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Highlights:
- Eildon Capital Group (ASX:EDC) notified that Samuel Terry Asset Management Pty Ltd made an off-market takeover offer for EDC at AU$0.93 cash a stapled share.
- Kuniko Limited (ASX:KNI) notified substantially increased Cobalt assays from near surface at the Skuterud Cobalt project.
- Duratec Limited (ASX:DUR) announced an upgrade of FY23 guidance for revenue and normalised EBITDA.
The Australian benchmark index S&P/ASX200 declined 0.02% and was trading at 7,328.90 points on Monday, 24 April 2023, at 2:35 pm AEST. At the same time, Eildon Capital Group (ASX:EDC), Kuniko Limited (ASX:KNI) and Duratec Limited (ASX:DUR) were outperforming the benchmark index and were trading up by 18.987%, 13.333% and 8.695%, respectively.
Let’s see what is triggering the rise in the share price of 3 ASX penny stocks- EDC, KNI and DUR.
Eildon Capital Group (ASX: EDC)
The real estate investment and funds management business zoomed 18.987%% and was trading at AU$0.940 on Monday, at 2:35 pm AEST after it notified that Samuel Terry Asset Management Pty Ltd as trustee of Samuel Terry Absolute Return Active Fund ( bidder) made an off-market takeover offer of AU$0.93 cash a security to purchase all of the staples shares in Eildon Capital Group that exist or will exist at any time during the offer period together with all rights.
The offer price of AU$0.93 an EDC stapled security represents a 17.7% premium to the last closing price on 21 April 2023 of AU$0.79 an EDC stapled security along with a 17.7% premium to the one-month VWAP of AU$0.79 an EDC stapled security.
The offer is conditional only on no “prescribed occurrences” taking place.
EDC further updated that the board members are considering the offer, and stakeholders need not take any action pertaining to this offer at this point.
Kuniko Limited (ASX: KNI)
The mineral explorer rose 13.333% and was trading at AU$0.510 on Monday at 2:35 pm AEST after it declared the results of the initial expedited drill core assays from the of late concluded drilling programme at the Middagshvile target on the Skuterud Cobalt project.
The assays derive from two mineralised positions in drill hole KNI_MDV011. The assays comprise the highest cobalt grades encountered to date at the project in terms of wider intervals and individual assays. Results show a wide high-grade zone of 6.2 metres at 0.43% Cobalt from 25.2 metres downhole. It comprises the two intervals separated by only 2.2 metres, including 3.0 metres at 0.52% Cobalt from 25.2 metres and 1.0 metre at 1.08% Cobalt from 30.4 metres.
The drilling programme has shown the excellent potential of this new near-surface target zone, which has so far been intersected by four drill holes, with assays still pending for three. The new high-grade shallow zone is presently unconstrained along strike and depth. A deeper mineralised interval is also identified with 2.3 metres at 0.07% Cobalt and 0.33% Copper from 207.5 metres downhole.
Assays are pending for the rest of the drill holes, consisting of those that intersected the shallow near-surface cobalt mineralisation and will be reported separately, with further results due in May this year.
Duratec Limited (ASX: DUR)
The provider of multi-services like refurbishment, remediation, etc, to the assets, was rising by 8.695% and was trading up by AU$1.000 on Monday at 2:35 pm AEST. The increase in DUR’s share price seems to be triggered by its upgrade of FY23 guidance for revenue and normalised EBITDA.
The revised revenue is anticipated to fall between AU$465 million to AU$495 million, whereas normalised EBITDA is likely to be between AU$36 million and AU$39 million, increasing from AU$420 million and 460 million and AU#2 million and AU$35 million, respectively (as announced on 28 February).
DUR’s 2H FY23 performance has been better than the earlier forecast, which is now demonstrated in the upgraded guidance. In FY22, DUR reported revenue AU$310 million and a normalised EBITDA of AU$19.3 million.
DUR’s present orderbook stays robust at AU$495 million, with tenders of AU$748 million and the pipeline, including tenders, and recognised opportunities is AU$2.6 billion. DUR’s cash generation stays effective and in accordance with its expectations.
