The ASX 200 regained all of yesterday's losses and end up 42.1 points to 4267.8 for the day.
All eyes were on Lynas Corporation (LYC) as the share price surged over 19%, up $0.255 to $1.59 after confirming that Malaysia's AELB board approved the granting of a 2 year temporary operating licence for their rare earths project in Gebeng, Malaysia. The company will be granted a permanent operating licence should it comply with the terms of the temporary licence. Those that had long CFD positions with a guaranteed stop loss (to protect on the downside should the licence not have been granted) will be very happy. Macquarie has maintained an outperform tag on the stock.
Elsewhere, Mantle Mining (MNM), which has been a favourite on this blog surged to a high of $0.125. The volume on and just after market open was phenomenal and I thought that it could be a massive day. Unfortunately the ASX lodged a price query with the company which capped any larger run that may have been on the cards. I liked the response from MNM. Whilst the company advised there is no explanation for the rise in volume and price it did say the following:
"The Company is at an exciting stage in its development.
The Company is progressing a drilling program at Bacchus Marsh and expects to have further results from that program available during February and March.
The Company also notes that trial dates for its action relating to the Mt Mulligan tenements have been set for early March."
MNM closed up $0.01 to $0.115 and the buy side of the depth is still reasonably stacked.
Yesterdays scan came up with Pan Asia Corp Ltd (PZC), today the stock opened at $0.145 and flew to a high of $0.175 early morning before being sold off for the rest of the day and closing at the opening price.
My scan says that tomorrow's stock to watch is Pancontinental Oil (PCL). The stock was up $0.014 to $0.11 today on 6.7 million units.
Showing posts with label Lynas Corporation (LYC). Show all posts
Showing posts with label Lynas Corporation (LYC). Show all posts
Thursday, February 2, 2012
Tuesday, September 28, 2010
Massive investment into Rare Earths
Just when you think that this sector cannot get any hotter it was announced yesterday that Chinalco will invest $1.5 billion in Jiangxi Rare Earth and Rare Metals Tungsten Group. The news report can be found at Marketwatch.com and Reuters. It is astonishing and bodes well for those ASX listed rare earth companies. Today Lynas Corporation (LYC) was slightly weaker (down $0.025 to $1.325) however Arafura Resources (ARU) was very strong with its shares up $0.125 to $1.21.
Thursday, August 19, 2010
Other updates: AVB, NTU
Northern Uranium (NTU) has bounced back after being hit from it's announcement to place shares with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co to raise over $15million for a 51% holding in NTU. I'm surprised with such a strong rebound in the shares and especially the volume being traded. From reading chat on internet stock forums it appears many retail shareholders are going to vote against this and possibly egg-on the FIRB to reject the investment leading to a Lynas Corporation-style combeback. A 9 million crossing of shares at $0.12 has also set tongues wagging with interest as to who the identity of the buyer may be. Whatever the reasons the interest in rare earths companies is definitely back (if only for now).
Avanco Resources (AVB) made a nice little announcement today advising the market that Vale (iron ore behemoth) has taken an option to acquire the Trindade North Property from Avanco. This will enable the company to earn royalties on any "in-situ JORC compliant iron ore resources in the measured and indicated categories" whilst focussing on it's copper projects.
Avanco Resources (AVB) made a nice little announcement today advising the market that Vale (iron ore behemoth) has taken an option to acquire the Trindade North Property from Avanco. This will enable the company to earn royalties on any "in-situ JORC compliant iron ore resources in the measured and indicated categories" whilst focussing on it's copper projects.
Monday, August 9, 2010
Sell on fact: Northern Uranium
I blogged about Northern Uranium (NTU) late last week after trading volumes suggested that something was up. Today the company came out of trading halt and announced that it has signed a letter of intent with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co., Ltd, an affiliate of East China Exploration and Development Bureau (“ECE”). The deal will result in ECE emerging with a 51% stake to raise approximately $15.7million at $0.145 per share.
The market hasn't reacted all that well which I would believe is a combination of the dilution of existing shareholders, the stake is a controlling one at 51% and that short term traders that bought stock in the lead up to the news are now exiting their positions. I am interested to see what will be the response (if any) from uranium French giant and large shareholder Areva.
There is a bit of discussion on internet forums as to whether the FIRB will approve the investment especially considering how tight the supply is on Rare Earths and the fact that an investment recently in Lynas Corporation (LYC) was knocked back not too long ago.
The market hasn't reacted all that well which I would believe is a combination of the dilution of existing shareholders, the stake is a controlling one at 51% and that short term traders that bought stock in the lead up to the news are now exiting their positions. I am interested to see what will be the response (if any) from uranium French giant and large shareholder Areva.
There is a bit of discussion on internet forums as to whether the FIRB will approve the investment especially considering how tight the supply is on Rare Earths and the fact that an investment recently in Lynas Corporation (LYC) was knocked back not too long ago.
Thursday, August 5, 2010
Northern Uranium in Trading Halt
I was seriously considering taking a position in Northern Uranium today. The stock piqued my interest after trading volumes spiked (along with share price) yesterday which was backed up again this morning. I commenced my research.
The basis of my research was to determine if there was any exploration results due or maybe simply renewed interest in the stock because of it's rare earth projects which is a sector that can be hot and have renewed bursts (Lynas Corporation LYC has been strong in the last month).
One of the first things I do like to check is the market capitilisation, number of shares on issue and cash on hand. Market capitilisation gives me a good idea of what the company is valued at already considering I like to target low value companies with lots of potential upside. Number of shares will give me an idea of how many shares could potentially flood the market, stifle the share price and thus prevent any upside. Finally, cash on hand is a good way of seeing if the company has enough cash to keep exploring and won't have to raise cash soon (and thus dilute my share holding). Northern Uranium ticks most of the boxes - small market capitilisation of $11 million (undiluted), about 100 million shares on issue which is okay but slightly pushing it and $2.5 million in cash, enough for now. The next step? The industry that it lies in. Uranium and Rare Earths. I always like to go for companies in a sector that is favourable now. At example at the moment would be companies that surround Sandfire Resources (SFR) Doolgunna region such as Sipa Resources (SRI), Thundelarra Exploration (THX), and Resource & Investment (RNI). Rare Earths would fit into one of those favourable sectors. The other thing I did notice was Areva was on the register. It is always a plus having a big boy such as Areva around because they don't take an interest in little tidlers like NTU without a reason.
However before my research was complete and whilst writing up this post the stock went into pre-open followed by a trading halt. Talk about disclosure! There was definitely a leak on this one. The announcement due to be released on or before Monday is in relation to "a potential corporate transaction". Hard to know what to make of this. The company has completed soil sampling at it's rare earth projects recently so I intially thought maybe we may have some further information on that but the mention of corporate transaction blows that idea!
The basis of my research was to determine if there was any exploration results due or maybe simply renewed interest in the stock because of it's rare earth projects which is a sector that can be hot and have renewed bursts (Lynas Corporation LYC has been strong in the last month).
One of the first things I do like to check is the market capitilisation, number of shares on issue and cash on hand. Market capitilisation gives me a good idea of what the company is valued at already considering I like to target low value companies with lots of potential upside. Number of shares will give me an idea of how many shares could potentially flood the market, stifle the share price and thus prevent any upside. Finally, cash on hand is a good way of seeing if the company has enough cash to keep exploring and won't have to raise cash soon (and thus dilute my share holding). Northern Uranium ticks most of the boxes - small market capitilisation of $11 million (undiluted), about 100 million shares on issue which is okay but slightly pushing it and $2.5 million in cash, enough for now. The next step? The industry that it lies in. Uranium and Rare Earths. I always like to go for companies in a sector that is favourable now. At example at the moment would be companies that surround Sandfire Resources (SFR) Doolgunna region such as Sipa Resources (SRI), Thundelarra Exploration (THX), and Resource & Investment (RNI). Rare Earths would fit into one of those favourable sectors. The other thing I did notice was Areva was on the register. It is always a plus having a big boy such as Areva around because they don't take an interest in little tidlers like NTU without a reason.
However before my research was complete and whilst writing up this post the stock went into pre-open followed by a trading halt. Talk about disclosure! There was definitely a leak on this one. The announcement due to be released on or before Monday is in relation to "a potential corporate transaction". Hard to know what to make of this. The company has completed soil sampling at it's rare earth projects recently so I intially thought maybe we may have some further information on that but the mention of corporate transaction blows that idea!
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