42.4 million in 1H 18 from US$ 1.4 million in H1 17. As at September 14, 2018, the stock was at a market price of $2.495. In the last one year, the stock has noted a performance change of -1.95%.
Pilbara Minerals Ltd (ASX: PLS) – By 2020, globally the company is well positioned to be in the top 3 lithium raw materials producers. The group has recently started direct shipping ore (DSO) mining operations. There is strong support from offtake partners to increase the production. The company has a life of mine EBITDA of $6.30 million and DFS project revenue of $12.20 million. The project capital estimate is of $231 million. The company had a cash and cash equivalents balance of $119.98 million. As at September 14, 2018, the stock was at a market price of $0.765 with a daily price change of 0.649%. In the last one year, the stock has noted a performance change of 54.00%. The earnings per share (EPS) of the stock is -0.012 AUD.
A2 Milk Company Limited (ASX: A2M) – Effective from 1 January 2019, the legislative body of the Government of China passed new e-commerce law in China, late on 31 August 2018. The company’s revenue from ordinary activities was up 68.06% to $925.05 million, over PCP. Compared to 12.29 cents last year diluted EPS was 26.3 cents. The company’s EBITDA has been up by 101% while NPAT surged to about 116%. On the margin front, against the previous year, EBITDA margin and NPAT margin expanded by 497 bps and 472 bps to 30.7% and 21.2%, respectively in FY18. It reflects strong growth across all region along with lower effective tax rate during the year. As at September 14, 2018, the stock was at a market price of $10.950. In the last one year, the stock has noted a performance change of 100.18%. The P/E of the stock is 44.140 and earnings per share (EPS) of the stock is 0.248 AUD.
The Income available from dividends remains attractive for many investors. We take a look at the best yields on the market and assess what they say about a company’s prospect. One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
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