The �Steak or Sizzle?� blog comments on each of the top five performing resources stocks in the prior week. 

�Sell the sizzle, not the steak� is a famous sales adage. The sizzle is the showily attractive distraction from the quality of the meat. Sizzle plays on the emotions of buyers.

�All sizzle and no steak� is a reference to excitement which fails to measure up to expectations of quality.

Resource sector investors are constantly confronted by choices requiring them to distinguish between �steak� and �sizzle�.

Each commentary offers an opinion about whether recent unusually strong price performance is 'sizzle' or �steak� .

Being steak or sizzle does not necessarily say anything about near term investment returns. But sizzle can only take a company so far. Ultimately, steak is needed to sate the appetite of investors for something financially nourishing.

Commentary Archive:  2017 2018 2019 2020 2021 2022

Year ended December 2019

Of the highest returning companies during 2019, the following have been commented upon previously:

The strongest performing stocks in 2019 typically produced their qualifying returns in the latter part of the year, including three in the fourth quarter. The correlation in the timing of returns did not reflect market conditions as much as the tendency for strongly performing stocks in the sector to give up a large proportion of gains following an initial surge in investor interest. Strongly performing stocks in the first part of the year will have had more time in which to lose momentum. Stocks with similarly strong investment returns later in 2019 may also experience similar retracements in performance given sufficient time.

During 2019, eight additional companies produced returns from the start of the year greater than the 419% recorded by the company with the fifth highest return over the entire year. The eight  companies were  Warrego Energy (+950%), Liontown Resources (+650%), Meteoric Resources (+618%), Stavely Minerals (+610%), Tietto Minerals (+485%), Fenix Resources (+465%), Laneway Resources (+433%) and Hot Chili (+420%).

Quarter ended December 2019

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

Month ended December 2019

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

African Energy Resources announced that it had agreements with buyers in Zambia and Zimbabwe for power generated at its proposed coal fired power station in Botswana. The improved market investment returns commenced earlier in the month before the company was placed in a trading halt (see 20 December 2019). The agreement will enable permitting to proceed. Verdict: Steak.

Gibb River Diamonds commenced a strong price recovery after the company announced that interests associated with Sir Ron Brierley had sold the last of the shares owned in the company. The final sale coincided with the arrest of Sir Ron over unrelated matters recently but after a prolonged period during which the Brierley interests had been liquidated and by which time the share price had reached historically low levels in early December. The company has been moving to develop the Blina diamond property in Western Australia. The company had cash assets of $1.1 million at the end of September 2019. It had stated an intention to sell assets to enable its development objectives.  The Brierley exit should make financing the project�s very modest capital needs easier. Late in the month, the company announced that it had been invited by the state government to apply for additional ground in the Ellendale region enabling of the company to extend its area of activity. Verdict: Steak.

Week ended 20 December 2019

Variscan Mines posted a gain which left the share price within the range occupied throughout 2019 and near historically low levels. The higher level within the range was reached on numerous previous occasions but not sustainably. A week earlier, the company had completed an acquisition of two zinc properties in Spain. It had previously held copper exploration interests in Chile. Late in the last week, the company reported assays from rock samples taken from the newly acquired Spanish properties where drilling is expected to commence in early 2020. At the end of September 2019, the company held cash assets of $1.2 million. These funds were supplemented by a later $2.4 million raising. The company confirmed that it will undertake a share consolidation after the recent issue of shares in connection with the Spanish acquisition boosted the number of units on issue to 4.1 billion. Verdict: Sizzle.

PepinNini Minerals did not make any formal disclosure which part explain the improved investment return. In any event, the increase leaves the $2 million market capitalisation company very near the lowest historical levels. The apparent returns reflect the extraordinary share price leverage accompanying even minor changes in sentiment when share prices are so depressed. Some part of the preceding share price weakness could be attributed to a share purchase plan which, on completion in early December, had raised $300,000. The company held cash assets of $334,000 at the end of September 2019. Verdict: Sizzle.

Aeon Metals announced that it had received indicative funding offers which, it claimed, would be non-dilutive and capable of progressing a pre-feasibility study for a copper-cobalt project in north west Queensland. The company, with a market capitalisation of $105 million, also announced a resource estimate upgrade for the project. The company held cash assets of $3.1 million at the end of September 2019 with expectations of spending $1.15 million in the current December quarter. Verdict: Steak.

MRG Metals was queried by ASX about the reasons for the recent share price action. The rise in price accelerated in the past week but dates from the beginning of November. The initial rise was precipitated by announcements about drilling results from the company�s mineral sands interests in Mozambique. The initial results were followed up with assays in the past week. Other assays are still pending. Earlier in December, the company raised $1.25 million via a share placement to help accelerate its exploration efforts. The company had reported having cash assets of $754,000 at the end of September 2019. Verdict: Steak.

African Energy Resources was placed in a trading halt on the first day of the week and subsequently suspended �pending the release of an announcement regarding a commercial agreement�.  The company has coal projects in South Africa which it is positioning as an energy source for a much needed expansion in South African electricity generation capacity. Verdict: Sizzle.

Week ended 13 December 2019

Pancontinental Oil and Gas did not make any formal disclosure which might explain the share price gain. The company�s share price, having plumbed historically low levels, is now highly leveraged to even the slightest improvement in sentiment. The company, which reported having cash assets of $1.4 million at the end of September 2019, holds oil and gas exploration permits for areas off the coast of Namibia. The costs of exploration make it likely that the company will seek farm-in the participants to realise the exploration potential of the licences. Otherwise, it might have to rely on the success of others within the region to precipitate a re-evaluation of its assets and discovery potential. Verdict: Sizzle.

Legend Mining reported having discovered nickel-copper-cobalt mineralisation in the Fraser Range in Western Australia. Further assay are pending. With cash assets of $10.6 million at the end of September 2019, the company is well positioned to undertake the further exploration activities necessary to demonstrate an economically attractive find. Verdict: Steak.

EHR Resources has announced that it intends to acquire a Canadian company with interests in diamond exploration from a company associated with one of its directors. EHR had been earning an interest in a Peruvian gold-silver project on which it had spent C$2 million for a 10% stake. The company held cash assets of $2.3 million at the end of September 2019. It has flagged an intention to look for other diamond assets. A new director has been appointed to the board to lead the diamond exploration strategy. Verdict: Sizzle.

Greenvale Energy did not make any formal disclosure which might explain the improved investment return. Earlier in 2019, the company had taken a 50% stake in a company with rights over a 50% share in a gold exploration property in Arizona. The company announced a maiden resource in October. Previously, the company�s primary interest was in properties prospective for oil shale in Queensland. It held cash assets at the end of September 2019 of $117,000 and has flagged an intention to raise additional capital. The company has yet to report on its need to replenish its capital base. Verdict: Sizzle.

Lithium Australia announced that it has set up a joint venture with a Chinese company to market lithium-ion batteries and other renewable energy solutions in Australia. The company did not disclose any sales or financial objectives or funding arrangements. The company had earlier announced that it would take a 90% stake in Australia�s leading lithium-ion battery recycler.  The company reported having cash assets of $2.4 million with the intention of spending $1.5 million in the current December quarter, primarily on staff and administrative expenses. During the week, the company also announced that it had raised $300,000 via a share issue.  It is in need of a more significant working capital boost if it is to make a meaningful impact through its new ventures. Verdict: Sizzle.

Week ended 6 December 2019

Audalia Resources did not make any formal disclosure which might explain the improved investment results. The company holds exploration areas in Western Australia prospective for vanadium-titanium-iron mineralisation. The company had cash assets of $751,000 at the end of September 2019 after completing a $600,000 equity raising in the prior three months. The company also had borrowings of $3 million. Directors have said that they have been assessing funding alternatives through which to continue their exploration and evaluation activities. In any event, the resulting gain from historically low levels left the share price lower than at any time prior to September 2019. Verdict: Sizzle.

Adavale Resources did not make any formal disclosure which might explain the share price rise at the end of the week. Late in November, the company announced changes in its board membership and a $235,000 capital raising. The company had previously reported having cash assets of just $1,000 at the end of September 2019. The company had been relying on a standby subscription facility for its working capital. The company holds uranium exploration licences in South Australia. Verdict: Sizzle.

Astro Resources announced that the company had received the raw results from a drilling program in Nevada over areas prospective for gold but did not disclose any details pending their evaluation. The company reported having just $14,000 in cash assets at the end of September 2019.  Additional borrowings of $325,000 during the quarter pushed the amount owed to supportive shareholders to $1.9 million. The share price rise was from a historically low level leaving the end of week price still near the lowest levels in the history of the company. Verdict: Sizzle.

Sun Resources did not make any formal disclosure which might explain the improved investment performance. In any event, the share price uplift came from historically low levels leaving the price near life of company low levels. The company had conducted a shareholder meeting a week earlier at which no resolutions of strategic significance were considered although shareholders did approve a change of name for the company. The company was also queried by ASX about its financial position. It said, in response, that it was negotiating a farm-out agreement and had alternative funding arrangements under review. The company has offshore oil exploration interests in Louisiana where it is looking to drill its first well during the first quarter of 2020. The company reported having cash assets of $250,000 at the end of September 2019. Verdict: Sizzle.

Santana Minerals announced that it had received subscription commitments of $3 million from investors.  The new funding will allow the company to complete an acquisition of nickel exploration interests in Laos and to commence fresh exploration efforts. Prior to the purchase, the company had gold exploration interests in Chile and Mexico. It reported having cash assets at the end of September 2019 of $209,000. Verdict: Sizzle.

Month ended November 2019

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

Australia United Mining did not make any formal disclosure which might explain the improved investment returns. In any event, the stock is extremely lightly traded with turnover valued at little more than $3,000 during the entire month of November. The company holds properties in Queensland and New South Wales prospective for gold. The company has very limited financial capacity with cash assets of just $35,000 at the end of September 2019. ASX did query the company during the month about its ongoing financial capacity. Directors said in response that the company was assessing and evaluating opportunities for the farm-out or joint development of its projects. Meanwhile, directors are funding the company�s expenses through loans. Verdict: Sizzle.

Celamin Holdings did not make any formal disclosure which might explain the improved investment performance. The company held a general meeting of shareholders mid-month at which no strategically significant resolutions were considered. The share price appreciation was underway prior to the annual meeting but did subsequently accelerate suggesting that favourable inferences about the company�s prospects had been drawn from the discussions at the meeting. The company has been in the midst of a dispute in Tunisia where, it claimed, its interest in a phosphate deposit had been transferred illegally. The company has since had court decisions in its favour with damages pending. Directors confirmed that the company was taking steps to regain control of the previously disputed assets and to progress studies leading to development. Verdict: Sizzle.

Week ended 29 November 2019

Galileo Mining was asked by ASX if it could explain the sharp rise in the share price. Directors said they did not have any information but speculated that investors were anticipating results from the company�s Fraser Range exploration efforts. They drew attention to Legend Mining being in a trading halt.  Galileo�s main exploration interests are along strike from those of Legend.  Earlier in the week, the company had announced the commencement of drilling at a copper-gold prospect near Norseman in Western Australia. Verdict: Sizzle.

Conico did not make any formal disclosure which might explain the stronger investor returns. At the end of the prior week, the company held is annual general meeting of shareholders. The meeting did not consider any resolutions of strategic significance. The company�s primary exploration interest is a 50% stake in a cobalt prospect near Norseman in Western Australia. The company held cash assets of $275,000 at the end of September 2019 after raising $312,000 in the prior three months. Verdict: Sizzle.

Renegade Exploration did not make any formal disclosure which might explain the higher share price which, in any event, was from a historically low level resulting in a price still in the middle of the range in which trading has occurred during 2019. At the end of the previous week, the company had held a meeting of shareholders. There were no strategically significant resolutions considered at the meeting. The company has gold exploration interests in Western Australia and in the Yukon. It has been seeking partners to help fund activity at the North American site. The company held cash assets of $764,000 at the end of September 2019. Verdict: Sizzle.

Austpac Resources did not make any formal disclosure which might explain the higher share price. The share price gains were accompanied by a significantly higher than usual trading volume on the final day of the week. Directors did postpone the company�s annual meeting of shareholders until mid-December. The meeting is not being asked to consider any strategically significant resolutions although directors are at risk from a spill motion following opposition to the remuneration report of the company a year earlier. The company continues to undertake testing of its process to treat zinc contaminated furnace dust generated in steelmaking. The company held cash assets of $1.5 million at the end of September 2019. Verdict: Sizzle.

Global Petroleum released an estimate for a prospective oil resource in which the company has an 85% interest off the coast of Namibia. The company�s higher share price is a modest recovery from a historically low level. The price at the end of the week was little different from the level a year earlier.  The company had previously reported cash assets of $2.2 million at the end of September 2019. Verdict: Steak.

Week ended 22 November 2019

MetalsTech announced that it had acquired an option to purchase a gold project in Slovakia.  The project had been the subject of a pre-feasibility study by a prior owner in 2013. The site has a long history with underground and open pit production occurring over many centuries. A proven and probable reserve of 873,000 ounces of gold was estimated under the 2004 JORC Code. Consideration for the transaction is a combination of cash, royalties and performance shares. Prior to the latest initiative, the company had been primarily interested in lithium mineralisation in Quebec. The company, obviously in search of a strategy, joins a long line to access historical mines often in the mistaken belief that they are easier targets than a greenfield opportunity. Verdict: Sizzle.

Ikwezi Mining had not traded since the end of October. It did not take make any formal disclosure which might explain the sharp increase in investor interest. Ikwezi is developing thermal coal production facilities in South Africa and had foreshadowed increased capacity through the development of new infrastructure. The company reported revenue of A$2.85 million in the three months ended September 2019. Verdict: Sizzle.

Bougainville Copper did not make any formal disclosure which might explain the share price appreciation during the week. The share price reached its highest level since early 2014. At the end of October, it had released a simple 15 word quarterly activities report saying there had been no production since May 1989. Periodically, speculation mounts that a production restart is being contemplated. Verdict: Sizzle.

Gas2Grid did not make any formal disclosure which might explain the stronger investment performance. The stock had not traded since late October before fresh investor interest emerged in the past week. It has oil and gas production assets in the Philippines. It has also been in dispute with the French government over a denied licence approval for which it is seeking compensation (see September 2019). A general meeting of shareholders is scheduled for later in November but no resolutions of strategic importance have been placed on the agenda. Verdict: Sizzle.

Minrex Resources did not make any formal disclosure which might explain the improved investment performance. In early November, the company had released details of a rock sampling exercise conducted during September and October over exploration areas in the east Pilbara. The focus had been on areas prospective for gold mineralisation. The company had foreshadowed work recommencing in the near future. Verdict: Sizzle.

Week ended 15 November 2019

Australian United Mining was queried by ASX about its financial capacity. The company continues to rely on borrowings from its principal shareholders to cover its ongoing expenses. Directors have said they are evaluating opportunities to fund activities through farm-out or joint development of projects. The company holds exploration interests in New South Wales and Queensland prospective for gold. Verdict: Sizzle.

Caeneus Minerals did not make any formal disclosure which might explain the uptick in investor interest. The company has gold exploration interests in Nevada but lacks the financial capacity for effective exploration. It had cash assets of just $5,000 at the end of September 2019. The share price rise is consistent with the leverage available to investors at historically low price levels. The company�s share price remains within the same trading range occupied through 2019. Verdict: Sizzle.

Bass Oil reported on its production rate in Indonesia in October. Output was 7% higher than in September. The company's share of production in October was 11,884 barrels. The company has said it is looking for additional opportunities in Indonesia. Earlier in the month, the company reported the results from a production test at a new well in which it has a 55% interest. The share price activity is consistent with highly leveraged responses to relatively unimportant matters at the bottom of the cycle. Similar price shifts through 2019 have not been sustained. Verdict: Sizzle.

Andromeda Metals had experienced a fourteen fold share price rise through 2019 before losing some ground (see September quarter 2019). The most recent gain is a partial recoupment of losses through the second half of October. The company did not make any formal disclosure in the past week which might explain the share price performance. Andromeda has assembled a variety of exploration properties in South Australia, Western Australia, the Northern Territory and Queensland. It has attracted interest for its halloysite-kaolin deposit on the Eyre Peninsula for which it has prepared a scoping study and for which off-take expressions of interest have been obtained in recent months. Evolution Mining has also committed to a further round of funding for a gold deposit in Queensland. Verdict: Steak.

European Metals Holdings did not make any formal disclosure which might explain the strong share price appreciation, the start of which dates from late October. The company had previously said that a European power utility had entered into a conditional agreement to provide a finance facility.  It has lithium-tin exploration licences in the Czech Republic. The company has said that the European power utility is undertaking due diligence prior to confirming the funding arrangement. A decision on that funding could be imminent. The company held cash assets of $1.03 million at the end of September 2019. Verdict: Sizzle.

Week ended 8 November 2019

Mount Ridley Mines did not make any specific disclosures which might explain the improved investment return. The price action followed a stronger investment performance dating from late October (see 1 November 2019). In both periods, unusually strong high turnover accompanied the share price gains. Verdict: Sizzle.

Egan Street Resources was the subject of an all-scrip takeover bid from fellow Western Australian gold producer Silver Lake Resources. During the week, the bidder increased the offer and declared it unconditional. Verdict: Steak.

Victory Mines did not make any formal disclosure which might explain the improved investment return which, in any event, resulted in the company�s share price remaining within a historically low range prevailing since June 2019. The company holds exploration interests in New South Wales and Western Australia. It has commenced a drilling program over tenements with potential for scandium and cobalt mineralisation in New South Wales. The company�s cash assets of $62,000 at the end of September 2019 have since been supplemented by a rights issue which raised $1.48 million. Verdict: Sizzle.

Gladiator Resources did not make any formal disclosure which might explain the improved investment return from this lightly traded stock. The rise was within the trading range occupied by the share price since April 2019. The trading activity was consistent with earlier unsustained results leading to the investment performance being near the top of the sector rankings (see 18 October 2019). Verdict: Sizzle.     

Pacific Bauxite it did not make any formal disclosure which might explain the improved investment return in this normally lightly traded stock. Following the improved return, the share price remained near historically low levels. The share price move was similar to an earlier unsustainable move in similar circumstances (see 4 October 2019). Verdict: Sizzle.

Week ended 1 November 2019

Global Vanadium did not make any formal disclosure which could account for the unusually strong investor interest. The company released a two page quarterly activities report late in the week in which it recounted details of a capital raising during the quarter and details of its proposed exit from a magnetite-vanadium project in the Philippines. The company also confirmed that its focus was now �firmly� on advanced oil and gas opportunities. It would consequently seek approval for a name change to reflect the strategic redesign. It referred in general terms to a potential African investment. At the end of the September quarter, the company held cash assets of $701,000. Having opted for a name change in late 2018, to reflect its move from oil and gas to vanadium exploration, the present group of directors are proving to be seriously unaccomplished in their endeavours to create value from their strategic redirections. Verdict: Sizzle.

Avenira announced that it had completed sale of a West African phosphate project leaving it debt free and with $2.7 million in cash after a share repurchase. The company will retain its interest in the Wonarah phosphate deposit in the Northern Territory. The company has flagged a review to set a new strategic direction. The company had reported having cash assets of $301,000 at the end of June 2019 with outstanding loans exceeding $7 million. Verdict: Sizzle.

Mount Ridley Mines did not make any formal disclosure which could account for the surge in investor interest. It had recently completed a capital raising and, during the week, sent out a notice for an annual general meeting of shareholders. The proposed resolutions did not include any strategic initiatives which might underpin an improved valuation.  At the top of the list of activities undertaken in the quarter, according to its updated activities statement, was a change of postal address. In any event, the price rise came from historically low levels leaving the company well within the range of prices which have prevailed throughout the past 12 months. The company holds exploration tenements in the south of Western Australia prospective for nickel on which it spent $55,000 during the September quarter. Verdict: Sizzle.

Peninsula Mines is a very lightly traded stock which had been priced at historically low levels before trades with a market value of $1,500 forced the share price higher. The company did not make any formal disclosure which might account for any greater investor interest other than release its activities report for the three months ended September and send out a notice for an annual meeting of shareholders. The company referred to a proposed merger, announced in July, of its Korean activities with another graphite project developer. The company reported that discussions were continuing despite a delay caused by management changes at the partnering company. The resolutions to be put to shareholders do not include any strategic initiatives which might impact corporate value. The Korean graphite mine developer reported having cash assets at the end of September of $171,000. Verdict: Sizzle.

Talon Petroleum did not make any formal disclosure which might explain the investment return although the higher price remains within the lower end of a range which has prevailed through the past 12 months. The company had produced similarly top five results recently (see 18 October 2019) before giving up those gains and reverting to the lower end of the prevailing price range. The company released its activities report for the three months ended September recounting its North sea oil and gas exploration interests. It reported having cash assets at the end of September of $2.2 million. Verdict: Sizzle.

Month ended October 2019

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

Magmatic Resources has been on a rising share price trend since mid September following an announcement by Alkane Resources of a copper-gold discovery near the company's own exploration activities in the East Lachlan region in New South Wales (see 13 September 2019). Subsequently, Magmatic announced that it had cancelled plans to demerge its interests in the region and to acquire new assets in Western Australia to focus efforts on the newly attractive New South Wales tenements. The company has partially completed a $2.2 million capital raising and directors have given former Atlas Iron chief executive David Flanagan a position on the board. Verdict: Sizzle.

Avenira announced that it had completed sale of a West African phosphate project leaving it debt free and with $2.7 million in cash after a share repurchase. The company will retain its interest in the Wonarah phosphate deposit in the Northern Territory. The company has flagged a review to set a new strategic direction. The company had reported having cash assets of $301,000 at the end of June 2019 with outstanding loans exceeding $7 million. Verdict: Sizzle.

Week ended 25 October 2019

Latin Resources came back from an eight day trading halt with an acquisition announcement. The company being acquired holds exploration interests in Western Australia covering halloysite and silver-lead deposits in the Paterson range. The first deposit is still in the application stage. Consideration will be in the form of shares in the buyer, options over shares and milestone shares. The company also announced a $1.5 million capital raising package. The company had previously been engaged in several South American exploration interests including hard rock lithium mining in Argentina. It had faced long delays in gaining approval for its intended activities. At the end of June 2019, it had cash assets of just $32,000 and undrawn loan facilities of $3.15 million, potentially payable with the issue of new shares. Verdict: Sizzle.

Encounter Resources was queried by ASX about the reasons for the increased price and higher turnover. Directors said that they did not have any information to disclose although they referred to results of previously announced drilling in the Tanami region of Western Australia which are expected in November. The exploration effort is being conducted through a joint venture with Newcrest Mining. The company holds several copper-gold-cobalt mineral exploration properties in Western Australia. It held cash assets of $2.48 million at the end of June 2019. Verdict: Sizzle.

Quantum Graphite did not make any formal disclosure which might explain the share price move although the responsible turnover amounted to only $1,242. The company, which is developing a graphite property in South Australia, had cash assets of $299,000 at the end of June 2019. It dispatched a notice of meeting to shareholders at the end of the week. Resolutions, which included moves to consolidate the number of shares on issue and approve share-based compensation for directors, did not include any strategic initiatives. Verdict: Sizzle.

Devex Resources announced that a diamond drill rig had been mobilised to begin work on a shallow copper-gold deposit at Bogong in New South Wales. Later in the week, the company announced that it had appointed the former chief executive of Silver City Minerals as chief geologist for New South Wales. The company also has uranium and lithium exploration interests in the Northern Territory and Western Australia. It had cash assets of $1.2 million at the end of June 2019 after a $1.4 million capital raising. The company had foreshadowed quarterly spending of $1.28 million ahead of the recently completed September quarter. Verdict: Sizzle.

Challenger Exploration had announced a week earlier that it had commenced a drilling program at its Hualilan gold project in Argentina.  In the past week, it said that it would receive the first assay results in two or three weeks. The company was conducting investor briefings in Hong Kong which coincided with the improved investment performance. Verdict: Sizzle.

Week ended 18 October 2019

Gladiator Resources did not make any formal disclosure which might explain the share price rise or stronger than usual market turnover. The rise left the company's share price within the range it had occupied throughout 2019 near historically low levels. Prior to the rise and earlier in the week, the company released its activities statement for the three months ended September 2019. The company reported that a work programme would be submitted for approval covering gold mining areas in Western Australia over which an exploration licence had been granted during the quarter. The company also reported that it had given up other exploration areas after drilling had failed to demonstrate economic mineralisation. The company reported cash assets at the end of the quarter of $174,000 following a $100,000 capital raising. It flagged an intention to spend just $20,000 on exploration in the current December quarter. Verdict: Sizzle.

Xstate Resources is an example of the extraordinary leverage which comes from a normally illiquid stock trading at a historically low share price. The unusually large turnover in this usually very lightly traded stock left the share price close to historically low levels despite doubling. The company, which has had oil and gas exploration interests in Texas, did not make any formal disclosure which could account for the share price rise. In August, the company had announced that it had terminated the Texas farm-in agreement. It held cash assets of $517,000 at the end of June 2019. Verdict: Sizzle.

Northern Cobalt announced that it had entered into an agreement to earn an 80% interest in a gold exploration project in Alaska, near the Pogo mine of Northern Star, subject to completion of due diligence . The company, which held cash assets of $742,000 at the end of June 2019 with plans to spend $290,000 in the completed September quarter, also announced a $1.5 million capital raising. The company had previously been engaged in vanadium exploration in Alaska over land which includes magnetite mineral deposits. Verdict: Sizzle.

Talon Petroleum did not make any formal disclosure which might explain interest in the usually very lightly traded company. In any event, the share price gain occurred with a single trade valued at just $750. The company has oil and gas exploration interests in the North Sea through an acquisition completed in May 2019 and other licences in the area. The company held cash assets of $2.6 million at the end of June 2019. Following the rise, the share price remained within the range it had occupied since late 2018. Verdict: Sizzle.

Trek Metals did not make any disclosure which could account for a pick-up in investor interest. In any event, the share price, which had been trading near historically low levels, remained within a range which had prevailed through most of 2019. Earlier in the month, the company had completed a consolidation in the number of shares on issue which followed a $2.4 million capital raising a month earlier. In September 2019, the company had announced an agreement under which Apollo Minerals would earn an interest of up to 80% in a zinc-lead exploration property it acquired in April 2018. It also announced management and board changes so as to identify future opportunities. Verdict: Sizzle.

Week ended 11 October 2019

Krakatoa Resources announced in late September that the company had agreed to acquire 100% of an exploration area prospective for copper-gold mineralisation in New South Wales. Consideration for the transaction was a combination of shares (10 million in addition to the 150 million on issue), cash ($300,000) and net smelter royalty (1%). The area in question is near the Newcrest Cadia mine and a recent discovery by Alkane Resources. In the past week, the company confirmed completion of due diligence.  Prior to this transaction, the company had exploration interests in Western Australia covering a range of commodity exposures including rare earth elements, mineral sands and gold. The Western Australian rare earth assets were acquired as recently as June. The company held cash assets of $407,000 at the end of June 2019 after raising $379,000 in June. Verdict: Sizzle.

Accent Resources did not make any formal disclosure which might explain the improved investor interest in this very rarely traded $905,000 company. In any event, the gain was made with a single transaction with a value of just $38. The company holds magnetite and gold exploration interests in Western Australia. Directors have said they are looking for new investment opportunities. The company had cash assets of $362,000 at the end of June 2019 with the intention of spending $290,000 during the just completed September quarter. Verdict: Sizzle.

GBM Resources announced that it had completed a $300,000 capital raising and had appointed a new non-executive director with an extensive background in the mining industry in large and small companies. The company has gold and copper exploration interests in north west Queensland as well as gold in Victoria. It held cash assets of $333,000 at the end of June 2019 with the intention of spending $300,000 in the just completed September quarter. It had a partially drawn convertible note facility which permitted it to draw down $350,000 in July. The share price rise left the company trading within the same range it had occupied since mid-2018 and near historically low levels. Verdict: Sizzle.

Australian Pacific Coal did not make any formal disclosure which might explain the improved investment outcome which raised the company�s share price from a historically oversold position. The company holds a currently closed coal mine in New South Wales. In August, the government had declined to extend a development approval by the five years requested by the company. The company is able to appeal the determination but has additional time in which to do so. The company held cash assets of $671,523 at the end of June 2019 with outstanding loans of $53.2 million. It sold assets to raise $1.6 million in July but must find alternative funding for its ongoing activities, including the possibility of partners to enable it to reopen its mining operations. Verdict: Sizzle.

Eclipse Metals did not make any formal disclosure which might explain the improved investment return. The company has uranium exploration interests in the Northern Territory and manganese exploration interests in Queensland. The company which has a historical track record of very light trading attracted significantly greater interest during the past week.  After trading at historically weak prices at the end of September, the recent rise took the company�s share price to the upper end of the trading range prevailing over the past 12 months. The company held cash assets of $358,000 at the end of June 2019 with expected spending of $130,000 in the just completed September quarter. Verdict: Sizzle.

Week ended 4 October 2019

East Energy Resources did not make any formal disclosures which might explain the stronger interest in the normally rarely traded stock. In any event, the share price improvement came with turnover valued at less than $3,000. The company's principal resource interests are in coal deposits near Blackall in Queensland. Development of the coal interests depend heavily on the Adani coal mine in the Galilee Basin proceeding and construction of the associated transport infrastructure on which a new Blackall mine would depend. The company relies on financial support from Noble which holds 93% of the company�s shares. Directors have said they are looking for alternative opportunities. Verdict: Sizzle.

Legacy Iron Ore received a query from ASX about why the company had attracted unusually strong investor interest. Directors referred to general market conditions, including a higher gold price. They added that a drilling program at a gold exploration site in the goldfields of western Australian had concluded, after having commenced in June.  They referred to results being released within the next two weeks. Verdict: Sizzle.

New Standard Energy did not make any formal disclosure which might explain the stronger investor interest. It did release its annual report. The company holds oil and gas exploration interests in the onshore Carnarvon Basin in Western Australia. In July, the company said that it was seeking to renew an exploration permit but approval had not yet been granted. In any event, the share price movement has left the company trading within the same range it has occupied throughout 2018 and 2019 and near historically low levels. Verdict: Sizzle.

Pacific Bauxite did not make any formal disclosure which might explain the stronger investor interest although, in any event, the change represents only a very small increment to a historically low share price. Earlier in September, the company announced a rights issue to raise approximately $992,000 to help fund activity at its Solomon Islands bauxite deposits. The company had been in dispute with the government which had refused an application for renewal of an exploration licence. In September, the High Court ruled in favour of the company which is now free to seek renewal of the licence. Verdict: Sizzle.

Audalia Resources did not make any formal disclosure which might explain heightened investor interest in the company which holds licences over land in Western Australia prospective for vanadium and titanium mineralisation. The company reported having cash assets at the end of June 2019 of $551,000 and $3.0 million in outstanding loans. It completed a $0.6 million placement during July.  Directors said they are evaluating future funding sources. The rise leaves the price of the company�s rarely traded shares still lower than in October 2017 and little different from the lowest levels in the company�s history. Verdict: Sizzle.

Quarter ended September 2019

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

Surefire Resources attracted abnormally strong investor interest from mid-July and a rising share price trend throughout the remainder of the quarter. The company began planning a Western Australian gold exploration program in July/August with drilling commencing in September. The area covered by the exploration in the midwest region south of sandstone had been acquired as a vanadium exploration opportunity (see 3 May 2019). The company has not released any results but is following up historical drilling which had identified several areas of high-grade gold mineralisation. The company received commitments from investors to subscribe for new shares with a value of $1.15 million after finishing June 2019 with cash assets of $136,000.  Verdict: Sizzle.

Andromeda Metals has been on a rising share price trend for the second consecutive quarter. The company's shares were among the best performed equities in the June quarter (see here) on the back of its kaolin exploration interests in South Australia which have been identified as a potential source of material for the ceramics industry. During the quarter, the company had announced off-take negotiations. The originally foreshadowed involvement of the project in producing high purity alumina has not been considered in the completed scoping study. Verdict: Steak.

Classic Minerals reported high grade gold intersections from drilling in September at its Forrestania gold project. Commencement of activity in August had encouraged a brief boost to interest in the company (see 16 August 2019) followed by a more sustained reaction later in September.  Verdict: Sizzle.

Month ended September  2019

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

Gas2Grid announced in early September that drilling was about to commence on oil and gas exploration properties it holds under licence in the Philippines. Until that point, the company�s shares had been trading at historically low prices. Weighing on the investment returns would have been a dispute with the French government which had refused to renew an exploration permit in that country. A tribunal subsequently concluded that the refusal was unlawful, opening the way for the company to launch a damages claim. Verdict: Sizzle.

Alice Queen shares commenced their upward price move in early August after hovering near historically low levels over the prior 12 months. The company was asked if it could explain the unusual share price movement. Other than the possible impact of higher gold prices, the company was unable to cite any company specific reasons for the move although it referred to having been testing the market appetite for a share placement. The rise in the share price accelerated sharply in mid-September after the company drew attention to a discovery by Alkane near its own gold exploration interests in New South Wales. The company drew attention to similar geological features within its exploration areas as those encountered by Alkane. Verdict: Sizzle.

AustChina Holdings has coal mining interests in Queensland which have been stalled by inadequate transport infrastructure and political hostility to mine development.  The company has referred to recent support for development of the Adani mine in the Galilee Basin as possibly resulting in an improvement in the available infrastructure and benefitting the company�s development chances.  The company also holds a 5% interest in a Queensland copper explorer. It did not make any formal disclosure which might explain the change in investor returns. The company ended 2018/19 with cash assets of $66,000 prior to completing a $831,317 placement in July. Verdict: Sizzle.

Week ended 27 September 2019

Stavely Minerals reported a very high grade copper gold intersection from drilling at its exploration project in western Victoria. A copper grade of 5.88% over 32 metres included 2 metres grading 40%.  The discovery occurred from a depth of 62 metres. Further drilling is in progress with results upcoming. The drilling activity will assist the company to improve its understanding of the regional geology where mineralisation had been identified historically without suspicions of a potential major deposit being proven. Verdict: Steak.

Stone Resources Australia did not make any formal disclosure which might explain the stronger investor interest. In any event, the share price gain in the usually lightly traded stock came from a handful of trades with a value of $1,530. The company�s share price remains near historically low levels after the rise in the past week. The company had previously reported having cash holdings of $140,000 at the end of August 2019. The Western Australian gold explorer depends on loans from its majority shareholder to continue in business.  In its June quarter activities report, the company disclosed that it had contracted a consultant to compile and review the available geoscientific data relating to its properties. Verdict: Sizzle.

Lincoln Minerals received a query from ASX about why it had attracted unusually strong investor interest but directors said they did not have any information which might be relevant. The fresh buying occurred in the lead up to the release of the company�s annual report. The company�s principal interest is a graphite exploration property on the Eyre Peninsula in South Australia. The company held cash assets of $1.7 million at the end of June 2019. Verdict: Sizzle.

Discovery Africa did not make any formal disclosure which might explain the unusually strong investor interest in what is usually a lightly traded stock. The company, which holds an option to purchase a 100% interest in gold projects in Western Australia, released its annual report during the week. In August, it had reported settlement of a legal dispute which had netted it $1.85 million. The company has said that it is looking to identify new acquisition opportunities. Verdict: Sizzle.

 Mount Ridley Mines did not make any formal disclosures which might explain the stepped up investor interest in the company which holds exploration tenements in the Fraser Range region in Western Australia. The company has not completed significant exploration work in recent months and has said that it is evaluating other opportunities. It held cash assets of $1.0 million at the end of June 2019. Verdict: Sizzle.

Week ended 20 September 2019

Mount Burgess Mining did not make any formal announcement which might explain the improved investment performance. The company, which was queried by ASX, could not provide any insight into the reason. In the second half of August, the company had announced the results of metallurgical test work on samples of ore from its Nxuu base metal and vanadium deposit in Botswana.  The results highlighted the use of improved sorting technology to lower costs. There was no market reaction at the time of that announcement. At the end of June, the company held cash assets of $35,000. It subsequently raised $70,000 through an issue of new shares. Verdict: Sizzle.

Red Sky Energy did not make any formal disclosure which might explain the share price action. When queried by the ASX about the price moves, directors said they could not provide a reason other than a recent announcement of a farm-out agreement with Santos which involved an injection of $9 million into the company�s oil exploration interests in the Cooper Basin. The company also acknowledged having had discussions with potential investors about a capital raising and, as a result, directors decided to enter the company into a trading halt until they had finalised their views about how to proceed. The company held cash assets of $36,000 at the end of June 2019. Verdict: Sizzle.

Azumah Resources received an unsolicited bid for all of the shares in the company from an investment fund which had been appointed project manager of the Wa gold project in Ghana in 2017. The fund had sought to buy out Azumah�s 53.5% interest in the project which is in the latter stages of a feasibility study. The bid was launched after an approach to take over the company did not receive a response within the specified tight deadline. The fund holds 17.7% of its target. Verdict: Steak.

Alta Zinc had announced the appointment of a new chief executive a week earlier and, in the last week, announced the appointment of a corporate advisory firm with which the new executive has worked in the past. The advisory firm claims to be able to unlock value from mining projects, a talent it intends to deploy in favour of the company�s Gorno zinc project in Italy. Verdict: Sizzle.

Scorpion Minerals announced that it had been granted an exploration licence over an area in Western Australia�s Murchison region prospective for base metals, gold and cobalt. Previously, the company had entered into an agreement to take up a 70% joint venture interest in a Burkina Faso exploration venture. The company reported having cash assets at the end of June 2019 of only $5,000 with undrawn loan facilities of approximately $500,000. Verdict: Sizzle.

Week ended 13 September 2019

Magmatic Resources announced that it had signed an agreement with unlisted Blue Cap Mining under which the latter would fund pre-production work and early stage working capital needs for the company�s North Iron Cap gold project in Western Australia. At the end of June 2019, Magmatic held cash assets of $234,000 while flagging expenditure of $857,000 in the current September quarter.  During the week, Magmatic also released a statement referring to recent discoveries by Alkane Resources on property near the Magmatic assets.  Magmatic remains financially stretched in meeting the demands of the number of sites on which work would be required to do justice to its portfolio. Verdict: Sizzle.

Austpac Resources made a very simple three line announcement that it had sold a synthetic rutile technology package for $1.5 million. Otherwise, the company did not make any disclosure which might explain the improved investment return. The volume of shares on the last day of the week, although valued at just $39,500, was well above average volumes in this lightly and infrequently traded stock. The higher share price remained within a longer term trading range referred to in an earlier comment (see 23 August 2019) when the company previously moved up within the same range. Verdict: Sizzle.

Australia United Mining did not make any formal disclosure which might explain the improved investment return. The usually very lightly traded company made the share price gain on the last day of the week with turnover valued at $3,350. The company holds properties in Queensland and New South Wales prospective for gold. It reported having cash assets at the end of June 2019 of $37,000. Company directors have said they would be prepared to lend money to fund the business while longer term arrangements were put in place. Verdict: Sizzle.

Oilex announced that it had entered into an agreement under which it could acquire an interest of up to 50% in gas discoveries in the East Irish Sea. The company cautioned that no binding agreement had been finalised. The company said it was looking for funding to cover its involvement in the transaction. It also announced that it had extended the settlement date for a Cooper Basin- Eromanga Basin property transaction by two weeks until mid-October 2019 (see 9 August 2019). Verdict: Sizzle.

Winchester Energy reported that it had recovered significant oil following fracture stimulation of oil prospects in the Permian Basin. The company subsequently said it was continuing to monitor flow rates to optimise production. Winchester has a 17,000 acre leasehold position where production has commenced and over which it is conducting drilling. Verdict: Sizzle.

Week ended 6 September 2019

Tamaska Oil and Gas announced recently that it had acquired the right to earn a 50% interest in a Romanian oil and gas exploration licence.  The company has held an interest in a Louisiana production platform which is producing intermittently as its performance declines. The company which had a market capitalisation of $8 million at the end of the week generally trades infrequently.  Its improved market value was achieved on turnover with a value of just $1,000. Following its rise, the share price remained within a historically low range which has prevailed since 2016. During the week, the company lodged a presentation with the ASX in which it referred briefly to a rights issue without having made any formal announcement about the potential terms and conditions of a capital raising. Verdict: Sizzle.

Big Star Energy disclosed that it had completed a helium soil gas survey, reporting that the prospect is larger than originally mapped. Subsequently, the company requested a trading halt, still in place at the end of the week, pending an announcement. Verdict: Sizzle.

Pilot Energy did not make any further disclosure following its statement in the prior week in response to a query from ASX (see 30 August 2019) about what might be driving the heightened investor interest. Verdict: Sizzle.

Carnavale Resources announced the appointment of a technical advisor with extensive exploration and project development experience. His role was described as marketing the company and its projects. Carnavale is farming into a tin exploration venture in Uganda where it has a right to earn a 70% interest over five years. The company held cash assets of $191,000 at the end of June 2019 and subsequently completed a rights issue which raised $2.25 million, including the placement of a shortfall. Verdict: Sizzle.

White Cliff Minerals announced that it had agreed to sell its 90% interest in a Kyrgyzstan copper-gold property for $2.65 million, comprising cash and shares. White Cliff holds an interest in the purchasing company.  The transaction would leave the company to focus on nickel-cobalt interests in Western Australia, although it had previously indicated that it was looking for buyers or joint venture partners with whom to progress the Australian licences. It held cash assets of $369,000 at the end of June 2019.  Despite the share price rise, the $3.1 million company has a market value near historically low levels. Verdict: Sizzle.

Month ended August  2019

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

Horizon Gold has benefited from a rising share price throughout August without having made any formal disclosure which might have precipitated the price action. The company has gold exploration interests in Western Australia with an estimated resource containing 1.38 million ounces of gold within a region with a long history of successful production. The company will have benefited from a stronger gold price as bond yields declined through August. Verdict: Steak.

Norwest Energy announced that its Springy Creek conventional oil prospect in the Perth Basin, in which it has a 20% interest, had been upgraded to a drill candidate. Re-interpretation of the geological conditions affecting the decision to drill has been influenced by the results of Strike Energy (see 20 June 2019), also operating in the northern Perth Basin. Verdict: Steak.

Week ended 30 August 2019

Key Petroleum had provided a short update for investors about its exploration activities in the Cooper Basin early in the week. Subsequently, the company released an update about its activities in the Perth Basin where Strike Energy and Warrego Energy had reported a significant gas discovery.  The Strike/Warrego discovery is leading Key Petroleum to reappraise plans for its own permits in the region, according to the company's commentary. Verdict: Sizzle.

Pilot Energy did not make any formal disclosure which might explain the improved investor interest. The company did receive a query from the ASX about the reasons for the market move. In replying, Pilot Energy directors referred the exchange to an announcement by Key Petroleum in which that company drew attention to a gas discovery at West Erregulla-2 by a joint venture between Strike Energy and Warrego Energy. Pilot is in two joint ventures with Key Petroleum in the northern Perth Basin which is the location of the Strike/Warrego discovery. Verdict: Sizzle.

3D Resources did not make any formal disclosure which might explain the company�s improved investment performance. The improved investor interest left the company�s share price within the trading range the infrequently traded stock had occupied since May. 3D holds exploration interests in Western Australia prospective for gold. Its activities in Western Australia have been constrained by land access difficulties which have led the company to look for opportunities offshore. In its activities report for the June quarter released at the end of July, the company disclosed that it was considering the purchase of interests in copper and gold exploration properties in Africa. Verdict: Sizzle.

Warrego Energy had experienced a rising share price since late July (see 26 July 2019) after drilling commenced and the company reported a gas discovery at West Erregulla-2 in the Perth Basin. A second of discovery was reported in the past week. The company had reported having cash assets of $7.3 million at the end of June 2019. Verdict: Steak.

Strike Energy is the joint venture partner of Warrego Energy in the West Erregulla-2 prospect and regional exploration activity in the Perth Basin. Strike, the joint-venture operator, has referred to its discoveries as pointing to a new conventional gas fairway. Verdict: Steak.

Week ended 23 August 2019

Cazaly Resources announced that it had received an offer from Mineral Resources for its Parker Range iron ore project.   Completion of the transaction would entitle Cazaly to a cash payment of $20 million and a future royalty stream.  The Mineral Resources terms trump an offer, subject to due diligence, received by the company in June and which will now be discontinued.  The company has a range of other exploration interests including gold in Western Australia, cobalt in Namibia and uranium in Europe. It reported having cash assets of $837,000 at the end of June 2019. Verdict: Steak.

Big Star Energy announced that it had acquired oil and gas leases in the USA over areas prospective for the capture of helium. The areas involved are in the vicinity of land which had previously been used for accessing helium but are unproven exploration opportunities for which no additional technical information has been provided. Verdict: Sizzle.

Austpac Resources did not make any formal disclosure which might explain the improved investment return which was accompanied by unusually high stock turnover. In any event, the higher prices remained within the historically low range which had prevailed since June 2018. The company, backed by a Chinese steel producer, is seeking to develop technology to recover zinc and iron from furnace dusts. It had cash assets of $472,000 at the end of June 2019. Verdict: Sizzle.

Syndicated Metals reported high grade gold intersections from drilling at properties in Western Australia, acquired in April 2019.  The properties complemented existing gold exploration interests in the Laverton area, which had been its primary area of interest and where the company has said it continues to review exploration strategies. Following the rise in share price from near historically low levels, the company had a market value of $7.3 million.  It held cash assets of $511,000 at the end of June 2019 with expected outlays of $454,000 in the September quarter, suggesting very limited strategic flexibility and a heavy reliance for funding on further outstanding exploration results. Verdict: Sizzle.

Hampton Hill Mining did not make any formal disclosure which might explain the improved investment performance which, in any event, occurred on a single day with trades valued at less than $5,000. The company has a 25% interest in the Millennium zinc project in Western Australia and �retains an active program seeking new exploration opportunities�.   It also holds a royalty interest in the Apollo Hill gold project and equity stakes in Peel Mining and Saturn Metals. It held cash assets of $181,000 at the end of June 2019 with an estimated spend of $105,000 in the current September quarter. The company�s strategic options are limited due to its stated reluctance to seek fresh capital and uncertainty about future joint venture commitments and size of potential royalty receipts. Verdict: Sizzle.

Week ended 16 August 2019

Metalsearch announced that it had agreed to acquire a 100% interest in a kaolin prospect in Queensland with the potential to supply a high purity alumina plant, subject to shareholder approval.  The prospect is located within 150 kilometres of both Gladstone and Bundaberg. Drilling has been undertaken over the prospect but no resource has been defined. In addition to cash payments of $350,000, the vendors will receive 235 million Metalsearch shares for a value of approximately $1.8 million.  Deferred transfers of a further 150 million shares over three years would be based on performance hurdles. The company currently has 480.9 million shares on issue. The company intends raising $2 million as a condition of the transaction. High purity alumina production is a specialised process subject to stringent quality specifications.  The resource definition and mining stages are less important aspects of the development than for other mining operations.  Company personnel do not have a track record which might indicate any special claim to competence in the relevant fields. Previously, the company was engaged in base metal exploration in Botswana. Verdict: Sizzle.

Greenpower Energy announced that it had exercised an option to purchase a package of historic gold mines west of Townsville in Queensland. The mines had produced 153,315 ounces prior to being closed in the mid 1990s.  The company must pay $1.5 million upon estimation of a 100,000 ounce resource. The company has been involved in developing technologies for the use of coal in agriculture as well as exploration interests covering cobalt in Western Australia and Queensland, vanadium in Queensland and lithium in Guyana. With cash assets of $221,000 at the end of June 2019, the company will have to begin rationing its capital carefully with a high likelihood that it will be unable to do justice to any of its widening spread of interests as it seeks a fresh strategic direction. Verdict: Sizzle.

Classic Minerals announced that it had commenced a program of drilling over its Kat Gap gold exploration areas in Western Australia. The company had previously delivered weekly investment returns near the top of the sector (see 2 August 2019) but those were given up before the most recent price rise left it within the same trading range and near historically low prices. Verdict: Sizzle.

Kula Gold did not make any formal disclosure which might explain the improved investment performance. After completing the disposal of its interest in the Woodlark mine to Geopacific Resources, the company does not have any substantial assets on which to base its future activity. It reported having cash assets of $68,000 at the end of June 2019.  The share trading activity over the first three days of the week appears highly speculative, at first glance, but could prove prescient in the days ahead. Verdict: Sizzle.

Castle Minerals announced that it had entered into a farm-out agreement covering gold exploration properties in Ghana. In exchange for an 80% interest, the agreement calls for expenditure of US$11.7 million in three stages over five years. The newly acquired partner is a Ghanaian company with other exploration interests in the country.  Castle Minerals also holds tenements in the Pilbara prospective for gold but on which no fieldwork was completed in the June quarter. The directors of the company have said they are on the lookout for new opportunities. The company reported having cash assets of $242, 288 at the end of June 2019. Verdict: Sizzle.

Week ended 9 August 2019

Great Western Exploration announced that it had begun drilling at hits Yandal West gold project in Western Australia. No new information was disclosed about the geology.  In the prior week, the company had said it intended to spend $250,000 on exploration and evaluation (plus $150,000 on corporate costs) in the three months to September 2019.  It had cash assets at the end of June 2019 of $1.2 million after a $1.15 million capital raising. Verdict: Sizzle.

Gladiator Resources did not make any formal disclosure in the past week which might explain the improved investment performance. In the prior week, it had released its activities report for the three months ended June 2019. The company commented very briefly on its exploration intentions over ground held in Western Australia and confirmed that it was not proceeding with a previously foreshadowed acquisition in the Democratic Republic of Congo. The company reported having cash assets of just $97,000 at the end of June 2019. Verdict: Sizzle.

Ark Mines did not make any formal disclosure which might explain the improved investment performance. In its quarterly report covering the three months ended June 2019, released in the previous week, the company discussed its intention to build a gold processing hub near Pine Creek in the Northern Territory. The company finished June with cash assets of just $2,000.   It subsequently received commitments for capital subscriptions amounting to $308,000. Verdict: Sizzle.

Arrow Minerals threatened legal action against Dreadnought Resources over the acquisition by the latter of the Ilaara gold project from Newmont Goldcorp.  The company also announced that it had received acceptances for 97% of the shares issued by Boromo Gold, an unlisted company with gold exploration interests in Burkina Faso.  The acquisition was first announced in late June.  The company, which finished June with cash assets of $753,000, had pre-existing gold exploration interests in Western Australia. It had foreshadowed spending $600,000 in the three months ending September 2019.  The company raised $570,000 in July with the intention of seeking approval from shareholders in August to raise a further 1.5 million. Verdict: Sizzle.

Oilex announced that it had agreed to purchase a 48.5% interest in oil and gas exploration properties in the Cooper-Eromanga basins in South Australia.  Consideration for the transaction is predominantly through newly issued shares to the vendor. The company had previously held onshore oil exploration interests in India which have been subject to a legal dispute bracket (see 14 December 2018) and over which the company has had discussions with potential buyers. The company finished June with cash assets of $358,000. Verdict: Sizzle.

Week ended 2 August 2019

Sabre Resources announced that it had agreed to purchase 100% of an unlisted company with exploration interests in the Youanmi gold district, adjacent to the recent Spectrum Metals discovery in the region. The purchase will involve the issue of 8 million shares, an increase of 2% in the number of shares outstanding for the $2 million company. The vendors will also receive 50 million options exercisable at a price 100% above the 0.4 cent share price immediately before the announcement of the proposed transaction (and in line with the post-announcement price at the end of the week). The company has also confirmed that it has arrangements to raise $905,000 via a share placement. The company had previously reported having cash assets of $351,000 at the end of June 2019. Verdict: Sizzle.

Xstate Resources released its quarterly reports for the three months to the end of June 2019 in which it reported on its US oil and gas interests. Directors reiterated their intention to review opportunities with a view to securing a producing asset. The company held cash assets at the end of June 2019 of $517,000. Earlier in the year (see 1 February 2019), the company had announced a strategic alliance with a TSX-listed company to help identify acquisition opportunities. Verdict: Sizzle.

Coppermoly announced that it had received funds of $6.1 million from a Chinese investment group, referred to in a 30 May funding disclosure, to facilitate further exploration and development activities. The company�s principal interest is the Mt Nakru copper-gold project in Papua New Guinea. The provider of the capital will be entitled to an approximately 19% holding in the company. The company had cash assets of $1.58 million at the end of June 2019. Verdict: Steak.

Classic Minerals disclosed assay results from gold exploration interests near its Forrestania property in Western Australia, following their acquisition in June (see 21 June 2019).   High grade intersections showed a strike length extending to 400 metres. The company subsequently disclosed that it had cash assets of $135,000 at the end of June 2019, suggesting an imminent recourse to the market for fresh funding to continue its exploration effort. Verdict: Steak.

Sun Resources announced that it had agreed to raise its interests in oil and gas leases in Louisiana from 50% to 100%. The purchase will involve an initial payment of US$250,000 and a subsequent 5% royalty. The company held cash assets of $63,000 at the end of June 2019 and had a $60,000 unsecured loan facility. The company needs a financing, possibly via a farm-out, before drilling which had been scheduled for the first quarter of 2020. Verdict: Sizzle.

Month ended July 2019

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

Broken Hill Prospecting is in dispute with ASX-listed Cobalt Blue, its joint venture partner in the Thackaringa cobalt project in New South Wales.  The dispute has been referred to an independent expert for resolution.  The expert had been expected to report prior to the end of July but no announcement has been made.  Meanwhile, the company sent a letter to shareholders in the latter part of the month advising them of a switch in corporate emphasis to mineral sands in the Murray Basin of New South Wales.  The company has concluded that mineral sands has a stronger market outlook, especially with the possibility of being able to extract rare earth elements from the identified deposits.  The company reported having cash assets of $491,000 at the end of June 2019. Verdict: Sizzle.

Week ended 26 July 2019

Strike Energy encountered gas flows during drilling at West Erregulla in the Perth Basin in Western Australia, causing an initial delay in drill progress, according to the company. Strike has a 50% joint venture interest in the exploration prospect with Warrego Energy.  The company said that strong gas shows have been consistent with pre-drilling modelling. Further evaluation work is being undertaken to determine appropriate next steps. Verdict: Steak.

Coziron Resources reported that a prospector has recovered 203 gold nuggets within its Pilbara exploration tenements in Western Australia. The finds are not commercially significant but their locations will be used to help refine future exploration targets. Although the company made its disclosure to the ASX prior to the opening of the market on Thursday, the majority of the share price rise had already occurred in the preceding days. Verdict: Sizzle.

Spectrum Metals had released partial drilling results from exploration at its Penny North prospect near Youanmi in Western Australia in the previous week. The earlier announcement had prompted the start of a rising share price trend which continued throughout the past week in anticipation of further results in the following days. Verdict: Steak.

Warrego Energy, a partner in the West Erregulla oil and gas exploration joint venture was a beneficiary of the announcement by Strike Energy referred to above. Verdict: Steak.

Indago Energy announced that it had been contracted by an Indian oil producer to use its proprietary technology to help raise oil production at wells which had suffered significant output declines. A week earlier, the company had announced sales of its products to an oil producer in Texas. The company is completing field tests in other oil producing regions with a view to demonstrating the effectiveness of its well treatments. The company also has its own oil projects in the USA. Revenues from the newly reported sales are modest, at less than $100,000.  The company also reported raising $1.4 million from a rights issue while flagging expressions of interest in the shortfall amounting to an additional $1.02 million. Verdict: Sizzle.

Week ended 19 July 2019

Global Vanadium did not make any formal disclosure which might explain the enhanced investment return. The company has an iron sands-vanadium magnetite project in the Philippines. It had cash assets of $414,000 at the end of March 2019 after spending only on staff and administration in the prior three months. Verdict: Sizzle.

South Pacific Resources did not make any formal disclosure which might explain the share price performance during the week. Following the price rise, the company despatched a notice for a meeting of shareholders who are being asked to approve a restructuring of its debt through a debt/equity swap. The share price momentum extends the performance from the prior week (see 12 July 2019). Verdict: Sizzle.

Sun Resources did not make any formal disclosure which might explain the share price performance in the past week. The company, which has offshore oil and gas exploration interests south of New Orleans, which has been working to secure necessary funding for development.  It raised a rather modest $150,000 through the placement of shares at the end of June. The company had reported holding cash assets of just $34,000 at the end of March 2019. Verdict: Sizzle.

Lakes Oil did not make any formal disclosure which might explain the share price performance which, in any event, left the market value of the company within the trading range which had prevailed for the majority of 2019 to date.  The company holds oil and gas exploration interests in Victoria, South Australia, Queensland and Papua New Guinea but has been stymied in pursuing development opportunities by a Victorian state government ban on exploration and development. Verdict: Sizzle.

Amani Gold did not make any formal disclosure which might explain the share price performance in the past week.  The company holds gold exploration interests in the Democratic Republic of Congo which contain a resource in excess of 3 million ounces of gold. Directors have said they are assessing other gold projects in the country.  The company finished the March quarter with cash assets of $2.1 million after raising $3.4 million and before raising an additional $3 million at the end of May 2019.  The share price move broke the upper end of the trading range experienced by the company since February, returning it to December 2018 levels. Verdict: Sizzle.

Week ended 12 July 2019

Horseshoe Metals did not make any formal disclosure which might explain the improved investment performance. The company holds copper-gold exploration interests west of the DeGrussa mine operated by Sandfire Resources in Western Australia. The company, which reported having only $1,000 in cash assets at the end of March 2019, has indicated that it would seek to sell its exploration interests. Verdict: Sizzle.

VRX Silica reported an expanded silica resource at its Arrowsmith North property in Western Australia after completion of additional grilling. The company subsequently announced that it had signed a memorandum of understanding with a Chinese corporation under which commercialisation opportunities, including a glass manufacturing facility in Australia, will be jointly investigated. There are no binding commitments under the terms of the agreement which is for an initial term of six months. Verdict: Steak.

Force Commodities announced that it had completed documentation for the purchase of a 51% interest in a lead-silver project in Malawi. Transfer of the full number of shares in consideration of the deal will require the approval of Force shareholders. The deal installs Force as manager of the project enabling it to begin an exploration program over licenced ground. Verdict: Sizzle.

Great Western Exploration did not make any formal disclosure which might explain the improved investment return. The company had announced completion of a drilling program at its Yandal West property in Western Australia in early June. No results from the gold prospective area have been posted but the company did say assays would be available in approximately four weeks. The company raised $1.15 million in June for use in further drilling over the Yandal property. Verdict: Sizzle.

South Pacific Resources did not make any formal disclosure which might explain the improved investment return. The company holds conventional and unconventional oil and gas exploration licences in Papua New Guinea. The company, which held cash assets of $4,000 at the end of March 2019, has previously said it continues to review its development options. Verdict: Sizzle.

Week ended 5 July 2019

Oro Verde announced that it had agreed to acquire an interest in Ugandan exploration properties containing mineralised rare-earth clays.  The company, which has compared the mineralisation to that found in China, must spend US$1.7 million by 1 October 2020 to earn a 51% interest. The company had cash assets of $751,000 at the end of March 2019.  Funding a bankable feasibility study will entitled Oro Verde to another 9% interest for a maximum stake of 60%. The transaction is subject to due diligence. The move into Africa follows the company�s abandonment of largely unproductive exploration efforts in South America. Verdict: Sizzle.

Greenpower Energy announced a gold exploration target for a property in northern Queensland on which it is conducting due diligence subject to an option agreement it had announced in May. The company has apparently dropped a previously stated objective of targeting battery minerals exploration efforts in northern Australia and Guyana.  It held cash assets of $357,000 at the end of March 2019 prior to completion of a share purchase plan which raised $199,000. Verdict: Sizzle.

Cannindah Resources did not make any formal disclosure which might explain the share price performance. In any event, the share price rise occurred after a drop to historically low levels in late June. Last week�s rise returns the market value of the company, which has gold exploration interests in Queensland, to pre-June levels. The company held cash assets of $48,000 at the end of March 2019 with ongoing activities being funded from a loan facility. The facility was extended in May with an option for the lender to convert its loan to equity. Verdict: Sizzle.

Middle Island Resources announced that it had increased its all scrip takeover offer for Alto Metals. The target has continued to reject the terms of the offer recommending that shareholders take no further action. The company holds gold exploration interests in the Sandstone region of Western Australia immediately adjacent to those of Alto Metals. Verdict: Sizzle.

Capricorn Metals disclosed progress in a drilling program within tenements in the Pilbara region of Western Australia prospective for gold. The area contains a 1.52 million ounce gold resource. Shortly after, the company announced a restructuring of its board and an intention to raise $16 million through a placement of new shares. The recapitalisation and personnel changes follow rejection of an approach from the same parties proposing a cash and scrip takeover of the company which reported having cash assets at the end of March 2019 of $467,000. Verdict: Steak.

Year ended June 2019

Of the highest returning companies during 2018/19, the following have been commented upon previously:

Bellevue Gold had shown share price gains throughout the past year to produce high investment returns without being at the top of the return ratings in any of the weekly, monthly or quarterly rankings reported previously. The company has reported a 1.5 million ounce inferred gold resource north of Leinster in Western Australia. Directors reported having a $28.7 million cash position at the end of March 2019 after having completed a $20 million capital raising in early 2019. After ongoing drilling and discoveries in the area, the company had flagged a further resource upgrade by the end of the June quarter, although that did not happen. The company will have benefited from recently strong gold prices. Verdict: Steak.

Six months ended June 2019

Of the highest returning companies during the first half of 2019, the following have been commented upon previously:

Quarter ended June 2019

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

Walkabout Resources has benefited from a rising share price trend since February 2019. The company has exploration interests in multiple geographic centres. It published a definitive feasibility study for a graphite project in Tanzania in early 2019. It is seeking gold and base metals in Northern Ireland. It has licences over areas in Namibia prospective for lithium. The company which had cash assets of $4.7 million at the end of March 2019 subsequently raised $3.1 million to facilitate commencement of works in Tanzania. Verdict: Steak.

Greenland Minerals has posted investment gains since early April 2019. The company is seeking to develop a rare earth refinery in Greenland. Testing and optimisation has been underway since early 2017 as part of a feasibility study. The project includes a resource with a potential multi-decade life span. In May 2019, the company reported the results of its testing, including a favourable impact on costs. Market changes have also impacted the economics of the project positively. The company held cash assets of $5.8 million at the end of March 2019. Verdict: Steak.

Andromeda Metals has displayed a rising share price trend since early May 2019. The company is earning up to a 75% interest in exploration areas in South Australia prospective for kaolin for high purity alumina. It last reported drilling results at the end of May 2019. Work toward a scoping study is underway. The company finished the March quarter with cash assets of $2.4 million after having raised $1.8 million and with plans to spend $520,000 in the just completed June quarter. Verdict: Sizzle.

Month ended June 2019

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

Week ended 28 June 2019

Hylea Metals announced that it would acquire a 65% stake in the Kayelekera uranium mine in Malawi from Paladin Energy. The mine had operated from 2009 to 2014.  Previously, the company had been seeking to develop a cobalt property in New South Wales.  That opportunity has been placed on hold after the fall in cobalt prices since 2018. Other than an initial cash consideration of $200,000, payment will be covered by a combination of newly issued shares and a royalty. The company will also be responsible for funding a $10 million environmental bond. It had previously reported having cash assets of $75,000 at the end of March 2019. Verdict: Sizzle.

Kalnorth Gold Mines did not make any formal disclosure which might explain the heightened investor interest in the company which is building a gold resource in the eastern goldfields of Western Australia. The company held cash assets of $224,886 at the end of March 2019. Interest in the now $7.2 million company coincided with the upsurge in the gold price during the past week. Verdict: Sizzle.

Acacia Coal did not make any formal disclosure to explain the unusually strong share price which came after it had reached historically low levels. The company had shown similarly strong bottom of the cycle leverage in April ( see 5 April 2019) without any overt reason being apparent. The company, which held cash assets of $2.7 million at the end of March 2019, holds nickel-cobalt exploration interests in Western Australia. Verdict: Sizzle.

Kula Gold announced that it had completed the shareholder meeting required to permit Geopacific Resources to acquire 100% of their jointly-owned Woodlark mine in Papua New Guinea. Under the terms of the transaction, the shares held in Kula Gold by Geopacific would be cancelled. Kula shareholders would receive an in-specie distribution of Geopacific shares received as part consideration in the deal. Verdict: Steak.

Discovery Africa announced that it had reached a legal settlement with former directors of the company involving payment to the company of $2 million. The company said it was also intending to raise $100,000 through the issue of new shares. The company holds an option to acquire gold exploration properties in Western Australia. It held cash assets of $487,000 at the end of March 2019. Verdict: Steak.

Week ended 21 June 2019

Orion Metals released its activities report for the three months ended May 2019. The report focused on the Tanami West rare earth element and gold project in northern Western Australia. The company holds other exploration interests in Queensland on which no further activity was conducted. The company sent out the notice for its annual shareholder meeting which only contained standard compliance resolutions. There was nothing specific which might be the basis for a higher market value. The company ended May with cash assets of $100,000 after having spent just $31,000 on exploration and evaluation in the period.  The company�s shares have traded rarely in recent weeks.  In the past week, the majority of the share price gain occurred with a single trade valued at $112. Verdict: Sizzle.

Ark Mines did not make any formal disclosure in the past week which might explain its higher market valuation.  Immediately prior, the company had been trading at historically low prices leaving it near the lowest levels in its history even after the share price rise.  The gain in market value for the infrequently traded stock occurred with turnover valued at approximately $3,500.  A week earlier, Ark had announced a restructuring of its debt which would allow it to raise additional capital for mine development and exploration at its gold properties in the Northern Territory. Verdict: Sizzle.

African Energy Resources has been on a downward share price trend for five years leaving it near historically low levels after last week�s share price performance. The company did not make any formal disclosure which might explain any improved investor interest.  The company�s primary activity involves developing thermal coal deposits in South Africa. Verdict: Sizzle.

Classic Minerals announced that it had exercised an option to take a 100% interest in areas prospective for gold near the Forrestania project in Western Australia.  The company also announced commencement of a drilling program on the site of the newly acquired property. Separately, it disclosed a joint venture with Independence Group covering property in the Fraser Range in Western Australia. Under the earn-in arrangements, Independence could end up with 51% or 70% or possibly buy out Classic�s 49% interest for a predetermined amount. Verdict: Steak.

Millennium Minerals did not make any formal disclosure which might explain the stronger investor interest in the company. The company had previously reported gold production of 17,393 ounces in the three months ended March 2019 at its Nullagine project in Western Australia. It has bulked up its financial capacity in recent months with fresh equity and debt injections to facilitate development and growth plans.  The rise in the share price in the past week came after five consecutive months of a falling share price which left it lower than at any time in the past 15 years. The rise did no more than restore the share price to levels which had prevailed in early June. The company will have benefited from a higher US dollar gold price and, with that, a fall in the value of the Australian dollar. Verdict: Steak.

Week ended 14 June 2019

Marquee Resources announced that it had acquired an Australian company which owns a 30% stake in seven Argentinian leases prospective for lithium.  The remaining 70% interest is held by Australian listed Lithium Power International. The company describes the tenements as featuring an extensive brine body throughout.  The consideration, valued at approximately $3 million, is payable in company shares, the majority of which will depend on progressive resource definition. At the end of March 2019, the company held cash assets of $929,000 and had flagged expenditure of $297,000 in the June quarter of which just $50,000 was attributable to exploration and evaluation. The company had previously been engaged in cobalt exploration activities in Ontario. Verdict: Sizzle.

AustChina Holdings has coal development interests in Queensland which have been adversely affected by approval delays as controversy has surrounded government policy to open up the Galilee Basin for mining.  The company reported having limited financial resources of $276,000 at the end of March 2019.  Two directors of the company resigned on 7 June but, otherwise, no formal disclosure which might affect the value of the company had been made. The company would be a beneficiary of the greater willingness on the part of the Queensland government, evident since the recent Federal election, to support new coal mining initiatives. Verdict: Sizzle.

Bligh Resources received a takeover bid from Saracen Mineral Holdings valuing the company at $38.2 million payable in Saracens scrip. Bligh directors are recommending the offer.  Shareholders accounting for 88% of the outstanding shares in the company have indicated an intention to accept.  The closing price for the week represented a 13% premium over the price at which the bid has been pitched. Bligh has defined a gold resource near the Saracen Thunderbox operations in Western Australia. Verdict: Steak.

Legacy Iron Ore did not make any formal disclosure which might explain the improved share price which occurred with modest volume on the last day of the week.  The company�s gains occurred after the retracement of those recorded a month earlier (see 24 May 2019). Verdict: Sizzle.

3D Resources did not make any formal disclosure which might explain improved investor interest.  In any event, the share price again for the $1.7 million market value company occurred after reaching the bottom of its historical trading range and with a single trade valued at just $375. The company holds gold exploration interests in Western Australia on which little work has been done as the company Investigates other investment opportunities. Verdict: Sizzle.

Week ended 7 June 2019

Adavale Resources did not make any formal disclosure which might explain the higher investment returns.  The infrequently traded company made its gains on turnover of less than $200. The company which holds uranium exploration tenements in South Australia said, in its activities report for the three months to March 2019, that it intends to acquire an additional asset to move the company towards positive cash flow. It held cash assets of just $3,000 at the end of March 2019, relying on a partially drawn standby facility for funding from which $417,000 remains available. Verdict: Sizzle.

Predictive Discovery announced the results of a diamond drilling program at a 30% owned property in C�te d'Ivoire.  Directors described thick high grade gold intercepts as exceeding their own expectations. The company is finding higher gold grades as drilling moves deeper. After finishing March 2019 with cash assets of $1.7 million, the company announced that it had raised an additional $531,000. Verdict: Steak.

Aurora Minerals held a 21.9% interest in Predictive Discovery prior to the reported C�te d'Ivoire drilling results. Subsequently, the company reduced its holding to 16.82% with proceeds of $430,000 from share sales. The company has a stated aim of positioning itself for asset acquisitions.  Earlier in the week, the company had initiated a rights issue to raise up to $1.17 million. At the end of March 2019, it held cash assets of $989,000. Verdict: Sizzle.

Athena Resources did not make any formal disclosure which might explain the improved investment performance. The company finished March 2019 with cash assets of $102,978.  It holds tenements in Western Australia where it is conducting copper, nickel and iron ore exploration with an emphasis on potential production of magnetite concentrate.  The unusually strong turnover for this usually poorly traded company still amounted to little more than $11,000. Verdict: Sizzle.

Resource Generation updated investors on the funding arrangements being put in place for it South African coal mining project while cautioning that not all the final conditions needed for approval have been met. The company�s share price has been on a strongly rising trend for the past three weeks after more than doubling over the prior year. The company had finished with cash assets of $1.4 million at the end of March 2019.  It had stated an intention of spending $3.6 million in the June quarter, subject to raising sufficient working capital.  It announced in mid-May that it was completing arrangements with Noble Group for a working capital advance. Verdict: Steak.

Month ended 31 May 2019

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

Celsius Resources did not make any formal disclosure which might explain the share price performance and, when queried by ASX, was only able to refer to improved cobalt market conditions as a reason. The company holds a 95% interest in a Namibian cobalt prospect for which it is completing a scoping study. The company is relatively well financed with cash holdings of $7.9 million at the end of March 2019 but has expressed doubts about its strategic position.  Directors said at the end of April that they had started reviewing potential acquisitions and investments in commodities and jurisdictions which complement or diversify the existing exposure. Before the commencement of the upward price move in mid-May, the company�s shares had been trading at historically low levels.  The higher price takes the market value of the company back to February 2019 levels of around $29 million. Verdict: Sizzle.

Week ended 31 May 2019

AVZ Minerals had touched the bottom of its historical share price range in mid-May before announcing updated scoping study results for a lithium-tin project in the Democratic Republic of Congo. The $160 million market capitalisation company foreshadowed a project with a multibillion-dollar appraised value but with a $400 million funding requirement. The company held cash assets in excess of $12 million at the end of March 2019 but the size of the project may yet prove too daunting for the company to finance without significant shareholder dilution or return sapping delays. The published study results suggest the basis for a meaningful project but country risk will remain a barrier to low cost financing. Verdict: Steak.

Frontier Resources announced that it had identified near-term gold targets within its Papua New Guinea tenements.  The prospect is within a region in which historical mine activity has occurred. The company held cash assets at the end of March 2019 of $5.0 million. The higher share price follows a period during May when it had reached historically low levels. Verdict: Steak.

Lake Resources announced that drilling results from its Argentinian lithium brine project were consistent with the results received by other high profile producers in the region at a similar point in their exploration efforts. The company reported having cash assets of just $152,000 at the end of March 2019 making a near-term call on capital markets a certainty following the latest drilling results.  Verdict: Steak.

Superior Resources had been trading near the lower end of its historical trading range before announcing a joint venture deal with South32. The larger company can earn an interest of up to 70% in a Queensland exploration area prospective for zinc mineralisation.  The company has compared targets to McArthur River and Century within the same region. Superior held cash assets of only $129,000 at the end of March 2019 with estimated cash outflows in the current June quarter of $64,000. Verdict: Steak.

Peak Resources had doubled its market value in two steps up since January, prior to the most recent share price gains. The company is aiming to develop a rare earth resource in Tanzania with associated downstream processing in the United Kingdom. It is awaiting approval for a mining licence but has a completed feasibility study and has received the necessary permits to operate the proposed UK refinery. Background news flow about Chinese export constraints on certain rare earth elements and the related US-China trade dispute have intensified investor interest in the company.  The company held cash assets of $3.3 million at the end of March 2019.  The company�s financial position is not especially strong but the business environment will make the funding task easier than it otherwise would have been.  Verdict: Steak.

Week ended 24 May 2019

EHR Resources did not make any formal disclosure which might explain the higher investment return. In any event, the major part of the rise in price occurred on the last day of the week with turnover valued at just $764. The company is currently earning a 25% interest in gold-silver related properties in Peru.  The company held cash assets of $2.9 million at the end of March 2019. Verdict: Sizzle.

Legacy Iron Ore did not make any formal disclosure which might explain the elevated weekly return. In any event, the infrequently traded company was repriced on a single day with turnover valued at $2,123 resulting in a market value of $2.9 million. The company conducts gold exploration at several sites in Western Australia.  It held cash assets of $1.4 million at the end of March 2019. Verdict: Sizzle.

New Standard Energy did not make any formal disclosure which might explain the pick-up in investor interest during the week and which raised the market value of the company to $4.9 million. Two weeks earlier, the company had announced completion of a $204,134 placement of shares. It had finished the March quarter with cash assets of $64,000. The company has exploration permits covering onshore areas of the Carnarvon Basin in Western Australia.  It spent $90,000 on exploration and evaluation activities during the nine months ended March 2019. Verdict: Sizzle.

Gladiator Resources raised its return with trades on the last day of the week valued at just $1,060 leaving the company with a market value of $1.5 million and with a price still near historically low levels. The company has an agreement, subject to due diligence, under which it may take a majority interest in gold exploration activities in the Democratic Republic of the Congo about which it had issued an update earlier in the month. The company also holds gold exploration interests in Australia. It had cash assets of $193,000 at the end of March 2019 after raising $250,000 in January. Verdict: Sizzle.

Pacific Bauxite has been in dispute with the government of the Solomon Islands which had cancelled its bauxite prospecting licence in mid-2018. The company is also in the process of selling its residual interests in iron ore production assets in Western Australia. In mid-May, the company announced an extension of time for one transaction involving the sale of a royalty. Pacific Bauxite had cash assets of $597,000 at the end of March 2019. Verdict: Sizzle.

Week ended 17 May 2019

Auking Mining did not make any formal disclosure which might explain the investment performance which, in any case, left the share price close to historically low levels.  Auking has copper-gold exploration interests in Mexico (see 19 April 2019). The apparently large return reflects the extraordinary leverage evident for companies with very low market values from even very modest improvements in investor interest.  The Auking market capitalisation, at the end of the week, amounted to $1.9 million. The value of stock traded was below $1,000. Auking had cash assets at the end of March 2019 of $145,000.  Verdict: Sizzle.

Variscan Mines did not make any formal disclosure which might explain the investment performance which, in any event, left the share price close to historically low levels. Variscan has copper exploration interests in Chile (see 22 March 2019). The change in price occurred with turnover valued at approximately $6,000. The apparently large return reflects the extraordinary leverage for companies with very low market values.  The Variscan market capitalisation, at the end of the week, amounted $2.5 million.  Variscan remains susceptible to small changes in investor interest. The company had cash assets at the end of March 2019 of $1.1 million after having spent just $182,000 an exploration and evaluation, out of a total spend of $841,000, in the nine months ended March 2019. Verdict: Sizzle.

East Energy Resources did not make any formal disclosure which might explain the investment performance. East Energy has thermal coal development interests in Queensland (see 3 May 2019). At the end of April, the company reported having cash assets of $839,000 and outstanding loans of $1.4 million. The Queensland government attitude to coal mine developments - which might change following the 18 May national election - will determine the fortunes of the company which continues to look at alternative ways in which to realise the value of its assets, expecting development to remain blocked. The share price rise in the past week may have reflected a bet on the outcome of the election and prospects of more supportive policies but, in any event, occurred with trades valued at just $691, taking the market value of the company to $19.2 million. Verdict: Sizzle.

Chase Mining Corporation announced that a geophysical survey of holdings in Quebec had identified six massive sulphide conductors.  At the end of April, the company had reported having cash assets at the end of March 2019 of $3.0 million.  While the market value of the company had more than doubled during the week, about one-third of the gain had been lost by the close of business on Friday with unusually heavy share turnover. Verdict: Steak.

Fe, usually very lightly traded, benefited from unusually strong investor interest during the week. The company announced that it had acquired an option to earn a 75% interest over three years in tenements prospective for lithium, copper and gold mineralisation in the Pilbara.  The company intends to raise $2 million through an issue of shares. The company also announced that it would receive a royalty payment of approximately $212,000 from iron ore mining conducted on sites in Western Australia. The company had previously announced that it held cash assets of just $95,000 at the end of March 2019. Verdict: Sizzle.

Week ended 10 May 2019

Pure Alumina reported progress toward high purity alumina production by Canadian company Polar Sapphire which it has agreed to acquire. Polar Sapphire has produced 10 tonnes of product for delivery, according to Pure Alumina, over a two week period. Pure Alumina has foreshadowed a move to a 1,000 tonne production rate within 12 months and 5,000 tonnes within three years. Pure Alumina, through the acquisition, will be an early mover among several other companies positioning themselves to produce high purity alumina for the sapphire market.  Verdict: Steak.

Nex Metals Exploration announced that Metalicity had agreed to spend $5 million over five years to earn a 51% interest in properties prospective for gold in the eastern goldfields of Western Australia. The move reflects a search for a strategic direction by Metalicity whose large Western Australian zinc mine development, on which it had staked its reputation, has stalled.  At the end of March 2019, Nex had cash assets of just $75,000. The agreement offers a way for the cash-short Nex to have work undertaken on otherwise neglected properties.  The transaction potentially adds value for Nex Metals although the company still confronts a daunting financial challenge including the threat of losing value through dilution or becoming the target of one or more bottom-feeding predators. Verdict: Sizzle.

Liontown Resources which which had been benefitting from a rising share price trend since early April moved sharply higher after the end of the month.  In late April, the Western Australian lithium explorer had put on the record an exploration target to underpin a current drilling program. The company has said that the completed activity will be used to re-estimate the Kathleen Valley resource in June 2019.  The company was subsequently forced to clarify its attitude to newly published research reports with which the share price action coincided after the company recognised it could not substantiate the assumed mineral resources. As a result, the company removed the reports from its website but not before investors had been made aware of the estimates. Verdict: Sizzle.

Hawkstone Mining disclosed drilling results from exploration activity add a lithium-clay deposit in Arizona.  Further results are due from its ongoing activity.  As well as the Arizona deposit, the company holds areas in New Mexico with lithium brine potential. The company held cash assets of $1.1 million at the end of March 2019 with the stated intention of spending $839,000 during the current June quarter. The company�s financial position implies an imminent need to raise further capital to pursue its development and ambitions. Verdict: Sizzle.

Galileo Mining disclosed that it had commenced a drilling program in the Fraser Range in Western Australia with two targets.  One target is a Nova style nickel sulphide mineralisation.  The other is gold. The company is relatively well positioned financially with cash assets at the end of March 2019 of $8.0 million. It had disclosed an intention to spend $1.0 million in the three months ended June 2019.  Verdict: Sizzle.

Week ended 3 May 2019

East Energy Resources which holds thermal coal development opportunities in Queensland did not make any formal disclosure which might explain the weekly share price movement. It did release an activities report for the three months to March 2019 in which it confirmed its ongoing reliance on Noble, its 93% shareholder, for loans to fund its activities. With considerable uncertainty attaching to Galilee Basin coal approvals, the company continues to review alternative strategic options period. Verdict: Sizzle.

Surefire Resources announced that it had completed the acquisition of a vanadium deposit in Western Australia on terms announced in August 2018. The company also released its quarterly activities report for the three months ended March 2019 in which it outlined progress toward development of its vanadium mineral interests. Verdict: Steak.

AustChina Holdings released its activities report for the three months ended March 2019 in which directors reiterated the challenges facing coal developments in Queensland amid uncertainties over Galilee Basin approvals. The company, which held cash assets of $276,000 at the end of March, said that it continues to seek commodity trading opportunities. Verdict: Sizzle.

Astro Resources did not make any formal disclosure which might explain improved investor interest in the very lightly traded company which relied on a small parcel of shares for the price change in the past week.  The company reported having cash holdings of $476,000 at the end of March 2019 after having drawn down $1.4 million from a loan facility. The company holds a range of interests in Western Australia prospective for mineral sands, diamonds and gold. Verdict: Sizzle.

Arc Exploration did not make any fresh disclosure which might explain the stronger investor interest but did issue a quarterly activities report which reiterated the company�s intention to acquire an interest in a Murchison copper project. The report referred to the details of the transaction contained in the company�s 25 March 2019 announcement (see below). All of the price gain and higher turnover came on a single day in the middle of the week. The company sent out a notice for a meeting of shareholders containing 16 resolutions including a proposal for a name change reflecting the company�s latest property acquisition. Verdict: Sizzle.

Month ended 30 April 2019

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

Rey Resources announced that it had executed an agreement under which Doriemus would earn a 50% interest in an onshore oil and gas exploration property in Western Australia. The agreement requires the joint venturer to drill a well to an agreed depth by mid 2020. Subsequently, the company received a report from an external consultant confirming the gas prospectivity of the area covered by the exploration permit.  The company also announced that it had arranged a $3 million loan which would allow it to refinance existing borrowings. Verdict: Steak.

Southern Hemisphere Mining did not make any formal disclosure which might explain the improved investment return until the release of its a quarterly activities report for the three months ended March 2019 at the end of April. The company reiterated the terms on which it has sold a 70% interest in its Chilean copper exploration property in exchange for a series of cash payments totallinggUS$5.8 million over five years and expenditure of US$3.5 million over three years by the buyer.  The company indicated, without offering any results, that a drilling program had been completed recently.US$5.8 million over five years and expenditure of US$3.5 million over three years by the buyer.  The company indicated, without offering any results, that a drilling program had been completed recently. Verdict: Sizzle.

Laneway Resources foreshadowed in early April the commencement of mining in the following week at its Agate Creek gold project in Queensland. It outlined recent activity around the start-up.  Later in the month, the company confirmed commencement of ore processing and, then, the first gold pour. By the time the first ore had been processed in the middle of the month, the market value had already peaked as a prelude to giving up most of the gains which had been made in the earlier part of the month. The company expects to use the cash flow from the quick start mining and toll treatment of ore on other projects including coking coal and other gold interests. Verdict: Sizzle.

Week ended 26 April 2019

MRG Metals reported on its mineral sands exploration efforts in Mozambique which included completion of an airborne geophysical survey. The company said that initial analysis of the data showed anomalous zones but results have not yet been reported. Mozambique heavy mineral sands interests were acquired this year following an agreement in November 2018. The company finished December 2018 with cash assets of $1.28 million. It disclosed an intention to spend $530,000 in the three months ended March 2019. Verdict: Sizzle.

RMG is an infrequently traded stock with copper exploration interests in Chile. The company raised $200,000 from the issue of new shares in March after finishing December 2018 with cash holdings of $53,000. The company, which was yet to release its activities report for the March quarter, did not make any formal disclosure which might explain the share price performance during the week. Verdict: Sizzle.

Horseshoe Metals did not make any formal disclosure which might explain the share price performance during the week. The normally lightly traded stock made the recorded gains with a turnover of just $548. The company holds tenements in Western Australia near the DeGrussa mine prospective for copper-gold mineralisation but held cash assets of just $3,000 at the end of December 2018. Its reliance on borrowings has meant severe constraints on any field activity. Verdict: Sizzle.

Viking Mines announced that it had been granted a prospecting licence in Ghana. Most of the share price gain occurred two days prior to this announcement which followed the Anzac Day holiday. The company had previously sold another gold exploration interest in Ghana for which it has yet to receive payment in a now disputed transaction and continues to seek buyers for Mongolian coal interests where it is in dispute with a government agency. It held cash assets of $2.8 million at the end of December 2018 and had stated an intention to spend $394,000 in the recently completed March quarter, predominantly on non-exploration activities. Verdict: Sizzle.

Latin Resources released a summary of its exploration efforts before Easter which included a discussion of its work to identify lithium bearing mineralization in Brazil. The subsequent share price gain for the $5 million market capitalisation company left it within the same narrow trading range which has persisted since the start of March 2019 and which matches historically low share prices for the company. It held cash assets of $234,000 at the end of December 2018 before raising $523,100 through a share purchase plan. Verdict: Sizzle.

Week ended 19 April 2019

Auking Mining did not make any formal disclosures which might explain the investment return in the past week. In any case, the $0.9 million doubling in market value to $1.8 million occurred with share turnover valued at just $1,500.  The change did little to shift the company�s share price trajectory from historically low levels with the copper-gold explorer having previously ceased exploration and in need of loan funds to pay its bills. Verdict: Sizzle.

Minrex Resources did not make any formal disclosure which might explain the stronger investor interest in the stock. The gain came with turnover of approximately $5,500. The company whose primary exploration interest is gold in the Pilbara is yet to release its activities report for the March quarter.  In early April, the company announced that it had relinquished tenements covering the Heemskirk tin project in Tasmania.  At the end of December 2018, the company held cash assets of $930,000 and disclosed plans to spend $260,000 during the March quarter. Verdict: Sizzle.

Six Sigma Metals was queried by ASX about the reasons for the share price action in the past week. The company said it did not have any information to disclose but acknowledged having completed the sale of shares from an unmarketable parcel share sale facility. The company, which is yet to release its activities report for the March quarter, had not completed any field work during the three months to the end of December 2018 after its joint venture partner was placed into liquidation. The company has since been granted additional tenements in Botswana prospective for base metals and gold and is in the process of acquiring new exploration interests in Zimbabwe prospective for vanadium and lithium.  The company held cash assets of $1.02 million at the end of December 2018 with plans to spend $380,000 in the now completed March quarter. Verdict: Sizzle.

Argo Exploration holds shares valued at $3.6 million in Alaska and Texas oil and gas explorer Pantheon Resources.  Argo does not hold any other exploration interests. It had cash assets at the end of March 2019 of $23,000. Pantheon had recently announced a discovery in one of its Alaskan exploration areas. After the rise in the past week, the share price remains within the trading range which had prevailed over the past year and which had touched historically low levels. Verdict: Sizzle.

TNG did not make any formal disclosure which might explain the share price action in the past week. The developer of a vanadium-titanium project in the Northern Territory did initiate a shareholder newsletter to help encourage interest in its activities. The $120 million company requires pre-production capital of $853 million to complete its development. It held cash assets of $16.8 million at the end of December 2018.  The higher share price in the past week recovers ground lost since October 2018 but without any net change in the share price of the company since May 2014. The company is fundamentally underpinned by a project with intrinsic value.  Despite the underlying investment proposition, investors are unable to place a time frame on the potential returns from development with the experience of others in similar circumstances suggesting possible delays of many years before a way forward can be defined. Verdict: Steak

Week ended 12 April 2019

New World Cobalt announced that it had entered into an option agreement to acquire mining claims in New Mexico prospective for gold mineralisation as well as staking new claims in the region. The company already holds copper-cobalt project interests in Nevada and Idaho. The company may take up to five years to exercise the option subject to making annual payments over the duration of the agreement. At the end of December 2018, the company held cash assets of $1.1 million. It had foreshadowed spending of $450,000 during the recently completed March quarter.  Verdict: Sizzle.

Valor Resources did not make any formal disclosure which might explain the stronger investment interest which was teed off with unusually strong market turnover at the beginning of the week. The company is working on a pre-feasibility study, due for completion later in 2019, for a copper-silver deposit in Peru. It had cash assets of $1.9 million at the end of December 2018 and had foreshadowed spending of $520,000 during the recently completed much quarter. Verdict: Sizzle.

Norwest Energy, an oil and gas exploration company with interests in the Perth Basin, announced a refinancing deal which gave it access to up to $1.5 million in loan funds through a company associated with its chairman. The company held cash assets of $802,000 at the end of December 2018 and had foreshadowed spending $566,000 in the recently completed March quarter. In 2018, the company had initiated a review of its holdings and alternative ways of realising their commercial value. Its limited capital resources have hindered completion of transactions which might have otherwise occurred. Verdict: Sizzle.

Argent Minerals announced that it had commenced drilling at its Pine Ridge gold deposit in New South Wales, the first drilling on the site in 20 years where high-grade gold intersections had been encountered previously. The company, which had held cash assets of $1.2 million at the end of December 2018, had foreshadowed spending of $611,000 during the recently completed March quarter which suggests the likelihood of a capital raising in the event of positive exploration news. Verdict: Sizzle.

King Island Scheelite announced that it had executed an offtake agreement with an Austrian supplier of tungsten powders.  Deliveries, scheduled to occur over four years, would account for 20% of the company�s anticipated annual production after reopening the Dolphin mine in Tasmania.  The company�s mine development activities are targeting an eight year life. It spent $926,000 on operating expenses in the three months ended December 2018 in addition to capital outlays of $2.7 million.  After raising $1.4 million from the issue of new shares, the company held cash assets of $1.6 million with drawn down loans of $2.7 million. It had foreshadowed spending of $513,000 in the recently completed March quarter.  The offtake agreement is an important step forward although construction will depend on being able to realise project finance which, in turn, will require more extensive offtake arrangements leaving development timing uncertain. Verdict: Steak

Week ended 5 April 2019

Acacia Coal, formerly a Bowen Basin coal mine developer, did not make any formal disclosure to explain the improved performance.  In mid-March, the company had announced that a program of work over tenements in Western Australia prospective for nickel-cobalt mineralisation had been approved.  Last week�s performance left the company within a $4-6 million market value range as it achieved the performance result  while remaining within the bid-offer spread. Verdict: Sizzle

Classic Minerals announced initiatives, including the sale of non-core assets, which would allow the company to focus on gold exploration interests in Western Australia.  The company said that it had been working with an advisor to develop a financing program.  The company reported having just $300,000 in cash at the end of December 2018 with the intention of spending $250,000 during the just completed March quarter. Verdict: Sizzle

Aguia Resources returned to trading after a three day halt at an immediately higher share price following a share placement to raise $875,000.  The Brazilian phosphate mine developer also disclosed that directors had provided debt funding of another $200,000. The share issue was completed at a 30% premium to the share price immediately prior to the trading halt.  There were no additional disclosures which might explain the improved investment performance. The company held cash assets of $2.5 million at the end of December 2018 with the stated intention of spending $1.4 million during the just completed March quarter. Verdict: Sizzle

Golden Cross Resources did not make any formal disclosure which might explain the investment performance during the week which, in any event, occurred with trades valued at just $400. The company reported in January that is largest shareholder, with a 76% stake, was supporting it through loans. Meanwhile, the company was not undertaking any significant exploration work within its portfolio of base metal prospects in New South Wales. Verdict: Sizzle

Intra Energy Corporation did not make any formal disclosure which might explain the improved investment performance and unusually strong investor interest. The company is engaged in coal production in Tanzania (see 1 February 2019) and should soon disclose its March production and sales outcomes. Verdict: Sizzle

Quarter ended 31 March 2019

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

Month ended 31 March 2019

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

Nucoal Resources benefited from a decision of the New South Wales Supreme Court to set aside the conviction of former state mines minister John Macdonald for misbehaviour in public office. Macdonald had been accused of favouring former union boss John Maitland in granting a coal export licence to a company in which the former union leader had an interest in 2008. The licence was subsequently transferred to Nucoal before the government confiscated it without compensation after accusations against McDonald were made public. Macdonald is required to face another trial at which he could still be found guilty of criminal behaviour although the judges have narrowed considerably the grounds on which the state will have to rely for a conviction.  While the court decision raises the chance of Nucoal being able to claim compensation or gain restitution, coal mine development prospects have changed radically since the licence was first granted. Verdict: Sizzle.

Week ended 29 March 2019

Resource Generation was unable to explain the reason for increased investor interest in the company although directors speculated, in response to a query from ASX, that it could have something to do with a mid-March announcement that they had reached a conditional agreement with Noble Group under which Noble would provide additional short term working capital. Noble Group holds a 13.7% stake in the company. The company, which is developing coal resources in South Africa, reported having cash assets of $1.24 million at the end of December 2018 with loans outstanding of $60 million. The company said it intended to spend $4.1 million in the three months ended March 2019. Verdict: Sizzle.

Winchester Energy made a series of announcements about progress toward oil production and its Permian Basin exploration interests.  The company�s land position sits adjacent to existing production sites. The company had cash assets of $310,000 at the end of December 2018. It completed an $848,000 capital raising in early February 2019. Verdict: Steak.

Lithium Consolidated Mineral Exploration announced that it had secured licensed areas in Mozambique prospective for hard rock lithium mineralisation.  The area in the northern part of the country has hosted historical mining activity with a focus on non-lithium minerals. The company had announced in August 2018 that it was conducting due diligence with a view to acquiring exploration rights in Zimbabwe over land prospective for lithium mineralisation. In the past week, the company also disclosed that the vendor of the Zimbabwean rights had agreed to an extension of the due diligence period. The company said that it had cash assets at the end of December 2018 of $1.05 million with the intention of spending $250,000 in the three months ended March 2019. Verdict: Sizzle.

Arc Exploration announced that it had executed an agreement under which it would acquire a company with non-gold exploration rights over land in the Murchison region of Western Australia. The company has stated a desire to develop a mid-tier copper producer within Australia.  The company also announced commitments for a capital raising of $2 million to bring its cash position to approximately $4 million. The transaction involves a change in the make-up of the board. The usually very lightly traded stock made most of the gain in market value with trades valued at just $163 and only modest follow on buying. Verdict: Sizzle.

Stone Resources reported drilling results from its Ben Hur gold exploration property in the Laverton region of Western Australia. The company highlighted grades ranging between 5.3 g/t and 11.3 g/t at depths of between 20 metres and 144 metres. Stone Resources had entered an agreement in 2016 to gain access to the properties before the vendor was placed in administration.  At the end of February, the company received the results of the drilling which had previously been concluded. The company held cash assets of $82,000 at the end of February 2019. The stock is traded infrequently with gains in the past week coming from trades valued at less than $1,000 and with only 12 trades recorded over the preceding two months. Verdict: Sizzle.

Week ended 22 March 2019

THEME OF THE WEEK:  Little Real Exploration

Variscan Mines released its financial report for the six months ended December 2018 but, other than the formal report, had not disclosed anything which might have affected the company�s market value. In any event, the investment outcome for the very lightly traded stock reflected only a single trade with a value of $500.  The previous trade had occurred in late February. The company reported that there had been �no significant activity across the portfolio of joint venture interests in Australia during the reporting period�. It holds a copper exploration interest in Chile. The company has said it is looking for alternative development assets.  It held cash assets at the end of December 2018 of $1.26 million. Verdict: Sizzle.

Spectrum Metals continued to benefit from its exploration activities at the Penny North gold exploration site in Western Australia (see 8 March 2019). The company reported assays from additional holes to the one reported in early March and which sparked the fresh investor interest which has been associated with a sixfold share price rise since the end of February 2019. Verdict: Steak.

Kingsgate Consolidated announced that it had reached a settlement with its political risk insurer covering a claim over the expropriation of the company�s Chatree gold mine in Thailand in 2016. The value of the settlement was estimated by the company at $82 million. Following the share price rise, the market value of the company was $49.8 million. The company, which now focuses its attention on Chilean gold exploration interests, had been trading at a price near the lowest level in 20 years. Verdict: Steak.

Red Sky Energy announced that it had raised $342,000 through a share placement. The company is engaged in gas production in Wyoming. It subsequently announced that it had received permission from the South Australian government for the transfer of production assets from Beach Energy which had been suspended in 2015.  The company reported having cash assets at the end of December 2018 of $91,000. Verdict: Sizzle.

Austpac Resources reported that it had received a funding commitment from a Chinese entity to cover the cost of test work in Newcastle involving the company�s approach to processing zinc contaminated dust to produce iron oxide pellets.  A scoping study is due for completion following the test work. The company reported having $47,000 at the end of December 2018 with the intention of spending $138,000 during the three months ending 31 March 2018. Verdict: Sizzle.

Week ended 15 March 2019

THEME OF THE WEEK:  Pushing in New Directions

Gindalbie Metals announced plans to demerge its Mount Gunson copper-cobalt project in South Australia along with cash assets of $10.64 million through a pro rata distribution of shares in a new company to shareholders.  Ansteel, under the proposed deal, would acquire Gindalbie at a share price of 2.6 cents, 117% higher than the company�s share price immediately prior to announcement of the transaction. The ongoing Gindalbie business would take in the Karara iron ore project and liabilities of $231 million. The transaction is subject to an independent expert report and shareholder approval. Verdict: Steak.

Verdant Minerals, a Northern Territory phosphate mine developer, announced that it had entered into a scheme of arrangement under which a London-based private equity fund would buy all the shares in the company not held by Washington H. Soul Pattinson, the company�s largest shareholder with a 33% stake. The suggested bid price is 129% higher than the price at which the company traded immediately prior to the transaction being announced. The deal is subject to an independent expert report and shareholder approval. Verdict: Steak.

Strike Resources announced that it had acquired a 90% interest in tenements in Argentina adjacent to those held by Orocobre and Lithium Americas.  Payments of $6.59 million over four years will be due to the vendor of the concessions.  Payments are back loaded so as to give Strike a chance to verify its hypothesis that the aquifer feeding the Orocobre brine deposit also feeds brine into the concessions being purchased. Strike also holds graphite exploration interests in Queensland and iron ore properties in Peru.  The company held cash assets of $1.5 million at the end of December 2018 with the stated intention of spending $258,000 during the March quarter. Verdict: Sizzle.

Berkut Minerals announced that it had entered a binding agreement to acquire a ground position prospective for gold in the Mount Isa region of Queensland. The transaction includes the Tick Hill mine which had been operated by MIM Holdings in the early 1990s. New directors will join the board of the renamed company to oversee activities and facilitate raising additional capital. The land area being acquired is a consolidation of properties currently controlled by several companies which together will receive 21.1 million shares putting a value of $1.67 million on the purchase, based on the share price prevailing prior to announcement of the transaction. Verdict: Steak.

Ausmex Mining Group announced that it had identified a large conductive structure in excess of 2,000 metres in length on tenements held by the company in Queensland.  The results of 3D geophysical modelling were in addition to disclosures earlier in the month advising investors about the results of analysis conducted over properties jointly explored with Newcrest Mining. The company�s activities have also attracted significant media interest. The latest disclosure is part of a process leading to identification of drilling targets. Verdict: Sizzle.

Week ended 8 March 2019

THEME OF THE WEEK:  Strategy versus Cycles

Spectrum Metals announced that an initial hole drilled at its Penny West prospect in Western Australia had returned an assay of 14.4 g/t gold over 14 metres. Formerly Spectrum Rare Earths, the company made the move into gold exploration during 2017 and 2018 after a failed move into health care activities associated with breast cancer.  The share price rise in the past week, after years of strategic meandering, leaves the company�s price 96% below where it had been in early 2011. The company had cash assets of $1.31 million at the end of December 2018 after having completed a $600,000 capital raising in October. The company had said it would spend $590,000 during the March quarter. Verdict: Sizzle.

Freehill Mining announced drilling results from a maiden program at a magnetite prospect in Chile.  Six holes intersected iron grades ranging between 19.8% and 61.0%. The company is targeting a local pellet fund plant as its customer. Directors reported having cash assets at the end of December 2018 of $538,000 with the intention of spending an additional $900,000 during the March quarter. Freehill, listed in January 2017, has been looking to place shares from a partially completed rights issue in November 2018 to bolster its financial position. The most recent share price rise was from the lowest levels since listing, as much as 95% below prices which had prevailed in early 2017. Verdict: Sizzle.

Northern Minerals announced that it had estimated a maiden resource for an additional rare earth deposit near its existing Browns Range mine and pilot plant in the north of Western Australia.  The resource estimate follows an improved understanding of the geology of the region. The company has also announced a series of capital raisings to facilitate its development activities. It reported having cash assets of $1.0 million at the end of December 2018 after having drawn down loan facilities of $60.5 million by $42.3 million. Northern Minerals intended to spend $8.7 million during the March quarter, including on the operation of the pilot plant which is being used to assess whether the company can meet the product specifications of potential customers. Verdict: Sizzle.

Northern Cobalt did not make any formal disclosure immediately prior to the share price rise in the past week.  Earlier, in late February, the company had reported completion of a helicopter borne magnetic survey over an area in southern Alaska prospective for vanadium.  Modelling from the survey data will guide a future drilling program. The company reported having cash assets of $1.1 million at the end of December 2018 with the intention of spending $590,000 in the March quarter.  The company�s share price performance in the past week comes after a 95% decline since late 2017 for shares listed in September 2017. Verdict: Sizzle.

Metminco, a Columbian gold explorer, did not make any formal disclosure which might explain the share price movements and which, in any event, occurred on the last day of the week with trades valued at just $1,500. The share price remains near historically low levels. The company said it had cash assets at the end of December 2018 of $168,000 with the intention of spending $535,000 during the March quarter. In mid-February, Metminco announced that it had deferred payments due on an asset acquisition by a year to mid-2020. Verdict: Sizzle.

Week ended 1 March 2019

THEME OF THE WEEK:  Western Australia Focus

Middle Island Resources announced that it intended to bid for all of the outstanding shares in Alto Metals. The all scrip off-market offer of five shares for each Alto share values the transaction at $11.4 million based on the closing price of Middle Island for the week. Middle Island has a processing plant under care and maintenance near the Alto gold deposits in the Sandstone region of Western Australia. The company has outlined a broad rationale for the proposed accommodation which will probably require more detail to secure the transaction although, in the immediate future, the bid will have created a new path toward production for the company. Middle Island has reported having cash assets at the end of December 2018 of $198,000 which would have implied an imminent need for more funding to realise the benefits of the proposed merger.  In January, the company did complete a $1.4 million entitlement offer to bolster its financial position. Verdict: Sizzle.

Pancontinental Oil and Gas did not make any disclosures which might explain the increased investor interest in the company.  It holds oil and gas exploration interests in Namibia, Western Australia (both offshore) and California (onshore). Verdict: Sizzle.

Astro Resources did not make any formal disclosures which might explain the increase in market interest in the company. In early February, the company advised that it had completed drilling a mineral sands deposit in Western Australia. No results were reported. The company referred to results being available in the June quarter.  The lightly traded stock had turnover in the past week valued at $2,226. Verdict: Sizzle.

Cougar Metals is an occasionally traded stock which did not make any formal disclosure which might explain the higher share price outcome. The share price increase occurred after having touched historically low levels in late February. The price move left the value of the Western Australian nickel-cobalt explorer still near cyclical low levels. The company also has a 40% interest in a Brazilian exploration effort over ground prospective for lithium mineralisation. The company�s exploration interests also include a search for cobalt in Chile and graphite in Madagascar.  The company�s widespread and extensive exploration exposures are not matched by its financial capacity. The company finished December 2018 with cash assets of $263,000 after property disposals valued at $390,000.  In February, the company announced an entitlement offer with the potential to raise $1.96 million. Verdict: Sizzle.

Alchemy Resources recovered from a historically low share price in mid February without having made any disclosures which might explain the stronger investor interest. The company has exploration interests in Western Australia and New South Wales where it is searching for nickel-cobalt and gold mineralisation. The company finished December 2018 with cash assets of $1.021 million after a strong $838,000 spend over the prior three months. The company said it would spend $480,000 in the March quarter. The relatively high spending rates required to do justice to several exploration sites suggests an ongoing need for additional funds at close to  historically low share prices. Verdict: Sizzle.

Month ended 28 February 2019

THEME OF THE MONTH: Reappraisal of Values

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

Atrum Coal experienced a rapidly rising share price from early in February after the company disclosed results of quality tests on samples from its Elan South coking coal property in Alberta. The company characterised the quality, from partial results, as similar to those from Teck�s nearby Elk Valley property and Australian hard coking coal projects. Final results from this initial program are expected in March 2019.  Much of the fourfold rise in the share price was subsequently reversed during the month before the company�s market position received a second boost from a bid for privately held Riversdale Resources from Hancock Prospecting. The target company�s coal resource abuts that of Atrum Coal.  While Riversdale is further advanced and has a larger resource, the Hancock bid valuing the target at A$740 million drew attention to the $52 million market value ascribed to Atrum Coal. Verdict: Steak.

Week ended 22 February 2019

THEME OF THE WEEK:  Western Australia Focus

Leigh Creek Energy announced that it had successfully commenced syngas production at a resource in central South Australia.  The company uses in situ coal gasification techniques to tap remnant coal resources for production of fertiliser and industrial explosive products. The company is a few days away from concluding a $3.9 million rights issue at a price 40% below the week�s closing levels. Verdict: Steak.

Hot Chili was queried by ASX about reasons for heightened investor interest in the past week but was unable to identify any specific reasons. The company is in the midst of a rights issue to help fund its copper development activities in Chile including a recent copper-gold discovery near the company�s Productura project. Verdict: Steak.

Lepidico announced that it had produced high quality lithium hydroxide using a new process for which the company has contracted worldwide rights. The company has been involved in developing innovative processing technologies for the extraction of lithium compounds over several years, hoping to parlay its intellectual property into production access in addition to developing its own resource assets.  Prior to last week, the payoff had been limited although share price momentum has been picking up since the beginning of February without any formal announcements having been made. Verdict: Sizzle.

Nex Metals Exploration is a lightly traded stock which made its gains with a market turnover of just $320. The company did not make any formal disclosure which might explain any new interest in the company. The company holds gold related tenements in Western Australia on which modest mineral exploration expenditures have been made during 2018 (see 2 November 2018). The company finished December 2018 with reported cash assets of $37,000 but indicated at the end of January that it had arranged short term funding to permit it to carry on its business. Verdict: Sizzle.

Gladiator Resources did not make any formal disclosure which might explain the improved market performance. The share price gain in the past week followed realisation of the weakest share price outcomes in the history of the company earlier in the month.  The company had previously announced having completed a drilling program on its North Arunta gold project on which full results have yet to be disclosed. The company reported having $419,000 at the end of December 2018 with the intention of spending $365,000 in the current quarter of 2019. Verdict: Sizzle.

Week ended 15 February 2019

THEME OF THE WEEK:  Mostly Corporate Re-arrangements

Abilene Oil and Gas is an infrequently traded stock which did not make any formal disclosure which might explain the improved market value.  In any event, the rise in price occurred with only a single trade valued at $1,560. The company has oil and gas exploration and production interests in the midwest region of the USA.  The company received distributions of $236,000 in the three months to December 2018 to leave it with cash assets of $183,000 before outstanding loans of $4.3 million. Verdict: Sizzle.

East Energy Resources is an infrequently traded company which did not make any formal disclosure which might explain the improved market value. The higher share price occurred with trades valued at only $1,400. The company has coal assets in Queensland where development has been stymied by hostility toward new coal mines by the Queensland government and potential funders. The company has recently restated its aim to look at alternative routes to development after having restructured its ownership. Noble owns more than 90% of the company. Verdict: Sizzle.

Perpetual Resources had recently announced that drilling had commenced on a high grade silica sands deposit in Western Australia (see 8 February 2019). The continued rise in the share price has been accompanied by unusually strong volume for a normally very lightly traded company. Verdict: Sizzle.

Dateline Resources posted a gain after having touched the lowest share price levels in the history of the company.  The company was forced by ASX to retract prior disclosures it had made about a gold exploration target in the USA which is now the focus of its attention. Since appointment of a new chief executive in late 2018, the company has initiated a recapitalisation to fund its US activities.  At the end of December 2018, the company held cash assets of $85,000 and had outstanding loans of $6.3 million. Following the recent rise, the company�s share price remains well below the price which prevailed through most of 2018.  The company�s share price trended lower throughout the year. Verdict: Sizzle.

Flinders Mines partially recovered losses after a precipitous share price decline in late 2018. Flinders, which has iron ore interests in Western Australia, had previously proposed a series of transactions leading to its delisting from ASX. Objecting shareholders had sought an order from the Takeovers Panel of unacceptable conduct which threatened to derail the deal. During the week, the company averted the threat of orders being made against it in favour of making undertakings about its conduct and how it intends to pursue its delisting aims. Verdict: Sizzle.

Week ended 8 February 2019

THEME OF THE WEEK:  First Real Gains in Weeks

Perpetual Resources announced that it had obtained the rights to a silica sand project in Western Australia. The site south of Geraldton is a continuation of a resource held by VRX Silica. The exploration tenement is under application. Vendors will receive 160 million shares in the $9 million company, currently with 248 million shares on issue, in the event the option is exercised. The vendors will also take a 1% royalty.  Until now, the company�s primary asset has been an exploration property in New South Wales with prospects for gold mineralisation. The company held cash assets of $634,000 at the end of December 2018. Verdict: Sizzle.

Crossland Strategic Metals, a very lightly traded stock, did not make any formal disclosure which might explain the greater than normal investor interest in the company. The company said in its quarterly activities statement for the three months ended December 2018, released on 31 January, that �no new corporate activity is reportable�. The company�s primary interest is in the Charley Creek rare earth minerals prospect near Alice Springs. The company reported having cash assets of $525,000 at the end of December 2018 with the intention of spending $401,000 in the March quarter. The company borrowed $600,000 in October 2018 to fund its activities and is now seeking equity funding arrangements to move further ahead with his project ambitions. Verdict: Sizzle.

Focus Minerals displayed rising investor interest over the past two weeks culminating in especially strong turnover on the last trading day of the period when the company requested a market halt late in the day. To that point, the company had not said anything formally which might explain the unusual share price activity which has occurred over an unusually prolonged number of days without an explanation or without being prodded by ASX for a reason. Verdict: Sizzle.

Hot Chilli initiated a two for seven non-renounceable rights issue to raise $2.2 million following a $1 million private placement. The rights issue and private placement were priced at a 41% discount to the price at which shares closed at the end of the week. The company intends using the funds being raised for exploration activities around its copper-gold interests in Chile. The company held cash assets of $701,000 at the end of December 2018 with the intention of spending $475,000 in the March quarter. The share price action suggests some fear, on the part of investors, of missing out on the placement and having to compete for exposure with existing shareholders. Verdict: Sizzle.

Otto Energy announced that a well in Texas in which it has a 37% interest had reached its final depth, confirming a commercial oil discovery. The company said production could commence prior to the end of March 2019. The company subsequently announced that a rig was being moved into position to commence drilling at a location on Alaska�s north slope with the aim of commencing around 15 February 2019. Verdict: Steak.

Week ended 1 February 2019

THEME OF THE WEEK:  Bottom of Cycle Leverage Returns

Bauxite Resources released its activities report for the three months ended December 2018 in which it highlighted an agreement for a joint venture over silica mining operations near Perth in Western Australia. The company has also acquired silica mining interests elsewhere in Western Australia. The company reported having cash assets of $4.5 million at the end of the period. The share price performance occurred with unusually high turnover in the two days following release of the report. Verdict: Sizzle.

Tango Resources released its activities report for the three months ended December 2018 highlighting high copper and cobalt content in samples taken from outcropping mineralisation in Namibia. The company has other exploration interests in the country and in Tanzania.  After raising $2.2 million, the company ended December with cash assets of $1.53 million. The share price performance reflects a rebound from historically low levels which has left prices still below the average of the past six months. Verdict: Sizzle.

Xstate Resources announced that it had set up a strategic alliance with a TSX listed company to identify onshore oil and gas acquisition opportunities in Canada and the USA in which of the two companies may jointly participate. The company also released its activities report for the three months ended December 2018 in which directors emphasised their work in strengthening the balance sheet of the company which included raising $960,000 by way of a share placement. The company ended December 2018 with cash assets of $998,000 and a 25% working interest in a California gas exploration property along with other exploration and minor production interests in the region.  The higher than usual turnover in the company�s shares came after a historically low point in their trading range toward the end of January, leaving the resulting share price below the level which had prevailed for much of the prior six months. Verdict: Sizzle.

Twenty Seven Co. announced that it had identified anomalies consistent with earlier geochemical testing of ground in New South Wales prospective for copper-cobalt mineralisation. The company said that a detailed ground electromagnetic survey is scheduled to commence during February. A week earlier, the company had reported having cash assets of $543,000 at the end of December 2018. The cobalt-focused company also has exploration interests in Western Australia, South Australia and the Northern Territory. The share price performance follows historically low prices reached at the end of December. Verdict: Sizzle.

Intra Energy Corporation reported a 58% increase in east African coal sales over the corresponding period a year earlier, during the three months ended December 2018. The company held cash assets of $3.3 million at the end of December having also drawn $4.5 million from loan facilities with a Tanzanian bank.  Share turnover increased significantly in the immediate aftermath of the production disclosure and after the share price had shown no net change since January 2016. There are signs of meat in the company�s activities but scale, despite the region�s future expansion potential, remains inadequate. Verdict: Steak.

Month ended 31 January 2019

THEME OF THE MONTH:  Mediocre Bottom of the Cycle Returns

Berkeley Energia partially recovered market value following heavy losses through the last quarter of 2018 and after media speculation in Spain about the likelihood of the company receiving necessary approvals for its planned uranium mine development (see 11 January 2019). Verdict: Sizzle.

Petrel Energy share price gains were commented on during January (see 25 January 2019). Verdict: Sizzle.

Golden Cross Resources made up lost ground in early January after heavy share price losses through the second half of 2018. Interest in the company has been negligible since mid-January. The company did not make any disclosure which might explain the share price performance. It has a portfolio of base metal and gold exploration interests in New South Wales as well as copper and phosphate related properties in South Australia and the Northern Territory, respectively. Funding is a constraint. The company reported having cash assets of $168,000 at the end of December 2018 with loans drawn of $1.4 million as it relies for funding on associates of its major shareholder which has a 76.5% interest in the company. Verdict: Sizzle.

Redbank Copper did not make any formal disclosure which might explain the heightened share price interest during the second half of January.  Nor was there any previously undisclosed information in the company�s activities report for the three months ended December 2018 which was released on 1 February 2019. The company is engaged in copper exploration activities centred on the Gawler Craton in South Australia. Verdict: Sizzle.

Titanium Sands had not traded since March 2017 until it was reinstated and recapitalised in December 2018. The company now holds heavy mineral sands exploration interests in Sri Lanka where it is moving toward completion of a resource estimate. At the end of December 2018, the company held cash assets of $4.6 million with plans to spend $946,000 in the three months ending March 2019. Verdict: Steak.

Week ended 25 January 2019

THEME OF THE WEEK:  WA Explorers Ramp Up

Mount Ridley Mines announced that it is about to commence drilling on land 70 kilometres north of Esperance. The company, through consultants, has identified targets with similar geophysical characteristics to those in the vicinity of the Nova-Bollinger deposits in the Fraser Range. The company had previously said that it had cash assets of $1.5 million at the end of September 2018 and that it intended to spend $380,000 in the recently completed December quarter. Verdict: Sizzle.

Terrain Minerals announced that it had received government approval to drill a target prospective for gold on the company�s tenement north of Leonora in Western Australia. The company also disclosed that it had cash assets at the end of December 2018 of $661,000 with the intention of spending $151,000 during the three months to the end of March 2019. Verdict: Sizzle.

Fenix Resources released the results of drilling on tenements prospective for iron ore in the mid-west region of Western Australia.  The company expects further results and test work to lead to an updated resource estimate during the current quarter. The company has previously reported a five million tonne inferred resource containing 64.1% iron. In November 2018, following a $4.5 million capital raising, the company�s shares were reinstated for trading. Verdict: Sizzle.

Mod Resources confirmed that it had received a conditional and indicative bid from Sandfire Resources for all the outstanding shares in the company.  The few details of the proposal made available publicly imply an offer valued at approximately $95 million for the Botswana copper mine developer, now valued by the market at $83 million. The company has said that the offer is too low, opening the way for a higher bid.  A scoping study for the 75% owned T3 copper mine development envisaged expenditure of $155 million to generate $715 million over a 12 year operating life.  The company also announced that it had completed a $15 million capital raising. Verdict: Steak.

Petrel Energy announced that David Briggs, a former chief executive of AWE would be appointed to the board of the company formed by the merger of Petrel and Warrego energy (see 18 January 2019). Briggs has had a long professional history in the oil and gas industry but the announcement does not explain what specific role he might have in furthering the company�s development plans or how much time he is able to devote to the company�s efforts. Verdict: Steak.   

Week ended 18 January 2019

THEME OF THE WEEK:  Reactions to Historical Lows

Petrel Energy benefited indirectly from a plan by Perth Basin oil explorer Strike Energy to access equipment to enable a drilling program to commence at West Erregulla. Strike is operator of a joint venture with Warrego Energy. The latter struck a merger agreement with Petrel Energy in November. With a market capitalisation of under $6 million and trading at a historically low share price, Petrel was potentially highly leveraged to any favourable news. Verdict: Steak.

Kalia did not make any formal disclosure which might explain the stronger investment interest in what is normally a lightly traded stock. The company has copper and gold exploration interests in Bougainville as well as lower priority targets in the Northern Territory and Western Australia. Earlier in the month, the company announced that it had received permission from ASX to secure a $1 million loan with company assets. The company reported having cash at the end of September 2018 of just $84,000. Verdict: Sizzle.

Eastern Iron released its cash flow report for the three months ended December 2018 showing cash assets of $728,000 after spending $52,000 on exploration (out of $300,000 total spending) in the second half of 2018 and foreshadowing spending of $337,000 in the first quarter of 2019.  The company acquired rights to purchase cobalt exploration properties in Queensland in August 2018. It also holds an option to purchase all the issued capital of Ion Mining which holds rights, subject to government approvals, to cobalt exploration areas in Poland. Exercise of the option, which has been extended, depends on relevant government approvals being finalised. The rise in the share price of the lightly traded $2 million market capitalisation company was from historically low levels touched at the end of 2018 leaving the price below all levels prior to October 2018. Verdict: Sizzle.

Cougar Metals was another company whose share price had touched historically low levels at the end of 2018. The company disclosed preliminary interpretations from an airborne geophysical study over properties in Chile prospective for cobalt mineralisation. It had reported having cash assets of $165,000 at the end of September 2018 as well as a funding agreement under which it is able to place new shares each month which enabled it to foreshadow spending of $350,000 during the just completed December quarter. The $2.9 million market capitalisation company also holds nickel-cobalt exploration interests in Western Australia and a tenement package in Brazil prospective for lithium mineralisation. Verdict: Sizzle.

Aruma Resources, which has gold exploration interests in Western Australia, is another example of a company with strong leverage to even modestly improved investor interest after touching historically low share price levels at the end of 2018. The company did not make any formal announcement which might explain the higher share price in the past week. Verdict: Sizzle.

Week ended 11 January 2019

THEME OF THE WEEK:  All Cyclically Weak Bounces

Berkeley Energia was queried by ASX about the increased market activity in the shares of the company but directors said they were not aware of any relevant information which had not been disclosed. Directors did note that a former major shareholder who had been selling shares has now ceased doing so.  Subsequently, at the end of the week, the company acknowledged reports in the Spanish media about approval for its Salamanca uranium project, for which it is awaiting development approvals, but said it had not received any official notice. The outstanding share price gain since the start of the year has come after a decline in the company�s share price at the end of 2018 to near the lowest levels in 15 years. While the company�s value proposition would be greatly enhanced by a development approval, based on the information currently available, the nature of an approval, if any, remains unclear and from a market perspective, speculative.  Verdict: Sizzle.

Pursuit Minerals reported the results of geochemical testing of historical drill holes at a vanadium exploration property in Finland. The tests showed that the vanadium mineralisation could produce what the company referred to as �exceptional grade� vanadium magnetite concentrates. The company has set out plans to re-assay a total of 16 historical holes with a view to upgrading an existing exploration target and completing a scoping study before the end of April 2019.  In late December 2018, the company had also reported drill results confirming vanadium mineralisation at a separate property in Sweden. Further results from this area are also expected. The company has foreshadowed plans to produce high grade concentrates for direct shipping to customers in Europe and China in a bid to shorten development times and capital requirements. The company was listed in August 2017 with the support of Teck Australia which is the company�s largest shareholder and contributor of its principal exploration assets. At the end of September 2018, the company had cash assets of $457,000 with an expressed intention of spending $405,000 in the recently completed December quarter. The company raised $2 million in November 2018. Verdict: Steak.

Kalnorth Gold Mines did not make any formal disclosure which might explain the market performance which, in any event, was driven by a single transaction with a value of $776. The company which has gold exploration interests in Western Australia finished September 2018 with cash assets of $693,337.  Exploration activity at one site has ceased and efforts on another have been delayed. Verdict: Sizzle.

Magnetic Resources reported the results of a soil sampling program on ground in Western Australia near operations owned by Gold Fields Australia and Dacian Gold near Laverton. The company reported a two kilometre geochemical anomaly which is subject to further investigation.  It reported having cash assets of $4.02 million at the end of September 2018 with the intention of spending $840,000 in the just completed December quarter. Verdict: Steak.

Talon Petroleum is a very lightly traded stock whose performance came from just one trade with a value of $776. The company did not make any disclosures which might explain the added interest. The company has oil and gas interests in the North Sea following a change in its corporate strategy which had previously involved an exposure to exploration and production in the USA. The company had cash assets of $1.753 million at the end of September 2018. Verdict: Sizzle.