The Resource Sector Landscape: PLS, AJM, LPD, AGD, GOR

The Resource Sector Landscape: PLS, AJM, LPD, AGD, GOR

Due to the rise in the popularity of Lithium ion batteries (LIBs), battery minerals like Lithium and cobalt are gaining a lot of investors’ attention these days. As per the study by Randell et al, in Australia the potential value of the contained metal in spent LIBs could be up to $3 billion per annum by 2036. Australia which is already a hub for gold miners has started to host various battery minerals miners as well. In the light of this scenario, lets take a look at few gold and battery minerals stock of Australia.

Pilbara Minerals Limited (ASX: PLS)

Australian lithium-tantalum producer Pilbara Minerals Limited is focused on the development of its 100%-owned Pilgangoora Lithium-Tantalum Project, one of the largest spodumene-tantalite resources in the world.

The company is currently advancing its proposed joint venture with POSCO for participation in the rapidly developing South Korean lithium ion battery market.

Proposed POSCO JV

· Up to 30% JV in chemical conversion facility in South Korea with the capacity of 40ktpa (LCE basis)

· Facility to apply Posco’s PosLX technology for lithium chemicals purification

· Synergy maximisation through development within a larger battery raw materials industrial park

· JV term sheet signed

· Final Investment Decision (FID) of both Boards expected in early 2020

Pilbara recently found its new strategic investor- CATL, China’s largest battery manufacturer for EVs which is listed on the Shenzhen stock exchange. The company currently has a positive medium and long-term outlook for its high-quality spodumene concentrate product which is supported its recent developments within the broader lithium sector including the US$820 million acquisition by US battery metals giant Albermale to acquire 60% of the Wodgina spodumene project, and earlier in the year Wesfarmers’ investment in Kidman Resources’ lithium project.

At market close on 30 December 2019, PLS shares were trading at a price of $0.290 with a market cap of $589.28 million.

Altura Mining Limited (ASX: AJM)

Global lithium player, Altura Mining Limited (ASX: AJM) is a well-established lithium producer, generating positive operating cashflows. The company has a strong customer base, with a diversified portfolio of committed offtake partners assembled. The company’s cornerstone project, Altura Lithium Project is located approximately 90 km south of Port Hedland, with road access to the site via the Great Northern Highway and then Shire roads and station tracks.

Recent Updates

· The company recently revised its production guidance for Q4 CY19 following changes to maintenance schedules to bring forward a plant shutdown previously planned for February 2020;

· During the quarter, the company’s production was impacted by the 94-hour shutdown and by lower than forecast crusher performance, which reduced plant throughputs and required feed of stockpiled crushed ore with higher quality variability;

· To refinance its current loan note debt, the company has commenced discussions with potential investors. One of the options for the proposed refinancing is a potential issue of senior secured notes, subject to market and other conditions.

The stock of AJM is trading at a price of $0.048, near to its 52 weeks low price.

Lepidico Ltd (ASX: LPD)

Lepidico Ltd is an ASX-listed Company which is involved in the exploration, development and production of lithium chemicals and is s currently conducting a Feasibility Study for a 5,000 tonne per annum (LCE) capacity Phase 1 lithium chemical plant, targeting commercial production for 2021.

The company recently reported additional assay results from the 5,164 m infill diamond drilling program over the Rubicon and Helikon 1 lithium pegmatites, located within the Company’s 80% owned Karibib Lithium Project in Namibia.

LPD has a market cap of around $0.015 and its stock is trading at a market price of $0.015.

Austral Gold Limited (ASX: AGD)

Gold producer Austral Gold Limited recently closed its newly announced share purchase agreement with Troy Resources Limited. The company has a market cap of around $39 million and its stock is trading at a price of $0.096, up by 35.211% intraday.

September Quarter Highlights

· The Guanaco and Amancaya Mine complex had a solid operational performance during the September quarter

· Operational margins and cash generation remained strong with quarterly Operating Cash Cost (C1) and all-in-sustaining cost (AISC) at US$617 and US$810 respectively per gold equivalent ounce

· During the quarter, the Company completed the design of exploration and drilling program for Q4 for Casposo while it remains on Care & Maintenance

· Combined gold and silver production (100% basis) during the September 2019 quarter totaled 17,879 gold equivalent ounces

· Cash and cash equivalents as of 30 September 2019 were USD 4.5 million

Gold Road Resources Limited (ASX: GOR)

Mid?tier gold producer and exploration company Gold Road Resources Limited recently finished the 2019 exploration programme with excellent results from the Gruyere extensional drilling which will have a positive impact on the next Mineral Resource update anticipated in early 2020.

The company’s 100% owned Mineral Resource totals 3.5 million tonnes at 2.62 g/t Au for 297,600 ounces and is constrained within optimised pit shells and underground stope shapes, based on an A$1,850 per ounce gold price assumption with deposit?specific modifying factors and cut?off grades.

At market close on 30 December 2019, GOR stock was trading at a price of $1.300, up by 3.586% intraday, with a market cap of around $1.1 billion. In the last six months, GOR stock price increased by 24.26% on ASX.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

· Up to 30% JV in chemical conversion facility in South Korea with the capacity of 40ktpa (LCE basis)

· Facility to apply Posco’s PosLX technology for lithium chemicals purification

· Synergy maximisation through development within a larger battery raw materials industrial park

· JV term sheet signed

· Final Investment Decision (FID) of both Boards expected in early 2020

Pilbara recently found its new strategic investor- CATL, China’s largest battery manufacturer for EVs which is listed on the Shenzhen stock exchange. The company currently has a positive medium and long-term outlook for its high-quality spodumene concentrate product which is supported its recent developments within the broader lithium sector including the US$820 million acquisition by US battery metals giant Albermale to acquire 60% of the Wodgina spodumene project, and earlier in the year Wesfarmers’ investment in Kidman Resources’ lithium project.

At market close on 30 December 2019, PLS shares were trading at a price of $0.290 with a market cap of $589.28 million.

Altura Mining Limited (ASX: AJM)

Global lithium player, Altura Mining Limited (ASX: AJM) is a well-established lithium producer, generating positive operating cashflows. The company has a strong customer base, with a diversified portfolio of committed offtake partners assembled. The company’s cornerstone project, Altura Lithium Project is located approximately 90 km south of Port Hedland, with road access to the site via the Great Northern Highway and then Shire roads and station tracks.

Recent Updates

· The company recently revised its production guidance for Q4 CY19 following changes to maintenance schedules to bring forward a plant shutdown previously planned for February 2020;

· During the quarter, the company’s production was impacted by the 94-hour shutdown and by lower than forecast crusher performance, which reduced plant throughputs and required feed of stockpiled crushed ore with higher quality variability;

· To refinance its current loan note debt, the company has commenced discussions with potential investors. One of the options for the proposed refinancing is a potential issue of senior secured notes, subject to market and other conditions.

The stock of AJM is trading at a price of $0.048, near to its 52 weeks low price.

Lepidico Ltd (ASX: LPD)

Lepidico Ltd is an ASX-listed Company which is involved in the exploration, development and production of lithium chemicals and is s currently conducting a Feasibility Study for a 5,000 tonne per annum (LCE) capacity Phase 1 lithium chemical plant, targeting commercial production for 2021.

The company recently reported additional assay results from the 5,164 m infill diamond drilling program over the Rubicon and Helikon 1 lithium pegmatites, located within the Company’s 80% owned Karibib Lithium Project in Namibia.

LPD has a market cap of around $0.015 and its stock is trading at a market price of $0.015.

Austral Gold Limited (ASX: AGD)

Gold producer Austral Gold Limited recently closed its newly announced share purchase agreement with Troy Resources Limited. The company has a market cap of around $39 million and its stock is trading at a price of $0.096, up by 35.211% intraday.

September Quarter Highlights

· The Guanaco and Amancaya Mine complex had a solid operational performance during the September quarter

· Operational margins and cash generation remained strong with quarterly Operating Cash Cost (C1) and all-in-sustaining cost (AISC) at US$617 and US$810 respectively per gold equivalent ounce

· During the quarter, the Company completed the design of exploration and drilling program for Q4 for Casposo while it remains on Care & Maintenance

· Combined gold and silver production (100% basis) during the September 2019 quarter totaled 17,879 gold equivalent ounces

· Cash and cash equivalents as of 30 September 2019 were USD 4.5 million

Gold Road Resources Limited (ASX: GOR)

Mid?tier gold producer and exploration company Gold Road Resources Limited recently finished the 2019 exploration programme with excellent results from the Gruyere extensional drilling which will have a positive impact on the next Mineral Resource update anticipated in early 2020.

The company’s 100% owned Mineral Resource totals 3.5 million tonnes at 2.62 g/t Au for 297,600 ounces and is constrained within optimised pit shells and underground stope shapes, based on an A$1,850 per ounce gold price assumption with deposit?specific modifying factors and cut?off grades.

At market close on 30 December 2019, GOR stock was trading at a price of $1.300, up by 3.586% intraday, with a market cap of around $1.1 billion. In the last six months, GOR stock price increased by 24.26% on ASX.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

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