Australian S&P/ASX 200 index and all ordinaries closed higher primarily because of the energy sector stocks as oil prices finally recovered. Two stocks having decent fundamentals which came under discussion from materials sector – which is up +0.18% and consumer discretionary -which is up +0.84%, are given below:
RAMELIUS RESOURCES LIMITED (ASX: RMS) – Ramelius has submitted a conditional, non-binding and incomplete proposal for an increase in consideration to the current Explaurum Takeover Offer. Proposed addition of $0.05 cash per EXU share to existing 1:4 scrip offer valuing Explaurum at $0.1525 per share. The company reported a net profit before tax of $45.5 million representing an 81% increase from the $25.1 million reported in the prior year. Profit after tax was $30.8 million up 74% from last year’s $17.7 million. This result was achieved on record gold production of 208,118 ounces of gold, a significant increase from the 125,488 ounces produced in 2017 which is attributed to the excellent contribution of the newly acquired Edna May gold mine and improved performance of the Mt Magnet and Vivien mining projects. Total net assets of the company increased from $169.8 million to $202.0 million. As at November 12, 2018, with a market capitalization of A$216.72 million the stock of RMS traded lower at a market price of $0.390 it has witnessed a performance change of 6.49% over the past one year.
JATENERGY LIMITED (ASX: JAT) – JAT was the sole Australian company to participate in a signing ceremony for Strategic Cooperation Agreements, signing a Memorandum for Purchase with Shanghai Dragon Corporation. Under the Memorandum, SDC intends to import and distribute USD$5 million of JAT food products during calendar year 2019. The consolidated loss of the Group for the year after providing for income tax amounted to $1,268,891 as compared to 2017 loss of $406,025. Resultant to which no dividends were paid or declared since the start of the period. During the year, the Company raised $5,398,039 through a placement in May 2018 The consolidated statement of financial position at 30 June 2018 reflects cash at bank of $4,218,478 compared to 2017 cash of $98,968. The net assets of the group have increased from $128,651 at 30 June 2017 to $27,174,761 at 30 June 2018 due to the capital raisings and share issues. As at November 12, 2018, with a market capitalization of A$60.22 million the stock of JAT traded lower at a market price of $0.071 and it has witnessed a performance change of a staggering 230.77% over the past one year.
Share price of RMS and JAT with spread, Source: Thomson Reuters.
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