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Highlights:
- Galena Mining Limited (ASX:G1A) notified that it had accepted binding commitments for a placement to raise AU$20 million.
- K2fly Limited (ASX:K2F) published its third quarter FY23 quarter report ended 31 March this year.
- Future Battery Minerals Limited (ASX:FBM) provided exploration update on the Kangaroo Hills Lithium project.
The Australian benchmark index S&P/ASX200 increased 0.16% at 7,377.10 points on Thursday, 20 April 2023, at around 2:48 pm AEST. Though, there were three ASX penny stocks, Galena Mining Limited (ASX:G1A), K2fly Limited (ASX:K2F) and Future Battery Minerals Limited (ASX:FBM), which decreased at the same time.
Let’s know the reasons behind the decline in the share price of 3 ASX stocks- G1A, K2F and FBM.
Galena Mining Limited (ASX: G1A)
On Thursday, the new Australian base and precious metals stock tanked 35.869% and was trading at AU$0.147 at 2:49 pm AEST after it provided an operations and guidance update.
G1A notified that it had accepted binding commitments for a placement of 133,333,334 100% paid ordinary securities at an issue price of AU$0.15 a security to raise AU$20 million before costs. The placement was oversubscribed and well backed up by current stakeholders. G1A’s biggest stakeholder and strategic investor, Warburton Group, subscribed for 23,832,000 placement securities for nearly AU$3.6 million.
Proceeds from the placement (net of expenses) will be utilised to provide Abra Mining Pty Ltd with further working capital finance in the ramp-up duration of the Abra Base Metals Mine, increasing until the project is concluded tests are satisfied as per the Taurus Debt Facilities (Expected to be 2HCY2023).
G1A has updated Abra’s guidance for this year due to the production issues, along with rising costs. Lead production for CY2023 is anticipated to lessen from the earlier given guidance of 53-68kt to 50-60 kt due to low ramp-up lead grade and rainfall delays.
K2fly Limited (ASX: K2F)
The provider of enterprise-wide technical ESG software was declining by 12.500% and was trading at AU$0.105 on Thursday, 2:50 pm AEST after it published its third quarter FY23 quarter report ended 31 March this year.
During the March quarter FY23, the revenue stood at AU$3.4 million, increasing 35% from Q3 FY22 because of the beginning of new contracts inked in recent quarters and the attainment of go-live milestones. Annual recurring revenue stood at AU$7 million, which was 35% up on pcp. Total contract value stood at AU$17.1 million, 3% up from Q3 FY22 because of contract depletion through all current contracts. Cash receipts from consumers increased 21% at the end of Q3 YTD, up 100% from pcp.
During the reported quarter period, no new contracts were inked following the record sales in Q2 FY23. Further, the ground disturbance solution, experiencing execution throughout BHP WAIO operations in the Pilbara of WA, has gone live. The reconciliation module sitting within K2F’s Mineral Resource Governance suite is now live throughout Rio Tinto’s 24 reporting locations and throughout all commodity groups internationally.
Future Battery Minerals Limited (ASX:FBM)
The mining exploration company decreased 13.913% and was trading at AU$0.099 on Thursday, 2:52 pm AEST, post its declaration of the Phase 2 RC drilling programme had partly delineated an extremely prospective interpreted LCT pegmatite unit at the WA-based Kangaroo Hills Lithium project (FBM owns 80% of it and Lodestar Minerals own 20% of it).
Target pegmatite, which shows an identified width of 200 metres, a strike length of more than 300 metres and a maximum thickness of 30 metres which outcrops at the surface. It has a dip of nearly -20 degrees to the North, where it stays open. Nineteen holes for more than 2,200 metres have been concluded from the RC part of Phase 2.
On the back of the geological results of the programme to date, FBM is now mobilising a diamond drill rig to Kangaroo Hills to start a series of core holes on 24 April this year.
