- DJ Carmichaels has released a research report on Nimrodel Resources (NMR)
- Research report dated 15/12/2011
- Speculative Buy - 12 month target price $0.17
- NMR Last Traded Price: $0.048 (30/12/2011)
- Research link
Saturday, December 31, 2011
Nimrodel Resources (NMR) Research Report
Tuesday, November 8, 2011
Dragon Mountain Gold - Return of Capital?
Dragon Mountain Gold (DMG) today made an announcement that they were selling off their only asset, the Lixian Gold Project for a consideration of $175 million. Whilst Dragon Mountain Gold does not own 100% of the project being sold they estimate that of the $175 million that their share of the proceeds will be $150 million. DMG currently has a market capitilisation of about $93 million. It makes you left wondering, what's the catch? Investment opportunities like this do exist even, this one to the tune of $57 million.
Following the news the share price opened at $0.47 before racing to an intraday high of $0.495. Surprisingly, the stock only finished up $0.02 to $0.41. I think that this can be explained by the fact that there was a few insiders on this one that have made a quick buck and sold into the early strength today to take profits. After all, the stock has increased from about $0.29 late last month.
Whilst there is a few hurdles that remain such as approval from shareholders, Chinese government and Australian FIRB (a little strange considering the asset is in China) these hurdles seem like a formality.
DMG has hinted at completing a return of capital to shareholders. Superannuation Funds will be hoping it is a tax effective structure whereby a chunk of the return of capital is a fully franked dividend.
I expect the share price to appreciate as we lead up to the key dates.
Following the news the share price opened at $0.47 before racing to an intraday high of $0.495. Surprisingly, the stock only finished up $0.02 to $0.41. I think that this can be explained by the fact that there was a few insiders on this one that have made a quick buck and sold into the early strength today to take profits. After all, the stock has increased from about $0.29 late last month.
Whilst there is a few hurdles that remain such as approval from shareholders, Chinese government and Australian FIRB (a little strange considering the asset is in China) these hurdles seem like a formality.
DMG has hinted at completing a return of capital to shareholders. Superannuation Funds will be hoping it is a tax effective structure whereby a chunk of the return of capital is a fully franked dividend.
I expect the share price to appreciate as we lead up to the key dates.
Wednesday, September 21, 2011
It Works! - Coretrack Limited Technology
Coretrack Limited (CKK) shareholders have suffered a bit this year with the company share price on a steady downward trend. The share price hit a rolling year low of $0.071 last month but today shareholders received some excellent news.
The company is focusing on developing it's Core Level Recorder System (CLRS) technology which is used when drilling holes for oil and gas. Basically, the technology sends a signal to the surface advising the driller if the sample being collected has been jammed in the hole. This can result in significant cost savings because as it stands if the driller suspects that sample has been jammed he/she can only remove the drill and check or take a punt and continue to drill deeper. With drigs in short supply and the equipment expensive, the use of this technology could go a long way in solving the problem explained.
Today, the company claimed that the technology managed to measure core intake for the entire drill hole at the Noblige 2 deep water well operated by Woodsie Petroleum (WPL). Whilst this is early days and only one trial this is a big step for the company in proving it's technology.
CKK shares finished up $0.012 to $0.105 on 2.5million units traded.
The company is focusing on developing it's Core Level Recorder System (CLRS) technology which is used when drilling holes for oil and gas. Basically, the technology sends a signal to the surface advising the driller if the sample being collected has been jammed in the hole. This can result in significant cost savings because as it stands if the driller suspects that sample has been jammed he/she can only remove the drill and check or take a punt and continue to drill deeper. With drigs in short supply and the equipment expensive, the use of this technology could go a long way in solving the problem explained.
Today, the company claimed that the technology managed to measure core intake for the entire drill hole at the Noblige 2 deep water well operated by Woodsie Petroleum (WPL). Whilst this is early days and only one trial this is a big step for the company in proving it's technology.
CKK shares finished up $0.012 to $0.105 on 2.5million units traded.
Tuesday, September 20, 2011
Jacka Resources Trading Halt
It's been just over two months since I first posted about Jacka Resources (JKA). Since then there has been a lack of newsflow. A few days after I posted about the company the stock price hit a high of $0.14 before that price spike was arrested after a 'please explain' from the ASX. The share price since then has been weak along with the rest of the market.
The company went into trading halt yesterday and is due to release an announcement tomorrow regarding a 'Head of Agreement for a strategic asset transaction'. It will definitely be one to keep an eye on over the next few days.
The company went into trading halt yesterday and is due to release an announcement tomorrow regarding a 'Head of Agreement for a strategic asset transaction'. It will definitely be one to keep an eye on over the next few days.
Thursday, July 28, 2011
Liberty Resources Research Report
- RB Milestone Group has released a research report on Liberty Resources (LBY)
- Research report dated 14/07/2011
- Target price: $1.03
- LBY Last Traded Price: $0.087 (28/07/2011)
- Research link
Wednesday, July 27, 2011
Mineral Sands still popular: MRC shares surge
At the start of this year I discussed in a post how I thought that Mineral Sands such as Zircon were going to be in high demand due to the needs of China for this ingredient for ceramics. Iluka Resources (ILU), the heavyweight of the section, at the time was $8.90. Since then the company has provided bullish forecasts, confirmed improved prices for Zircon an Rutile and had excellent broker coverage. The stock today closed at $18.70 and Goldman Sachs has a price target of $21.
The other two companies I mentioned have been varied. Gunson Resources (GUN) was $0.24 when mentioned and now $0.185 whilst Base Resources (BSE) has improved from $0.425 to $0.575 today. BSE is currently in trading halt pending a capital raising.
Today we saw that the sector is still popular. Mineral Commodities (MRC) jumped $0.061 to $0.16 today on turnover of 5.1 million units. The company currently has two interests in South African mineral sands projects however today the company announced that it was to acquire further projects in Western Australia.
MRC will purchase Cable Sands from Cristal, has first right of refusal to buy further tenements from Cristal in the Murray basin and is also establishing a processing agreement with Cristal. MRC is also looking at purchasing Simto in an independent transaction.
MRC currently has a market cap of about $23 million. It is acquiring Cable Sands for $96 million. It seems very ambitious. $35 million will be financed through vendor financing with Cristal. MRC intends to raise the remaining funds through institutional investors.
Existing shareholders of the company and those buying on market currently will hope that the capital raising occurs at a high price and that they are not diluted heavily. I believe that if the company pulls this all off it will be a company making deal. The company will have scale and they claim it will be the second largest producer in Australia. It is quite possible then that predators may start sniffing around.
The other two companies I mentioned have been varied. Gunson Resources (GUN) was $0.24 when mentioned and now $0.185 whilst Base Resources (BSE) has improved from $0.425 to $0.575 today. BSE is currently in trading halt pending a capital raising.
Today we saw that the sector is still popular. Mineral Commodities (MRC) jumped $0.061 to $0.16 today on turnover of 5.1 million units. The company currently has two interests in South African mineral sands projects however today the company announced that it was to acquire further projects in Western Australia.
MRC will purchase Cable Sands from Cristal, has first right of refusal to buy further tenements from Cristal in the Murray basin and is also establishing a processing agreement with Cristal. MRC is also looking at purchasing Simto in an independent transaction.
MRC currently has a market cap of about $23 million. It is acquiring Cable Sands for $96 million. It seems very ambitious. $35 million will be financed through vendor financing with Cristal. MRC intends to raise the remaining funds through institutional investors.
Existing shareholders of the company and those buying on market currently will hope that the capital raising occurs at a high price and that they are not diluted heavily. I believe that if the company pulls this all off it will be a company making deal. The company will have scale and they claim it will be the second largest producer in Australia. It is quite possible then that predators may start sniffing around.
Sunday, July 24, 2011
Central Petroleum Research Report
- Bakers Investment Group has released a research report on Central Petroleum (CTP) with a Strong Buy Recommendation
- Research report dated 15/07/2011
- Valuation: $0.48 per share
- CTP Last Traded Price: $0.078 (22/07/2011)
- Research link
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