Year ended 31 December 2018

THEME OF THE YEAR:  Bottom of the Cycle Gains

Kangaroo Resources took two large steps forward during 2018 to deliver the best returns in the sector for 2018. A 100% share price gain was recorded in the first week of May (4 May 2018). In mid-August, the company�s major shareholder initiated a takeover of the company at a 67% price premium to the pre-existing market level. The immediate response had left the share price 20% below the bid price with the gap only closing in December after a court approved a scheme of arrangement. Verdict: Steak.

Galilee Energy shares posted a fivefold rise between June and mid September before partially giving up gains in the latter part of 2018.  The company�s shares were among the top five best performers during June 2018 (see 22 June 2018). In December, the company completed a $13 million share placement to further the group�s drilling and development plans. Verdict: Steak.

Global Vanadium had been known as Baraka Energy and Resources when the company topped the weekly investment returns in mid June (15 June 2018).  That gain was associated with a policy change in the Northern Territory permitting fracking for oil and gas. Subsequently and after a change in directors, the company announced that it would also change its strategic direction in favour of an emphasis on vanadium. The company has an interest in a project in the Philippines and is investigating opportunities in southern Africa. It is looking for a joint venture partner to pursue development of its Australian oil and gas interests. At the end of September 2018, the company had cash assets of $823,000. While there was a basis for the mid-year re-rating based on the beneficial effects of the Northern Territory policy change, the company�s strategic position looked confused by the end of 2018 with a limited financial capacity to pursue any of its contemplated ventures. By the end of 2018, the company�s share price was slightly below the peak level achieved in June. Verdict: Sizzle.

Galan Lithium changed its name from Dempsey Minerals during the year after it acquired a position in the Argentine brine lithium industry. The company was among the top five weekly performers in February when it first announced its Argentine investment intentions (9 February 2018) and again in June (29 June 2018) when a takeover giving it an interest in the Argentine project was completed.  Past mid-July, the company�s share price lost ground consistent with investors� general loss of enthusiasm for lithium investments.  The company�s first drilling at the South American brine project is due to commence in January 2019. Verdict: Sizzle.

Carnarvon Petroleum experienced a fourfold share price rise during July after reporting an oil discovery off the coast of Western Australia (20 July 2018). By the end of 2018, the company�s share price had halved from the strong reaction immediately after the reported discovery. The company expects to begin drilling appraisal wells in the second quarter of 2019. Verdict: Steak.

Month ended 31 December 2018

THEME OF THE MONTH:  Copper-gold-coal return

Ikwezi Mining began December with an open share entitlement offer and shares trading below the underwritten offer price.  The price recovered after the offer closing date but, in any event, the company is only very lightly traded with transactions valued at that less than $11,000 through the month. The share price rise in mid-December left the company with a price below where it had traded for nearly the entire year. The Bermuda registered company operates thermal coal mining assets in South Africa. Verdict: Sizzle.

Horseshoe Metals has exploration tenements north of Meekatharra in Western Australia prospective for copper-gold mineralisation. The company is looking to complete a scoping study for a small-scale mine.  At the end of October 2018, the company had cash assets of just $2,000 and depending dependent on its chairman for ongoing funding. The company did not make any formal disclosure which might explain the improved share price which had, in any case, started from a historically depressed level to revert to prices which remained lower than at any time prior to the beginning of October.  Late in the month, the company chairman pleaded guilty to tax law violations for which the prosecutor in the case urged a term of imprisonment, according to the West Australian newspaper. There was no evident impact on the share price following publication of the report. Verdict: Sizzle.

Explaurum has been subject to a takeover offer from Ramelius (14 December 2018) which was declared unconditional during December. At the end of the month, the bidder reported being entitled to 54% of the outstanding shares in the target company.  The 10% rise in the ASX gold equity price index assisted the Ramelius share price and would have also contributed to the improved value of the Explaurum shares. Verdict: Steak.

Magmatic Resources experienced a lower trending share price throughout 2018. The rise in December was a modest bounce from an end of November historically low level which left the market value only slightly above the weakest levels in the history of the company. In mid-December, the company purchased an outstanding net smelter royalty applying to its copper-gold exploration properties in New South Wales. The purchase was intended to eliminate restrictions which were affecting the company�s scope to arrange finance and secure development and exploration partners. Subsequently, the company issued two statements outlining its next steps in analysing the potential of the exploration properties. It had cash assets of $1.2 million at the end of October 2018. Verdict: Sizzle.

Gascoyne Resources made a modest recovery from historically low prices at the end of November. In common with other companies in the same predicament, relatively small absolute price movements were translated into large percentage changes even as the overall market value remains historically depressed (7 December 2018). On Christmas Eve, the company disclosed updated details of its operational outcome for the about to be completed December quarter suggesting that its output rates had improved.  The company also released guidance for production in 2019 which implied production would run at about 30% higher than the annual rate in the December quarter. Verdict: Steak.

Week ended 28 December 2018

THEME OF THE WEEK:  Low Quality Gains Persist

Orion Metals traded for the first time since June 2018. The company holds exploration properties in Western Australia and Queensland. Its rare earth and gold exploration interest in Western Australia has been placed into a joint venture in which the new partner is able to earn a 35% interest in exchange for a $40,000 payment.  Orion itself reported having cash assets of just $70,000 at the end of November 2018 with its ongoing efforts to be funded by its largest shareholder which holds a 67% stake. No field work has been undertaken recently with the company having stated its openness to approaches from potential joint venturers interested in its Queensland properties. Verdict: Sizzle.

Alligator Energy did not make any formal disclosure which might explain the share price activity during the week. The company is looking for uranium mineralisation in the Alligator Rivers region which has a record of hosting uranium finds.  The company also holds exploration interests prospective for nickel and cobalt mineralisation in Italy.  It reported having cash assets of $2.3 million at the end of September 2018 with the intention of spending $1.1 million in the just completed December quarter. The share price improvement comes after historically weak prices since September 2018 leaving them still well below anything prior to three months ago. Verdict: Sizzle.

Rimfire Pacific Mining did not make any formal disclosure to explain what, in any case, was only a slightly improved share price after a period of trading at historically low levels. After reporting cash assets of $445,000 at the end of September 2018, the company completed a $1.1 million capital raising through a rights issue to continue its activities at a gold-silver discovery in central New South Wales. The share price rise was a slight rebound from historically low levels with gains made from turnover valued at approximately $7,500. Verdict: Sizzle.

Mount Ridley Mines is another example of seemingly strong percentage share price gains arising from very slight absolute price rises from historically low levels. The company did not make any formal disclosure which might explain an increased interest in the company. The company holds nickel-copper exploration interests in the Albany-Fraser region of Western Australia. It concluded the September quarter with cash assets of $1.5 million with the expressed intention of spending $380,000 in the December quarter. The company subsequently raised $0.297 million through a rights issue. Verdict: Sizzle.

Peninsula Mines is another example of a company with a share price rising from historically depressed levels to post an unusually large percentage change. The company did not make any formal disclosure which might explain the share price action which, in any event, came from transactions worth just $1,585. Earlier in December, the company had disclosed assays from a graphite exploration property in South Korea where it had recently completed six diamond drill holes. Verdict: Sizzle.

Week ended 21 December 2018

THEME OF THE WEEK:  Weak Quality Gains

Coppermoly did not make any formal disclosures which might explain the share price activity during the week. The infrequently traded stock returned to price levels from a fortnight earlier as a result of a single trade with a value of just $250 in another example of the leverage arising from historically depressed share prices among illiquid stocks. Verdict: Sizzle.

Crater Gold recovered from the lowest price experienced in the past year a few days before it announced a $1 million loan facility from its major shareholder.  The company also released a notice for its annual meeting of shareholders during the week.  The Papua New Guinea gold producer previously reported having cash assets of $242,000 at the end of September 2018 with expectations of recommencing production during November. Earlier in December, the $4.5 million market capitalisation company announced a renounceable share offer targeting a highly dilutive raising of $23.056 million for ongoing activity in PNG and to retire over $13 million in debt used to fund earlier work. The provider of the debt, a company associated with the chairman, intends subscribing for enough shares to cover the repayment. Verdict: Sizzle.

Sun Resources, an infrequently traded oil and gas stock, attracted unusually strong interest after the company announced that it had commenced modelling with a view to selecting a site for a first well at a resource in shallow water south of New Orleans in which the company holds a 50% working interest. The company has said that a development would involve five horizontal wells.  The company reported having cash assets of $31,000 at the end of September 2018 with the intention of spending $356,000 in the three months ending December 2018.  Planned closing of a share purchase plan was extended by a month to the end of the just concluded week. The rising share price returns the market value to levels which had prevailed in the second and third quarters of 2018. Verdict: Sizzle.

Resource Generation had announced in early December that it had encountered further delays in finalising finance for its South African coal development and, as a result, was beginning a search for alternative funding sources. Since then, the share price of the company has risen as much as 62% without the company having said anything more publicly about its funding arrangements or other development activities. Verdict: Sizzle.

Perpetual Resources is a very infrequently traded company which benefited from a single trade valued at just $534 in the past week to produce the relatively strong performance. The company had not made any formal disclosures which might explain the fresh, albeit modest, interest in the company which has been exiting gold exploration properties in New South Wales while flagging an intention to look elsewhere for alternatives. The company, with cash assets of $601,622 at the end of September 2018, did not spend anything on exploration in the prior three months. Verdict: Sizzle.

Week ended 14 December 2018

THEME OF THE WEEK:  Low Quality Gains Once Again

Explaurum, which has been subject to a takeover offer from fellow gold producer Ramelius, received an updated bid raising the previous all scrip offer by $0.02 a share in cash. The immediate market response was a $0.03 share price rise.  Explaurum directors had previously recommended that shareholders reject the Ramelius bid and had negotiated a share placement with ASX-listed Alkane under which it would invest $8 million in exchange for a 12.2% interest in Explaurum. The Ramelius bid is conditional on the Alkane investment not proceeding. Ramelius held slightly over 20% of the outstanding Explaurum shares at the time of its improved bid. Verdict: Steak.

Oilex did not make any formal disclosure which might explain unusually strong investor interest in the company. In any event, the extra turnover with a value of $12,670 occurred on a single day.  The performance in the past week came after reversal in gains achieved in the first half of November (see 16 November 2018) and which resulted in the company posting strong share price increases at that time. The company remains in dispute with a joint venture partner which has opted to invoke the arbitration provisions of the joint venture agreement. Verdict: Sizzle.

Bowen Coking Coal announced that it had appointed two new directors with coal industry experience as well as receiving $500,000 in funding from interests associated with one of the new appointees. The company holds coking coal interests in the Bowen Basin. It had cash assets of $2.04 million at the end of September 2018 after having spent $515,000 in the prior three months and before anticipated expenditure of $865,000 in the December quarter. Verdict: Sizzle.

Celsius Resources received a query from ASX about the reasons for the share price activity during the week. Directors said they had no additional information to offer but conjectured that the price action may have been related to the appointment of a new director to the board earlier in December. The new director, who was an existing shareholder, brings a background in minor metal sales and production. The company is looking to define a cobalt resource in Namibia for which it completed a scoping study in early November 2018.  After the share price appreciation, from record low levels in December, the market price remained lower than at any time prior to the beginning of November 2018. The relatively well financed company had cash holdings at the end of September 2018 of $10.7 million. Verdict: Sizzle.

EMU announced that it had agreed to place shares, subject to shareholder approval, in exchange for funding of $1.0 million. The company is engaged in exploration activities in Chile over ground prospective for gold mineralisation.  After a share price fall of nearly 80% since January 2018, the performance in the past week has made little headway in recouping earlier losses and left the share price lower than at any time over the three years prior to the end of October 2018.  The company had previously reported cash holdings of $301,000 at the end of September 2018.  It completed a share purchase plan subsequently to raise $374,200. Verdict: Sizzle.

Week ended 7 December 2018

THEME OF THE WEEK:  Low Quality Gains

Hipo Resources did not make any formal disclosure that might explain the share price action in the past week and which simply restores the price to levels which had prevailed in September, previously low point in the recent history of the African lithium and cobalt explorer. The current commodity exposure is just the latest manifestation for a company which had been launched to develop silver deposits in the USA before meandering to its current interests in pursuit of a viable business.  At the end of September 2018, the company held cash assets of $1.15 million. Verdict: Sizzle.

Mindax did not make any formal disclosure which might explain the share price action in the past week and which continued the heightened investor interest from a week earlier ( see 30 November 2018). Verdict: Sizzle.

Frontier Resources disclosed geophysical modelling based on analysis of mineralisation within a region in Papua New Guinea connected geologically to the Ok Tedi and Porgera mineral deposits. The data had been generated from historical airborne magnetics. Earlier in the year, the company had undergone a board reconstruction and completed a $6.0 million capital raising to fund PNG exploration activities. At the end of September 2018, the company held cash assets of $5.7 million with the expressed intention of spending $360,000 in the December quarter, including $155,000 on exploration related activities. Verdict: Sizzle.

Gascoyne Resources claimed, after a query from ASX about the unusual market performance, that it did not have anything to add to an operational update released on the day of its annual shareholder meeting at the end of November. Last week�s share price performance came after the company�s market value had slumped more than 80% since early May 2018.  In May, the company had commenced production with a market capitalisation of $190 million and cash and debt of $25 million and $60 million, respectively, aiming for annual gold production of 100,000 ounces.  Since then, production has fallen short of the company�s targets with it now saying that it should reach 7,300 ounces in December. The company has been improving operational outcomes but its financial condition has deteriorated. An additional 81 million shares (a 19% increase) have been issued since May with net debt rising by $40 million to fund working capital. The company generated cash of approximately $2 million in the September quarter. The value proposition is improving but the company will have to show a clear-cut route to sufficiently higher sustainable profitability to validate better market returns. The recent share price gains, albeit very modest against the historical backdrop, reflect a hope that this could happen. Verdict: Steak.

Scorpion Minerals changed its name from Pegasus Metals during the week and re-commenced trading for the first time since early November. The company holds base metal exploration interests in Burkina Faso and Western Australia. The African assets came from the acquisition by Pegasus of Scorpion Minerals.  After the price performance last week, the share price remained below pre-August 2018 levels, another example of the strong leverage to small changes in sentiment near historically low prices driven by relatively small flows of funds.  The value of transactions during December has been less than $20,000. The company did not spend anything on exploration in the three months ended September 2018, ending the quarter with minimal cash assets of $1,000 and having to rely on a line of credit from its major shareholder.  It said it expected to spend $260,000 in the December quarter. Verdict: Sizzle.

November 2018

THEME OF THE MONTH: Riding BHP and Rio Tinto Coattails

Of the highest returning companies during November, the following have been commented upon during the month:

• Cohiba Minerals                     Verdict: Sizzle.

• Redbank Copper                    Verdict: Sizzle.

• Antipa MInerals                       Verdict: Steak.

Kazakhstan Potash Corporation did not make any specific announcement which might explain the market performance but, following the share price rise, the company announced that it had met the threshold conditions for its takeover of Satimola, the holder of potash interests in Kazakhstan, and had placed a majority of directors on the board of the target company. The two companies had been in dispute over the terms of the takeover originally launched in October 2017. Kazakhstan Potash had cash assets at the end of September 2018 of $411,000.  Verdict: Sizzle.

Eon NRG announced that it had made record gas sales of US$660,000 in October 2018 from wells in western USA. The company also announced that it would begin drilling at a new location in Wyoming prospective for gas.  At the end of June 2018, the company held cash assets of $0.5 million with loans outstanding of 6.2 million. Verdict: Steak.

Antipa Minerals has experienced a rising share price trend since late October 2018 after speculation arose about a Rio Tinto copper find in the eastern Pilbara region of Western Australia where Antipa also has interests.  Midway through the month, the company released details of drilling activity within the region and near the Telfer gold mine. The company also reported on the results of exploration activity conducted by Rio Tinto in one area covered by a joint venture where Rio Tinto is working to acquire an interest of up to 75% by completing expenditure of $60 million.  The company had cash assets of $5.2 million at the end of September 2018 with the expressed intention of spending $2.3 million in the December quarter, including $1.9 million on exploration and evaluation. Verdict: Steak.

Week ended 30 November 2018

THEME OF THE WEEK:  BHP Saves the Day

Cohiba Minerals announced that it would accelerate its exploration efforts after BHP announced a fresh discovery of copper mineralisation on the eastern edge of the Gawler Craton late in the month. Cohiba has exploration rights over tenements adjacent to those in which BHP has been working.  During the last month, the company also announced the results of a scoping study for a gypsum quarry in Western Australia. The WA project involves upfront capital spending estimated at $1.2 million. The company reported having cash assets of $1.3 million at the end of September 2018. Verdict: Sizzle

Redbank Copper is usually a very lightly traded stock with 90% of shares outstanding held by 100 shareholders. After receiving a query from ASX about the reasons for the unusual investor interest, the company said it did not have any new information to disclose but drew attention to an announcement from BHP which referred to a new discovery of copper mineralisation in South Australia. Coincidentally, Redbank had been granted tenements in the Gawler Craton earlier in November and has outstanding applications for exploration rights over additional land where it is looking for Olympic Dam type targets. The company also holds exploration interests in the Northern Territory prospective for copper-cobalt mineralisation. At the end of September 2018, the company had cash assets of $3,000 and reported having to rely on a $1.5 million loan facility from its chairman for working capital. Verdict: Sizzle

Strategic Energy Resources responded to a ASX query about the surge in its share price and increased turnover by drawing attention to the announcement by BHP about a new copper mineralisation discovery on the eastern margin of the Gawler Craton in South Australia, a region in which the company also has exploration interests. The following day, the company announced that it had lodged applications to explore over additional land, in competition with others.  The company held $1.6 million in cash assets at the end of September 2018. Verdict: Sizzle

Pacific Bauxite is in dispute with the government of the Solomon Islands over whether the latter could cancel a prospecting licence held by a joint venture in which the company holds 50%.  The company had reported during the week that it intended to pursue its legal interests in the matter when two non-executive directors of the company resigned forcing a rearrangement of responsibilities immediately prior to the company�s annual meeting of shareholders. The company held cash assets of $1.4 million at the end of September 2018 after raising $335,000 in the preceding three months. As well as its Solomon Island interests, the company has acquired exploration rights over land in Western Australia although the development prospects there will be complicated by competing land uses in the Darling Range region. Verdict: Sizzle

Mindax did not make any formal disclosure which might explain the heightened interest in the stock during the week.  The company which holds iron and gold exploration interests in Western Australia has referred to its Mount Forrest interests as needing the participation of other companies in the region so as to achieve a size which would permit an economically feasible development to proceed. The company has referred to discussions having been undertaken without holding out significant hope of there being a change in circumstances. At the end of September 2018, the company held cash assets of $100,000 with the expressed intention of spending $80,000 during the December quarter. Verdict: Sizzle

Week ended 23 November 2018

THEME OF THE WEEK:  More Gains Without Momentum

Hampton Hill Mining, an infrequently traded stock which holds a 25% stake in a Pilbara zinc exploration opportunity, did not make any formal disclosure which may account for the trading outcome.  In any event, the share price change involved only one transaction with a value of $3,037.  The company which held cash assets of $589,000 at the end of September 2018, with loans outstanding of $500,000, did not spend anything on exploration during the preceding three months and expected to spend just $83,000 in the December quarter.  The company has said it is seeking new exploration opportunities.  Verdict: Sizzle

Emperor Energy partially regained previously lost share price ground after the company disclosed the results of reservoir modelling for a gas field in the Gippsland Basin in which it holds a 100% interest.  The simulation indicated that the gas reservoir could deliver 29 billion cubic feet per year for 20 years.  The company subsequently concluded its annual general meeting at which all resolutions were carried.  Now, with a market capitalisation of $2.7 million, the company has a very limited financial capacity to undertake the development implied by the resource potential.  At the end of September 2018, it held cash assets of $216,607 with estimated cash outflows in the current quarter of $202,000, throwing doubt on the wisdom of granting leases to companies with insufficient funding to properly complete development.  After rising, the company�s share price remains in the middle of the range within which it has traded throughout the last 12 months. Verdict: Sizzle

MZI Resources made its share price gains in the days leading to its annual meeting of shareholders but after the company had lost two thirds of its value since the beginning of October.  In addressing shareholders, directors reiterated their plans to build on the existing mineral sands production platform despite it having failed to meet the goals set in the original design concept.  Shareholders were told that other producers have taken two to five years to meet their start-up targets.  After a 90% fall in share price, the company now has a market capitalisation of $17.4 million and has reported net debt of $167.4 million at the end of September 2018.  The funding task will have been made harder, after an already disconcerting track record, by deteriorating financial market conditions. Verdict: Sizzle

Peako did not make any formal disclosure which might explain the upturn in investor interest. In any event, the higher share price did not breach levels which had prevailed prior to July 2018. The company has exploration interests in the East Kimberley region of Western Australia where it has joined other companies searching for gold and base metals. It spent $81,000 during the three months ended September 2018 leaving it with cash assets of just $48,000 and in need of a loan for working capital in the current quarter. Verdict: Sizzle

Redbank Copper, a lightly traded stock, did not make any formal disclosure which might explain the stronger investor interest. In any event, the share price gain occurred with transactions valued at approximately $4,000 and left the company�s shares trading within the same price range evident since August and 80% below where they had been 12 months ago. The company holds exploration interests in the Northern Territory prospective for copper-cobalt mineralisation.  At the end of September 2018, the company had cash assets of $3,000, now having to rely on a $1.5 million loan facility from its chairman.  Verdict: Sizzle

Week ended 16 November 2018

THEME OF THE WEEK:  Resource Building Re-emerges

Davenport Resources announced an inferred potassium oxide resource within one of its German tenement holdings, based on available historical data and following advice from an external consultant. Earlier work had been completed under the former East German government. Further work is now being undertaken in other areas over which the company also has rights to JORC compliant resources.  Drilling will be required to raise the status of the latest resource estimate from inferred to indicated. The company had cash assets of $2.4 million at the end of September 2018 with which to pursue its exploration plans. Verdict: Steak

Boadicea Resources did not make any specific announcement connected to the share price performance during the week. It did hold its annual general meeting of shareholders on the previous Friday but no trading occurred in the company�s shares in the following two days with the bulk of the share price rise during the week occurring on the last trading day with turnover valued at under $38,000. The company has a variety of exploration interests covering six areas in Western Australia including in the Fraser Range where it is hoping to emulate the Nova-Bollinger nickel-copper find by Sirius Resources and a more recent discovery, according to reports, by a privately held company in the vicinity of one of its properties. The company held cash assets of $1.06 million at the end of September 2018.  Verdict: Sizzle

Oilex has been in a legal battle in India with a joint venture partner after the latter failed to address a default notice served on it by the company.  In a recent judgement, the Gujarat High Court had required the joint venture partner to deposit the equivalent of US$3.1 million prior to commencement of arbitration proceedings during which time the effect of the notice of default would be delayed.  At the end of the week, the company said that it believed the funds had been deposited although it had not been able to confirm their lodgement. Verdict: Sizzle

Encounter Resources announced that it had joined with Independence Group to progress the company�s copper-cobalt project interests in the Paterson region of Western Australia. Independence will make an initial investment of $1.8 million via an issue of new shares in the company and will be able to secure a 70% project interest with expenditure of $15 million. The company has a large portfolio of exploration interests in Western Australia, including five joint ventures with Newcrest Mining.  The company held cash assets of $2.1 million at the end of September 2018 with expected expenditure of $475,000 in the December quarter. Verdict: Steak

Lake Resources did not make any specific announcement which might explain the share price performance during the week although it did conduct its annual meeting of shareholders. The meeting did not have any unusual business before it. The price action and improved stock turnover occurred after the shareholder meeting. The company has lithium development and exploration interests in Argentina. Earlier in the month, the company had announced an expansion of lease holdings at its Kachi project. The company was left with $290,000 in cash assets at the end of September 2018 after having spent $2.3 million in the prior quarter.  It has foreshadowed expenditure of $1.2 million in the December quarter. Verdict: Sizzle

Week ended 9 November 2018

THEME OF THE WEEK:  Bottom of the Cycle Volatility

Antipa Minerals received a query from ASX about the reasons for the recent activity in the market for its shares. The company said it did not have anything specific to say but drew attention to media reports speculating about a major copper find in the eastern Pilbara by Rio Tinto.  Rio Tinto has made no announcement but interest in its activities has been heightened by aerial photographs showing an extended camp and by the company�s request for a permit allowing an airfield to service the location. Antipa has land holdings in the region, including some held in joint venture with Rio Tinto. The company has not made any announcement as yet about its own exploration activity as it awaits results. Verdict: Sizzle

Octanex has offshore oil and gas interests in waters off Western Australia, New Zealand and Malaysia. The company did not make any specific disclosure which might explain the strengthening investor interest in the past week. In any event, the large percentage gain still leaves the company�s share price near record low levels after a decline of 95% from a year ago.  The company had $1.05 million in cash at the end of September 2018 which is inadequate for the high cost of offshore exploration and development activities.  Its Ascalon gas accumulation in the Bonaparte Basin is the only prospect in which the company holds a large enough interest (100%) to permit it the option of seeking out a joint venture partner to help dilute the cash demands of exploration and development. Verdict: Sizzle

Polar X announced the results of an aeromagnetic survey of ground prospective for copper-gold mineralisation in Alaska.  The company had also reported drill results a week earlier in its September quarterly activities report which it described as �very encouraging�.  The company spent over $3 million on an aggressive exploration program in the September quarter to finish with cash assets of $749,000 after having raised $3.9 million from issuance of new shares.  While the exploration results are encouraging, the company may have insufficient funds to drive the market value higher before initiating further capital raising activity.  The company said it intends to spend $487,000, including $234,000 on exploration, in the December quarter. Verdict: Steak

Eclipse Minerals conducted a limited drilling program in Queensland over ground prospective for manganese mineralisation. Following a review of the most recent results, the company has indicated it will plan the next stage of exploration. At the end of September 2018, the company held cash assets of $590,000 after having spent $32,000 on exploration. The company foreshadowed spending of $70,000 on exploration in the December quarter. Verdict: Sizzle

King River Copper disclosed results from an updated scoping study for its Speewah vanadium project near Kununurra in Western Australia. The company concluded that the study demonstrates a business case for further development.   A pre-feasibility study is scheduled for early 2019 after completing a heap leach analysis. All going well, the company believes that full production could be achieved in July 2023.  The company reported having cash assets of $5.6 million at the end of September 2018 with foreshadowed spending in the December quarter of $1.6 million. Verdict: Steak

October 2018

THEME OF THE MONTH: Low Quality Speculative Flows

Of the highest returning companies during October, the following have been commented upon during the month:

• Nex Metals Exploration             Verdict: Steak.

• Athena Resources                   Verdict: Sizzle.

• Abilene Oil and Gas                 Verdict: Steak.

• Enegex                                     Verdict: Sizzle.

• Silver Mines                              Verdict: Sizzle.

Week ended 2 November 2018

THEME OF THE WEEK:  A Rare New Producer

Nex Metals Exploration disclosed having cash assets at the end of September 2018 of $80,000.  The company continues to attract negligible investor interest (see 19 October 2018) with the latest rise in share price based on a single trade valued at just $95. The company said it has obtained outside advice on the value of its assets as it considers funding options.    Verdict: Sizzle

Coppermoly disclosed in its quarterly activities report for the three months ended September 2018 that it had begun drilling aimed at upgrading the copper-gold resource at its Mt Nakru deposit on New Britain in Papua New Guinea.  The company also reported a cash balance of $1.015 million at the end of the quarter.  Trading in the company�s shares is infrequent with the rise in share price during the week coming from transactions with a value of $3,111, the largest daily turnover by value since the last week of July 2018.  Verdict: Sizzle

GWR Group confirmed in its latest quarterly activities report that the ASX had blocked the proposed sale of the company�s Hatches Creek tungsten-copper-gold project in the Northern Territory.  The proposed sale to Tungsten Mining, in which GWR holds a 9.6% stake, had a cash value of $8.7 million. The two companies have indicated an intention to modify their agreement to find an alternative way in which to permit Tungsten Mining to invest in the project. Tungsten Mining is one of a portfolio of investments, with a reported value at the end of September 2018 of $29.7 million, held by the company. The company also held cash assets of $3.3 million.  Verdict: Sizzle

Lithium Consolidated Mineral Exploration has a stated aim of establishing �a dominant position� in hard rock lithium mining in Zimbabwe and Mozambique.  The company also holds exploration properties in Nevada, Western Australia, South Australia and Botswana. Other than summarising its intentions, the company did not make any formal disclosure to explain its share price action which came over two days of modestly higher volumes in the number of shares traded.  The company reported having cash on hand at the end of September 2018 of $1.3 million, not a significant amount in the context of its ambitions and fallen investor appetite for lithium exposed companies.  Verdict: Sizzle

New Century Resources announced that it had finalised a $40 million funding deal with National Australia Bank to supplement cash assets of $32.2 million at the end of September 2018.  The company has reported commencement of production at the restarted tailings treatment operation at the Century zinc mine with the aim of completing the phase one production ramp up by the end of March 2019.  Verdict: Steak

Week ended 26 October 2018

THEME OF THE WEEK:  Gains Still Lacking Momentum

Athena Resources did not say anything formally which might explain the share price movement during the past week.  In the previous week, it had sent out a notice convening its annual meeting of shareholders which appeared unexceptional as it only involved votes on matters required by the corporations laws.  The company controls the Byro iron ore project in Western Australia which, since the collapse in iron ore prices, has been the subject of several technical reviews with the aim of identifying alternative uses for the magnetite.  The company�s major shareholder had held an option to purchase the project but, following a series of extensions to the contract period, the company issued a notice terminating the transaction earlier in 2018.  Verdict: Sizzle

Pegasus Metals reported results from a recently completed drilling program at its Doblo tenements in Burkina Faso. The tenements are prospective for palladium-platinum-gold-nickel-copper mineralisation. The drilling encountered mineralisation in several locations but without any outstanding results and without clarifying a coherent explanation of the regional geology. While further work will be pursued, there is nothing in the results so far suggesting commercial potential.  Entry to the Burkina Faso properties was completed in early October after the acquisition of a company which held an option over the mineral rights and following shareholder approval.  The company is now entitled to raise its stake in the properties from 15% to 70%. At the end of June 2018, the company held cash assets of $28,000, debt of $330,000 and undrawn loan facilities of $670,000.  Verdict: Sizzle

Crater Gold Mining announced that gold delineated at its Crater Mountain gold deposit in Papua New Guinea will allow mining to commence during November after an earlier scheduled start had been delayed.  At the end of June 2018, the company held cash assets of $265,000 with outstanding loans of $13.7 million. The loan amounts, owed to an entity associated with the company�s Chairman, were restructured following the end of the financial year.  Verdict: Sizzle

Cannindah Resources gained after it made it the announcement referred to below (19 October 2018) and after it had given up a part of those earlier price increasers.  Verdict: Sizzle

Energex did not make any disclosure which might explain the share price performance in the past week. The heightened market activity occurred for the second week in the past month (see 12 October 2018) in which relatively strong gains have been made in this infrequently traded stock with an interest in Western Australian offshore gas.  The price change over the past week was driven by share transactions with a value of approximately $1,200.  Verdict: Sizzle

Week ended 19 October 2018

THEME OF THE WEEK:  No Momentum

Nex Metals Exploration is rarely traded and, with cash assets at the end of June 2018 of only $57,000, unable to undertake any meaningful activity. The company indicated in its June quarterly activities report that it would review funding alternatives as well as its operational approach.  It had made no announcement which might explain the share price movement which, in any event, occurred with only a single trade with a value of $2,226. Verdict: Sizzle

Mount Burgess Mining did not make any disclosure which might explain the share price movement which, in any event, kept prices within the trading range of the past few weeks and well below prices which had prevailed in prior months. Earlier in October, the company announced that it intended to raise $34,500 via an issue of shares to supplement cash holdings of $26,000 at the end of June 2018 and a $40,000 loan in July from associates of the company. The company holds exploration ground in Botswana prospective for vanadium. Verdict: Sizzle

Silver Mines did not make any specific disclosure which might explain the share price movement although, earlier in the month, the company had foreshadowed commencement of a drilling program over ground in central New South Wales prospective for copper, gold and silver. The company also holds a large undeveloped silver resource in the region.  It held cash assets at the end of June 2018 of $730,000 before raising an additional $3.85 million through an issue of new shares in September. Verdict: Sizzle

Davenport Resources announced a 1.13 million tonne potash resource containing 11.1% potassium oxide in one of its German mining regions. The exploration areas in eastern Germany had been assessed previously for mineralisation by the former East German government.  Resource definition work incorporates the historical analysis. The company held cash assets at the end of June 2018 of $722,000 with estimated September quarter outflows of $1.05 million.  It subsequently completed a placement of shares to raise $2.1 million and raised $286,000 through a share purchase plan to enhance its financial position while still leaving it with limited funding for the extent of the exploration work that it will need to complete. Verdict: Sizzle

Krakatoa Resources provided a progress report covering exploration activity over ground in Ontario, Canada.  The company completed acquisition of the properties during the June quarter following which it completed a review of available geophysical data.  Targets prospective for cobalt-silver mineralisation are being assessed in a maiden field program.  The company had $686,000 in cash assets at the end of June 2018 with the intention of spending $160,000, of which $120,000 was to be on corporate expenses, during the recently completed September quarter. Verdict: Sizzle

Week ended 12 October 2018

THEME OF THE WEEK:  Unimpressive Upside

Cannindah Resources reported on discussions with Minjar Gold about the Piccadilly gold project near Charters Towers.  During the talks, according to the company, Minjar outlined a potential resource of up to 53,000 ounces in which it would have an interest as a source of feed for its mill in the region. Cannindah indicated in its statement that it was more interested in searching for the source of the identified mineralisation which, in the company�s view, offers the chance of a significantly larger find. The discussions did not appear to herald a commercial link between the two companies. At the end of June 2018, Cannindah had cash assets of just $10,000 and outstanding debt of $3.2 million with the expressed intention of spending $230,000 in the recently completed September quarter. During the September quarter, the company issued shares in two tranches to raise $139,000 and $30,000, respectively. Verdict: Sizzle

Greenpower Energy did not make any formal statement that might have affected the share price.  The move kept the company�s market value within the range it had occupied since the end of August with the performance simply a product of the normal ebb and flow of the market for a company with an already deeply discounted share price. The company has lithium exploration interests in Guyana and the Northern Territory and has applied for an exploration licence covering coal in Victoria. It is also finalising an acquisition of a company with battery minerals exploration interests. Verdict: Sizzle

Petrel Energy announced that its joint venture partner in a Uruguayan oil exploration project had restructured its holding to give it an additional 8%, leaving Petrel with 41%. Petrel retains a right to an additional 9.7%. The share price movement kept the company�s value within the range it had occupied in recent months with the performance simply a product of the normal ebb and flow of the market for a company with a deeply discounted share price. Verdict: Sizzle

East Energy Resources, an infrequently traded stock with coal exploration interests in Queensland, did not make any disclosures which might explain the share price movement during the week.  The company had said in its June quarter activities report that it would review project opportunities in addition to its Blackall coal project which is being affected adversely by political opposition to use of coal as an energy source. The company had $88,000 in cash assets at the end of June 2018.  Subsequent to the end of the quarter, the company received a $400,000 loan from Noble Limited which has a 93.4% shareholding, to enable it to continue its activities. Verdict: Sizzle

Energex, which holds a 15% interest in a Browse Basin exploration area, did not make any formal disclosure which might explain the share price movement.  In its June quarter activities report, the company disclosed that an $80 per barrel oil price would be needed to validate commercial development of its exploration interests prompting the company to look for attractive alternative opportunities.  At the end of the June quarter, the company had cash assets of $287,000 with expectations of spending $50,000 during the recently completed September quarter. Verdict: Sizzle

Week ended 5 October 2018

THEME OF THE WEEK:  Bottom of the Cycle Volatility

Abilene Oil and Gas did not formally disclose any information that might explain the share price movement. The company�s last quarterly activities statement referred predominantly to events which occurred in 2014 and 2015, emphasising the absence of reasons for investors to revalue the business. The infrequently traded stock added $1.6 million to its $ 0.8 million market capitalisation with a single trade valued at $1,200. The company which has oil and gas production interests in the midwest of the USA had $297,000 in cash at the end of June 2018 with outstanding loans of $4.3 million. Verdict: Sizzle

Horizon Gold reported assay results from a recently completed diamond drill hole from the company�s Gum Creek tenements in Western Australia. The zinc-copper intercept is below the level of historical drilling opening up the possibility of a previously unexpected mineralised deposit. Further drilling will be required to improve the company�s understanding of the orientation and extent of mineralisation. The company finished the June quarter with cash assets of $7.16 million with the intention of spending $1.7 million in the just completed September quarter.  The company is drawing on funds from a 2016 initial public offering. Verdict: Sizzle

Tasman Resources is exploring in South Australia in the vicinity of the Olympic Dam deposit. The company also holds a 42% stake in ASX listed Eden Innovations. The current $44 million value of the shareholding exceeds the $31 million market value of Tasman itself.  The Eden share price rose by 65% over the past week. Eden markets a range of technology solutions for the treatment of concrete and reduction or control of carbon emissions.  The company had made several announcements in late September about commercial successes in Australia and the USA for its products.  During the week, Tasman itself completed a $2 million capital raising after placing shortfall shares from a previous entitlement offer.   At the end of June 2018, Tasman had cash assets of $2.17 million with the expressed intention of spending $285,000 in the September quarter of which only $50,000 was attributed to exploration and evaluation. Verdict: Sizzle

Winchester Energy has oil and gas exploration interests in the Permian Basin in Texas where recent drilling activity has encountered unexpectedly strong oil flows.  An assessment of the longevity of the flows is now needed.  The company already owns interests in eight producing assets which accounted for revenues of US$357,807 in the June quarter. The company had cash assets of $1.6 million at the end of June 2018. Verdict: Steak.

Cauldron Energy has agreed to acquire two tenement areas in the Pilbara region of Western Australia prospective for lithium.  The predominantly scrip based transaction put a value of approximately $2 million on the properties. Previously, Cauldron�s principal interests had involved uranium exploration in Western Australia.  The company had said that it was reviewing alternative project opportunities given the negative attitude of the government to uranium mining.  No work has been undertaken on exploration interests prospective for copper and silver in Argentina, another exploration holding. The company had cash assets of $1.95 million at the end of June 2018 with the stated intention of spending $670,000 in the just completed September quarter. Verdict: Sizzle

September Quarter 2018

THEME OF THE QUARTER: Energy to the Fore

Of the highest returning companies during the September quarter, the following have been commented upon during the period:

• Consolidated Zinc                         Verdict: Steak.

• IPB Petroleum                               Verdict: Sizzle.

• Helios Energy                                Verdict: Steak.

• Carnarvon Petroleum                    Verdict: Steak.

• White Energy Company                 Verdict: Sizzle.

September 2018

THEME OF THE MONTH: Obscure Gold Locations

Of the highest returning companies during September, the following have been commented upon during the month:

• Consolidated Zinc                     Verdict: Steak.

• Niuminco Group                        Verdict: Sizzle.

• Ventnor Resources                   Verdict: Steak.

• DGR Global                               Verdict: Sizzle.

Vector Resources announced progress toward finalising the acquisition of a 60% interest in the Adidi-Kanga gold project in the Democratic Republic of the Congo.  The project, with a 3.2 million ounce gold resource, had previously been the subject of a US$520 million exploration program by AngloGold Ashanti, according to the new buyer.  The company also said, in its early September filing, that the settlement deadline for the transaction which had been first announced in July had been extended to 15 September.  Funding proposals for the $20 million transaction had also been received.  The company subsequently advised that debt facilities for $55 million to cover existing loans and upcoming working capital needs had been negotiated but that the settlement date for the transaction had been further delayed until early October.  The company had cash assets of $759,000 at the end of June 2018 with planned expenditures of $735,000 in the September quarter. Verdict: Sizzle

Week ended 28 September 2018

THEME OF THE WEEK: Modest Recoveries

Niuminco Group disclosed gold grades of 93.8 g/t from sampling a vein at its Edie Creek project in PNG.  It has been ramping up production at the project site as well as conducting exploration in the area. The company has reported having produced 30.2 ounces from 10 tonnes of vein material.  At the end of the quarter, the company held cash assets of $2,000 before a rights issue raised $310,000 from the issue of new shares.  The company expected cash flows of $350,000 from metal sales to cover expenses of a like amount in the September quarter. Verdict: Sizzle

RMG announced completion of the first stage of the company�s copper-gold exploration program in northern Chile which has involved mapping and sampling.  The first batch of assays includes copper grades of up to 6.3% and gold up to 3.12 g/t. The company had $803,000 in cash at the end of June 2018 to fund its ongoing activities with the intention of spending $300,000 in the three months to the end of September.  At the beginning of August, the company disclosed that it had issued a debt security to raise an additional $656,000. Verdict: Sizzle

Resource Generation announced that it had progressed a funding proposal for its South African coal interests, expecting final approval by the end of October 2018. The company, which had cash assets of $1.73 million at the end of June 2018 while looking to spend $4.4 million in the September quarter, is targeting coal production of six million tonnes a year. The company already has drawn loan facilities of $47.4 million, mostly funded by Noble Resources. Verdict: Sizzle

Lepidico received a query from ASX about its share price movement and trading volumes for which the company did not have any specific reasons.  The company was concluding an entitlement share offer during the week to raise $7.9 million and pointed to price action typically occurring around such issues. The company�s principal interest is in technology to process lithium-containing minerals that cannot be treated by conventional technologies, enabling additional low cost sources of the metal for which demand is expected to grow strongly. The company has mineral assets in Portugal with additional mineral sourcing opportunities in Western Australia. The Lepidico share price movement tops the performance of a selection of 30 lithium exposed companies listed on ASX over the past two weeks. The Lepidico share price remains 60% below levels reached in late 2017. Verdict: Sizzle

Archer Exploration has graphite mineral interests in South Australia with an emphasis on commercialisation of advanced technologies.  The company has a range of strategic research partnerships investigating advanced materials technologies. It has been selling its non graphite mineral exploration interests.  In the past week, the company announced that it had finalised an agreement with a German biotechnology company to develop an electrochemical biosensor using printable graphene components for detecting disease. The company held cash assets of $2.7 million at the end of June 2018 with the intention of spending $900,000 during the three months to September 2018. Verdict: Sizzle

Week ended 21 September 2018

THEME OF THE WEEK: Big Dividends

Rand Mining announced that it would pay a fully franked dividend of $1.25 per share. Immediately before the announcement, the company�s shares had been trading at $2.40. The cash available for payment of the dividend arises from the company�s 12.25% joint venture interest in the East Kundana gold project along with Northern Star Resources (51%) and Tribune Resources (36.75%).  Rand Mining also holds a 26.32% stake in Tribune Resources.  The level of future dividends is uncertain making value assessment based on the proposed payout difficult. That said, the company has recognised the revaluation potential from establishing a track record of returning excess cash to investors. Verdict: Steak.

Consolidated Zinc announced that it had completed the first shipment of zinc-lead-silver ore from its Plomosas mine in Mexico (See 7 September 2018).   The company plans for shipments, initially at a rate of 100 tonnes a day, to rise to 10,000 tonnes a month. The ramp up is expected to take nine months. The material is being sent to a nearby concentrator for processing. Verdict: Steak.

Tribune Resources announced that shareholders would receive a fully franked dividend of $3.50 a share totalling $175 million arising from its interest in the East Kundana gold joint venture with Rand Mining (12.25%) and Northern Star Resources (51%). Rand Mining holds a 26.32% interest in Tribune.  The announcement by the latter was in almost identical terms to the announcement by Rand Mining about reasons for its own dividend payment and the consequences for future funding. Immediately before the dividend announcement, Tribune Resources shares had been trading at $7.00.  The size of the dividend reflects a build up in cash and bullion holdings within the company so cannot be relied upon as an indicator of ongoing annual payments. That said, directors of Tribune and Rand Mining have recognised the revaluation potential from establishing a track record of returning excess cash to investors. Verdict: Steak.

Ventnor Resources announced that it had received the results from test work confirming the suitability of product for glass making from its two Western Australian silica sands sites. Further internal testing and reviews by potential customers will follow. The work being undertaken will also assist in defining a resource. The company had ended June with cash assets of $277,000 after having spent $1.8 million during 2017/18. Subsequently, the company raised $2.2 million via a share issue. Verdict: Steak.

Rawson Oil and Gas received a notice from Lakes Oil disclosing that the latter was entitled to 81.85% of the ordinary shares of the company following a takeover offer. The duration of the offer had been extended earlier in the month until 24 September with Lakes oil indicating that failure to reach the 90% compulsory acquisition threshold would result in a loss of liquidity for remaining shareholders and the possibility that their positions may be diluted if capital had to be raised to fund the company�s share of exploration and development costs. Verdict: Steak.

Week ended 14 September 2018

THEME OF THE WEEK: Gold Explorers Come to Life

Explaurum received an unsolicited scrip bid from Ramelius Resources valued at $59 million for all its outstanding shares. The proposed bid price was 66% higher than the previous closing price of the company. The Explaurum share price was 6.5% lower than the bid price at the end of the week. In response to the bid, Explaurum said that Ramelius had pre-empted further discussions after an initial and inconclusive meeting between the companies. It called the Ramelius bid inadequate and opportunistic. Ramelius is seeking to take advantage of the geographic proximity of development assets held by Explaurum to its own gold assets in Western Australia. Verdict: Steak.

Elementos did not make any formal announcement which might explain the share price action in the past week. In any event, the price only reverted to levels which had prevailed in months prior to historically unusual weakness at the end of August. The company had previously been forced to delay completion of negotiation for purchase of a Malaysian tin-related development opportunity following a change in official personnel after the country�s recent elections. The company, which has long sought to complete a Tasmanian tin mine development has lost significant value after foreshadowing acquisition of a portfolio of tin development assets, including another in Spain. The company also completed a share placement at the end of July after finishing June 2018 with cash assets of $937,000. Investors have been left questioning whether Elementos is on the road to three successful development opportunities or, having not completed one, tripled the chance of disappointment. Verdict: Sizzle

Perpetual Resources did not make any formal disclosure which might explain the price action.  Earlier, the company had announced completion of a buyback of small share parcels, cancelling 2.16 million shares accounting for less than 1% of the total outstanding, for which it had paid $32,400. The company has gold exploration interests in New South Wales on which it had only spent $46,710 in the 12 months ended June 2018. The higher share price remained below levels prevailing in November 2016.  Verdict: Sizzle

Lefroy Exploration had reported on recent exploration activity over tenements near Kalgoorlie prospective for gold mineralisation, in the prior week.  One of the project areas is subject to an earn-in by Gold Fields which can take an 70% interest by spending $25 million over six years. After spending $2.47 million in the year to June 2018, including $1.7 million on exploration, the company finished with $521,000.  It estimated cash outflows in the September quarter of $1.4 million of which $540,000 was to be on exploration. Subsequently, the company raised $2.6 million to help fund its field activity and administration expenses. Verdict: Sizzle

Ardiden rebounded modestly from having posted the lowest share price levels in three years. At the end of August, the company had disclosed assays from drilling at its Pickle Lake gold exploration interests in Ontario. At the same time, the company emphasised that its focus will be on its lithium exploration interests at Seymour Lake in Ontario for which it released drilling results in late August and for which there was no discernible market reaction at the time. The company spent $3.6 million on exploration (out of total spending of $4.9 million) over the 12 months to June 2018 leaving it with cash assets of $6.9 million to further its exploration efforts. Verdict: Sizzle

Week ended 7 September 2018

THEME OF THE WEEK: Small Gains Within Downtrends

Consolidated Zinc announced that it would begin mining immediately at its Plomosas zinc mine in Mexico having received funding via convertible notes issued to existing shareholders and the company chairman. The company said it would need only $0.5 million to initiate production at the mine acquired in 2015 and where mining has occurred on site since 1945. An estimated resource of 1.178 million tonnes, in which the company has a 51% interest, is estimated to contain 189,700 tonnes of lead and zinc.  Operating costs are expected to be less than $0.50 per lb of zinc after by-product credits.  Ore processing will occur at a nearby Grupo Mexico plant. The company expects to have its ore toll treated at a rate of 2,500 tonnes a month. Verdict: Steak.

DGR Global said, after being queried by ASX about the price action, that BHP Billiton had taken a 6.1% stake in SolGold Plc in which DGR itself has a 12% interest. The transaction was completed at a 20% price premium to recent trades. The company also has positions, generally running between 15% and 25%, in several other companies which have made announcements recently about their respective activities. Verdict: Sizzle

Rimfire Pacific Mining announced that it had contracted a gravity survey over areas it holds in New South Wales prospective for copper-gold mineralisation. The company said it expects to receive results in early October. The company has said that it is aiming to establish a sufficiently large resource, equivalent to four million ounces of gold, to enable a 10 year production life. The moving average share price indicator suggests the weekly gain has been a partial reversal in a longer term downtrend.  Verdict: Sizzle

Force Commodities did not have any explanation for its share price action when queried by ASX. Directors did, however, draw attention to exploration activity being conducted in the Democratic Republic of the Congo where it has a focus on finding mineralisation containing lithium and related metals. The moving average share price indicator suggests the weekly gain has been a partial reversal in a longer term downtrend. Verdict: Sizzle

Metals Australia provided a commentary on field work leading to an exploration campaign at its Lac Rainy graphite prospect in Quebec where it had recently commenced channel sampling. The company had cash assets of $2.1 million at the end of June 2018 with the intention of spending $715,000 during the September quarter. The moving average share price indicator suggests the weekly gain has been a partial reversal in a longer term downtrend. Verdict: Sizzle

August 2018

THEME OF THE MONTH: Unconventional Projects

Of the highest returning companies during August, the following have been commented upon during the month:

• IPB Petroleum                                 Verdict: Sizzle.

• Mindax                                            Verdict: Sizzle.

• Canyon Resources                         Verdict: Sizzle.

• Gulf Manganese Corporation          Verdict: Steak.

• King Island Scheelite                       Verdict: Sizzle.

Week ended 31 August 2018

THEME OF THE WEEK: No News is Good News

AustChina Holdings announced that agreement had been reached for the sale of its Surat Basin coal exploration assets for $5.1 million. The sale, having been subject to several extensions, had first been foreshadowed in March 2017. The company had previously reported that it held cash assets of $46,000 at the end of March 2018. Any exploration and development activities have been placed on hold pending changes in public attitude to development of coal resources in Queensland. Verdict: Sizzle

White Energy Company received a favourable decision in a Singapore court in relation to a joint venture dispute (see 6 July 2018) which has stalled an Indonesian coal project in which the company had invested over US$110 million. Damages and costs will be subject to further legal proceedings. Meanwhile, the company is seeking to focus its attention on its coal briquetting technology. The company also holds coal gasification opportunities in Australia and mining assets in the USA from which it is seeking to exit. Verdict: Sizzle

King Island Scheelite did not make any formal disclosure which might explain the share price action. Volumes traded were unusually high early in the week but the major part of the price rise came later without an especially large turnover.  Total value of shares traded for the week was less than $50,000. The company finished the June quarter with cash assets of $494,000 but completed a $1.5 million capital raising in July. Verdict: Sizzle

Manhattan Corporation did not make any formal disclosure which might explain the share price action, which came with unusually strong trading volumes, during the week. In early August, the company had announced completion of a $3 million capital raising which had been a precondition under an option agreement entitling the company to an 80% interest in a Chilean copper project where, the company had said, it would commence drilling at the beginning of September. Verdict: Sizzle

China Magnesium Corporation did not make any formal disclosure which might explain the heightened market activity, in a usually very lightly traded stock, during the week. The company released its statutory financial reports for the year ended June 2018 late on the final day of trading, after the rise in the share price had occurred. The company has magnesium production facilities in China as well as lithium mineral exploration interests in Western Australia. It reported a loss of $3.1 million on customer receipts of $124,000. Verdict: Sizzle

Week ended 24 August 2018

THEME OF THE WEEK: Mostly Short Term Recoveries

IPB Petroleum continued to benefit from the positioning of its planned exploration well off the coast of Western Australia near a recent discovery (see 20 July 2018). When queried about the recent price action, which amounts to a fivefold rise since 13 July 2018, the company also referred to the valuation placed on Quadrant Energy, one of the partners in the discovery, by Santos which is bidding for Quadrant. Verdict: Sizzle

Shree Minerals is a very rarely traded stock with an interest in a Tasmanian iron ore project (see 20 July 2018). The price action in the past week came with a transaction valued at just $700. Verdict: Sizzle

Stonewall Resources did not make any specific announcement which might explain the share price move. The company has a defined gold resource of 5.1 million ounces in South Africa for which a scoping study is being prepared. It has a stated aim of producing up to 100,000 ounces of gold a year from a range of historical workings. The company, which finished June 2018  with cash assets of $265,000, completed a $5 million capital raising after a shareholder meeting on 10 August. The share price increase was a retracement from a historical low point which left investors with losses of more than 60% over 12 months. Verdict: Sizzle

Jervois Mining announced that it had submitted an application for a prospecting licence over a cobalt-nickel deposit in Tanzania. The property in question has been the subject of a definitive feasibility study and had been held jointly by Glencore and Barrick Gold until January 2018 when the government withdrew all previously issued retention licences. The company has no assurance that its application will be successful.  Application success may depend on no other company being prepared to incur the jurisdictional risks associated with an investment in Tanzania. Verdict: Sizzle

Rand Mining announced a fully franked dividend for shareholders of record on 31 August 2018 representing 3.7% yield on the higher share price. The total value of the dividend payment will be 6.01 million. Rand Mining holds a 12.25% interest in a joint venture with Tribune Resources and Northern Star Resources which operates the East Kundana gold project in Western Australia. The company has an expressed aim of making regular dividend payments. After generating $6.01 million in cash from operating activities in the year ended June 2018, the company held cash assets of 2.4 million. Verdict: Sizzle

Week ended 17 August 2018

THEME OF THE WEEK: No Fad Metals

Hammer Metals announced that it had discovered four new copper-gold systems in the Mount Isa area following rock ship sampling.  The company intends to commence drilling in the upcoming quarter.  The company had previously reported finishing the June quarter with cash assets of $1.4 million.  It had also foreshadowed a fully underwritten entitlement issue to raise approximately $0.8 million for which a prospectus was issued at the end of the week.  Verdict: Sizzle

Pancontinental Oil and Gas announced that ExxonMobil had taken an interest in an exploration block off the coast of Namibia in the vicinity of the company�s own prospect.  The company also indicated it would shortly say something about its analysis of other regional opportunities.  The company had cash assets at the end of June of $776,000, very little for offshore oil and gas exploration, although it does not have any immediate funding commitments as a result of existing farm-out arrangements.  Verdict: Sizzle

Gulf Manganese did not make any announcement which might have precipitated the price action in the past week.  Earlier in the mouth, the company did outline progress in constructing its smelters at Kupang on the island of Timor in Indonesia.  It had also had previously announced that the government had granted a licence to process manganese ore.  It had not received a licence to export manganese concentrate.  Although the most recent investor interest is apparently unconnected to any specific event, the performance has contributed to a doubling in the market value of the company since the end of July as the company pushes toward a ferromanganese alloy production start.  Verdict: Steak.

Canyon Resources responded to a query from ASX about last week�s price action by drawing attention to earlier announcements in which it had disclosed that the Cameroon government had granted exploration permits over an area with an already defined 550 million tonne bauxite resource.  The area is adjacent to existing ground from which the company has been seeking to ship bauxite but for which approvals have been delayed.  Prior to the last day of trading, the company had requested a trading halt pending a further announcement.  At the end of June 2018, the company had cash assets of $2.3 million with the intention to spend $391,000 in the September quarter.  Verdict: Sizzle

Poseidon Nickel announced that it had received a conditional proposal for the acquisition of all of the company�s shares.  The company was trading at a 7% discount to the suggested cash bid price when trading in its shares was halted.  The company advised that discussions are continuing without any certainty of a deal being completed.  Verdict: Steak.

Week ended 10 August 2018

THEME OF THE WEEK: Breaking from the Past

Baraka Energy and Resources is emerging from a succession of commercial conflicts. Its oil and gas properties in the Northern Territory have benefited from the decision by the government to permit hydraulic fracturing to exploit oil and gas resources. The company�s streaming rights to revenue from a Philippines iron sands deposit had been subject to review after investors had sought the replacement of the board of the company being funded.  Baraka was also in dispute with the company which had introduced it to the Philippines project.  Talks to resolve differences are being pursued.  More recently, investors upset at the direction of the company sought the replacement of Baraka directors. Incumbent directors resigned in the past week paving the way for the dissidents to take control of the company.  See also below. Verdict: Sizzle

Lachlan Star had been in administration until the end of May 2018 when it was reinstated for ASX trading after raising $3.3 million as part of a corporate recapitalisation.  The company has a magnesite deposit in Queensland which it is targeting for development. In its activities statement for the June quarter, the company also foreshadowed the possibility of making other investments including outside the mining industry. The company has made no formal disclosure about its intentions since releasing the quarterly report at the end of July. Verdict: Sizzle

Melbana Energy announced that an independent consultant had reviewed and upgraded the company�s estimate of oil and gas resources held in tenements off the coast of Western Australia and Cuba. Its Block 9 Cuban recoverable resource increased 13% to 718 million barrels of oil. The Western Australian Beehive resource was estimated to be 388 million barrels. The company�s exploration targets are both adjacent to previous discoveries by other parties.   The commercial nature of the Cuban opportunity will depend on negotiation with the government and its state-owned oil company.  At the end of June 2018, the company held cash assets of $6.1 million, an inadequate amount for multiple offshore exploration efforts, suggesting the need to introduce cashed-up partners to further development.   Verdict: Steak.

Mindax is an infrequently traded stock which did not make any formal disclosure which might explain the share price performance. The company has iron ore and gold exploration interests in Western Australia but, at the end of the June quarter, held cash assets of only $24,000 after raising equity and loans totalling $500,000. The company intimated in its most recent quarterly activities report that parties with interests in the Midwest iron ore region were investigating development plans which might change the economics of hitherto stranded assets. Verdict: Sizzle

Argosy Minerals announced that it had produced a batch of battery grade lithium carbonate from its Argentine brine deposits and is now preparing quantities for testing by potential customers.  The product will need customer endorsement and confirmation that the existing production facility is scalable top add confidence about the development potential. The company is in a relatively strong financial position, for its stage of development, with cash assets of $8.1 million at the end of June 2018. Verdict: Steak

Week ended 3 August 2018

THEME OF THE WEEK: Dealmaking

Winchester Energy has a 50% working interest in eight producing oil wells in Texas.  The wells produced 12,660 barrels of oil in the June quarter, according to the company�s quarterly activities report released during the week.  Revenues of US$213,000 from the company�s share of sales was insufficient to cover costs resulting in a net cash outflow for the quarter of US$359,000. The company finished the quarter with cash holdings of US$1.15 million. It is in the process of testing potential new wells within its existing tenements but has recently reported one unsuccessful prospect. To build its production base, the company is seeking to engage potential farm-in partners. Verdict: Sizzle

Summit Resources announced that it had struck an agreement with ASX listed  Paladin Energy under which Paladin is to make an off-market bid for the 18% of outstanding shares in Summit it does not already own. The all scrip takeover will be subject to an independent expert report although holders of a majority of shares - and enough to take Paladin above its targeted 90% threshold - have already indicated acceptance. Summit holds uranium resources in the Mount Isa area of Queensland. Verdict: Steak.

Resource Generation announced that it had let contracts for construction at its proposed Boikaebelo coal project in South Africa. The company is still in the process of arranging funding, supported by Noble Group loans in the meantime. The company held cash assets of $1.7 million at the end of June 2018 with unsecured loans outstanding of $47.5 million. Verdict: Steak

GWR Group released its quarterly activities report for the period ended June 2018 highlighting its exposure to tungsten. It flagged a program of work in the Northern Territory, where it is about to commence exploration over tungsten-gold-copper mineralisation, with a view to defining a resource.  It also has gold, lithium and tungsten exploration interests in Western Australia.  GWR also holds a 73% interest in ASX listed Tungsten Mining (see below) among other listed investments. The company had cash holdings of $4.3 million at the end of the June quarter with plans to spend $600,000 in the three months to the end of September. Verdict: Sizzle

Brockman Mining announced that it had entered into a joint venture agreement with ASX listed Mineral Resources to develop the 1.4 billion tonne Marillana iron ore project in Western Australia, subject to farm-in terms being met. The company, which is being restructured, does not have any operational activities. It spent HK$7.0 million during the June quarter and HK$35.2 million during the year ended June, predominantly on staff and administration. It had cash assets of HK$34.2 million at the end of June.  A subsidiary of Mineral Resources will provide Brockman with a A$10 million loan under the terms of the agreement. Mineral Resources will be responsible for meeting port and rail infrastructure costs as well as a half share of the A$300 million development costs. Verdict: Sizzle

July 2018

THEME OF THE MONTH: Energy

Of the highest returning companies during July, the following have been commented upon during the month:

• Carnarvon Petroleum                     Verdict: Steak.

• Oro Verde                                      Verdict: Sizzle.

• Anson Resources                          Verdict: Steak.

• Metalsearch                                   Verdict: Sizzle.

• 3D Oil                                            Verdict: Sizzle.

Week ended 27 July 2018

THEME OF THE WEEK: Flimsier than Usual

Jacka Resources, in its June quarter activities report, disclosed that ASX had threatened the company with loss of its stock exchange listing. The company has residual oil and gas interests in Nigeria and Somaliland but no ongoing activities.  Directors said that they were looking at business opportunities but were not yet in a position to make any announcement. There was nothing in the comments from the company to suggest that any new venture would necessarily be in the mining or oil and gas industries. The company had $670,000 in cash assets at the end of June 2018 after completing a $615,000 share placement. Verdict: Sizzle.

Aeris Resources reported having produced 7,592 tonnes of copper during the June quarter, an increase of 11% at its Tritton copper project in New South Wales. The $64.5 million company said it expected to produce 24,500 tonnes of copper at a cash cost of A$2.75-2.90 per pound during 2018/19. At the end of June, the company had cash assets of $29.8 million and loans outstanding of $50.0 million.  Debt has been reduced from $136 million over three years as part of a financial restructuring by new management. The company also maintains regional exploration interests and is about to commence a copper-gold drilling program in South Australia. Verdict: Steak.

Oro Verde reported in its June quarterly activities report that it was seeking to extend the exercise period for an option to acquire a Nicaraguan gold project. The company�s main activity during the quarter was a reorganization of data relating to the project to meet JORC standards.  It spent $100,000 on exploration and evaluation and a further $167,000 on staff and administration. Cash holdings of $323,000 at the end of June were supplemented by a $1.4 million second tranche of an earlier capital raising. Verdict: Sizzle.

Metalsearch was queried by ASX about reasons for its share price performance but affirmed it did not have any information to explain the unusual market action. The company holds nickel-copper-cobalt exploration interests in Botswana.  At the end of the week, the company�s quarterly activities and cash flow reports for June due by the end of the month (and which may throw some light on the market activity) remained outstanding. Verdict: Sizzle.

3D Oil holds offshore oil and gas exploration interests near the tenements of Quadrant Energy and Carnarvon Petroleum where a significant discovery has been made recently (see below). The financially limited company is seeking a farm-in partner. The company also has Bass Strait exploration interests. It has shown over the past decade skills in identifying prospective geological occurrences but has lacked the market connections, financial capacity or depth of management to take commercial advantage of its analytical expertise. The company finished the June quarter with cash assets of $1.0 million after having spent $368,000 during the quarter, predominantly on staff and administration. Verdict: Sizzle.

Week ended 20 July 2018

THEME OF THE WEEK: Oil and Gas Action

Carnarvon Petroleum announced an oil discovery off the coast of Western Australia. It had expressed optimism about the outcome prior to the drilling start.  Further drilling is underway and the company is some time from estimating a resource or undertaking an economic appraisal. Carnarvon holds a 20% interest in the well.  Quadrant Energy is the operator. Carnarvon had $63.6 million in cash assets at the end of March 2018 to apply it to its exploration activities after a recent $19.1 million equity raising. Verdict: Steak.

IPB Petroleum directors were unable to explain why the company�s share price had risen so strongly when it was queried by ASX. However, it immediately initiated a trading halt for the purpose of a capital raising., completing an $800,000 placement at the end of the week. The company has been seeking to engage potential farm-in partners to explore its Western Australian offshore tenements which were renewed for five years in June. The renewal will make a farm-in more likely, a point which would have been made to investors during the course of the company�s engagement with them. Verdict: Sizzle.

Shree Minerals has been very rarely traded with the gain in price coming from a trade valued at a meagre $168. The company has an iron ore project in northern Tasmania where a lengthy delay in approvals meant that production commenced only after a dramatic and adverse change in market conditions causing the project to be placed on care and maintenance.  The company is reapplying for an operating licence for a modified production plan. The company had cash assets of $1.2 million at the end of March 2018. Verdict: Sizzle.

Orecorp announced that it had completed earn-in obligations incurred in September 2015 in order to obtain a 25% interest in a Tanzanian gold property with an estimated resource of 3.1 million ounces. The company spent US$14 million to complete a feasibility study.  It also announced that it would pay US$3 million for an additional 26% share in the project, making it the majority holder. The company has also put in place a conditional agreement to move to 100%. The Tanzanian government is expected to take an equity position in the project at a later date. The company which has cash assets of $16.2 million also has other exploration interests in Mauritania.  Verdict: Steak.

Predictive Discovery attracted stronger investment interest immediately after presenting to investors at a Sprott investment symposium in Vancouver. The presentation focused on the company�s exposure to a dozen gold projects extending through Cote d�Ivoire, Mali and Burkina Faso in west Africa.  The company�s pitch to investors focused on its aim of attracting partners to facilitate development of multiple projects and its willingness to trade assets to enhance value.  Prior to the presentation, the company had a market value of $5.2 million and cash assets of $2.7 million at the end of March 2018.  Verdict: Sizzle.

Week ended 13 July 2018

THEME OF THE WEEK: Gains from Restructuring

Pan Terra Gold was unable to throw any light on the reason for the share price advance when queried by the ASX.  Directors drew attention to comments they had made at the end of April about the possibility of the company participating in a gold treatment project in China but indicated that negotiations over that proposal are at an early stage. Currently, the company operates a gold silver dredging project in the Dominican Republic from which it made sales of US$12.3 million in the March quarter for a profit of US$4.1 million. There is no reason to expect a significant change in the outcome from these operations. The company had an outstanding project loan of US$2.3 million at the end of the quarter which is scheduled for full repayment by the end of 2018. The company is also scheduled to redeem $3.9 million in preference shares during 2018.   Repayments of US$5.25 million are due to the Dominican government over the upcoming 12 months along with shareholder loans totalling A$3.2 million.  End of quarter cash holdings were US$3.5 million. Verdict: Sizzle.

Intra Energy Corporation reported on its Tanzanian coal sales in June. Thermal coal sales of 52,614 tonnes were 16% higher than in June 2017.  Prior to the share price strengthening in the past week, the company�s market value had more than halved since early 2018 and remains relatively weak.  At the end of March 2018, the company had cash assets of $2.1 million with which to fund further market development efforts. The company also had outstanding loans of $4.1 million which had been subject to review by the lending Tanzanian institution.  No information about the status of the loans has been announced. Verdict: Steak.

Helios Energy, in response to a query from ASX about the reason for the company price action, said that it had been flow testing its Quinn Creek well in Texas and had been reporting regularly on the fracking progress. Testing remains at an early stage.  The company reported having $8.3 million in cash at the end of March 2018 with expected spending of $2.0 million in the just completed June quarter. Verdict: Steak.

Sayona Mining announced that spodumene crystals had been identified in an initial site visit to the Tansim lithium project in Quebec.  The company had earlier disclosed preparations for drilling in the Pilgangoora district in Western Australia where it also has ground prospective for lithium mineralisation.  Last week�s share price action came after a price downtrend dating from early February 2018 which resulted in a loss of 64%, including a 40% decline in the first week of July. Verdict: Sizzle.

Pancontinental Oil and Gas announced that it had sold its minority interest in a California oil and gas exploration company.  The transaction involves a cash payment of $300,000 and shares to a value of $1.0 million.  The company will retain rights to milestone payments.  The company also has exploration interests in Namibia. It finished the March quarter with cash holdings of $1.5 million after having raised $1.6 million through an issue of convertible notes. Verdict: Sizzle.

Week ended 6 July 2018

THEME OF THE WEEK: Oil and gas rebounds

Anson Resources reported the results of evaporation test work based on a brine sample from its Paradox lithium project in Utah.  The tests, to assess the possibility of fast tracking the project by speeding up lithium brine processing, were described by the company as �very encouraging� and likely to result in improved productivity. The tests have not been completed.  The company is moderately well funded with cash holdings at the end of March 2018 of $2.9 million.  It had expected outflows of $873,000 in the June quarter.  The company has in-the-money options on issue due to expire in August which are likely to add financial capacity. (See also) Verdict: Steak.

Admiralty Resources had not made any formal ASX disclosures since its activities report for the three months to March 2018. The company�s exploration activities are focused on areas in Chile prospective for iron ore mineralisation.  Cash flow statements show that, administration costs aside, it had not spent anything on exploration or evaluation over the nine months to the end of March 2018. It held cash of $240,000 at the end of March. The company said it intended to spend $194,000 dollars in the June quarter. It has drawn $3.4 million from a $3.6 million loan facility. (See also) Verdict: Sizzle.

Valor Resources reported metallurgical testing of ore samples from its Berenguela copper-silver deposit in Peru which includes manganese and zinc among its target metals. Dry magnetic separation at the pre-concentration stage is reported to have improved processing economics.  At the end of March 2018, the company held cash assets of $1.2 million while expecting to spend $570,000 in the June quarter.  The share price rise follows eight months during which the price has been in a downtrend leaving it still toward the lower end of its trading range. Verdict: Sizzle.

White Energy Company did not make any formal disclosure which might explain the share price rise which, in any event, represents only a modest recovery against a backdrop of a six month share price downtrend. As outlined below, the company is engaged in US coal production from which it is seeking an exit and coal fines treatment in South Africa.  Since the performance boost in mid June referred to below, prices had retreated before rising once again in the last week.  Verdict: Sizzle.

Reedy Lagoon Corporation had not made any formal disclosures in the last week to explain the share price change which, in any event, is only a modest move higher from a new record low price some 80% below where it had been at the beginning of 2018. The company�s last comment to the market, at the end of June, concerned it contracting an external consultant to undertake geophysical analysis to assist in its assessment of lithium brine prospectivity in areas in Nevada. The company held cash assets of $1.6 million at the end of March 2018 with estimated spending of $1.7 million in the June quarter when it will have had to draw on a $0.7 million capital raising.  Verdict: Sizzle.

Year ended June 2018

THEME OF THE YEAR: New Metals

Of the highest returning companies during the June quarter, the following have been commented upon previously:

• Winmar Resources                              Verdict: Sizzle.

• Tungsten Mining                                  Verdict: Steak.

• King River Copper                               Verdict: Sizzle.

• Kogi Iron (See October 2017)              Verdict: Sizzle.

• OM Holdings (See 18 August 2017)     Verdict: Steak.

June Quarter 2018

THEME OF THE Quarter: 'Old Times': coal, gold & iron ore

Of the highest returning companies during the June quarter, the following have been commented upon previously:

• Baraka Energy and Resources         Verdict: Sizzle.

• Vango Mining                                    Verdict: Sizzle.

• Kangaroo Resources                        Verdict: Sizzle.

• Brockman Mining                              Verdict: Sizzle.

Aspire Mining made two upward steps to make the list of the best returning stocks in the quarter - over the month to mid May and then again in early June. The company initially announced that it had signed a memorandum of understanding, after the Mongolian prime minister had visited China, relating to development of a rail link to Russia through Mongolia.  The rail link is critical to Aspire developing its Ovoot coking coal project.  In early June, the company confirmed key parameters for the rail development after a review of the feasibility study with its potential Chinese partner. Verdict: Steak.

June 2018

THEME OF THE MONTH: Oil and gas returns

Of the highest returning companies during June, the following have been commented upon during the month:

• Baraka Energy and Resources       Verdict: Sizzle.

• Brockman Mining                            Verdict: Sizzle.

• Galilee Energy                                Verdict: Steak.

• Legend Mining                                Verdict: Steak.

• Strike Energy                                  Verdict: Steak.

Week ended 29 June 2018

THEME OF THE WEEK: Oil and gas rebounds

Dempsey Minerals announced completion of its Blue Sky Lithium acquisition giving it rights over Argentine exploration areas prospective for lithium mineralisation. The asset purchase was first announced in February 2018 (See below). The company announced, at the same time, new executive and board appointments. Earlier in June, it had made several announcements highlighting the quality of the brine deposits it was due to acquire.  Dempsey had cash assets of $994,000 at the end of March 2018 with estimated cash outflows of $375,000 during the just completed June quarter. Verdict: Sizzle.

Laneway Resources announced that it intended to raise $3 million through the issue of new shares and convertible notes.  The company said it had identified sources for around $1 million.  Proceeds of the capital raising will be used to further the company�s Agate Creek gold project in Queensland.  At the end of March 2018, the company�s cash assets were only $38,000.  It had indicated it would be drawing on a debt facility arranged through the chairman of the company to meet its anticipated spending of $350,000 in the just completed June quarter. Verdict: Sizzle.

Legend Mining experienced relatively strong trading volumes throughout June as its share price maintained a rising trend. During the month, the company made several announcements relating to the results of its drilling activity in the Fraser Range in Western Australia where it is exploring in the same host rocks as the Nova-Bollinger orebody. The company held cash assets of $5.2 million at the end of March 2018 with which to further its activities.  It said it intended to spend $770,000 in the following June quarter. Verdict: Steak.

Galilee Energy has experienced a rising share price trend since mid June (see below). During the month, the company reported favourably on the results of flow testing coal seam gas resources in the Galilee Basin in Queensland where it is moving toward a full production schedule.  It reported holding $10.2 million in cash at the end of March 2018 with the intention of spending $6.4 million in the just completed June quarter.  Verdict: Steak.

Strike Energy has been on a rising share price trend through June as the company reported on its activities around Cooper Basin gas resources which it is looking to move into production testing during July.  The company reported finishing the March quarter with cash assets of $4.1 million after spending $9.4 million in the prior nine months and before anticipated spending of $5.6 million in the just completed June quarter. The company had unused loan facilities of $4.4 million after having already drawn down $5.5 million from Orica Australia and the Commonwealth Bank loans.  Verdict: Steak.

Week ended 22 June 2018

THEME OF THE WEEK: No News is Good News

Golden Cross Resources did not make any formal announcement which might explain the increase in market turnover through the week. The company holds exploration interests in Queensland, South Australia and New South Wales covering base metals, gold and uranium. The company had cash assets at the end of March 2018 of $328,000 and loans outstanding of $900,000.   Its financial position has meant having to depend on its major shareholder, with a 76% interest, to provide ongoing funding.  The company indicated at the end of April that it would have to make decisions in the month ahead about its business and financial strategy.  To date, nothing has been disclosed. Verdict: Sizzle.

White Energy Company did not make any formal disclosure which might explain its improved share price performance in the past week. The company had cash assets at the end of March 2018 of $989,000 to further its coal related activities. The company has a technology for treating coal fines which is subject to testing in South Africa. Mining continues at the company�s US property which has been slated for sale.  The company also has an ongoing dispute in the courts with an Indonesian business partner.  Information or knowledge about progress on any of these fronts would be capable of moving the market value of the company. Verdict: Sizzle.

Brockman Mining did not make any formal disclosure which might explain the market performance during the week.  The Bermuda registered company managed out of Hong Kong has iron ore development interests in the Pilbara in Western Australia.  It held cash assets of HK$10.95 million at the end of March 2018.  The company is seeking to complete a feasibility study with the assistance of the business groups currently exercising control of the company. Verdict: Sizzle.

Redbank Copper has base metal exploration interests in the Northern Territory. It did not formally disclose any information which might explain the share price performance during the week.  The company finished the March quarter of 2018 with cash assets of $93,000 after having spent $172,000 in the prior nine months on exploration and evaluation.  It flagged spending of $150,000 in the June quarter via a one million dollar loan facility of which $559,000 had already been drawn. Verdict: Sizzle.

Galilee Energy is engaged in coal seam gas extraction in Queensland.  The company reported progress in its testing of gas flows at a property in the Galilee Basin which, it said, were at the upper end of expected results. The company is seeking to take advantage of gas shortages in the eastern states of Australia.  It had cash assets of $10.2 million at the end of March 2018 of which $6.4 million was earmarked for use in the June quarter largely for the ongoing testing of Galilee Basin prospects. Verdict: Steak.

Week ended 15 June 2018

THEME OF THE WEEK: Silence is Golden

Baraka Energy and Resources announced that it had received a notice from shareholders accounting for 5.1% of its outstanding shares requesting a general meeting with the aim of replacing directors on the existing board.  After the decision by the government of the Northern Territory to revoke its ban on fracking (see below), the company raised $600,000. The company had subsequently described how it was looking at ways to take advantage of the policy shift but had not said anything publicly about dissent among its shareholders.  Nor was there any obvious reason for the very large increase in market turnover after the meeting requisition notice was posted. Verdict: Sizzle.

Mindax, with gold exploration interests in Western Australia, did not make any formal statement which might explain the heightened investor interest in this only occasionally traded company. The company had previously disclosed that it held cash assets of $41,000 at the end of March. It has sought shareholder approval to issue shares to related parties in lieu of cash payments. Verdict: Sizzle.

Jindalee Resources announced that it had staked additional claims in the west of the USA in areas thought prospective for lithium mineralisation.  The announcement followed one earlier in June that the company had staked claims in Nevada with a view to exploring for lithium. The company had cash assets of $2.8 million with which to undertake its exploration activities. The company already had exposure to 10 exploration sites predominantly in Western Australia but including one in Tasmania covering diamonds, rare earth elements, iron ore, nickel, gold, magnesite and lithium.  It also held investments in other listed companies.  The spread in its interests suggests a lack of focus with attendant choices having to be made in rationing capital and prioritising development efforts. Verdict: Sizzle.

Minbos Resources did not make any formal announcement about its business plans. At the end of May, the company had closed an entitlement issue which raised $2.5 million to top up cash holdings of $0.9 million at the end of March 2018.  The company�s principal interest had been a 50% holding in a phosphate project in Angola.  After failing in an attempt to take control of the project, the company said that it would look for alternative investments on which to focus its attention. In March 2018, it took an option to purchase a rare earth element exploration property in Madagascar. Verdict: Sizzle.

Athena Resources trades infrequently and had not said anything formally which might explain its improved investment return.  In any event, the increased price occurred with shares valued at less than $40,000 being bought. Athena has iron ore exploration interests in Western Australia which have been the subject of a conditional purchase agreement since December 2016 with Chinese business interests (see below).  Progress in fulfilling the conditions has been slow and the time allowed has been extended.  Although the company is entitled to receive $20 million in the event of the proposed transaction proceeding, it had only $51,605 in cash assets at the end of March 2018 and remained stymied in pursuing other interests until the deal can be been finalised. Verdict: Sizzle.

Week ended 8 June 2018

THEME OF THE WEEK: All Western Australia

Energy Metals is a Chinese controlled company with interests in eight uranium exploration properties in Western Australia and the Northern Territory.  It claims to be one of only five companies with the necessary permits to export uranium concentrates.  With these permits, it is able to intermediate sales on behalf of other producers with Chinese power utilities. China General Nuclear Power Group is the company�s largest shareholder. The company is particularly well-funded for its stage of development with $19.1 million in cash on hand at the end of March 2018. The company did not make any formal statement which might explain the heightened investor interest during the week.  The improved return coincides with slightly higher uranium prices which have helped revive interest in a range of uranium related stocks still typically trading within the confines of a relatively narrow but prolonged cyclical trough. Verdict: Steak.

Strike Energy did not make any formal disclosure which might explain the heightened investor interest in the company. It had previously announced in March 2018 that it intended to acquire a 50% interest in a Perth Basin oil exploration property. The transaction was subject to legal due diligence and regulatory approvals which are still due for completion.  The company, which is required to spend $11 within 24 months of the acquisition, had $4.1 million in cash at the end of March 2018. Strike also has interests in a fracture stimulation gas project located in the Cooper Basin and on which it spent $7.2 million in the March quarter. Verdict: Sizzle.

Atlas Iron had been subject to a takeover offer from Mineral Resources (see below). Fortescue Metals Group subsequently announced that it had acquired an interest in the shares of the company taking its holding to slightly below the 20% takeover threshold and effectively blocking the proposed Mineral Resources transaction. As a result, Atlas and Mineral Resources announced that the constraints on being able to discuss alternative transactions with other parties had been removed raising the possibility of higher bids being solicited. Other parties may be attracted to the expandable port facilities held by Atlas Iron.  Being able to utilise those facilities for additional tonnages would improve the company�s currently parlous financial position but also place downward pressure on iron ore prices in a market which has largely ceased to grow. Verdict: Steak.

St George Mining released details of drilling results from its Mt Alexander project near Leonora in which it reported significant nickel-copper intersections with assays also confirming cobalt mineralisation.  The company has reported a succession of drill results providing increasingly strong signs of commercial development potential. Despite the most recent performance, the company�s share price is well below the recent peak in prices following an earlier announcement of drill results (see 24 November 2017). Verdict: Steak.

Surefire Resources was unable to identify any reasons for the unusually strong share price performance in response to a query from ASX. The company has gold and vanadium exploration tenements in Western Australia but has not had the financial capacity to undertake any meaningful exploration activity with cash assets at the end of March 2018 of $20,000.  The company subsequently raised $1.75 million through a 49% subscribed but underwritten entitlement issue. Verdict: Sizzle.

Week ended 1 June 2018

THEME OF THE WEEK: Very weak recoveries

Octanex, a very lightly traded stock, did not make any formal announcement which might explain the performance result. The share price rise occurred with trades valued at less than $1,000. The company had announced in April that an oil well off the coast of Malaysia, operated by Petronas and in which Octanex held 50%, would be suspended after oil production fell short of expected levels following an October 2017 production start.  A restructuring of financial facilities will be needed. The company also has exploration interests off the coast of Western Australia. The company is in a relatively strong financial position with $3.4 million cash on hand at the end of March 2018.  The performance in the past week has left the share price still trailing below its longer term price trend. Verdict: Sizzle.

UraniumSA did not make any formal announcement which might explain the weekly investment return. In early May, the company announced the acquisition of cobalt related exploration assets which resulted in the company producing strong investment returns in the week ended 3 May (see below). Verdict: Sizzle.

Peninsula Mines is engaged in graphite resource definition in South Korea in areas in which mining has occurred historically.  The company is positioned to sell its graphite products to South Korean battery makers. It had cash assets of $1.4 million at the end of March 2018 to pursue its activities. During the week, the company announced that diamond drilling had commenced at one site. A week earlier it had announced metallurgical test results from samples taken from another.  Despite last week�s rise, the performance has simply restored the share price to its longer term price trend.  Verdict: Sizzle.

Sun Resources holds oil and gas exploration interests in Louisiana. Following the share price move in the past week, the market price has remained below the longer term trend price and significantly below the price reached in early February (see below). The company reported that it held cash assets of $222,000 at the end of March 2018. Verdict: Sizzle.

Tanga Resources had trading in its shares halted at the end of the week following the share price rise.  A week earlier, the company had announced that it would exercise an option to buy an interest in a property in Namibia prospective for zinc mineralisation after completing due diligence and identifying intersections of up to 15% zinc from its diamond drilling.  The option enabling an interest of up to 80% would be exercised through the issue of new shares to the vendor. The company had previously reported holding cash assets of $588,000 at the end of March 2018. Despite the most recent rise, the share price remains below the longer term trend price. Verdict: Sizzle.

May 2018

THEME OF THE MONTH: Searching for new properties

Of the highest returning companies during May, the following have been commented upon during the month:

• Kangaroo Resources   Verdict: Sizzle.

• Vango Mining              Verdict: Sizzle.

• IPB Petroleum             Verdict: Sizzle.

• Dempsey Minerals       Verdict: Sizzle.

Walkabout Resources announced that it had exercised an option to purchase the 30% interest in a prospecting licence it does not already own over land prospective for graphite mineralisation in Tanzania. In addition to its interest in the Tanzanian property, the company is exploring for lithium in Namibia and base metals and gold in Northern Ireland leaving it with a managerially challenging spread of interests. The company is unusually well financed with cash assets $8.7 million at the end of March 2018 after having raised $6.7 million from an issue of new shares during the quarter. Verdict: Sizzle.

Week ended 25 May 2018

THEME OF THE WEEK: Gold - the conservative choice

Highlands Pacific has agreed to give up 55% of cobalt production and 27.5% of its share of nickel production from the Ramu mine in Papua New Guinea in exchange for a US$113 million up front cash injection.  The provider of the funding will also make ongoing payments for its share of nickel and cobalt production.  Highlands will use the funding to repay loans to the majority partner in the project entitling it to raise its project share from 8.56% to 11.3%.  Highlands will also raise $15 million through a share placement with the same party. The transaction improves the quality of the company�s balance sheet leaving it with an enhanced direct exposure to currently popular metals but without an obvious longer term strategic direction. Verdict: Sizzle.

Redstone Resources did not formally disclose anything which might have impacted the share price which rose without any significant increase in trading volumes.  The company�s primary exploration interests are in the West Musgrave region of Western Australia which geologists credit with nickel-copper prospectivity. The company held cash assets of $202,000 at the end of March 2018 with an intention to spend $105,000 in the June quarter. Verdict: Sizzle.

Dempsey Minerals did not make any formal disclosures which might explain the heightened investor interest during the week. At the beginning of May, the company had said that surveys of its recently acquired Argentine lithium properties (see below) had commenced and foreshadowed results �within about 4 weeks�. The company held cash assets of $994,000 at the end of March 2018. Verdict: Sizzle.

Lodestar Minerals announced drilling results from properties north of Meekatharra prospective for gold mineralisation.   An initial surge in volumes traded resulting in a 90% price hike appeared to go too far as the price also lost ground and volumes declined dramatically later in the week.  The 23 hole 4,240 metre RC drilling program for which results were reported produced grades ranging from 2.5 g/t to 74.0 g/t. After raising $2.1 million in February 2018, the company ended March with cash assets of $1.9 million and intentions to spend $661,000 in the June quarter.  Verdict: Steak.

Nova Minerals has options to acquire exploration rights in Manitoba prospective for lithium.  The company also has copper-gold exploration interests in Alaska. The company had offered no news which might have explained the share price action which reached its most intense in the middle of the week before retreating.  The company ended March 2018 with cash Holdings of $2.6 million to further its exploration efforts. Verdict: Sizzle.

Week ended 18 May 2018

THEME OF THE WEEK: Copper Exploration

Kalnorth Gold Mines, with exploration interests near Kalgoorlie in Western Australia, did not make any formal disclosures which might explain the share price performance in the past week. In its activities report for the March quarter, the company raised expectations that approval would be received for it to convert existing prospecting licences to mining leases.  The company had also intimated that it might divest one of its two primary development assets.  The company had also disclosed having cash holdings of $2.58 million after spending $164,000 in the quarter.  Verdict: Sizzle.

Enterprise Metals noted, in an ASX release, that Sandfire Resources had intersected copper mineralisation on properties adjacent to the latter's DeGrussa copper mine in Western Australia.  The properties also abut holdings of Enterprise Metals over which Sandfire has farm-in rights which could entitle the regional copper miner to a 75% interest in the event of it defining a minimum metal content.   Verdict: Sizzle.

Xanadu Mines disclosed new drilling results from its copper exploration interests in Mongolia which it described as �strong porphyry veining and visible copper sulphide mineralisation�.  Assays which are still pending are expected in late May or early June.  The company reported spending $2.7 million on exploration and evaluation in the three months ended March 2018 leaving it with cash assets of $5.1 million at the end of the quarter to continue a promising program of work. Verdict: Steak.

IPB Petroleum has produced returns among the best in the sector for the second consecutive week (see below). The company did not make any additional disclosures to those on 11 May which prompted the earlier strong performance.  Elevated volumes in the prior week were also repeated.   Verdict: Sizzle.

Sipa Resources announced that Rio Tinto had entered a farm-in agreement covering Sipa properties in Uganda prospective for copper-nickel mineralisation. Rio Tinto can take an interest of up to 75% in the properties in exchange for exploration expenditure of up to A$75 million. Sipa may also receive cash payments totalling A$2 million.  Sipa also announced that it is about to commence drilling identified copper-gold exploration areas in Western Australia. Verdict: Steak.

Week ended 11 May 2018

THEME OF THE WEEK: Gold Fresh Starts

IPB Petroleum raised its resource estimate for the Idris prospect in the Browse Basin off the coast of Western Australia from 33 million barrels to 69 million barrels of recoverable oil following reprocessing of seismic data. The chance of a discovery was estimated at 40%.  At the end of March 2018, the $2.4 million company held cash assets of $518,000 after spending $318,000 in the prior nine months on staff and administration.  Only $109,000 was spent on evaluation.  With the cost of an appraisal well likely to exceed $10 million, the company will be forced to significantly reduce its project exposure to attract a farm-in partner as well as raise equity funding directly. Verdict: Sizzle.

Stone Resources Australia made its share price gain on a single trade after the release by the company of a cash flow report for the month of April 2018. The report disclosed that the company held cash assets of $199,000.  In the prior 10 months, the company had net cash outflows of $1.4 million after receipts from customers of $119,000. The company - majority held by Chinese business interests - holds gold development assets in the Laverton region of Western Australia.  The company had previously reported that $205,000 had been received for exploration and working capital in the March quarter from �the parent entity�. Verdict: Sizzle.

Vango Mining has experienced a steepening share price rise since the beginning of March. The company has gold mining interests in the Midwest region of Western Australia.  The company released drilling results in late April when it also foreshadowed further results in the coming weeks.  The company received a query from ASX about the reason for the most recent increase in investor interest but was unable to throw any light on a specific reason. The company had cash assets of $583,000 at the end of March 2018 after having raised $680,000 from the exercise of options. The drilling results reported to date have included gold grades as high as 15.4 g/t but the company has insufficient capital resources for a credible exploration program suggesting it will be relying heavily on upcoming results to attract fresh funding. Verdict: Steak.

Azumah Resources reported what it referred to as a new high grade ore shoot following revised geological modelling at its gold exploration properties in Ghana. The company is seeking to use a drilling program extending through August to raise its resource estimate. In September 2017, the company entered a joint venture agreement conferring a 47.5% project interest on a private equity investor in exchange for a US$13.5 million capital contribution. At the end of March 2018, the company itself held cash assets of $773,000 after having spent $1.3 million on staff and administrative costs during the preceding nine months. Verdict: Steak.

Forte Consolidated did not make any formal disclosure which might explain the price action in the past week which arose, in any event, from a single transaction in the very  lightly traded security. The company which reported $645,000 in cash assets at the end of March 2018 is engaged in gold exploration in Western Australia having made a property acquisition in the Laverton region. Its Queensland exploration interests have not received significant attention recently. Verdict: Sizzle.

Week ended 4 May 2018

THEME OF THE WEEK: Why?

Kangaroo Resources released its quarterly activities report for the three months ended March 2018 on 1 May. The company had not updated shareholders about its thermal coal mine development activities in Indonesia since a quarter before.  The report outlined progress toward resource definition and regulatory approvals without any specific announcement which might have driven fresh investor interest. The company, majority owned by Indonesian business interests which have also seconded the company�s chief executive, had cash assets of $1.4 million at the end of March 2018. Verdict: Sizzle.

Citigold Corporation was unable to explain why it had attracted unusually strong investor interest after receiving a query about the price action from ASX. In its activities report for the quarter ended March 2018, the company confirmed that its gold properties at Charters Tower remained on care and maintenance although it had completed a significant asset sale and financial restructuring which will move it closer to a $75 million production restart. The company, which held cash assets of $580,000 at the end of March 2018 after having repaid borrowings of $4.6 million, indicated it may raise up to $2.5 million. Verdict: Sizzle.

UraniumSA announced that it had agreed to purchase exploration assets in New South Wales, Northern Territory and Western Australia prospective for cobalt.  The company has also mandated a $1.2 million capital raising. The company had previously demerged its exposure to uranium before beginning the search for alternative lines of business. In the quarter ended March 2018, the company had only spent $3,000 on exploration related activity leaving it with cash assets of $244,000.  Verdict: Sizzle.

AustSino Resource Group, with iron ore interests in Western Australia, announced that it had raised $2 million from a Hong Kong resident investor after ending the March quarter with cash assets of $4.9 million. Since its strong investment performance in mid-April, the company had given up the majority of its earlier market gains.  The performance last week only partially recovered those losses. The company was reinstated to trading in April after having been suspended since December 2014.  The company�s activities report for the three months ended March 2018 referred to a $4.4 million capital raising of which $3 million came from Chinese interests. The company has stated that it will seek Chinese parties with whom to work to build infrastructure in the Midwest iron ore region of Western Australia.  The company�s positioning leaves it with a very long development horizon and dependent entirely on strategic decisions in China about the sourcing of iron ore for the country�s steel industry. Verdict: Sizzle.

Tap Oil received notice from Risco Energy Investments of its intention to buy all Tap Oil outstanding shares via an on-market bid at a 25% premium to the share price immediately prior to the bid announcement.  As an on-market bid, subscribing shareholders would receive cash within two days for any shares tendered. There would be no minimum acceptance. The bidding company is managed by former and current directors of Tap Oil. The Tap Oil share price closed 7% higher than the foreshadowed bid price amid signs that someone, at least, expects a higher bid from another party. Verdict: Sizzle.

April 2018

THEME OF THE MONTH: Energy Policy Windfalls

Of the highest returning companies during April, the following have been commented upon during the month:

• Baraka Petroleum          Verdict: Sizzle.

• Ausmon Resources       Verdict: Sizzle.

• Empire Energy Group    Verdict: Sizzle.

• Leigh Creek Energy       Verdict: Sizzle.

Admiralty Resources announced in early April that the company had received the final required approval for its Mariposa iron ore project in Chile.  As well as its Chilean iron ore interests, the company has lead-zinc and nickel-cobalt exploration properties in Western Australia and the Northern Territory.  At the end of December 2017, the company had only $67,000 in cash assets leaving it in imminent need of a new funding strategy if it is to conduct any meaningful exploration or pursue any development activities.  Verdict: Sizzle.

Week ended 27 April 2018

THEME OF THE WEEK: Failing Companies Hold On

Mindax raised $150,000 through a share placement in early April but had made no subsequent disclosure which might explain the price action in the last week.  Trading in the company�s shares occurred only on the last two days of the week.  At the end of December 2017, the company held cash assets of $11,000 and had not undertaken any exploration activity in the prior quarter. The company has properties in Western Australia identified as having potential iron and gold mineralisation. Verdict: Sizzle.

3D Oil has gas exploration interests in Bass Strait. The company did not make any disclosures which would explain the share price action in the past week although public controversy about the shortage of domestic gas supplies along the east coast of Australia is raising investor interest in potential suppliers.  Offshore exploration and development activities are among the most capital intensive in the resources industry, leaving the company, with cash assets at the end of December 2017 of only $1 .7 million, little option but to dilute its existing interests by attracting farm-in partners. Since listing, the company has repeatedly failed to advance prospects as insufficient financial resources and the absence of a development track record have take a toll. Verdict: Sizzle.

Coppermoly reported the results of a geophysical survey over its Simuku property on the island of New Britain in Papua New Guinea. The survey identified several anomalous zones in the company�s search for copper- gold mineralisation. The anomalies were along strike from the main deposit on the property and within 100 metres of the surface, raising expectations of development potential. The company had $2.1 million in cash assets at the end of March 2018. Verdict: Steak.

Sabre Resources announced that it had agreed to buy vanadium related exploration interests in Western Australia from an unlisted company. Sabre also completed a $1.6 million capital raising to replenish cash holdings reported to be $74,000 at the end of December 2017.  The company also had outstanding loans of $660,000 at the time.  The company said that it intended to divest its Namibian base metal and vanadium related exploration assets via an initial public offering. The company retains its 70% interest in a Pilbara nickel-copper-cobalt property acquired in January 2018.  The company looks like following the latest fad as it searches for a strategy.  Verdict: Sizzle.

Coziron Resources has exploration interests in Western Australia including an area near Geraldton prospective for gold-copper mineralisation which has also returned anomalous signs of vanadium, according to disclosures made in mid April. The company reported having $702,000 in cash at the end of March 2018. Verdict: Sizzle.

 Week ended 20 April 2018

THEME OF THE WEEK: Failing Companies Hold On

Baraka Energy and Resources has benefited from the lifting of a fracking ban by the Northern Territory government. While the ban has been in place, the company has been looking for alternative business lines, without success. At the end of December 2017, the company had $225,000 in cash assets suggesting that it will need additional capital, either by way of equity or a farm-in, to pursue the opportunity arising from the policy reversal.  Establishing a valuation despite having done little in the way of exploration may prove challenging. Verdict: Sizzle.

Kula Gold recovered lost share price ground after it had failed to trade in the prior week.  That followed a one-off trade a week before at an aberrantly low share price. In the prior week, Geopacific Resources released details of a feasibility study update for the Woodlark mine in which it is earning an interest, currently at 40%, from Kula Gold. Verdict: Sizzle.

East Energy Resources has coal exploration interests in central Queensland but had only $309,000 in cash assets at the end of December 2017 after having borrowed $500,000 from Noble Group, its primary financial backer. The rise in the price of the shares in the very lightly traded company came with trades valued at less than $1,100 on a single day.  The company has not said anything formally which might explain a change in market value. Verdict: Sizzle.

Empire Energy Group is a beneficiary of the decision by the Northern Territory government to allow fracking for oil and gas following receipt of a scientific report. The company, which also has oil and gas production interests in the USA, has Australian exploration interests over some 14.5 million acres. The company has positive operating cash flows in the USA although negative corporate results after financing charges. The company ran down its cash assets to $918,056 at the end of December 2017 after paying off debt of $273,920. The company had to raise $1.875 million in February to keep its tenements in good order and negotiate longer term financing arrangements and will have limited scope to fund exploration activities in Australia. Verdict: Sizzle.

Crossland Strategic Metals did not make any specific disclosures which might explain the investment return in the past week. The company has been borrowing to permit a study into the feasibility of developing a mineral sands property near Alice Springs. At the end of December 2017, the company held cash assets of $94,000 with loans outstanding of $947,000. Verdict: Sizzle.

 Week ended 13 April 2018

THEME OF THE WEEK: Gold Makes a Comeback

Ausmon Resources announced that it had purchased an unlisted company with exploration licences in New South Wales and Queensland covering ground prospective for cobalt-nickel mineralisation.  Subject to a period of due diligence and transfer of licences, the vendors will receive shares worth $150,000 at the market price immediately prior to the announcement. The vendors have also agreed to subscribe $250,000 for shares with a market value of $0.571 million following the announcement.  After the transaction, the company anticipates having cash assets of $1.1 million dollars. Prior to the transaction, the company had copper and gold exploration interests in New South Wales (see below) without having undertaken any field activities for several months and lacking relevant personnel to plan and execute an exploration program. Verdict: Sizzle.

Genesis Resources experienced unusually strong investor interest in the past week. Nonetheless, shares to the value of only $7,700 changed hands.  The company, with exploration interests in Macedonia as well as in Queensland and the Northern Territory, did not make any public disclosures which might have precipitated the share trading activity.  The company has an estimated gold resource of 926,000 ounces in Macedonia and cash assets at the end of December 2017 of $203,000. Verdict: Sizzle.

Atlas Iron directors have agreed to support the purchase of all the outstanding shares in the company by ASX- listed Mineral Resources through an all scrip scheme of arrangement. The pricing for the transaction implies a 59% premium over the price immediately before the transaction was announced . the merger will create a diversified mining and mining services business. Verdict: Steak.

BBX Minerals announced the results of metallurgical test work on ore from its Brazilian gold exploration properties in March. It also announced that it had been granted additional exploration licences.  There have been no formal disclosures since then to explain the share price performance in the past week which came with only slightly elevated volumes. Verdict: Sizzle.

Troy Resources announced ahead of its March quarter 2018 activities report that it had achieved record gold production in the quarter and some 35% more than in the quarter ended December 2017 at its Karouni operation in Guyana. The company said that the future production budget had been set at an amount slightly below the March quarter result. Verdict: Steak.

 Week ended 6 April 2018

THEME OF THE WEEK: Latecomers to the Lithium Party

Black Mountain Resources has embarked on yet another strategic diversion following a succession of failed development attempts, including a fruitless search for sunken treasure (see my 14 August 2015 Mining Journal column). The company announced that it had signed two option agreements over lithium exploration properties in the Democratic Republic of Congo. The options provide exclusive due diligence periods during which farm-in terms and conditions will have to be finalised. At the same time, the company announced that it had raised $500,000 through the issue of a short-term convertible note to help bridge a period of restructuring after disposal of the company�s vermiculite business in Uganda at the insistence of its principal financier.  At the end of December 2017, Black Mountain had cash assets of $31,000 and had drawn down loan facilities of $1.9 million forcing a financial resructuring. While company personnel have changed over the years since the company was first engaged in trying to mine silver in the USA, the current management cannot demonstrate any more substantial record of development success or exploration discovery track record. Verdict: Sizzle.

Accent Resources is a very infrequently traded stock with a market capitalisation of $4.9 million at the end of the week and iron ore and gold exploration interests in Western Australia. The company is majority owned by Hong Kong business interests. After borrowing $1.0 million, the company had cash assets of $1.1 million at the end of December 2017. There were no disclosures to prompt the share price change which occurred on a single day with trades valued at $405,000. In November 2015, the company subscribed $4.0 million for shares in MZI Resources and has recently said that, in conjunction with its main shareholders, it continues to assess other investment opportunities. Verdict: Sizzle.

Athena Resources is an infrequently traded company whose investment return reflected trades worth $36,000 on the last day of the week. In late 2016, Athena gave a Hong Kong based company an option to purchase its Byro magnetite project in Western Australia. If exercised, Athena would be entitled to receive $20 million. The duration of the option has been extended on several occasions during which time Athena has been required to obtain certain approvals. Last week, the company announced that it had signed a native title agreement and expected the government to grant mining leases over the properties by the end of April 2018. The company has disclosed cash assets of $16,433 at the end of December 2017 with its costs being covered via a loan from the potential acquirer of its magnetite property.  The company will be on the lookout for new lines of business once the deal is completed (or even if its abandoned). Verdict: Sizzle.

Anson Resources announced a supersaturated brine flow had occurred at its Cane Creek property in Utah where it is targeting lithium. The brine flow was plugged but the apparent pressure, if sustained, raises the possibility of eventually reduced operating costs. Earlier in the month, the company announced that it had staked additional claims in Utah prospective for commercial quantities of lithium brines. The company had $3.3 million in cash at the end of December 2017 as it pursues an accelerated route to production (also see comments on 15 December 2017).  Even after the most recent weekly return, the company�s share price is more than 70% below its early January level which was attained amidst a frenzied reaction to its move into lithium. Verdict: Sizzle.

Leigh Creek Energy was queried by ASX about the cause of the recent heightened investor interest in its shares but could only point to a research report directed at private investors by way of an explanation. The company is in the process of a pre- commercial production demonstration of its in situ gasification technologies targeting remnant underground coal resources. Responses from the South Australian government to the company�s environmental submissions are pending. The South Australian government changed hands last month after voters opted for a Liberal Party less committed to renewable energy sources than its Labor Party predecessor. Verdict: Sizzle.

March Quarter 2018

THEME OF THE QUARTER: DRC and Batteries

Of the highest returning companies during March, the following have been commented upon during the month:

• King River Copper      Verdict: Sizzle.

• Winmar Resources    Verdict: Sizzle.

• Tungsten Mining        Verdict: Steak.

• Orinoco Gold             Verdict: Sizzle.

• Taruga Gold              Verdict: Sizzle.

March 2018

THEME OF THE MONTH: DRC and Batteries

Of the highest returning companies during March, the following have been commented upon during the month:

• Winmar Resources         Verdict: Sizzle.

• Taruga Gold                   Verdict: Sizzle.

• Broken Hill Prospecting  Verdict: Sizzle.

• Nkwe Platinum                Verdict: Steak.

• King River Copper          Verdict: Sizzle.

 Week ended 30 March 2018

THEME OF THE WEEK: Rewards for Failure

Avanco Resources received a bid for all its issued shares form OZ Minerals.  The cash and scrip takeover offer at roughly double the previously traded Avanco share price has been recommended by Avanco directors. The combined entity, in the event of a successful takeover, would have control of copper-related mining, development and exploration assets in Australia and, via Avanco, in Brazil. Avanco shares finished the week trading at a discount of 9% to the implied bid price for the company. Verdict: Steak.

Kazakhstan Potash Corporation announced that it had agreed to take a 60% equity stake in a Democratic Republic of Congo registered company with lithium-tantalum- tin exploration interests in the country. The company also announced that it would establish a joint venture with the vendor of the assets under which further opportunities in the country would be identified.  The company finished December 2017 with cash assets of $648,000 and intentions to spend $619,000 on staff and administration. The company disclosed that it had spent nothing on exploration through 2017. The company retains three potash projects in Kazakhstan around which negotiations about development approval are in various stages. Verdict: Sizzle.

Gas2Grid has had all three oil and gas exploration permit applications in France rejected by the government. The latest rejection, under new laws restricting exploration introduced in December 2017, came in early March 2018. The $3 million company also announced that it had raised $250,000 through an issue of shares. There has been no more recent news to benefit the share price which, in any event, has simply returned to a level which has prevailed over the course of the last year. The company also has production interests in the Philippines about which there are doubts concerning security of title. The company had only $13,000 in cash assets at the end of December 2017. Verdict: Sizzle.

Challenger Energy holds interests in oil and gas properties in South Africa which could be exploited using hydraulic fracturing. The process has been the subject of legislative changes and court actions which have prevented development of such assets, leaving the company unable to proceed. The company did not say anything directly to affect its value in the past week but the installation of a new South African president may have been inferred as providing some potential for change (See 19 May 2017) Verdict: Sizzle.

Hexagon Resources announced that it had signed an agreement with Mineral Resources under which the latter would take the McIntosh graphite project in Western Australia through feasibility studies to commercial production within 36 months in exchange for a 51% joint venture interest. With these arrangements in place, the project is funded subject to the financial capacity of the new joint venturer. With a market value of $67 million, the company has effectively placed a price of approximately $35 million on the McIntosh asset which it might have found difficult to finance directly.  It had cash assets of $1.2 million at the end of December 2017.  The share price gain was relatively modest despite the announcement being more strategically significant than other pieces of news during the March quarter. The 'Steak or Sizzle?' rating has been upgraded to �Steak� as a consequence of the new agreement. Verdict: Steak.

 Week ended 23 March 2018

THEME OF THE WEEK: Cobalt Excitement

Winmar Resources announced that it had received capital subscription commitments for $3.1 million from investors to help fund the acquisition of cobalt-related investments in the Democratic Republic of the Congo having ended December 2017 with cash assets of $347,000.  In late January, the company announced that it had acquired a package of Canadian properties prospective for silver-cobalt mineralisation.  At the same time, it had foreshadowed further news about cobalt-related opportunities in Canada and elsewhere.  Verdict: Sizzle.

Nkwe Platinum announced that it had received an indicative proposal from Zijin Mining Group, a 60.47% shareholder in the company, under which the latter would acquire all the shares it does not currently hold in Nkwe. The proposed acquisition price is 133% higher than the last traded price prior to the announcement.  The Bermuda registered company has platinum group exploration and development interests through a 70% joint venture in South Africa. At the end of December 2017, the company had cash assets of $3.094 million.  Its market capitalisation prior to the foreshadowed bid was $26.9 million. Following the share price rise, the company is trading at 13% below the proposed offer price.  Verdict: Steak.

Strata-X Energy announced that following completion of an environmental management plan it will be able to drill and production test 20 locations prospective for coal seam gas across holdings in Botswana.  The A$4 million TSX and ASX listed company which is based in Denver also has exploration interests in the USA.  Late in the week, the company announced that it had increased its Botswana land position.  The company held cash assets of US$598,000 at the end of December 2017 after having spent US$412,000 in the prior six months.  Verdict: Sizzle.

Broken Hill Prospecting announced that Cobalt Blue Holdings had struck an agreement with an arm of LG Corporation under which the latter will help fund and provide technical assistance for the Thankaringa joint venture (see below) to make a high purity battery-grade cobalt sulphate. Broken Hill Prospecting holds legal title to the Thankaringa leases in which Cobalt Blue can earn an interest of up to 100% in exchange for staged payments and a future royalty.  Cobalt Blue had also previously announced a resource upgrade at the Thankaringa deposit.  Verdict: Sizzle.

Alloy Resources announced completion of a large surface soil sampling program over the Ophera cobalt-gold project in New South Wales. No results were expected for a further three weeks. At the end of the week, the company had put itself into a trading halt without explanation. The company had cash assets at the end of December 2017 of $1.369 million after having raised $1.2 million during the quarter and while expecting to spend $410,000 during the March quarter. If an additional cash raising is not imminent, the company will almost certainly need to replenish its cash reserves over the following six months to implement an effective exploration program. Verdict: Sizzle.

 Week ended 16 March 2018

THEME OF THE WEEK: Vanadium Excitement

Lakes Oil went to court to argue that the Victorian state government had acted illegally in blocking the company�s exploration activity in the state. The case is expected to last a few days. The company believes it could move quickly to prove reserves and head into production following a favourable decision. The balance of probability would support the government winning the case but there are no precedents for the litigation.  Verdict: Sizzle.

King River Copper was queried by ASX about the recent market activity but said there was no price sensitive information which had not been announced. Previously, the company had said test work on vanadium from its Speewah property in Western Australia had been completed.  After that announcement at the end of February, the share price had actually traded lower. Market sentiment about the outlook for vanadium demand might have had an influence on the recent market action.  ASX listed Australian Vanadium also rose strongly - by one third - during the week.  Verdict: Sizzle.

Mount Burgess Mining said it would conduct a review of the vanadium content of its Kihabe deposit in Botswana. The property had been thought prospective for zinc-lead-silver mineralisation.  Drilling has indicated some instances of vanadium mineralisation but modeling is underway to understand the grade and continuity of the resource. The company had $279,000 in cash assets at the end of December 2017 while expecting to spend $161,000 in the March quarter. The vanadium connection and accompanying share price action should assist in capital raising endeavours.  Verdict: Sizzle.

New Standard Energy is a lightly traded stock engaged in Carnarvon Basin oil exploration in Western Australia. The company is negotiating a program of work with the state government.  It has also said it is reviewing new opportunities to diversify its existing portfolio. The company had cash assets of $207,000 at the end of December 2017 while intending to spend $113,000 on staffing and administration alone in the March quarter. Without a capital infusion, little meaningful exploration could be expected in the event relevant government approvals are forthcoming.  Verdict: Sizzle.

Cobalt Blue reported the results of test work on concentrate from its Thackaringa cobalt project near Broken Hill, describing the results as �strong�.  The test work is one aspect of the processing path being examined in preparation for a feasibility study due for completion by June 2018.  A year later, the company is scheduled to produce a bankable study.  At the end of December 2017, the company held cash assets of $4.6 million with the intention of spending $1.5 million during the March quarter.  The company has indicated that it needs to spend $9.5 million over 18 months, suggesting a need for more capital as soon as possible to reassure investors that it can meet its goals.  At the end of the week, the company was in a trading halt.  Verdict: Sizzle.

 Week ended 9 March 2018

THEME OF THE WEEK: Unusually Weak Top of the Table Gains

Thompson Resources announced that it had completed a 20 hole drilling program near Ardlethan in New South Wales in an area prospective for tin mineralisation.  The company said that it expected laboratory results in early April 2018.  The drilling will have helped the company to build an understanding of the geological model for the area but there was nothing in what the company reported from which to infer commercial potential.  The company needs to see some positive results from the drilling to be able to raise additional exploration funding in the near term as it had only $391,000 in cash at the end of December 2017 while intending to spend $322,000 in the quarter ending March 2018.  It raised $31,649 last week to help funding but alleviated the problem for just a few weeks.  Verdict: Sizzle.

Hexagon Resources reported on test work conducted by a U.S. government laboratory on material from its McIntosh graphite property in Western Australia.  The company has used the results to highlight the unique characteristics of the material submitted for testing which make it a potential substitute for synthetic graphite.  The crystalline structure of the McIntosh product suggests that the company could move to a pilot plant as the next stage in its project development.  The share price moves last week recover losses made through February and into the first week in March after the company had announced a non-binding memorandum of understanding with a Chinese company under which the latter would take 30% of planned primary production from the McIntosh mine.  The company ended December 2017 with cash of $1.1 million and intended spending $747,000 during the 2018 March quarter. It has since added $484,000 through the exercise of options and convertible notes but, at the current rate of spending, a further capital boost will be needed later in 2018. Verdict: Sizzle.

Gold Mountain announced the discovery of nuggets at its Crown Ridge property in the Highlands of Papua New Guinea from which it has inferred a similarity in the pattern of mineralisation to the nearby Porgera gold mine.  No drilling has occurred.  Geochemical surveys involving soil and stream sediment sampling, rock chip sampling and trench sampling have been reported previously.  The company has raised an additional $2.2 million since December 2017 through option exercises to add to $4.0 million cash assets at the end of the year putting it in a relatively sound financial position despite a current spending rate of approximately one million dollars a quarter.  More detailed exploration results would have to be released to reinforce the company's discovery hopes.  Verdict: Sizzle.

Ausmon Resources did not make any disclosure to warrant a re-pricing of the company last week. The company had not undertaken any field work in the December quarter, it had reported previously, after retirement of its consulting geologist and the appointment of a replacement to oversee work at its tenements in New South Wales near Cobar and Broken Hill. Exploration activity had previously been focused on finding copper and precious metals.  The company intended to spend $50,000 on exploration in the March quarter from $473,000 cash on hand at the end of December 2017. Staff and administration costs have been exceeding exploration spend by a significant margin.   Verdict: Sizzle.

Resource Generation is awaiting approvals from financiers to progress a coal mining project in the Waterberg region of South Africa. The most recent rise in the share price coincided with a report from the company confirming that the credit approval processes were continuing, albeit more slowly than had been expected. The latest rise follows a 30% decline during the first half of February ostensibly in response to earlier reports of delays in finance approval. Lending terms and conditions will also require approval from shareholders.  Verdict: Steak.

 Week ended 2 March 2018

THEME OF THE WEEK: The DRC Returns

See comments below in the February best performing stocks for the following two companies:

• GWR Group Verdict: Sizzle.

• Tungsten Mining Verdict: Steak.

Taruga Gold has been building exposure to lithium and cobalt with a particular emphasis on tenements in the Democratic Republic of the Congo (DRC).  Potential projects are at the very earliest stages.  On 1 March, after trading resumed from a brief suspension, the company announced that it had acquired an option to buy concessions prospective for copper-gold mineralisation in the DRC.  The company has also acquired first rights of approval on properties and exploration interests after having commissioned consultants to seek out mining and exploration investments in the country.  In August 2017, the company had previously announced that it intended to acquire a 65% interest in a permit within a region in which tin and tantalum have been mined historically and which the company believed was an area prospective for lithium mineralisation.  At the end of December 2017, the company had cash assets of $1.45 million and has announced that it is completing a placement of shares to raise an additional $1.35 million to complement the property acquisitions.  Verdict: Sizzle.

Central Petroleum has been investing in gas properties in Queensland and the Northern Territory to take advantage of gas shortages in the east coast Australian domestic market.  On 1 March 2017, the Queensland government announced that the company had been selected as the preferred bidder for acreage to be set aside to supply the domestic market.  Central Petroleum is seeking to complete the bid in a joint venture with fertiliser producer and gas user, Incitec Pivot.  Under the anticipated terms of the arrangement, Incitec would fund exploration on the acquired properties.  The share price rose an additional 30% at the end of the week after the ACCC approved marketing arrangements for output from the Mereenie gas field in the Northern Territory.  The company reported revenue of $17.7 million in the six months to December 2017 for profit before taxes and depreciation of $0.1 million.  The company had net debt of $51.6 million at the end of 2017. Verdict: Steak.

Fe holds a 20% interest in a Bryah Basin property into which Sandfire Resources is farming in.  The Fe property is one of several subject to an agreement between Sandfire Resources and Auris Minerals which is the existing joint venture partner of Fe in the property in question.  A discovery on the property in which Fe is involved would give Sandfire a 70% interest and Fe 6%.  On the following day, Fe announced that it had intersected cobalt mineralisation in the Democratic Republic of the Congo.  The low grade cobalt mineralisation came from an abandoned hole undertaken to identify copper mineralisation. Fe had previously been among the best performing stocks in the sector in December 2017 before giving up three quarters of the gains through January and February.  Verdict: Sizzle.

February 2018

THEME OF THE MONTH: Tungsten

Of the highest returning companies during February, the following have been commented upon during the month:

• Nucoal Resources Verdict: Sizzle.

• Gladiator Resources Verdict: Sizzle.

• Sun Resources Verdict: Sizzle.

GWR Group has a 12.6% shareholding in Tungsten Mining which is also on the list of best performing mining investments in February (see below).  GWR holds a portfolio of investments in companies and projects covering tungsten as well as gold, copper, lithium and iron ore in Western Australia and the Northern Territory.  In September 2017, the company had released results of drilling at its Hatches Creek tungsten-copper-gold project in the Northern Territory after which the market responded in an uinitially positive but unsustained fashion.  The value of the $81 million company�s holding in Tungsten Mining increased by $22 million in February.  Verdict: Sizzle.

Tungsten Mining released details from a 37 hole drilling program at its Mt Mulgine tungsten project in the Murchison region of Western Australia.  Stabilisation drilling to assist in identifying suitable infrastructure locations and infill drilling over areas for pit development intersected shallow tungsten-molybdenum mineralisation. The company had cash assets of $15.9 million at the end of December 2017 after completing a $13.9 million capital raising to facilitate studies and progress toward meeting its aim to begin production before the end of 2018.  Activity at Mt Mulgine is occurring against a backdrop of a significant strengthening in global tungsten prices.  Tungsten Mining was also one of the best performing mining investments for similar reasons in the first weeks of August and September 2017 when it was originally rated 'Steak'. Verdict: Steak.

 Week ended 23 February 2018

THEME OF THE WEEK: One Real Business

Nucoal Resources had announced on 16 February that it had sold the last of its New South Wales coal related assets.  The sale left the company with cash assets of approximately $5 million.  More significant in terms of stoking investor interest in the company have been several newspaper articles and a speech in the New South Wales parliament drawing attention to the confiscation of the company's Doyles Creek coal tenement by the government in 2014.  The public reports refer to a threatened legal action by one institutional shareholder seeking compensation under the terms of a U.S.-Australia trade agreement.  While such an action had been first mooted several years ago, the most recent references have come as Australian Prime Minister Turnbull was about to meet U.S. President Trump in Washington.  With Turnbull reportedly seeking to persuade Trump to join the recently re-shaped Trans Pacific Partnership free trade agreement, the complainants are raising hopes that their threat of legal action may stall talks and confer their position with some added leverage.  This could prove more wishful thinking than a meaningful strategy.  Meanwhile, Nucoal is now a cash box in search of a strategy.  At some stage, directors will probably make an acquisition, spurring a fresh bout of interest.  Verdict: Sizzle.

Gladiator Resources has not been conducting any exploration and has had no registered interests in mining exploration properties.  At the end of December 2017, the company had cash assets of $199,000 after having raised $100,000 during the quarter via a share issue.  On 20 February, Gladiator Resources announced that it had finalised an agreement to acquire earn-in rights to the North Arunta project in the Northern Territory prospective for gold mineralisation.  Under the existing earn-in arrangement with the vendor, Gladiator will have the right to earn a 71% project interest by spending $6.5 million over 54 months.  The company needs to complete due diligence over 30 days to confirm the transaction.  Gladiator will issue shares to the vendor following a series of milestones leading to a completed feasibility study and resource definition.  The now $7 million company will also have to raise sufficient capital to meet its earn-in obligations.  While the region in which Gladiator is investing does contain other exploration efforts, investor interest in the region is not strong.  Verdict: Sizzle.

Fortune Asia Group (known as Emperor Range Group until 10 October 2017) holds tenements in China on which no work has been conducted recently and only $43,000 spent throughout 2017.  The most recent share price gain in the rarely traded company was driven by trades with a value of just $300.  At the end of the week, the company's market value was still 50% lower than it had been in early February.  Verdict: Sizzle.

Fertoz announced that it had struck an agreement with an agricultural products distribution firm in California for it to sell Fertoz sourced rock phosphate.  Fertoz quoted the distributor as saying that it was switching suppliers due to the superior quality of the Fertoz product and its competitive price.  The company is phasing up production from its Canadian operations with forecast sales of 10,000 tonnes in 2018 after less than 500 tonnes in the second half of 2017.  The company is also looking to source additional supplies closer to buyers in the USA to help remain competitive as it fills out its distribution pipeline.  Verdict: Steak.

Nex Metals Explorations announced results from drilling at its Kookynie tailings project north of Kalgoorlie in Western Australia.  The drilling to validate expectations of tailings content covers areas of historical mining activity where high mining grades and inefficient ore processing techniques hold out the prospect of a relatively attractive gold content remaining in the accumulated tailings.  The company had experienced a tenfold share price rise in October-November 2017 before quickly giving back the majority of the uplift.  The lightly traded stock has now produced a partial recovery, once again with only a small number of shares traded after an earlier gain in January (see below).  Verdict: Sizzle.

 Week ended 16 February 2018

THEME OF THE WEEK: A Lot of Sizzle

Cannindah Resources announced that drilling had commenced at its Piccadilly gold project in northern Queensland where, the company has suggested, there are similarities to other major Queensland intrusive gold systems.  The company, which had available cash of $72,000 at 31 January 2018, is seeking to negotiate fresh funding arrangements after drawing down nearly all of a $2.7 million loan facility.  The company has also said that it is discussing the possible sale of its Mount Cannindah porphyry style mineralised system near Gladstone.  Verdict: Sizzle.

POZ Minerals did not make any specific disclosure to precipitate the share price appreciation but another company which had purchased its gold assets in exchange for shares with a market value of $0.6 million did list on ASX.  Prior to the listing, POZ had a market value of $10.2 million.  POZ is now focused on the Blina diamond project in the Kimberly region of Western Australia where it has an exploration target of 1.6-4.1 million carats.  The company had cash holdings of $1.65 million at the end of December 2017.  Verdict: Sizzle.

FYI Resources announced that it had received commitments enabling it to raise $3.0 million to progress its plans to produce high purity alumina from a kaolin deposit in Cadoux in Western Australia.  Despite the rise, the share price remains below the peak values achieved during January.  The share price had dropped sharply prior to the new share issue being finalized, at which price the issue was undertaken.  Since September 2017, the company's market price had been on a rising trend after giving the go ahead for the purchase of the kaolin interests.  The company had previously been involved in acquiring potash assets in southeast Asia.  At the end of December 2017, the company had cash assets of $0.89 million.  Verdict: Sizzle.

Aus Tin Mining did not make any specific disclosure of new information to prompt the most recent share price action although interest was already heightened by the announcements in late January (see below) about drilling results at its Mt Cobalt property in Queensland.  The majority of the mid-January share price gain had retraced subsequently.  Last week's move recovers that loss on relatively modest volumes.  Slightly firmer tin prices to assist the company's existing production interests and generally more optimistic market conditions will have helped. Verdict: Sizzle.

Amani Gold reported drilling results from the company's 55%-owned Giro gold project in the Democratic Republic of the Congo although the rise in the company's share price had immediately preceded the announcement and occurred while the company was preparing its disclosure document.  The company is relatively well financed with cash assets at the end of December 2017 of $4.6 million.  During the December quarter, the company spent an additional $3.53 million (taking the total to $6.3 million) on compensating and relocating artisanal miners and local villagers at the Giro project.  Among the most significant results were 3 metres at 42.11 g/t and 5 metres near the surface at 13.74 g/t.  Seven diamond drill holes and 200 RC drill holes have been completed on the targeted areas.  Further drill results are due and the company intends to continue a program of work during 2018.  Drilling is aimed at building a resource among the satellite mineral deposits in the region.  Although the results are from a well funded work program, the company will have lost some credibility from having its announcement preempted by an apparent governance breach.  Verdict: Sizzle.

 Week ended 9 February 2018

THEME OF THE WEEK: South Australian Steak

Classic Minerals released details of drilling at its Forrestania gold project in Western Australia which points to potential to expand the company�s 14 March 2017mineral resource estimate.  The company referred to �thick zones of shallow-depth gold mineralisation" citing results including grades ranging from 1.10 g/t gold (over 10.5 metres) to 37.30 g/t (over 4.0 metres).  The company is on a very tight financial leash with cash of only $51,000 at the end of December 2017.  Further results are expected over the coming weeks after which time, one could assume, the company will seek to raise additional funds.  As things stand, the company is not in a position to do justice to whatever mineralisation exists within its tenements.  Verdict: Sizzle.

Dempsey Minerals announced that it had acquired an option to purchase mining tenements in Argentina adjacent to properties held by Galaxy Minerals and FMC containing lithium bearing salt flats.  The transaction which will require shareholder approval will involve the issue of shares and options based on milestones to production and an immediate capital raising of up to $2 million.  At the end of December 2017, Dempsey had cash assets of $323,000.  Prior to the latest initiative, the company held an option to acquire oil exploration interests in Turkey and exploration assets around Greenbushes in Western Australia.  Verdict: Sizzle.

WPG Resources announced that recent drilling has resulted in "a number of spectacular gold intersections" at its Tarcoola project in South Australia.  The company has forecast total gold production of 60,000 ounces for the year ended 30 June 2018.  Unit gold production costs in the latest quarter were $1760 per ounce.  In December 2017, the company established a $20 million loan facility to add to its $23.3 million cash holding to enable mine planning and development to proceed.  Verdict: Steak.   

 Emperor Energy released a document during the week describing progress toward receiving its Vic/P47 Bass Strait oil exploration permit.  The company intends to engage consultants to help upgrade the resource and design the next exploration stage.  At the end of December 2017, the company held cash assets of $1.01 million after raising $1.6 million in November and with expected expenditure of $360,000 in the March quarter.  The unusually high levels of investor interest in the past week resulted in a share price recovery from historically low levels but only took prices to the upper end of the range of outcomes which have prevailed over the past year.  Verdict: Sizzle.

Rex Minerals has now experienced three noticeable market upgrades since November 2017.  Last week, the company announced that it had submitted environmental permitting documentation to the South Australian government covering its Hillside copper-gold project on the Yorke Peninsula.  The environmental permitting is a vital step toward project construction which the company expects to start around 12 months after the formal government approval has been received.  The company has already invested $160 million in the project with an expected 13 year mine life during which it plans to produce 35,000 tonnes of copper and 24,000 ounces of gold annually.  Funding for the project remains outstanding.  Verdict: Steak.   

 Week ended 2 February 2018

THEME OF THE WEEK: Uninspired Barrel Scraping

Centaurus Metals announced that it had secured a 100% interest in a Brazilian nickel-cobalt deposit adjacent to deposits owned by Anglo American and Vale.  The 307 million tonne resource includes a high grade portion of 185 million tonnes grading 1.2% nickel and 0.18% cobalt.  The transaction with a private vendor is not yet a fully fledged acquisition with Centaurus only having purchased an option to proceed.  If it decides to go ahead after six months, it will be required to make milestone payments amounting to A$1.0 million.  At the end of December 2017, the company had cash assets of $822,000.  The company has placed shares to raise $2.65 million to fund its exploration efforts.  Verdict: Sizzle.

Sun Resources has a 50% working interest in Louisiana oil and gas assets. It must raise additional capital to enable drilling to commence by mid-2018.  The company held cash assets of $653,000 at the end of December 2017 with intended cash outflows in the March quarter of $450,000.  The rise in price during a single day�s trading came with unusually high volumes in the sparsely traded stock.  Verdict: Sizzle.

Forte Consolidated announced a conditional agreement to acquire a Western Australian gold property from an entity associated with its chairman. Purchase of the property in the Laverton region will require shareholder agreement. The company held cash assets of $882,000 at the end of December 2017 after having spent $268,000 on exploration and evaluation in the quarter on Queensland exploration interests.  Fieldwork has been limited with an emphasis on desktop studies and evaluation of existing information.  Verdict: Sizzle.

Peako released its activities report for the December quarter at the end of January but had not made any specific disclosures which might explain the latest investment performance. The company had previously announced that it had obtained the right to acquire a 60% interest in exploration areas prospective for base and precious metals in northern Western Australia. The targeted areas have been the subject of historical exploration activities.  At the end of December 2017, the company had cash assets of $316,000 with the intention of spending $40,000 in the March quarter. Verdict: Sizzle.

Hampton Hill Mining is not directly active in exploration. It has a shareholding in Peel Mining and a minority joint venture interest in a zinc project operated by Encounter Resources.  The company will also have a stake in a company expected to list in March and from which it is entitled to receive a royalty under certain circumstances.  The company spent nothing on exploration in the December quarter ending the period with cash of $1.03 million following a $1.47 million capital raising and repayment of outstanding loans.  The company expected to spend $94,000 in the March quarter.  Verdict: Sizzle.

 January 2018

THEME OF THE MONTH: Vanadium Joins the Frenzy

King River Copper showed strong share price appreciation through the first half of January without any obvious company specific catalyst for the repricing.  The company had reported drill results from its Mt Remarkable gold exploration interests near Kununurra in Western Australia in the third week in December without any immediately evident reaction.  During the December quarter, the company had also reported on test work from its Speewah vanadium find in the north of Western Australia (See �Steak or Sizzle?� for 4 August 2017).  The most recent share price performance tracks very closely in scale and timing the gains made by Australian Vanadium (see below) during the month after media and analyst reports about the potential for the use of vanadium in energy storage applications and after investors had become aware of the short term potential returns from companies involved in exploring for other battery related metals.  After the rise in the share price, the company announced that it had raised $1.2 million through placement of new shares to add to the $781,000 in cash held by the company at 31 December 2017.  The company reported having budgeted expenses of $315,000 including funds for further vanadium test work in the first quarter of 2018.  Verdict: Sizzle.

Stavely Minerals attracted attention when it reported in the second week in January that it had found mineralisation in western Victoria which it interpreted as evidence the porphyry style deposit it had been seeking is closer less deep than it had previously expected. The company disclosed further results during the month highlighting that recently completed diamond drill holes were producing evidence of nearby copper-gold mineralisation. On the last day of trading for the month, the company initiated a trading halt for the purpose of completing a capital raising. It had ended December with $1.1 million in cash to fund its future exploration endeavours. The recently reported results are consistent with the outcomes foreshadowed by the chief executive of the company since it listed in 2014 and which had warranted the �Steak� rating in the 4 April 2017 �Steak or Sizzle?� commentary. Verdict: Steak.   

Australian Vanadium was among the five most strongly performing stocks in the sector during the week ended 12 January 2018 (see below). The share price performance during January tracks very closely in scale and timing the gains made by King River Copper (see above) after media and analyst reports about the potential use of vanadium in energy storage applications and after investors had become aware of the short term potential returns from companies involved in exploring for other battery related metals.  During of the month, the company reported on its cash position at the end of December when it held $3.4 million. It plans to spend $650,000 in the march quarter, including $300,000 on the exploration and development. Verdict: Steak.

Aus Tin Mining was among the five most strongly performing stocks in the last week in January (see below). On the last day of the month, the company reported its cash position at the end of December was $1.5 million after raising additional funds. During January, the company restructured its convertible note liabilities through repurchases and conversions, leaving it with $750,000 in cash with spending plans in the March quarter for $500,000. While the company has operating assets in Tasmania and a tin project in New South Wales advancing toward production, much of the recent investor interest has been driven by its cobalt related exploration activities in Queensland and which have dictated the �Steak or Sizzle?� rating. Verdict: Sizzle.

Wollongong Coal continued to attract unusually strong investor interest after topping the sector performance table for the week ended 12 January 2018 (see below). After the trading activity had ceased, the company announced that it had reached agreement with one of its financiers to transfer its loan interests to another party which would permit progress toward completion of a corporate refunding aimed at repaying existing debtors and permitting necessary investment in plant and equipment.  Verdict: Sizzle.

 Week ended 26 January 2018

THEME OF THE WEEK: Old Commodities Return

Sundance Resources announced an agreement with a privately held Chinese engineering company under which the parties would jointly look at how to progress the Mbalam iron ore project in Cameroon.  The government of the African nation had previously extended the duration of the mining convention permitting development of the much-delayed project until the end of January 2018.  A further extension was to depend on whether the company could show progress toward bringing the project into production.  The market reaction has been a modest response to what could prove a last ditch, but necessary, effort to retain control.  Whether the project ever succeeds will almost certainly depend on direct or indirect support from Chinese authorities.  Sundance still runs a risk of being replaced in the development seat by parties more directly linked to the Chinese steel industry and the Beijing government.  Verdict: Sizzle.

White Energy Company is exiting its U.S. coal production activities in favour of marketing a proprietary technology for processing coal mine tailings.  Its South Australian coal resources have been rendered redundant by the destruction of the last coal fired power station in the state.  The company does not appear to have made any disclosure which might warrant a reappraisal of its value although it is engaged in litigation and asset sales processes which could result in it being more favourably placed financially.  Verdict: Sizzle.

Nex Metals Exploration is infrequently traded on ASX with the performance of last week attributable to a single trade with a value of $375.  The company did release the results of an aircore drilling program at its Kookynie project north of Kalgoorlie in Western Australia subsequent to the transaction.  The company is seeking to identify the commercial opportunities from processing tailings from historical mining activity within the tenement.  The company has expressed reluctance to purchase additional assets due to the inadequately compelling value propositions being presented.  At the end of September 2017, the company held cash of $569,000 with a quarterly spending budget of $150,000.  Verdict: Sizzle.

Greenvale Energy released its quarterly activities and cash flow reports for the period ended December 2017. The company has a coal resource in Queensland which it is investigating as a possible oil shale production opportunity.  Its enthusiasm for the project does not appear strong as it disclosed that it had been negotiating the purchase of an interest in a precious metal mining opportunity outside Australia. At the end of December 2017, the company held cash assets of $1.5 million after having spent $87,000 on exploration and evaluation in the quarter.  Verdict: Sizzle.

Aus Tin Mining disclosed assays from a drilling program completed in December at its Mt Cobalt project in Queensland. In reporting, the company highlighted favourable comparisons between its properties and other nickel-cobalt finds by Australian companies. As the share price action had occurred prior to the release of this information, ASX queried the company about the reasons for the higher price.  The company expressed confidence that its results had not leaked but drew attention to fresh chatter after publication of the company�s name among a list of prospective cobalt miners. The company is also developing the Taronga tin project in northern New South Wales. In late December 2017, the company received local council approval for a trial mine and pilot plant to operate for 18-24 months while it gathers information to help upgrade earlier studies into development of the resource.  At the end of September 2017, the company had cash holdings of $26,000 forcing it to rely on a funding agreement with an investment firm entitled to convert funding of up to $3.5 million to equity at a price which is now more than 70% below the current market.  Verdict: Sizzle.

 Week ended 19 January 2018

THEME OF THE WEEK: More Battery-led Recoveries

Superior Resources announced in mid December that exploration activities at its Greenvale porphyry copper prospect in Queensland would be extended to take account of cobalt soil anomalies. During the week, the company announced completion of a share placement to raise $626,000 and a rights issue for holders of shares on 30 January at a price now less than 50% of the price at which the shares traded during the week.  The rights issue would include attaching options with an exercise price already in the money. The rights issue is targeting $1.9 million. At the end of September 2017, the company had $112,000 to spend on subsequent exploration and administration.  Verdict: Sizzle.

Avira Resources is an infrequently traded stock which attracted unusually strong investor interest late in the week without having made any specific disclosures about its activities which might explain the heightened interest. The company, which has several tin and base metal exploration interests in Queensland, had announced completion of a $261,000 capital raising at the end of December. The 2017 annual report disclosed Hong Kong business interests held approximately 50% of the outstanding shares in the company which had $53,000 in cash balances at the end of September 2017.  Verdict: Sizzle.

Victory Mines, after being queried by ASX about the recent market activity, said that all disclosures had been made but drew attention to the approval at a general meeting during the week of the company�s acquisition of Cobalt Prospecting, a privately held company which it had agreed to purchase in November. The acquisition gave Victory cobalt and scandium exploration interests in New South Wales and Western Australia.  The vendors will retain a 31.5% interest in the merged companies. The last cash flow report for Victory Mines, which had previously held gold and base metal exploration interests near Laverton and north of Kununurra in Western Australia, disclosed cash holdings of $657,000 at the end of September 2017 with intentions to spend $514,000 in the recently completed December quarter. Verdict: Sizzle.

Hexagon Resources reported further testing of graphite material from its McIntosh prospect in Western Australia which had highlighted the potential for a suitably high quality product.  In its cash flow report for the September quarter, the company disclosed cash assets of $789,000 at the end of the period with budgeted expenditures of $665,000 in the following quarter. In early December, the company announced that it had sold its interests in other exploration assets which would raise $1.3 million.  Verdict: Sizzle.

Po Valley Energy announced a �significant commercial discovery� of gas in northern Italy.  The company must now submit a production application to the Italian government for the well which is situated within 600 metres of the Italian national gas grid. The company receives income from customers to whom it sold 5.1 million cubic metres of gas in the first nine months of 2017.  After revenues of 1.1 million euros, the company had cash to spend at the end of September 2017 of $247,000 leaving it constrained in it development choices without raising more funds. The company had previously flagged the sale of exploration licences to bolster its financial position.  It is also restructuring its ownership of other European oil and gas assets to help secure its longer term financial position.  Verdict: Steak.

 Week ended 12 January 2018

THEME OF THE WEEK: Few Project Progress Rewards

Wollongong Coal has been restructuring its substantial debt while relying on funding from its Indian-based parent.  Unfavourable legal judgments have resulted from attempts to renegotiate financial facilities.  Growing volumes of stock were traded through the week for the usually infrequently traded company which had not made any comment to explain the heightened activity.  Verdict: Sizzle.

Metals Australia received a query from ASX about the reasons for its unusually strong share price performance. In response, the company speculated that the heightened investor interest might be connected to a 15 December announcement about preliminary metallurgical results from its Lac Rainy graphite project in Canada.  The announcement had foreshadowed a final report, which has not been completed, in early January. The company also has zinc exploration interests in Western Australia and a uranium prospect in Namibia. Its Canadian exposures in Quebec include graphite, cobalt and lithium. At the end of October 2017, the company had cash on hand of $564,000 with the intention of spending $315,000 during the recently completed December quarter.  Verdict: Sizzle.

Diatreme Resources announced that China ENFI Engineering had agreed to complete a definitive feasibility study for the company�s Cyclone zircon project in Western Australia near the South Australian border. The Chinese consulting group has also undertaken to help source financing for the project. Diatreme itself had funds of $325,000 at the end of September 2017 with a December quarter budget of $290,000. A share purchase plan completed in early November raised $365,000.  Verdict: Sizzle.

Australian Vanadium reported test results for aspects of its vanadium extraction processes at its polymetallic Gabanintha property near Meekatharra in Western Australia. The company has also flagged additional ongoing test work leading to a preliminary feasibility study. Further tests are expected to be completed by the end of January 2018 with a report from the company about the results expected later in the first quarter of the year. After raising $2.5 million, the company finished the September quarter with cash assets of $3.2 million and plans to spend $800,000 in the recently completed December quarter. The company is positioning itself to take advantage of demands for more efficient energy storage devices with vanadium batteries seen by many technologists as a longer term alternative for large scale domestic and commercial energy storage than currently available options.  Verdict: Steak.

Orinoco Gold announced further results from a review of historical exploration and processing results at its Cascavel gold prospect in Brazil.  It had described results in late December as �spectacular�. The review follows disappointment about recoveries from a prospect expected to yield more favorable results than the company has been able to achieve since its initial intersections in 2013. In December, the company announced completion of a $1.8 million capital raising (after finishing the September quarter with cash of $795,000).  It also made board and senior management changes. Despite shifts in operational and management emphasis, the company�s share price is 75% lower than in early August 2016 while proposed revisions to its business approach have not so far offered clear-cut value enhancements to validate a stronger re-pricing of the company.  Verdict: Sizzle.