The increasing concerns of climate risks, costs related to energy prices, fluctuating demand for metals and general volatile environment have led investors ponder over some stocks lately:
AUSTRALIAN MINES LIMITED (ASX: AUZ) – The company secures $12 million investment from US fund Bergen Global Opportunity Fund II, LLC. It is expected to become one of the only emerging cobalt companies in Australia producing cobalt sulphate and nickel sulphate products for potential off-take with 54,500 tons of cobalt resource. In Western Australia, the company has recently announced base metal and gold exploration update from the Marymia Project. As at September 11, 2018, the stock was at a market price of $0.053 with a daily price change of -15.873%. In the last one year, the stock has noted a performance change of 364.29%.
PILBARA MINERALS LIMITED (ASX: PLS) – The group has recently started direct shipping ore (DSO) mining operations. By 2020, globally the company is well positioned to be in the top 3 lithium raw materials producers. There is strong support from offtake partners to increase the production. The company has 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 11, 2018, the stock was at a market price of $0.765 with a daily price change of 0.658%. In the last one year, the stock has noted a performance change of 56.70%.
KEYTONE DAIRY CORPORATION LIMITED (ASX: KTD) – Enabling the Company to import into China a wide range of dairy products and dairy based formulations, the company has recently announced that it has held a CNCA foreign manufacturer registration which is valid through to November 2021. Keytone Dairy Corporation Limited has signed an option agreement to acquire an additional parcel of industrial land in Izone Southern Business Hub. With a daily price change of 18.182%, the stock was at a market price of $0.780, as at September 11, 2018. In the last one month, the stock has noted a performance change of 101.67%.
ALTURA MINING LIMITED (ASX: AJM) – The company has secured an additional US$15 million for the Altura Lithium Project, it has arranged an Amendment Deed with its existing Loan Note Holders. The company has been in discussions towards the building of the 2018 and 2019 shipping forecasts. As at the end of the period June 30, 2018, the company’s cash and cash equivalents are at $28.999 million. With shipment planned for Q3 2018 Altura’s Pilgangoora project is fully permitted from mine to port. Between 2017 and 2022 worldwide lithium compounds and metals, consumption is expected to achieve 18% CAGR. As at September 11, 2018, the stock was at a market price of $0.245 with a flat daily price change. In the last one year, the stock has noted a performance change of 28.95%.
CARNARVON PETROLEUM LIMITED (ASX: CVN) – After making more oil discoveries in Western Australia’s north the company has come under spotlight lately, with the completion of the Phoenix South-3 well’s wireline evaluation program as slated to be on schedule by the group some time ago. With 65 million barrels in net 2C contingent resources, it has significant oil dominant weighted portfolio. The observation was of hydrocarbons from about 5,173 meters measured depth within the Caley interval down to the lowest closing contour at around 5,304 meters. The market capitalization of the company is $737.73 million, and the number of shares outstanding are at 1.19 billion. As at September 11, 2018, the stock was at a market price of $0.325 with a daily price change of -4.412%. In the last one year, the stock has noted a performance change of 300.00%.
ANSON RESOURCES LIMITED (ASX: ASN) – The company has announced that a wholly owned Utah based subsidiary A1 lithium has staked an additional 334 placer claims at its paradox lithium project to create a highly contiguous and prospective land package for lithium rich brines. As at the end of the financial year June 30, 2018, the company’s cash and cash equivalents are at $16.56 million. Lithium project, Hooley Well Project and Hercules Gold Project are all part of company’s projects or interested in projects which are the major driver for its growth. With a flat daily price change as at August 27, 2018, the stock was trading at a market price of $0.092 and has noted a performance change of 607.69%.
GULF MANGANESE CORPORATION LIMITED (ASX: GMC) – To invest up to approximately A$15 million to fund the construction and commissioning of the first two smelters at the Kupang Smelting Facility, Gulf Manganese has entered into an Agreement with PT Jayatama Global Investindo. The company made a cornerstone investment of ~A$10.8 million from Jakarta based businessman, Bapak Dato Dr Low Tuck Kwong. At a placement price of A$0.015 per share for a total investment of A $10,718,962 Gulf will issue 714,597,448 ordinary GMC shares to Bapak TK Low. The stock was trading at a market price of $0.016 as at September 11, 2018 and has noted a performance change of 128.57%.
Table: EPS Valuation for 7 Stocks
|Serial Number||Company Description||Ticker||Potential increase in EPS as indicated for next FY (market consensus)|
|1||AUSTRALIAN MINES LIMITED||(ASX: AUZ)||--|
|2||PILBARA MINERALS LIMITED||(ASX: PLS)||yes|
|3||KEYTONE DAIRY CORPORATION LIMITED||(ASX: KTD)||--|
|4||ALTURA MINING LIMITED||(ASX: AJM)||--|
|5||CARNARVON PETROLEUM LIMITED||(ASX: CVN)||--|
|6||ANSON RESOURCES LIMITED||(ASX: ASN)||--|
|7||GULF MANGANESE CORPORATION LIMITED||(ASX: GMC)||yes|
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