Junior Resources’ sector Players up today – KP2, TGN, PM8

Resources sector of Australia is a gift to the economy of the country, which provides economic wealth, high wages, jobs, investment and tax revenue to the native Aussies. Resources sector majorly includes commodities such as iron, gold, coal, natural gas etc.

This sector has experienced a robust rise in middle of 2000’s, when economy witnessed mining boom. In the below article, we will look at some of the junior ASX-listed resource companies with their latest updates:

Kore Potash Plc (ASX: KP2)

Kore Potash plc (ASX: KP2) is engaged in the exploration for potash minerals prospects and project development at its flagship 97%-owned asset Sintoukola Potash Permit in the RoC.

Progress on Pre-feasibility Study

The company recently updated the market with the activities for the quarter ended 31^st December 2019 (Q4 FY19) and outlined the following:

• The company has witnessed the progress on the Pre-feasibility Study on the Dougou Extension project, wherein the Pre-feasibility Study is on track and the completion of the same has been scheduled by the end of April 2020.
• KP2 has appointed SME or subject matter expert consultants for plant engineering, solution mining and drilling, natural gas virtual pipeline etc.
• KP2 appointed Innovare Technologies Ltd and Agapito Associates for the role of solution mining and drilling consultants and mine designers and competent persons for Mineral Resources and Ore Reserves, respectively.
• At the end of quarter, the cash balance of the company stood at USD 7.6 million.
• As per the belief of top management, Dougou Extension is one amid the highest-grade potash deposits all over the globe, as well as contain the possibility to be one of the most ecologically sustainable fertiliser generators.

In another update, the company announced that it has appointed Mr. Andrey Maruta for the role of Chief Financial Officer, which came into effect on 23^rd September 2019. As per the key personnel of the company, Kore Potash plc possesses a robust position in order to realise its potential in developing the world class Sintoukola Potash basin, as well as experience of Andrey Maruta in the sector would prove as an great advantage to the company, as it is moving through the next stages of growth towards financing and production.

The stock of KP2 closed the day’s trading at $0.020 per share on 14^th February 2020, surging up by 25% from its previous closing price. The company has a market capitalisation of $24.66 million as on 14^th February 2020. The total outstanding shares of the company stood at 1.54 billion, and its 52-week low and high is $0.014 and $0.075, respectively. The company has given a total return of -20.00% and -40.74% in the time period of three months and six months, respectively.

Tungsten Mining NL

Tungsten Mining NL (ASX: TGN) is involved in the development of the Mt Mulgine project. The company is also in the exploration of tungsten. The company recently announced that it has appointed Mr Russell Clark for the role of non-executive director to the Board of TGN. Mr Russell possesses expertise of over 40 years in corporate, operational and project development roles in Australia apart from other places.

During the month of July 2019, the company begun a phased drilling program as part of the Mt Mulgine Project PFS. The drilling was started with the purpose of upgrading the dominantly Inferred Mulgine Trench Mineral Resource estimate to a dominantly Indicated status. The company added that the drilling continues to intersect substantial thicknesses of tungsten mineralisation within a 160 to 260-metre-wide zone at Mulgine Trench and outlined the following results:

• 252m at 0.11% WO₃ and 290 ppm Mo from surface (0 metre) in MMC474
• 234m at 0.10% WO₃ and 230 ppm Mo from surface (0 metre) in MMC476
• 208m at 0.11% WO₃ and 470 ppm Mo from 62 metres in MMC470

A Look at December 2019 Quarter:

• During the quarter, the company was focused on progression of phase 2 resource infill drilling and the completion of an updated Mineral Resource Estimate for the Mulgine Trench Deposit.
• The focus for the quarter also included development of project site water strategy, continuation of metallurgical test work program, and the commencement of process engineering study for the design of the processing plant.
• As of 31^st December 2019, the cash balance of the company stood at $27.6 million.
• On the outlook front, the company has planned to wrap up the resource drilling during March 2020 quarter. The company is also planning to prepare an updated Mineral Resource Estimate as well as pit optimisation for the Trench deposit after the completion of infill drilling.
• It is focused to continue with other studies as well as surveys, which are required to deliver the PFS as per the master schedule. Also, for March 2020 quarter, the company is focused to wrap up the metallurgical test work program.

The stock of TGN closed the day’s trading at $0.170 per share on 14^th February 2020, reflecting a rise of 13.333% from its previous closing price. The company has a market capitalisation of $115.56 million as on 14^th February 2020. The total outstanding shares of the company stood at 770.41 million, and its 52-week low and high is $0.145 and $0.380, respectively. The company has given a total return of -21.05% and -28.57% in the time period of three months and six months, respectively.

Pensana Rare Earths Plc (ASX: PM8)

Pensana Rare Earths Plc (ASX: PM8) is engaged in the exploration of minerals, which is focused on development of 84% owned Longonjo NdPr Project in Angola.

As per the release of ASX, the securities of the company have been reinstated for trading on ASX, which came into effect on 12^th February 2020 after the implementation of the scheme of arrangement.

Activities for December 2019 Quarter:

The company recently reported its results for the quarter ended 31^st December 2019 and outlined the following:

• The company has started Definitive Feasibility Study and commenced 7,000 metre infill and extension RC drilling programme.
• The company reported an upfront capital cost amounting to US$131 million, which include mine development, process plant and infrastructure, and 15% cost growth allowance.
• The net cash outflow from the operating activities stood at $1,737 million after making major payments for exploration & evaluation of 1158 million.

The stock of PM8 closed the day’s trading at $0.220 per share on 14^th February 2020, reflecting a rise of 12.821% from its previous closing price. The company has a market capitalisation of $29.83 million as on 14^th February 2020. The total outstanding shares of the company stood at 152.97 million, and its 52-week low and high is $0.150 and $0.310, respectively. The company has given a total return of 14.71% and 13.33% in the time period of three months and six months, respectively.

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