Guide to Metal & Mining Stocks: INF, ZNC, HMX, VML, AML, AMI, IMD, GXY, OMH & TBR

On 28 August 2019, S&P/ASX 200 closed higher by 29.4 points to settle at 6500.6. In this article, we will discuss ten ASX-listed companies engaged in the exploration & development of numerous metals & minerals.

Infinity Lithium Corporation Limited (ASX: INF)

Lithium producer, Infinity Lithium Corporation Limited is developing San José Lithium Project in Spain to tap the potential demand for lithium in Europe.

Recently, the company released much awaited Pre-Feasibility Study (PFS) of San José Lithium Project. Accordingly, on a 100% ownership and pre-tax basis, the project economics were NPV?? of US$860 million, an IRR of 42.3% capable of generating US$6 billion in gross revenue.

PFS Outcomes (Source: INF’s Announcement, August 2019) 

Meanwhile, the study resulted in an extended project life from 19 years of mining operations to 30 years of lithium hydroxide production.

On 28 August 2019, INF closed trading at A$0.069, up 1.471% from the previous close.

Zenith Minerals Limited (ASX: ZNC)

Zenith operates gold, lithium, copper, zinc and cobalt projects across three countries. In Turkey, it operates Kavaklitepe Gold Project (30%-Diluting).

In the US and Mexico, Zenith operates a JV with Bradda Head Ltd, and the projects include Burro Creek Lithium Clay Project in Arizona, Zacatecas Lithium Brine Project in Mexico, Wilson Salt Flat Lithium Brine Project in Nevada, San Domingo Lithium Pegmatite Project in Arizona, Spencer Lithium Brine Project in Nevada and Lithium Oil Brine Project in Pennsylvania.

In Australia, the company is engaged in ten projects with 100% ownership in five projects, earn in one project, royalty in one project, and partnership in three projects. These projects include Split Rocks Lithium & Gold Project in WA and Develin Creek Copper-Zinc-Gold-Silver Project in Queensland.

Further, Tate River Gold Project (Earn up to 70%) is located in Queensland, while other projects are Red Mountain Gold Silver Project in Queensland, Waratah Well Lithium-Tantalum Project in WA, Earaheedy Zinc Project in WA, Vivash Gorge Iron Project in WA and Talga Fault Cobalt Project in WA.

Zenith Project Locations (Source: Quarterly Report, July 2019) 

Meanwhile, the company had secured retention licenses over the Earaheedy Manganese deposits, which host Earaheedy Manganese Project in WA. It has royalty options in Mt Alexander Iron Project in WA.  

In its latest quarterly report, the company has presented its intention to pursue Rare Earth Metal developments in the US. Besides, a new style of mineralisation was recognised at the Earaheedy Zinc Project hosting Zn Pb. Further, in its JV at Burro Creek Lithium Clay Project, an additional exploration target was updated, lithium recoveries up to 85% and potassium recoveries up to 82% were depicted via test works.

On 28 August 2019, ZNC closed trading at A$0.073, flat from the previous close.

Hammer Metals Limited (ASX: HMX)

Recently, the company notified regarding progress towards commencing the maiden drill program at Bronzewing South Gold Project. Accordingly, the company has a preliminary program of 2,500 metres of RC drilling to assess the targets generated by structural analysis, historic geochemical data, and new geophysical data.

Bronzewing South Gold Project (Source: Company Announcement) 

Meanwhile, the company completed Induced Polarisation (IP) survey, which discovered conductive zones that are associated with higher gold accumulation anomalies in historical drilling.

On 28 August 2019, HMX closed trading at A$0.038, up by 11.765% from the previous close.

Vital Metals Limited (ASX: VML)

Recently, the company reported that the due diligence was completed to acquire Cheetah Resources Pty Ltd. Accordingly, the acquisition is subject to shareholder approval, and the company expects to dispatch a notice of meeting to shareholders around 23 August 2019 to approve the transaction.

Meanwhile, the company expects to complete the transaction by late September 2019. The company has provided an unsecured loan facility of up to A$3 million to fund Cheetah’s obligations under the Avalon Agreement, the Montero Agreement and working capital.

Production Forecast (Source: Quarterly Activities Report, July 2019) 

Further, the company would be increasing the facility to A$4.5 million.

Reportedly, Cheetah is engaged in exploration & development of rare earth metals, and the rationale of the acquisition is to tap the potential demand of rare earth metals. Besides, the company noted that existing developers of rare earth appear unable to meet the future demand for rare earth materials.

On 28 August 2019, VML closed trading at A$0.009, flat from the previous close.

Aurelia Metals Limited (ASX: AMI)

Recently, the company released full-year results for the period ended 30 June 2019. Accordingly, the revenues were up to $295 million in FY2019 compared to revenues of $248.6 million in FY2018. EBITDA was down 25% to $103 million in FY2019 against $136.8 million in FY2018.

Strategy (Source: AML’s FY19 Financial Results Presentation) 

Meanwhile, NPAT was down 64% to $36.01 million in FY2019 compared to a profit of $99.1 million in FY2018, and basic EPS stood at 4.16 cents in FY2019 compared to 15.49 cents in FY2018.

Reportedly, the decline in profits was attributed to a $63.6 million increase in site costs, and a $15.3 million increase in D&A after full-year costs was applied from the Peak mine, which was acquired in April 2018.

On 28 August 2019, AML closed trading at A$0.580, up by 8.411% from the previous close.

Imdex Limited (ASX: IMD)

Mining-Tech Company, Imdex has recently released its full-year results for the period ended 30 June 2019. Accordingly, the company posted record revenue of $243.7 million, up 12% from $218.5 million in FY2018. EBITDA grew by 23% to reach $52.3 million in FY2019 compared to $42.4 million in FY2018.

FY2019 Highlights (Source: Full Year Results Presentation) 

Meanwhile, Imdex improved EBITDA margin by 2 percentage points to 21% in FY2019. Net profit after tax was up 31% to $27.6 million in FY2019 compared to $21.1 million in FY2018.

Reportedly, the company noted that FY20 has started in a positive note, and the increase in activity was evident in the last quarter of FY2019.

Besides, the demand for its cloud-connecting devices is increasing. In June 2019, 43% of Imdex’s devices were actively pushing data to MDEXHUB-IQ™, which is an increase of 25% over pcp.

On 28 August 2019, IMD last traded at A$1.270, up by 1.195% from the previous close.

Galaxy Resources Limited (ASX: GXY)

Lithium producer, Galaxy Resources has recently secured a debt facility through a consortium of lenders. Accordingly, the company is acquiring the senior secured loan facility provided to Alita Resources Limited (ASX: A40), and it has finalised an agreement with the consortium led by funds that are managed by Tribeca Investment Partners Pty Ltd.

Commercial Terms (Source: Company’s Announcement) 

Reportedly, the sale & purchase agreement and transfer certificate enlist the transfer of the rights, title and interest of the facility, with a principal value of US$28.8 million. Meanwhile, the total amount assigned and paid was US$31.1 million, including accrued interest, fees and costs.

Further, the company would be releasing half-year results on 30 August 2019.

On 28 August 2019, GXY last traded at A$1.215, up by 3.846% from the previous close.

OM Holdings Limited (ASX: OMH)

Recently, the company has declared an unfranked dividend of A$0.01 per share payable on 29 November 2019 to the shareholders in records on 8 November 2019. Meanwhile, the company has committed minimum funding of $6.55 million to earn a maximum interest of 70% in the Manganese Minerals Rights over the Bryah Basin Manganese Joint Venture.  

On 26 August 2019, the company released half-year results for the period ended 30 June 2019. Accordingly, net profit after tax was A$50 million for H119 compared to a profit of $106.4 million in H118. The fall in profits was attributed to weaker ore and ferroalloy prices. Meanwhile, the company’s revenues were down 35% to A$534.6 million in H119 compared to revenues of A$823.3 million in H118.

 

Segment Results (Source: OMH’s 2019 Half Year Results)

 

On 28 August 2019, OMH last traded at A$0.605, flat from the previous close.

Tribune Resources Limited (ASX: TBR)

Recently, the company released its quarterly report for the period ended 30 June 2019. Accordingly, the company processed 230,188 tonnes of EKJV ore at the Kanowna Plant, while 105,183 tonnes of EKJV ore and zero tonnes of R&T ore were processed at the Greenfields Mill.

Source: Company’s Report

Meanwhile, 34,120 ounces of gold and 6,347 ounces of silver were credited to Rand and Tribune Bullion Accounts, and the company holds a 75% interest.

On 28 August 2019, TBR last traded at A$7.8, down by 2.133% from the previous close.

Aeon Metals Limited (ASX: AML)

Recently, the company reported a drilling update at its project in the western Vardy area. Aeon Metals unveiled the significant presence of base metal mineralisation in the recent drill holes completed within the area.

Recent Holes at Section 213405E (Source: Company Announcement) 

Meanwhile, high-grade copper and cobalt mineralisation was returned adjacent to the Fish River Fault (FRF) in both the PY1 and PY3. Eight drill holes were completed for metallurgical and geotechnical program purposes, which were also designed to test the mineralised zones around the western extent of the planned Vardy pit design.

Now, the company is emphasising on infilling the relatively lightly drilled Amy zone, and this drilling is targeted to deliver growth in the current estimate of Inferred Resource for the zone.

On 28 August 2019, AML last traded at A$0.135, down by 3.571% from the previous close.


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