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Resolute Mining retains buy recommendation and $1.70 price target from Berenberg

Resolute Mining Limited (ASX:RSG) produced 107,183 ounces of gold during the June quarter, placing the company in a strong position to deliver its full-year guidance of 430,000 ounces.

Berenberg Equity Research has retained its buy recommendation for Resolute and expects the companys shares to rerate as it continues to increase and optimise production at Syama, with the balance sheet de-gearing.

The following is an extract from Berenbergs research update:

Q2 operational update: beat at Mako and Syama oxide[hhmc]

Operational beat at Mako and Syama oxide: Resolute has announced Q2 gold production of 107.2koz at an AISC of USS1,033/oz. This was a beat versus our expectation of 100.5koz. Mako produced 43.478koz, versus our expectation of 39.8koz, with the driver being higher grade. The Syama sulphide circuit produced 35.2koz with overall recoveries of 80%. While production was an incremental miss versus our expectation of 37.2koz due to grade and throughput, recoveries were higher than..

Resolute Mining Limited (ASX:RSG) produced 107,183 ounces of gold during the June quarter, placing the company in a strong position to deliver its full-year guidance of 430,000 ounces.

Berenberg Equity Research has retained its buy recommendation for Resolute and expects the companys shares to rerate as it continues to increase and optimise production at Syama, with the balance sheet de-gearing.

The following is an extract from Berenbergs research update:

Q2 operational update: beat at Mako and Syama oxide

  • Operational beat at Mako and Syama oxide: Resolute has announced Q2 gold production of 107.2koz at an AISC of USS1,033/oz. This was a beat versus our expectation of 100.5koz. Mako produced 43.478koz, versus our expectation of 39.8koz, with the driver being higher grade. The Syama sulphide circuit produced 35.2koz with overall recoveries of 80%. While production was an incremental miss versus our expectation of 37.2koz due to grade and throughput, recoveries were higher than the 77% we forecast and are guided to remain above 80% for the rest of the year, which we view as a positive. The oxide circuit produced 28.5koz, a beat versus our expectation of 23.5koz, with the driver being grade. Management has maintained guidance of 430koz for the year at an AISC of USD980/oz with no material impact from COVID-19. We expect production of 424koz at an AISC of USD954/oz.
  • Tabakoroni sulphides PFS and power upgrade project on track: The completion of the Tabakoroni sulphide pre-feasibility study (PFS) remains on track for completion in Q3 and the development of the hybrid power plant is also progressing on track with the completion of earthworks and commencement of civils. Mechanical and electrical installation should commence over the next quarter and ultimately the project should deliver a 40% reduction in power costs to below USD0.15/kWh.
  • Net debt up qoq on working capital and capex: Cash and bullion at the period end was USD88m, with listed investments of USD35m and promissory notes (relating to Ravenswood) of USD35m. Period-end cash beat our USD51m, driven by lower-thanmodelled debt repayments offsetting higher working capital movements and capex; net debt of USD220m was up slightly qoq (from USD212m) and was above our USD195m, and we would expect this to decrease in H2 as i) out-of-the-money hedges roll away and ii) working capital builds are released. The company retains a USD45m undrawn revolving credit facility. Gold in circuit inventories reduced by 3.6koz qoq, but still stands at 2.5koz (USD146m market value). The VAT dispute wiRead More – Source
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Australia

THC Global plans to accelerate medicinal cannabis production on back of strong June quarter

THC Global Group Ltd (ASX:THC) reached several milestones in the June quarter, supplying its first Australian patient with Canndeo branded medicinal cannabis medicines produced at its Southport Facility.

The roll-out of the full suite of the Canndeo medicines range is continuing throughout this quarter and will see the launch of eight new medicine formulations for Australian patients.

THC is also preparing for its maiden export of Canndeo branded medicines to Europe and Canada, with supply expected to commence in quarter three for Canada and quarter four for Europe.

New Zealand exports[hhmc]
In addition to medicinal cannabis sales under the Canndeo brand, THC is now a manufacturer for both Cannatrek and Medleaf Therapeutics.

Under the agreements with Cannatrek and Medleaf, THC will produce and white-label cannabis medicines under those respective brands for sale in the Australian and New Zealand market.

The initial export order to New Zealand worth $260,000 is expected to be deliv..

THC Global Group Ltd (ASX:THC) reached several milestones in the June quarter, supplying its first Australian patient with Canndeo branded medicinal cannabis medicines produced at its Southport Facility.

The roll-out of the full suite of the Canndeo medicines range is continuing throughout this quarter and will see the launch of eight new medicine formulations for Australian patients.

THC is also preparing for its maiden export of Canndeo branded medicines to Europe and Canada, with supply expected to commence in quarter three for Canada and quarter four for Europe.

New Zealand exports


In addition to medicinal cannabis sales under the Canndeo brand, THC is now a manufacturer for both Cannatrek and Medleaf Therapeutics.

Under the agreements with Cannatrek and Medleaf, THC will produce and white-label cannabis medicines under those respective brands for sale in the Australian and New Zealand market.

The initial export order to New Zealand worth $260,000 is expected to be delivered by the company in October.

Tetra Health


The Companys newly acquired clinic network, Tetra Health, has seen significant growth since acquisition with an increase of over 30% in patient enquiries in June alone.

Tetra Health is a key strategic asset for the company in seeking to bridge the affordability gap for cannabis medicines in Australia by providing low cost of access for new patients and product-independent guidance on medicines.

Hydroponics equipment


As announced in early July, the companys hydroponics equipment and cultivation solutions provider achieved its maiden $3 million unaudited half-year trading revenue milestone in June 2020, with total first half 2020 unaudited revenue reaching $3.2 million, being around a 50% increase over the prior period.

The launch of new product and service offerings targeted at the micro-cultivator and home-cultivator sectors through the year is expected to drive further revenue growth.

Difficulties in sourcing and transporting of merchandise from major Asian manufacturing hubs experienced in quarter one due to COVID-19 appear to have partially subsided over quarter two.

As the company noted in its quarter one update, these delays have affected the timing of cash receipts from customers but is unlikely to significantly affect revenue over a longer time scale given pending customer orders are fulfilled as stock is landed in Canada.

THC is preparing for its maiden export of Canndeo branded medicines to Europe and Canada

$8.1 million capital raising


During the quarter, the company completed an institutional placement to raise $6.6 million and a subsequent share purchase plan which raised a further $1.5 million, taking the total capital raised to $8.1 million at 30 cents per share.

Funds will be primarily applied towards enhancing the THCs working cRead More – Source

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Australia

Yandal Resources completes shortfall in $3.3 million non-renounceable rights issue

Yandal Resources Ltd (ASX:YRL) has issued the remaining shortfall shares under the 1 for 5 non-renounceable pro-rata rights issue to raise a total of $3.3 million before costs.

On June 12, the company directors announced a pro-rata non-renounceable rights offer to accelerate the Gordons project as well as the Mt McClure project in Western Australia.

Under the rights issue, eligible shareholders were offered the opportunity to acquire one new share for every five shares held at the record date on June 17 at an issue price of 25 cents per new share.

A total of 1.32 million shortfall shares have now been issued for $330,000

Exploration well-funded[hhmc]
The company plans to progress the feasibility study at its Flushing Meadows prospect at the Ironstone Well Project in the September quarter.

Exploration will also continue at the Gordons Dam prospect.

Yandal is well funded for drill programs which were postponed in the June quarter and will be completed in the September quarter.

The..

Yandal Resources Ltd (ASX:YRL) has issued the remaining shortfall shares under the 1 for 5 non-renounceable pro-rata rights issue to raise a total of $3.3 million before costs.

On June 12, the company directors announced a pro-rata non-renounceable rights offer to accelerate the Gordons project as well as the Mt McClure project in Western Australia.

Under the rights issue, eligible shareholders were offered the opportunity to acquire one new share for every five shares held at the record date on June 17 at an issue price of 25 cents per new share.

A total of 1.32 million shortfall shares have now been issued for $330,000

Exploration well-funded


The company plans to progress the feasibility study at its Flushing Meadows prospect at the Ironstone Well Project in the September quarter.

Exploration will also continue at the Gordons Dam prospect.

Yandal is well funded for drill programs which were postponed in the June quarter and will be completed in the September quarter.

These include:

  • 21 AC holes for 2,500 metres at the Flushing Meadows North prospect;
  • 6 AC holes for 720 metres at the Flushing Meadows South prospect;
  • 3 RC holes for 200 metres Read More – Source
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Australia

Nanoveu in back-to-back trading halts ahead of capital raising news

Nanoveu Ltd (ASX:NVU) has been granted back-to-back trading halts by the ASX pending a capital raising announcement.

The trading halt will be in place until the announcement is made or the start of normal ASX trading on Friday, August 7, whichever occurs sooner.

Distribution agreements [hhmc]
Nanoveu recently signed distribution agreements for its antiviral protection products for the Thai and Malaysian markets with Sanyo Trading Company Ltd.

Through these agreements, Sanyo will look to leverage its extensive contacts in the Asia-Pacific region to distribute several Nanoveus products to groups including hospitals, banks, schools and shopping malls.

Nanoveu will ship its business to business (B2B) rolls of antiviral film – to be applied to an increasing number of surfaces – in addition to its consumer-focused antiviral mobile phone cases and doorRead More – Source

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Nanoveu Ltd (ASX:NVU) has been granted back-to-back trading halts by the ASX pending a capital raising announcement.

The trading halt will be in place until the announcement is made or the start of normal ASX trading on Friday, August 7, whichever occurs sooner.

Distribution agreements


Nanoveu recently signed distribution agreements for its antiviral protection products for the Thai and Malaysian markets with Sanyo Trading Company Ltd.

Through these agreements, Sanyo will look to leverage its extensive contacts in the Asia-Pacific region to distribute several Nanoveus products to groups including hospitals, banks, schools and shopping malls.

Nanoveu will ship its business to business (B2B) rolls of antiviral film – to be applied to an increasing number of surfaces – in addition to its consumer-focused antiviral mobile phone cases and doorRead More – Source

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