Australia

Aeris Resources on track to deliver following “transformational” Cracow Gold Mine acquisition

Aeris Resources Ltds (ASX:AIS) recent acquisition of the Cracow Gold Mine in Queensland is forecast to deliver free cashflow of more than A$100 million over the first two years of ownership at the current gold price.

The company has a proven track record operating its Tritton Copper Operations and other gold mines, which will be applied to driving value creation at Cracow.

This mine is on track to produce between 82,500 and 87,500 ounces of gold in the 2020 financial year as well as generate net mine cash flow of $84 to $89 million.

Aeris believes the acquisition of the mine from Evolution Mining (ASX:EVN) is a compelling value-add to the companys portfolio as its a low risk, high-grade, cash-flow generative mine in an attractive location.

“Asset and commodity diversity”[hhmc]
Executive chairman Andrew Labuschagne said: “This is a truly transformational transaction for Aeris and will immediately be accretive in value.

“The acquisition provides us with asset and commodity diversity..

The company has a proven track record operating its Tritton Copper Operations and other gold mines, which will be applied to driving value creation at Cracow.

This mine is on track to produce between 82,500 and 87,500 ounces of gold in the 2020 financial year as well as generate net mine cash flow of $84 to $89 million.

“Asset and commodity diversity”

Executive chairman Andrew Labuschagne said: “This is a truly transformational transaction for Aeris and will immediately be accretive in value.

“The acquisition provides us with asset and commodity diversity, strong cashflow generation and high-value synergies.

“Cracow will be a perfect fit for the unique skill set of our management team, who have a track record of extracting value and life extensions, as demonstrated at the Tritton mine, and previously with Norton Gold Fields at the Paddington gold mine.

“Our immediate focus will be on transitioning Cracow into the Aeris culture and aggressively investing in the mine life extension opportunities we have identified.”

Investing in exploration

Cracow has a strong track record of reserve and resource replacement and Aeris plans to aggressively invest in brownfield and greenfield exploration with the aim of growing the resource base to extend mine life.

Multiple near-term opportunities for resource conversion have been identified with A$13 million budgeted over the next two years for exploration and key priorities including both underground near-mine extensions (eg Killarney) as well as nearby open pit deposits (eg the Golden Plateau and Roses Pride).

During the March 2020 quarter, the companys Tritton Copper Operations produced 6,083 tonnes of copper – a 12% increase on the prior quarter.

Trittons nearby underground mine, Murrawombie, produced 273,000 tonnes of ore during the quarter, which was in line with predictions, however, was a decrease compared to the previous quarter of 296,000 tonnes.

Copper grades of 1.62% were higher than the previous quarter (1.43%) as a result of mining sequence.

Exploration and project development

The Tritton tenement package covers 2,160 square kilometres in Central West New South Wales.

To date, more than 750,000 tonnes of copper, including the current mineral resource deposits, has been discovered within the bottom half of the tenement package.

During the previous quarter, a regional ground-based electromagnetic (MLTEM) survey was completed and was designed to confirm whether priority AEM anomalies represented legitimate bedrock conductors.

A total of 23 potential AEM conductors were surveyed and interpretation of the results were finalised during the current quarter.

MLTEM surveying over an AEM anomaly toward the northern margin of Aeris exploration tenement boundary confirmed the presence of a bedrock conductor.

Current modelling indicates plate dimensions varying from 200 metres x 200 metres to 325 metres x 325 metres with modelled conductance ranging between 100S to 150.

An exploration licence (EL) application was submitted to the Department of Planning, Industry and Environment during the previous quarter to cover the additional area.

Additional MLTEM surveying will be required over the northern half of the modelled plate and this will occur once the exploration licence application is approved, which is expected in the June quarter.

Murrawombie deposit

At the Murrawombie deposit, underground drilling continued throughout the quarter, testing the periphery of the main mineRead More – Source

Proactiveinvestors

Australia

VIP Gloves set to benefit from strong outlook for glove market as outlined in new research report

VIP Gloves Ltd (ASX:VIP) looks set to benefit from strong glove market fundamentals with glove demand expected to remain robust driven by COVID-19, the upcoming US flu season and the discovery of a new swine flu strain in China, according to Macquarie Research.

The research bank expects strong earnings growth to continue for glove manufacturers in 2021, which may cause a further re-rating of the sector.

Nitrile gloves

VIP Gloves manufacturers nitrile gloves, which according to Macquarie Bank, are Type-1 allergy-free, puncture-resistant, have good barrier protection against infection and contamination and are suitable in medical and high-risk tasks.

The company said sales orders had been filled through to the second quarter of 2021, with recent orders at higher sale prices which vary, depending on the specifications and volume.

These gloves are manufactured in Malaysia.

Research note[hhmc]
In a research note titled 'Malaysia Rubber Gloves: 2nd wave is coming; Get ready for th..

The research bank expects strong earnings growth to continue for glove manufacturers in 2021, which may cause a further re-rating of the sector.

Nitrile gloves

The company said sales orders had been filled through to the second quarter of 2021, with recent orders at higher sale prices which vary, depending on the specifications and volume.

These gloves are manufactured in Malaysia.

Research note

In a research note titled 'Malaysia Rubber Gloves: 2nd wave is coming; Get ready for the ride', the bank said its investment thesis of a shortage of gloves was still intact as an additional capacity of around 70% next year was only expected to come on board late in the second quarter of 2021.

It said the sector had not seen the peak in glove demand yet, especially with a new swine flu strain in China and the upcoming flu season in the US which peaks between December and February.

“This should support overall glove demand until first half 2021 and only gradually normalise in second half 2021, having assumed a vaccine is available in mid-2021.”

Macquarie Bank said despite ambitious expansion plans from Chinese manufacturers, they would not pose an immediate threat to Malaysian manufacturers as most capacity increases in China would only gradually start in late second quarter 2021 and be rolled out on a staggered basis.

Although there is a potential oversupply risk in 2022, Macquarie Bank analyst Denise Soon said this concern “can be easily eased with the deferment of expansion plans (which we have seen in the past) or absorption from higher China domestic consumption.”

COVID-19 vaccine

Global demand for gloves is expected to normalise gradually when there is a vaccine, which will take stages to commercialise globally.

Soon said vaccine from Pfizer inc (NYSE:PFE) and German group BioNtech (NASDAQ:BNTX) had shown promising results in early testing and looked to be on track to have the first shot in early 2021.

Despite COVID-19, Macquarie Bank notes that gloves are staples within the healthcare industry and foresees continued shortages in 2021. It projects strong earnings growth to continue for glove manufacturers in 2021 estimates.

New COVID-19 cases, flu season

“New cases globally continue to be on the rise, especially in the United States, Brazil and India. In addition, some countries ie Israel, China, Korea, Europe, are currently undergoing a second-wave of COVID-19.”

As most of the vaccines are still under Phase II clinical trials, it suggests that the availability of a vaccine will likely be in mid-2021.

Macquarie Bank highlighted that the last flu season in 2019 was “one of the worst in five years”. It believes the US healthcare system will be prepared for the annual flu season by stocking up personal protective equipment (PPE) such as medical gloves. The expected stocking up activity should support demand growth in the first half of 2021.

New swine flu

Further a new type of swine flu that can Read More – Source

Proactiveinvestors

Australia

Mali Lithium in trading halt ahead of announcement around Goulamina mineral resources increase

Mali Lithium Ltd (ASX:MLL) has been granted a trading halt with an announcement pending in regard to a potential increase in Goulamina Lithium Project resources in Mali, West Africa.

Unless ASX decides otherwise, the securities will remain in a trading halt until the earlier of the start of normal trading on Wednesday, July 8, 2020, or when the announcement is released to the market.

Before the halt shares were up more than 30% to 15 cents and have risen from 4.1 cents at the close on April 7.

Strong lithium results[hhmc]
In June, the company received strong and broad lithium results from RC drilling at the Danaya zone of the Goulamina project, including:

64 metres at 1.85% Li2O from 121 metres;
81 metres at 1.47% from 63 metres;
72 metres at 1.73% from 125 metres;
57 metres at 1.38% from 57 metres and 35 metres at 1.48% from 162 metres;
38 metres at 2.00% from 74 metres;
46 metres Read More – Source
[contf]
[contfnew]

Proactiveinvestors
[contfnewc]
[contfnewc]

Mali Lithium Ltd (ASX:MLL) has been granted a trading halt with an announcement pending in regard to a potential increase in Goulamina Lithium Project resources in Mali, West Africa.

Before the halt shares were up more than 30% to 15 cents and have risen from 4.1 cents at the close on April 7.

Strong lithium results

In June, the company received strong and broad lithium results from RC drilling at the Danaya zone of the Goulamina project, including:

64 metres at 1.85% Li2O from 121 metres;
81 metres at 1.47% from 63 metres;
72 metres at 1.73% from 125 metres;
57 metres at 1.38% from 57 metres and 35 metres at 1.48% from 162 metres;
38 metres at 2.00% from 74 metres;
46 metres Read More – Source

Proactiveinvestors

Australia

Matador Mining directors show faith in gold strategy with placement participation approved

Matador Mining Ltd (ASX:MZZ) directors have demonstrated their confidence in the companys gold exploration strategy by participating in a $5.2 million private placement concluded earlier this year.

The participation by executive chairman Ian Murray and executive director Keith Bowes was approved by MZZs shareholders at a general meeting held last month.

Director purchases[hhmc]
On July 1, Murray purchased 1 million shares valued at $200,000 in an indirect interest and this was his first purchase of fully paid ordinary shares.

Also, on that date, Bowes acquired 150,000 shares valued at $30,000 in an indirect interest and now holds 190,000 shares in that interest.

The private placement to institutional, professional and sophisticated investors at a price of 20 cents per share raised $5.2 million.

Capital raising news upcoming[hhmc]
Matador Mining is currently in aRead More – Source

[contf]
[contfnew]

Proactiveinvestors
[contfnewc]
[contfnewc]

Matador Mining Ltd (ASX:MZZ) directors have demonstrated their confidence in the companys gold exploration strategy by participating in a $5.2 million private placement concluded earlier this year.

The participation by executive chairman Ian Murray and executive director Keith Bowes was approved by MZZs shareholders at a general meeting held last month.

Director purchases

On July 1, Murray purchased 1 million shares valued at $200,000 in an indirect interest and this was his first purchase of fully paid ordinary shares.

Also, on that date, Bowes acquired 150,000 shares valued at $30,000 in an indirect interest and now holds 190,000 shares in that interest.

The private placement to institutional, professional and sophisticated investors at a price of 20 cents per share raised $5.2 million.