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Penny stocks are those common stocks whose value is less than $1. The two penny stocks - TDO and KWR, are being discussed in this article.
3D Oil Limited
3D Oil Limited (ASX: TDO) is a company from the energy sector and is engaged in oil and gas exploration. The company holds 24.9 per cent interest in VIC/P57 exploration permit that has extreme potential and contains the Sea Lion Prospect. The Sea Lion Prospect has potential resources of 11m barrels of oil. TDO has fully acquired interest in the VIC/P57 (Gippsland Basin Permit) in the Bass Strait.
Recently on 15th May 2019, the company announced that it has been awarded the necessary environmental approvals for acquiring the Dorrigo 3D Marine Seismic Survey within 100% owned T/49-P of the Offshore Otway Basin, from the Commonwealth Statuary National Agency.
During the March quarter 2019, the farm-in process progressed with technical diligence, which included site visits that were conducted throughout the quarter. As part of the ongoing internal technical diligence process, the company also completed the reprocessing of 7 open-file 2D seismic lines. The results of reprocessing evaluation have so far helped the previous interpretation of potential erosional channel system, with identified channel features analogous to Dorado.
At Gippsland Basin, the further technical work got finalized to explain the trapping process of the Pointer Prospect.
The company spent net cash of A$0.298 million in its operating activities and A$0.014 million in investing activities. By the end of the Q3 FY2019, TDO had net cash and cash equivalent of A$1.068 million.
By the end of the trading session on 31st May 2019, the closing price of the TDO shares was flat A$0.115. TDO holds a market cap of A$30.5 million, delivering a YTD return of 30.68 per cent.
Kingwest Resources Limited
Kingwest Resources Limited (ASX: KWR) is a company from the metals and mining sector, which focuses on the exploration of gold in the Eastern Gold Fields zone of Western Australia.
The company announced its quarterly report for the Q3 FY2019 recently. The company mentioned in the report that the drilling commenced at the Kings of the West, Gambier Lass North and Crawford Projects. The drilling was expected to be completed by mid-April 2019 and assay results were anticipated to come by mid-May 2019.
The company used A$0.503 million in its operating activities. The primary drivers of the cash outflow were in the form of payment for exploration & evaluation, along with administration and corporate costs. The company made payment to acquire property, plant and equipment. Thus, net cash outflow through the investing activities was recorded at A$0.037 million.
By the end of the Q3 FY2019, Kingwest Resources had net cash and cash equivalents of A$2.472 million. KWR expects a cash outflow of A$0.710 million in the fourth quarter of FY2019. The primary drivers of the cash outflow would be exploration & evaluation, and Administration & corporate costs.
The shares of KWR traded last on 30th May 2019 with the closing price of the A$0.150. KWR holds a market cap of A$7.62 million. The stock has generated a return of 25 per cent in the last five days.
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