Wednesday, January 16, 2013

Artemis Resources (ARV) Star Performer

With the ASX market picking up quite substantially over the last few months confidence is finally starting to return to the small to mid cap sector.  Each and every day we are seeing a number of stocks moving aggressively and volumes increasing.

Today's star performer was Artemis Resoures, up $0.013 to $0.019 (171%) on 61.5 million units.  The company announced that a "Review of Mt Clement Project identifies significant antimony mineralisation". Antimony prices have risen signficantly in the past few years and the company believes that this part of their gold project now warrants drilling.

Coal prices have been in the doldrums and we are seeing recovery in this sector now with good gains made by stocks such as Stanmore Coal (SMR), Continental Coal (CCC) and Universal Coal (UNV) today (all up over 10%).

Wednesday, January 2, 2013

ASX up after Fiscal Cliff avoided

Our market motored along today with the ASX 200 (XJO) adding 57 points or 1.2% and crashing through the 4700 barrier.  This followed news in the US that the senate had passed the bill that will ensure that they avoid crippling tax increases and so called 'Fiscal Cliff'.

Telstra Corporation (TLS) continued on it's way with a rolling high and close of $4.44 (up $0.07).  Resources stocks such as RIO, FMG and NCM all had a very good day.  The banks were slightly stronger.

In the small cap space Drake Resources (DRK) outperformed, up $0.05 or 25.6% to $0.245.  The stock was only $0.062 before Christmas.  On the flip side, Korab Resources (KOR) a stock I mentioned yesterday, suffered profit taking and was down $0.053 to $0.092.

Tuesday, January 1, 2013

Korab Resources Surges on Asset Sale News

The ASX market closed early yesterday at 2:10PM EST however that didn't stop Korab Resources (KOR) surging 116% to $0.145 after making a price sensitive announcement at 12:20PM.

The company has announced that it is selling its Winchester magnesium project in the Northern Territory to an Estonian company for up to $33.2million.  Unlike many takeover deals announced in the resources sector of late this takeover is binding between the parties and subject to regulatory approvals.

The deal will involve Augur Investments Ou paying $16.6 million in cash on closing of the deal and potentially $16.6 million in royalties from mined magnesite.  On paper the deal is good, especially considering that after the share price surge Korab Resources still only has a market value of $17million.  The company also has a gold and silver project in the Ukraine, gold project in Western Australia and other non-core projects.

RCR released a broker research report on the stock on the 14th of December and has a valuation price of $0.21 per share.  The broker believes that the Winchester project is uneconomical so it remains to be seen if Korab Resources will actually receive any royalties in the future.

With Korab Resources currently short on funds it will be interesting to see if a capital raising is completed to get them through to the closing date of 31/03/13 for the deal.