The Share Price Of S32 Tumbled By 1.791% After The Disappointing Drilling Results

  • Jan 02, 2019 AEDT
  • Team Kalkine
The Share Price Of S32 Tumbled By 1.791% After The Disappointing Drilling Results

South32 Ltd (ASX: S32), a company from metals and mining industries receives an update from AusQuest Limited (ASX: AQD) that the Blue Billy Zinc and Jimberlana Nickel projects were not successful enough to provide any encouraging results to justify ongoing exploration under Strategic Alliance Agreement (SAA). As a result of this, these two projects will not be continuing further with S32 in 2019.

There was a reverse circulation drilling at the Blue Billy project of drilling space ranging in between 1 to 2 km which come across a thick black mudrocks in all thirteen drill holes. The drillings could not provide any satisfactory improvement in the zinc grade based on the comparative study from its previous diamond drilling program held in November 2018.

The assay results on the main target horizon elevated the zinc value up to 5000 ppm of zinc. Further, the relative thickness of the target horizon remains constant, and there was an absence of nearby growth faults and sub-basin development which is essential for sediment hosted zinc mineralization in the region.

There were two diamond drilling holes at the Jimberlana project to test the expected mineralization target each of 716 meters within Jimberlana dyke. The drilling met with gabbroic rocks in one hole and pyroxenitic rocks in the other. The drilling was not successful to intersect the massive sulphide mineralization. Also, the DHEM surveys also failed to identify any conductors of interest which downgraded the prospect. The DHEM survey has also come to an end.

Graeme Drew who is the managing director of AusQuest Limited is a little disappointed by the results of Blue Billy Zinc and Jimberlana Nickel projects. However, he is optimistic about its ongoing drilling in other regions and particularly in Peru as the drilling results are encouraging in these areas. The company will also be undertaking new drilling opportunities under its drilling program for 2019.

The official listing of S32 on ASX is 18 May 2015 where the performance of the company was 65.31%. However, the previous one-year performance of the company is -3.45%.

For the FY2018 ending on 30 June 2018, S32 made a net profit of US$1.332 million which is attributable to the shareholders of the company. The EPS for the period was 25.8 cents. The balance sheet of the company gives a healthy appearance as it has maintained a net asset of US$10.709 million and a debt to equity ratio of 0.41. The company has a total current asset of US$4.821 million and a total current liabilities of US$1.664 million indicating that the company can efficiently manage the working capital requirements and clear short-term debts. Further, the FY2018 balance sheet reports a decrease in the accumulated losses as compared to its previous financial year results which indicate an improvement in the operating efficiency.

FY2018, reports a decrease in the cash and cash equivalent as compared to the previous fiscal year. By the end of the period, the net cash and cash equivalent available with the company is US$2.970 million.

At present, the shares of S32 is trading at a market price of A$3.290 which is 0.06 points below its previous day’s closing price with the market capitalization of A$17.02 billion and PE ratio 9.6x.


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.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK