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

Month ended December 2021

Since being commented upon previously, the following companies have not made any subsequent disclosures which may have materially impacted their investment performance: 

Emperor Energy holds areas prospective for gas in the offshore Gippsland Basin. The company, still in need of appropriate backing, is seeking to drill an appraisal well in early 2023 to prove the adequacy of the gas reserves for commercial development.  At the end of November, the company share price had been little different to the range in which it had traded during 2017-2019 but appeared to receive a boost from Australian government statements supporting the need for additional gas production to meet rising demand along the east coast of Australia. Verdict: Sizzle.

Week ended 31 December 2021

DiscovEx Resources retains a free carried 17.5% interest in exploration activity being conducted in the Mt Isa area by Carnaby Resources (see 24 December 2021). Verdict: Sizzle.

Carnaby Resources announced assays from the first hole at its Mt Isa exploration tenements, reporting copper grades between 4% and 10% (see 24 December 2021). Verdict: Steak.

Superior Resources did not make any formal disclosures which might explain the share price action during the week. The company had previously attributed intersections of copper sulphide mineralisation near Townsville to a copper-gold porphyry system, with little discernible impact on the market price of the company.  Queried by ASX about the large price swing, directors said they had no new information to impart and were not aware of any reasons for the price action. Verdict: Sizzle.

Morella Corporation, formerly known as Altura Mining, emerged from a 14 month trading suspension in December after failure of its Pilbara lithium mining venture and its forced sale to Pilbara Minerals. The company now holds another lithium exploration interest in the Pilbara as well as one in Nevada. The company did not make any formal disclosure which might explain the heightened investor interest leading into the last days of 2021. Verdict: Sizzle.

Focus Minerals received a bidders statement relating to an unsolicited takeover offer from Theta Gold Mines in the prior week.  Subsequently, the company completed a $25 million entitlement share offer which had been initiated prior to launch of the bid. Focus is seeking to restart gold mining on the outskirts of Coolgardie in Western Australia based on a 2020 pre-feasibility study. Verdict: Sizzle.

Week ended 24 December 2021

Carnaby Resources repeated disclosures made in the prior week relating to its Mt Isa copper discovery (see 17 December 2021) with new details about the intersected mineralisation. While the company was required to meet its full disclosure obligations, the second round of publicity would have helped sustain its market presence when there might have otherwise been a lull in investor interest. Verdict: Steak.

Copper Strike did not make any formal disclosure which might explain the surge investor interest. The company had previously flagged that it was investigating investment opportunities both within and outside the materials space with the help of external advisors. The company had previously reported holding 9.14 million shares in Syrah Resources at the end of September, with a market value of $9.7 million.  The investment value accounted for the largest part of the company’s $10.1 million market capitalisation at the time. During the past week, the Syrah Resources share price rose by 26%. Verdict: Sizzle.

Syrah Resources announced that it had executed an agreement with the electric motor vehicle manufacturer Tesla to supply natural graphite anode material from its the Vidalia plant in Louisiana where it is currently producing material for customer assessment before an investment commitment expected in early 2022. Verdict: Steak.

AXP Energy did not make any formal disclosure which might explain the higher share price. The price had appeared to weaken on relatively high volumes during the earlier part of December. The resulting partial recovery in the past week still left the share price significantly below levels prevailing in the latter part of October. The company holds oil and gas production and development interests in the USA. Verdict: Sizzle.

Redstone Resources did not make any formal disclosure which might explain the share price action accompanying a modest pick up in investor interest.  The resulting price remains below levels which had prevailed through November. The company has copper exploration interests in the West Musgrave region of Western Australia. Verdict: Sizzle.

Week ended 17 December 2021

Carnaby Resources announced “a spectacular copper discovery” at Mt Isa in Queensland. Copper sulphide mineralisation was identified at a depth of 248-282 metres within the first hole drilled  to test a geophysical anomaly. Further drilling will be required to confirm the orientation and width of the mineralisation. Verdict: Steak.

Tennant Minerals announced that it had raised $1 million to fund ongoing diamond drilling at the company’s Barkly copper-gold exploration site in the Northern Territory. The company said that four completed holes had encountered mineralisation which was being prepared for analysis. Verdict: Steak.

Golden Rim Resources reported assays from resource definition drilling at the site of multiple zones of gold mineralisation in Guinea.  The company is aiming to deliver a maiden resource estimate in January 2022. Verdict: Sizzle.

Superior Resources did not make any formal disclosure which might explain the modest uplift in investor interest during the week. The share price action followed a general meeting of shareholders at the end of the prior week. The company has exploration interests at several sites in Queensland, including a short life gold project for which a scoping study has been completed. Verdict: Sizzle.

Magnetite Mines announced the appointment of an investment strategic advisor to assist with project financing. The appointee had previously assisted Hancock Prospecting and had been employed by a Japanese financial institution. Magnetite holds iron ore development interests in South Australia. The company, which has a three billion tonne resource, is in the process of completing a feasibility study.  The price action comes after the share price had fallen to the lowest levels since January 2021. The higher price remains below prices which had prevailed between March and September. Verdict: Sizzle.

Week ended 10 December 2021

Emmerson Resources reported a 117 metre intersection of mineralisation containing 3.3% copper at tenements in Tennant Creek in the Northern Territory. The company’s tenements cover a cluster of prospects which have not received exploration attention for over 20 years. Verdict: Steak.

Astron Corporation did not make any formal disclosure which might explain why its share price had risen. That said, immediately prior to the rise, the share price had been sitting at the lowest levels since April 2021. During the week and prior to the price improvement, the company released a corporate presentation without referring to the audience for whom it had been prepared.  The company holds heavy mineral sands development interests north west of Melbourne in Victoria. The zircon-rich mineralisation also contains rare earth elements. The company expects to deliver a definitive a feasibility study midway through 2022 on the way to starting production in 2025. Verdict: Sizzle.

Grange Resources announced that directors had approved a special dividend of $0.10 a share after already having paid out $0.04 for 2021. The company reported earnings of 17.8 cents a share for the six months to June based on the sale of iron ore from its Savage River property in Tasmania. Verdict: Steak.

Ironbark Zinc announced that the US Export-Import Bank had issued a preliminary project letter outlining an intention to provide funding of US$657 million to underpin development of the Citronen zinc project in Greenland, subject to further due diligence and internal approvals. Subsequently, the company announced that it had raised $4 million to cover the costs of the further capital raising efforts it needs to complete. Verdict: Steak.

Leigh Creek Energy did not make any formal disclosure which might explain the stronger investor interest in the company although, after the share price rise, the company released a statement observing the extent to which its employment base had grown and commenting on the renewed ability of executives to visit its South Korean partner to further plans for a South Australian nitrogen-based fertiliser plant.   At the end of November, Leigh Creek had announced a heads of agreement with the Korean party covering some 500,000 tonnes of production over five years. Verdict: Sizzle.

Week ended 3 December 2021

Minrex Resources did not make any formal disclosures during the week which might explain the share price uplift. Queried by ASX about the reasons for the price action, company directors said they had no new information to impart while referencing the investor interest in previously announced lithium related property acquisitions in the Pilbara region of Western Australia. Verdict: Sizzle.

Marquee Resources disclosed that drilling in the US state of Washington had intercepted visible copper mineralisation. The share price reaction was not sufficient to reproduce the levels which had been achieved in early November after the company announced the acquisition of a portfolio of copper, gold and lithium exploration interests in the USA. No assays were available at the time of the disclosure. Verdict: Sizzle.

Develop Global did not make any formal disclosure which might explain the steadily strengthening share price over the past two weeks. The company, known as Venturex Minerals until October, has copper exploration interests in the Pilbara region of Western Australia and has announced a move into contracted mining services under a new board and management. Verdict: Sizzle.

Aston Minerals reported partial results for a maiden drill hole at a nickel-cobalt exploration target in Ontario. The announcement came several days after evidently stronger investor interest had begun to impact the share price. In any event, the rise was only enough to push the share price to the upper end of a range which has prevailed since late June after touching the bottom end of the range most recently. Verdict: Sizzle.

 Firefinch announced that the first funding from Chinese corporate Ganfeng had been received as part of its joint venture obligations covering development of the companies’ Goulamina lithium deposit in Mali. At the same time, the Australian Financial Review reported that the company was visiting financial intermediaries with an eye to raising fresh capital.  In any event, the price rise is the latest instalment in an upward share price trend evident since the second quarter of 2020 during which time the company has experienced an eightfold share price improvement. The company has led investors to expect a completed feasibility study in the near term. Verdict: Sizzle.

Month ended November 2021

Since being commented upon previously, the following companies have not made any subsequent disclosures which may have materially impacted their investment performance: 

 

Week ended 26 November 2021

White Cliff Minerals announced that it had raised $912,000 through an issue of new shares.  At the end of September, it had held cash assets of $1.2 million which it had characterised in late October as sufficient funding for planned activities over coming quarters.   In late November, the company announced that it would acquire two privately held companies with lithium and rare earth element exploration interests in Western Australia to which the newly raised cash would be directed. The company had previously held gold exploration interests near Cue in Western Australia. Verdict: Sizzle.

E2 Metals announced the discovery of significant gold and silver mineralisation from an initial round of shallow drilling within the company’s Conserrat exploration area in southern Argentina. The latest results are from a location approximately 2.5 kilometres from a discovery reported by the company in early October. Last week’s price action was a modest response to the exploration news after the share price had plumbed the lowest levels since a year ago when it began reporting positive exploration outcomes which had temporarily resulted in a rapid fourfold price appreciation. Verdict: Sizzle.

 Altech Chemicals announced that it had successfully combined silicon and graphite to produce an anode for use in a lithium-ion battery with a higher energy capacity.  The Altech share price has been recovering since mid-2021 after having been on a declining track since the beginning of 2018. The company’s initial promise to move swiftly to produce high purity alumina has been delayed as it ventures into battery research. Altech has recently appeared to benefit from the broad based appeal of energy storage investment themes despite having failed to deliver on its original business strategy and having ventured into research areas in which it lacks recognised expertise. VerdVerdict: Sizzle.

Australian Silica Quartz Group has been on a rising share price trend since early October as its joint venture partner Devex Resources reported results from drilling copper-nickel-PGE mineralisation at their Sovereign prospect in the Julimar region of Western Australia (see 12 November 2021). Verdict: Sizzle.

Prospect Resources did not make any formal disclosure which might explain the share price action in the past week. In any event, the company’s share price has been on a rising trend since the beginning of June as investors have become more interested in lithium related investments. Prospect holds lithium development interests in Zimbabwe for which it produced a feasibility study in October for a staged development.  Since then, the company has been telling investors that market conditions are suited to it abandoning the staged approach in favour of an immediate push to full-scale production. The company has hinted at the possibility of strategic partnerships to fund the development opportunity. Verdict: Sizzle.

WeekWeek ended 19 November 2021

Hawthorn Resources announced that a subsidiary of Hancock Prospecting is to take a joint venture interest in the company’s 1,170 million tonne magnetite deposit north of Kalgoorlie in Western Australia.  Hawthorn currently has a 40% interest with the balance held by Legacy Iron Ore. Hancock will take an initial 30% stake with a $9 million investment.  It will retain an option to move to 51% with completion of a feasibility study. Verdict: Steak.

Legacy Iron Ore benefitted from the joint venture agreement with Hancock Prospecting covering the Mt Bevan magnetite resource north of Kalgoorlie in Western Australia jointly owned with Hawthorn Resources (see above). Verdict: Steak.

Sunstone Metals disclosed assays from drilling at its Bramaderos gold prospect in southern Ecuador. The potential discovery follows recent exploration success at the company’s El Palmar gold-copper discovery in the north of the country (see 8 October 2021). Verdict: Steak.

Todd River Resources announced that drilling had recommenced at its Berkshire Valley nickel-copper-PGE project north of the Chalice Mining Julimar discovery following completion of the local grain harvest. Verdict: Sizzle.

Icon Energy did not make any formal disclosure which might explain the surge in investor interest during the last trading day of the week. The company is drilling appraisal wells in the Eromanga Basin in Queensland. At the end of October, the company had referred to an aim of separating carbon dioxide and hydrogen at the wellhead to become a green oil producer. Verdict: Sizzle.

Week ended 12 November 2021

Latrobe Magnesium announced that it had raised $11.5 million. The placement occurred following an announcement late in the prior week that directors were going to examine an expansion of the company’s planned magnesium pilot plant from 1,000 to 10,000 tonnes a year.  The decision to speed up production follows strong expressions of interest from potential buyers of the metal as near-term shortages rapidly transform the business outlook (see 29 October 2021). VVerdict: Steak.

Devex announced that low grade nickel copper sulphide mineralisation had been observed in drilling at the company’s Sovereign exploration site within the Julimar region in Western Australia. Verdict: Sizzle.

Minotaur Exploration and Andromeda Metals announced a merger of the two companies to consolidate ownership of the Great White kaolin project in South Australia. The combination should make funding the project simpler.  The proposed transaction will involve Minotaur shareholders receiving Andromeda scrip.  At the same time, the non-kaolin assets of Minotaur will be demerged in a separately listed company. VerdiVerdict: Steak.

Australian Silica Quartz Group benefited from the Devex announcement (see above). Devex is earning a 50% interest from the company in the Sovereign exploration prospect. Verdict: Sizzle.

Chalice Mining announced the maiden resource estimate for its Gonville nickel-copper-PGE deposit within the Julimar region of Western Australia.  The 330 million tonne resource includes 530,000 tonnes of contained nickel and 10 million ounces of PGE metals.  Directors emphasised the flat grade-tonnage curves, in making the announcement, to illustrate the future development flexibility of the resource. Verdict: Steak.

Week ended 5 November 2021

Cannindah Resources investors had been experiencing a rising share price trend since late August after drilling had commenced at the company’s copper-gold property near Gladstone in Queensland.  Queried by ASX about the trending share price in late October, directors said they had no additional information of relevance but drew attention to the tightly held shares of its major shareholders which would give the company unusual leverage to any news about potential discoveries. The share price rise accelerated dramatically in the past week after the company announced that he had made a $1.5 million placement of shares to a major existing shareholder. Verdict: Sizzle.

Reedy Lagoon Corporation did not make any formal disclosure which might explain the share price action, although price pressure had been building since mid-October when the company reported geophysical results from surveys at its lithium brine project in Nevada. The company will have benefitted from the recent strength in lithium prices and the heightened investor interest in this segment of the resources market. VerdiVerdict: Sizzle.

AVZ Minerals did not make any formal disclosure which might explain the acceleration in a rising share price trend dating from July. The company had previously announced that it had signed a joint venture agreement with a Chinese company covering development of a lithium-tin project in the Democratic Republic of the Congo. The company had recently confirmed that good progress was being made toward completing the deal. It would also have benefited from growing interest among investors in lithium and tin development opportunities. Verdict: Sizzle.

Arizona Lithium announced that it had raised $13 million to further development of its Nevada lithium assets. The company will also have benefited from the heightened interest among investors in lithium related resource companies. Verdict: Sizzle.

Marquee Resources announced that it had acquired an interest of up to 80% in land holdings prospective for lithium brine and clay lithium deposits near the Rhyolite Ridge lithium-boron deposit of Ioneer in Nevada. The acquisition adds to existing holdings by the company in the area. At the same time, the company said it had acquired up to 80% of an existing copper-gold deposit in Washington situated among historical workings and on patented land. The company is able to earn its interests in the targeted properties over a period of 18 to 24 months. Directors also foreshadowed a $3 million capital raising. Verdict: Sizzle.

Month ended October 2021

Since being commented upon previously, the following companies have not made any subsequent disclosures which may have materially impacted their investment performance: 

 

Week ended 29 October 2021

Korab Resources did not make any formal disclosure which might explain the large increase in share volumes traded and accompanying share price rise on a single day during the week. Queried by ASX, the company said that it had discussed potentially supplying car manufacturers with magnesium sourced from the groups Winchester project near Darwin in the Northern territory. Directors emphasized that these talks may not amount to anything commercially substantial. They also highlighted shortages in the amount of magnesium available for purchase and recent price rises as contributors to the rising market value of the company. Subsequently, directors announced that they had made a placement of shares at a 25% discount to the market to raise $1.9 million. The company had reported having cash assets of $93,000 at the end of June with borrowings of $665,000 from a $678,000 facility.  Verdict: Sizzle.

Latrobe Magnesium did not make any formal disclosure which might explain the heightened investor interest in the company during the first part of the week. In the prior week, the company had completed a $3 million equity raising. The funds will allow it to fast track construction of a magnesium production demonstration plant in Victoria. Investor interest will have been boosted by recent capacity closures in China and comments attributed to Angela Merkel that European car manufacturers would run out of magnesium in the coming month. Verdict: Sizzle.

S2 Resources announced that it had won a much-anticipated tender for exploration ground surrounding the high grade Fosterville gold mine in Victoria. The win confers an exclusive option to apply for an exploration licence. The land is one of four blocks on offer and subject to competitive bidding. Exploration and mining will be subject to the company reconciling competing land uses. Verdict: Sizzle.

Avenira did not make any formal disclosure which might explain the unusually strong investor interest in the company which is seeking to develop the Wonorah phosphate deposit in the Northern Territory. Queried by ASX about the market action, directors said that they did not have anything to disclose but did draw attention to rises in phosphate prices and media comments about the future use of phosphate in batteries. They also said that they had signed a confidentiality agreement which could lead to an investment in the project but would not know the outcome for two months. Verdict: Sizzle.

Sparc Technologies announced that it executed a non-binding agreement with the University of Adelaide to jointly form a hydrogen technology company. The company described a process that uses radiation from the sun to convert water into hydrogen and oxygen without use of wind power or photovoltaic panels. The company also announced a $2 million capital raising. The company had been engaged in development of graphene-based technologies which could be applied to the hydrogen production plans envisaged by the university's processes. Verdict: Sizzle.

Week ended 22 October 2021

Centrex Metals announced that it had signed a highly conditional agreement with fertiliser trader Samsung C&T Corporation covering phosphate marketing activities in Korea, Japan, Indonesia, India and Mexico. The potential final agreement will account for up to 20% of the first three years of anticipated production from the company’s Ardmore phosphate project in north west Queensland.  Funding for the $78 million project will be made easier by having incredible offtake arrangements in place although this agreement is no more than an option from which Samsung can walk for a range of reasons. Verdict: Sizzle.

Xantippe Resources had announced in late September that fire assay results from an auger drilling program at its Southern Cross prospect indicated gold anomalism signalling targets for future drilling activity. Subsequently, the company did not make any formal disclosures which might explain the more recent rise in investor interest.  After initiating a rights issue in August, the company completed placement of the shortfall at the start of the week for a total raising of approximately $2 million. The company reported having cash assets of $271,000 at the end of June 2021. Verdict: Sizzle.

A-Cap Energy did not make any formal disclosure prior to the share price action which might explain the timing or size of the price movement. However, subsequently, the company announced that it had closed a rights issue, opened in late September, raising $17.4 million. The company had reported having cash assets of $3.6 million at the end of June.  It holds nickel-cobalt exploration interests in Western Australia and uranium-related prospects in Botswana. Verdict: Sizzle.

Arizona Lithium, having changed its name from Hawkstone Mining in September, did not make any formal disclosure which might explain the price action. Queried by ASX about the reasons for the share price uplift, directors said that they had nothing to disclose but drew attention to recent strength in lithium prices and the company's divestment of non-lithium assets to concentrate on US lithium development prospects. Verdict: Sizzle.

Lake Resources did not make any formal disclosure which might explain a surge in investor interest during the week but has been actively marketing its innovative approach to extracting lithium from Argentine brine deposits, highlighting a substantially lower carbon footprint than that of other lithium producers.  During September, the company had made several announcements with a potentially beneficial impact on its capacity to fund its Argentine development.  Investor interest will have also been stoked by reports of stronger lithium prices. Verdict: Steak.

Week ended 15 October 2021

Australian Pacific Coal did not make any formal disclosure which might explain the stronger investor interest.  The company holds thermal coal development prospects in the Hunter Valley region of New South Wales. The company’s development efforts have been stymied by legal and funding obstacles consistent with the recent reluctance of regulators and financiers to back coal production. The price action returns the company’s share price to similar levels which had prevailed in the past 12 months.  Stronger coal market conditions may have raised hopes among some investors that progress through the development impasse may be possible. Verdict: Sizzle.

Nova Minerals has continued to report strong drilling results from within its Estelle exploration area in Alaska as it moves toward a maiden resource estimate and, then, a scoping study. Verdict: Steak.

Wildcat Resources has experienced a rising share price trend throughout October after announcing an option to acquire a lithium project near Coolgardie in Western Australia. Within days, the company reported having intercepted pegmatites from drilling on the property. The company also holds active gold exploration interests in the Pilbara region of Western Australia and the Lachlan Fold Belt in New South Wales.  After the share price had risen on the last day of trading in the week, the company initiated a trading halt pending an announcement. Verdict: Sizzle.

Caspin Resources did not make any formal disclosure which might explain a sharp rise in investor activity during the final day of the week.  The company had made a presentation to the Australian Nickel Conference on 5 October without any apparent impact on market activity at that time.  In late September, the company had reported that drilling at its Yarawindah Brook PGE-nickel-copper project in Western Australia had been completed with assays pending.  A resumption of drilling was foreshadowed for late October.  Verdict: Sizzle.

Consolidated Zinc did not make any formal disclosure which might explain a pickup in investor activity during the last trading day of the week.  The day before, the company had lodged a copy of a 121 Latin American Conference presentation.  The company operates a zinc mine in Mexico and would have benefited from the sharp rise in the zinc price in the days immediately beforehand.  Verdict: Sizzle.

Week ended 8 October 2021

Sunstone Metals reported receiving the first assays from drilling at the El Palmar gold-copper property in Ecuador. Directors characterised a 480 metre intersection of gold and copper as typical of gold rich porphyry systems. Further results are expected in six weeks. The company is earning a 51% stake in the project with an option to acquire 100%. Verdict: Steak.

Tigers Realm Coal did not make any formal disclosure which might explain the stronger investor interest and accompanying share price action. The latest rise follows earlier large gains dating from late August. The company is mining coking coal deposits in Russia. Directors have foreshadowed sales of 750-800,000 tonnes during 2021 after selling 169,000 tonnes in the June quarter.  Stronger coal market conditions in the Asian region will have favourably impacted financial outcomes in recent months and stoked investor interest. Verdict: Sizzle.

Doriemus did not make any formal disclosure which might explain the share price action which, in any event, is part of a longer-term trend dating from June. The company holds oil and gas exploration interests in the UK and, indirectly, in Greenland.  Stronger oil and gas prices amid concerns about energy supply shortfalls in the UK will have added investor interest. Verdict: Sizzle.

ADX Energy disclosed that it had signed an agreement to supply green electricity with joint development of green hydrogen production in the Vienna Basin, in conjunction with an Austrian renewable power generation company.  The project will be designed to capture electricity at those times when access to the Austrian grid is unavailable. Verdict: Sizzle.

Altech Chemicals did not make any formal statement which might validate an improved valuation for the company.  In recent days, the company appointed a new chief financial officer and opened nominations for the election of directors at an upcoming meeting of shareholders.  Altech has been constructing a high purity alumina plant in Malaysia connected to upstream kaolin mining in Western Australia although, increasingly, it has been repositioning as a participant in the European battery supply chain. Initial plans for financing the Johor plant, construction of which has stalled, have proven overly optimistic. Verdict: Sizzle.

Week ended 1 October 2021

Amani Gold did not make any formal disclosure which might explain the surge in investor interest on the last trading day of the week. In early September, the company had announced that it would raise $7 million which would be used to further exploration efforts at the Giro gold project in the Democratic Republic of the Congo. At the end of June, the company held cash assets of $873,000. Verdict: Sizzle.

New Talisman Gold Mines announced that it had entered into a binding agreement to acquire a small-scale working gold mine in Vanuatu adjacent to a currently owned existing mining operation. The apparent size of the market response reflects the share price of the company having briefly fallen to a historically low level in the days immediately preceding last week.  The $6 million company is looking to consolidate and then divest its gold exploration interests. Verdict: Sizzle.

Red Dirt Metals announced a non-binding agreement in early September to acquire the Mt Ida gold-copper project north of Menzies in Western Australia. The company, which was to pay $11 million for the purchased asset, also raised $15 million through a convertible loan. The company’s share price rose relatively modestly leading up to completion of due diligence late in the month and before directors announced that, during the course of their examination of the company, they had found evidence of multiple high grade lithium intersections in earlier drill results. About 1% of holes drilled had shown evidence of potential lithium mineralisation. Verdict: Sizzle.

QX Resources disclosed that a trenching program at gold prospects in central Queensland had been completed. No results were made available. A day later, the company announced that it had acquired an option over an exploration licence application covering Pilbara land prospective for lithium. Due diligence for the share transaction is scheduled over a 30 day period. Verdict: Sizzle.

Hydrocarbon Dynamics provided a commentary on favourable feedback from a Cooper Basin trial of its proprietary oil treatment technology. It reported reduced sludge build-up in two production tanks.  The company is in the process of quitting its Utah oil sands interests. Completion of the transaction had been scheduled for the end of September after which the company says it will be focused on market development efforts through agents and distributors of its oil treatment products. Verdict: Sizzle.

Month ended September  2021

Hannans did not make any further disclosures (see 17 September 2021) which might explain the further share price strength later in the month.  Queried by ASX about the price action, company directors said that they had no new information to impart but drew attention to the company’s early September announcement about a potential recycling joint-venture in Europe and the pre-existing shareholding of ASX-listed Neometals in the company as having stimulated fresh interest among investors. After losing some of the earlier gains in the last days of the month, the company called for a trading halt following an unexplained shift higher in the share price. Later, the trading halt was followed by a suspension of trading while the company prepared to make another announcement about its European metal recycling aspirations. Verdict: Sizzle.

Red Dirt Metals announced a non-binding agreement in early September to acquire the Mt Ida gold-copper project north of Menzies in Western Australia. The company, which was to pay $11 million for the purchased asset, also raised $15 million through a convertible loan. The company’s share price rose relatively modestly leading up to completion of due diligence late in the month and before directors announced that, during the course of their examination of the company, they had found evidence of multiple high grade lithium intersections in earlier drill results. About 1% of holes drilled had shown evidence of potential lithium mineralisation. Verdict: Sizzle.

Grand Gulf Energy followed up its early September announcement (see 3 September 2021) about a helium related acquisition in Utah with confirmation, later in the month, that due diligence had been completed and that the transaction would proceed to the next stage. Verdict: Sizzle.

Norwest Energy released additional information about its Lockyer Deep-1 gas find in the Perth Basin (see 10 September 2021).  The share price retraced slightly near the end of the month when directors announced that the cost of the well appraisal would exceed the company’s earlier estimates. Verdict: Steak.

Eastern Iron announced that it had raised $3.6 million to further the goals of the strategic link with a Chinese chemical producer (see 10 September 2021). Subsequently, the company announced that a study of the Nowa Nowa iron ore project had been completed by an external consultant as a step towards completing a feasibility study by the end of 2021. The study flagged “potential to be a viable proposition”. Verdict: Sizzle.

Week ended 24 September 2021

Genesis Minerals announced that it would issue new shares to raise $16 million with a former Saracen and Northern Star executive to take up the majority of the issue and lead a group of well-known industry executives to assume management of the company. The stated aim of the new arrangements is to turn Genesis into a mid-tier Australian gold company. Verdict: Sizzle.

PepinNini Minerals announced that it had signed an agreement with a subsidiary of Ganfeng Lithium in Argentina to allow a lithium brine pipeline to cross a PepinNini property. The agreement calls for the companies to co-operate in a geophysical survey of the proposed pipeline route which, as a by-product, will give PepinNini evidence of potential copper mineralisation in the area. Verdict: Sizzle.

Hannans did not disclose any additional information which might explain the continuation of the share price rise from the previous week (see 17 September 2021). Queried by ASX about the reasons for the rises, directors said that they had been briefing investors about their Nordic battery recycling plans following a 9 September announcement but had nothing to add. Verdict: Sizzle.

EQ Resources released an updated resource statement for its Mt Carbine tungsten property near Cairns in Queensland following remodelling of the resource and further diamond drilling.  The re-estimation is feeding into a bankable feasibility study. Verdict: Steak.

Resource Mining Corporation did not make any formal disclosure which might explain the share price action. Queried by ASX about the reasons for the price move, the company said that it had no new information to impart. The company had acquired nickel exploration interests in Tanzania in February. In August, it announced that it had divested its laterite nickel exploration interests in Papua New Guinea which would permit it to fully extinguish its debt. At the end of June 2021, the company held cash assets of $38,000 with outstanding loans of $4.8 million. Verdict: Sizzle.

Week ended 17 September 2021

Metal Hawk reported having intersected massive nickel sulphide mineralisation from drilling on the company’s tenements 20 kilometres east of Kalgoorlie after surface electromagnetic surveys had proven effective.  The company now intends to initiate a downhole electromagnetic survey in preparation for diamond drilling. Verdict: Sizzle.

Hannans did not appear to make any formal disclosure which might explain the sharp rise in the share price.  A week before, the company had announced that it would participate in a joint venture to recover metal from spent lithium-ion batteries in Norway, Sweden, Denmark and Finland. The company advised investors that it had made a commitment to the ASX that its spending on the new venture would be limited to $1.5 million to ensure that it would not breach listing rules relating to changes in the nature of the business.  The company had previously been exploring for gold and copper-nickel mineralisation in Western Australia. It reported having cash assets of $1.0 million at the end of June 2021. Verdict: Sizzle.

Twenty Seven Company disclosed that a data review had highlighted new lithium and tin targets on its exploration tenements in the Broken Hill region. The company will undertake rock chip sampling in the next stage of exploration. Verdict: Sizzle.

A-Cap Energy did not make any formal disclosure before the share price rise and a halt in trading of its shares. The company has exploration rights covering nickel within tenements held by Wiluna Mining Corporation. It also holds a uranium exploration property in Botswana which is currently under care and maintenance. The share price move, although unexplained, could be connected to renewed market interest in uranium-related stocks. Verdict: Sizzle.

Kingwest Resources announced that drilling had intersected significant gold mineralisation under Lake Goongarrie (between Menzies and Kalgoorlie) in Western Australia.  Three quarters of the assays from the latest round of drilling remain outstanding. Verdict: Steak.

Week ended 10 September 2021

Norwest Energy reported a significant gas discovery at Lockyer Deep-1 in the Perth Basin in Western Australia at a depth of 4,041-4,067 metres. Further appraisal work is being undertaken. The company holds a 20% interest in the exploration permit which is operated by Mineral Resources, the holder of the remaining interest. Verdict: Steak.

Eastern Iron announced that the company had signed a memorandum of understanding with a Chinese producer of lithium hydroxide and lithium carbonate chemicals under which the two companies would jointly acquire and develop lithium projects. In early August, the company had acquired an option to buy a 100% interest in a Pilbara exploration property prospective for lithium-caesium-tantalum pegmatites.  The memorandum of understanding, if it proceeds to a formal agreement, would introduce the Chinese company as a joint venture partner. The company, which already held iron ore related exploration interests in eastern Victoria, reported having cash assets of $1.5 million at the end of June. Verdict: Sizzle.

Nexus Minerals reported assays from a further round of drilling within the company’s Walbrook gold project in the eastern goldfields of Western Australia. The site of the new results is a short distance from mineralised structures previously reported by the company and which have helped sustain a sharply rising share price since early August. Verdict: Steak.

Key Petroleum did not make any formal disclosure which might explain the share price rise. In any event, the rise occurred from near record low prices after unusually high trading volumes. The company has oil exploration interests in the Perth Basin where preparations are underway for a forthcoming seismic survey. With only $46,000 in cash assets at the end of June and borrowings of $200,000, the company has been looking at to sell assets to help fund the business. Verdict: Sizzle.

African Gold, with gold exploration interests in Cote d’Ivoire, reported the results of screen fire assays from previously advised mineral intersections.  The high grades complement historical results in the area and are consistent with free gold finds by artisanal miners in the surrounds.  At the same time, the company announced it would undertake a rights issue to raise $3.9 million. The company had reported having cash assets of $475,000 at the end of June 2021. Verdict: Sizzle.

Week ended 3 September 2021

Pan Asia Metals announced that it had applied for prospecting licences in Thailand over an area prospective for lithium mineralisation, including areas in which geothermal energy sources can be used to extract the battery metal. The company foreshadowed further applications. The company, which had cash assets of $1.2 million at the end of June, ended the week in an unexplained trading halt. Verdict: Sizzle.

Grand Gulf Energy announced that it had acquired a private Australian company with joint-venture interests in helium exploration properties in Utah. The properties of interest are in an area of existing helium production. Prior to the helium-related acquisition, the company’s primary interest was in oil production in Louisiana, where it had been reporting quarterly production of 4-5,000 barrels a day over the past year. The company held cash assets of $1.1 million at the end of June. Verdict: Sizzle.

Great Boulder Resources reported initial results from drilling at the company's Mulga Bill gold prospect near Meekatharra in Western Australia. Grades in a 10-368/t range were reported with further results to come as laboratory reporting permits. The company, which had cash assets of $6.8 million at the end of June, holds other ground in Western Australia prospective for gold and copper-nickel-PGE mineralisation. Verdict: Sizzle.

Valor Resources reported assays from ground sampling at the company’s Hook Lake property in northern Saskatchewan where it is seeking to define a uranium resource. The sampling indicated the presence of uranium, silver, lead and rare earth metals. Verdict: Sizzle.

Paladin Energy did not make any formal disclosure which might explain the strong share price uplift. However, uranium-related companies have generally attracted stronger investor interest since an improvement in uranium spot prices at the end of August. The long-awaited recovery in prices is a critical precondition for companies seeking to lock in contract prices sufficiently high to underpin production starts. Verdict: Steak.

Month ended August 2021

The following companies have not made any subsequent disclosures which may have impacted their investment performance since being commented upon previously: 

 

Week ended 27 August 2021

Orion Metals did not make any formal disclosure which might explain the share price movement in the rarely traded stock. in any event, the price rise occurred as a result of trades valued at less than $1,000. The company, which reported having cash assets of just $9,000 at the end of June, entered into an agreement in early July with an entity promising to facilitate future corporate transactions. In late July, the company announced an extension to the duration of the agreement until the end of the month but nothing further has been heard. Verdict: Sizzle.

Azure Minerals reported multiple nickel-copper sulphide intersections as a result of 22 new drill holes at the company’s Andover exploration area in Western Australia. Verdict: Steak.

Gladiator Resources did not make any formal disclosure in the past week which might explain the share price action. However, the share price has been rising with unusually strong volumes traded over the past three weeks following an announcement that Gladiator had agreed to acquire exploration tenements in Tanzania prospective for gold and uranium. The company, which had cash assets of $0.9 million at the end of June, also announced that it had raised $1.0 million through a share placement. Verdict: Sizzle.

American Rare Earth released the results of surface sampling from its rare earth exploration site in Wyoming. The site was acquired in August 2020 against the backdrop of concerns among US policy makers that the country’s rare earth element supply chain was too heavily reliant on Chinese companies. The latest share price movement is an extension of a rise which commenced early in August following disclosure of an increase in the company’s rare earth resource in Arizona. Verdict: Steak.

Great Western Exploration announced a strong gold in soil anomaly at the Firebird gold project near Wiluna in Western Australia. The company referred to the presence of the anomaly within the geological setting recognised in a recent review of historical data as “a compelling target”. Verdict: Sizzle.

Week ended 20 August 2021

Intra Energy Corporation did not make any formal disclosure which might explain the heightened investor interest in what is a usually very lightly traded stock. At the end of July, the company had referred in its quarterly activities report to a change in strategic direction. It intended to opt out of African coal production in favour of gold mining in Mozambique and copper-gold exploration in Australia.  The company had made licence applications to further the new strategic aims. At the end of June, the company, which is looking to exit its coal properties, held cash assets of $220,000 against debts of $1.7 million. Verdict: Sizzle.

 Aguia Resources did not make any formal disclosure which might explain the share price action which resulted in a retreat from historically low levels to prices which had prevailed in early July. The company, which is seeking to develop phosphate and copper mining interests in Brazil, has become entangled in legal proceedings over the conduct of an environmental study covering of the phosphate property. Verdict: Sizzle.

Nexus Minerals reported drilling results from exploration activity within tenements in the eastern goldfields of Western Australia. It reported on 11 holes with results from a further eight to come.  The drilling, to test for depth and strike extensions, has produce results consistent with continuity of mineralisation. Verdict: Steak.

Nagambie Resources disclosed that it had received permission to undertake work connected with construction of a gold treatment plant at the Nagambie mine in Victoria.  The company said that work would commence by the end of December with a view to a production start by mid-2022. The share price response restored the company’s market value to where it had been at the start of August before a sharp decline through the main part of the month. Verdict: Steak.

Zeotech sought a trading halt for its stock in the latter part of the week after it had received a query from ASX about the price action. The company foreshadowed an announcement about an acquisition. Verdict: Sizzle.

Week ended 13 August 2021

Ikwezi Mining did not make any formal disclosure which might explain the continuing share price rise dating from the first week in August. The South African coal producer will have benefitted from strengthening thermal coal prices. Verdict: Sizzle.

AXP Energy announced that the company had generated revenue of $1.8 million in July and was on track for a quarterly outcome ahead of the June quarter result.  All of the share price gain had occurred by the end of the first day of the week after volumes traded has started to rise in the prior week. The company has oil and gas interests across several US states. Verdict: Sizzle.

Aruma Resources did not make any formal disclosure which might explain a strong lift in share turnover and rising share price through the course of the week. The company has gold exploration interests in Western Australia and New South Wales. In addition, the company holds land in southeast Western Australia prospective for lithium-tantalum mineralisation. The company had said at the end of July that it intended to commence exploration drilling in the September quarter. Verdict: Sizzle.

Bowen Coking Coal has experienced a rising share price trend since late July when it announced the acquisition of coking coal assets, including train loading facilities, in Queensland from New Hope Corporation. The transaction was accompanied by a capital raising through a rights issue which was launched during the week. Verdict: Steak.

Global Energy Ventures announced that it had an agreement with a proposed producer of green hydrogen in Western Australia to study the feasibility of delivering product within the Asia Pacific region using the Global Energy marine supply chain based around its unique oceangoing storage facilities. Verdict: Sizzle.

Week ended 6 August 2021

Red Hill Iron confirmed that it had sold its joint venture interest in the Red Hill iron ore mine to Mineral Resources.  The seller will receive two payments of $200 million and a royalty.  The transaction, still subject to shareholder approval, raised the company’s market capitalisation from $65 million to $260 million. Verdict: Steak.

 Magnis Energy Technologies announced that it had secured funds of $20 million from two US financiers. The company is seeking to manufacture lithium-ion batteries at new facilities in New York and Townsville.  It has a graphite mining development opportunity in Tanzania. Verdict: Sizzle.

Lepidico did not make any formal disclosure which might explain the heightened investor interest and accompanying share price rise.  In the prior week, the company did release its quarterly activities report for the period ended June but the latest business changes to which it referred were in May. The company has a proprietary technology for the extraction of lithium carbonate from lithium rich mica minerals.  It also holds exploration and development interests in Namibia. Verdict: Sizzle.

Lake Resources has been experiencing a rising share price trend since mid-May.  The more rapid price ascent over the past two weeks coincided with the company announcing an issue of bonus options. The issue was designed to appease potentially disgruntled shareholders whose positions were going to be diluted by upcoming new capital raisings to fund the company’s Argentine lithium development opportunities. The short dated options will expire in October. Verdict: Sizzle.

Jadar Resources did not make any formal disclosure which might explain the share price action.  In any event, the rise occurred after prices had fallen to historically low levels.  The largest part of the price rise occurred on the last day of the week with unusually strong share turnover levels.  In mid-July, the company said it was in the final stage of buying a silver-tungsten project in North Queensland with completion expected in four weeks. Verdict: Sizzle.

Month ended July 2021

The following companies have not made any subsequent disclosures which may have impacted their investment performance since being commented upon previously: 

 

Week ended 30 July 2021

Conico announced that its drilling in Greenland had encountered sulphide mineralisation prospective for nickel and copper.  The announcement was based solely on visual inspection of the ore as it had not yet been submitted for laboratory analysis. Verdict: Sizzle.

Argonaut Resources announced that a drilling rig was approaching its destination at a company exploration site in Zambia where it is targeting copper-cobalt mineralisation. Despite the apparent size of the share price reaction, the level remained anchored near historically low levels after a 60% decline since mid-March.  Verdict: Sizzle.

Great Western Exploration reported a large anomaly northwest of the Degrussa mine in Western Australia which the company has interpreted as an analogue to the Sandfire owned copper deposit.  The share price reaction resulted in a return to levels which had prevailed at the end of May and prior to a share price slump to historically low levels. Since the beginning of February, the Great Western share price has declined 65%. Verdict: Sizzle.

Lefroy Exploration released its quarterly activities report but made no specific announcement which might explain the share price movement.  In any event, the share price rise was only a partial retracement of lost ground since the end of May during which time it had declined by over 50%.  The company had already announced that a diamond drilling program at its copper-gold Burns project in the eastern goldfields of Western Australia had commenced. Verdict: Sizzle.

Brookside Energy announced that completion operations were underway at the company’s Jewell well in the Anadarko Basin in Oklahoma.  A contractor had agreed to start site operations by the end of July.  The company will have benefited from strengthening US crude oil prices through the week. Verdict: Sizzle.

Week ended 23 July 2021

Dreadnought Resources has been experiencing a steeply rising share price trend since the start of July. Contributing to the momentum in the past week, the company disclosed high grade rare earth element assays at a 100% owned prospect east of Exmouth in the Gascoyne region of Western Australia near a mine currently under construction by Hastings Technology Metals.  The encouraging result is some way from confirmation of a commercial discovery but has added to a sequence of positive exploration results to bolster market interest. Verdict: Sizzle.

Predictive Discovery released high grade gold assays from drilling at its Bankan project in Guinea. The results implied higher grades at greater depths, encouraging the company to think about deeper drilling and the potential for an underground mine rather than the previously contemplated open pit. Verdict: Sizzle.

Podium Minerals did not make any formal disclosures which might explain the partial share price recovery after a slump from the steep rise in price beginning in the latter part of April (see 23 April 2021).  In its quarterly activities report for the period ended June, the company reiterated assay results from platinum group metal exploration drilling at properties in the midwest region of Western Australia. The company reported having cash assets of $2.98 million at the end of the month. Verdict: Sizzle.

Korab Resources did not make formal disclosures which might explain the building investor interest and accompanying share price action. The latest price move comes within a rising price trend dating from early July.  The company is planning to develop a magnesium carbonate rock quarry in the Northern Territory.  Directors had previously reported having been approached to sell the property, without subsequently disclosing any further information about the outcome of discussions. The company holds a range of other exploration interests in the Northern Territory, Western Australia and the Ukraine prospective for a range of fertiliser minerals and precious metals. Verdict: Sizzle.

Peak Resources announced that the Tanzanian government had approved a special mining licence for the company’s rare earth element development proposal. The approval allows the company to proceed toward an economic agreement from which would follow, all going well, funding and off take negotiations.  The announcement indicates progress but still a long road ahead before a development commitment to can be made. Verdict: Steak.

Week ended 16 July 2021

Atrum Coal has been adversely affected by a decision of the Alberta provincial government to review its coal mine development policies via a public consultation process. Since the review implies that development could be stymied, the company’s share price has fallen to a fraction of its level in February prior to the government’s policy about face.  The company did not make any formal disclosure in the past week which might explain the apparent shift in investor sentiment about the outcome of the review. Verdict: Sizzle.

Bathurst Resources announced that a New Zealand Supreme Court decision relating to a prolonged legal battle over royalty payments claimed from the company would be released during the week.  Later, the company confirmed that the court had ruled in its favour, resolving a negative impact on company investment returns which had persisted for some five years. In any event, the company’s financial prospects had been buoyed in recent weeks by improved coal market conditions (see 25 June 2021). Verdict: Steak.

Fe made several announcements reporting progress along the way to hauling the first shipments of iron ore from the company’s mine near Wiluna in Western Australia.  In the latest announcement, the company confirmed that the first trucks had left the minesite on the way to the Geraldton port. Verdict: Steak.

Okapi Resources announced that it had a binding agreement to acquire a US company with rights to uranium mineralisation in Colorado.  Earlier in the week, the company had announced that acquisition of a company with kaolin development interests Western Australia and South Australia, announced in May, had been terminated. Verdict: Sizzle.

Mithril Resources released assay results from drilling at its exploration interests in Mexico which showed high-grade gold-silver intersections. The drilling was designed to test the depth of mineralisation in a bid to better understand the geological model. Verdict: Steak.

Week ended 9 July 2021

Nex Metals reported results from joint venture partner Metalicity after recent drilling at the company’s Kookynie gold project in Western Australia encountered a succession of high-grade gold intersections which the Metalicity chief executive described as “spectacular”. Under the terms of an earn-in agreement, Metalicity can obtain a 51% interest in the target area after spending $5 million over five years.  Nex had cash assets of $885,000 at the end of March 2021. Verdict: Sizzle.

Dreadnought Resources announced the results of reconnaissance sampling at a property in the Kimberley region of Western Australia prospective for copper mineralisation.  The work was following up historically mapped mineralisation dating from the 1950s conducted by Western Mining. Subsequently, the company reported tantalum clusters and anomalous lithium identified from sampling near Kalgoorlie.  Later in the week, the company announced the commencement of drilling in the Kimberley region in pursuit of nickel-copper mineralisation. Verdict: Sizzle.

Fertoz announced that it had raised $5 million through the placement of new shares to assist the company’s move into carbon sequestration activities (see 18 June 2021). Verdict: Sizzle.

Alicanto Minerals reported that an initial round of exploration drilling at the company’s Sala prospect in Sweden had encountered visible silver, lead and zinc mineralisation. The drilling results are not surprising as the site is the location of historical mining activity based on a high grade mineral resource. Verdict: Sizzle.

Sacgasco announced that it had acquired ownership of a company with oil exploration interests, including six discoveries, in the Philippines. The company, which had cash assets of $1.98 million at the end of March 2021, paid $1 for all existing rights and obligations of the acquired company. Verdict: Sizzle.

Week ended 2 July 2021

88 Energy, seeking to commercialise oilfields in Alaska, disclosed that it had adopted the ESG framework of the World Economic Forum.  Although adoption of the framework does not impact the underlying valuation of the company or its commercial prospects, the enthusiasm being shown among investors for ESG-related initiatives suggests that the mere mention of ESG reporting options could benefit market prices. A day later, the company announced that it had sold its tax credits, leaving it without debt.  While this might have been a wise commercial decision, it also reflects companies’ willingness to take advantage of tax laws even when this might run contrary to the social interest of the local population. Verdict: Sizzle.

Buxton Resources did not make any formal disclosures which might explain the unusually strong share price action.  The company, with cash balances of $3.02 million at the end of March 2021, has fully owned exploration interests in Western Australia prospective for nickel-copper and gold mineralisation. Verdict: Sizzle.

Emu did not make any formal disclosure which might explain the surge in investor interest over the final two days of the week. In any event, the market action came after the company’s share price had been trading near historically low levels, leaving the outcome still around those levels which had prevailed in early June when the company had reported results from drilling in the wheatbelt region of Western Australia. The geochemical analysis of the drilling results was consistent with copper mineralisation. Verdict: Sizzle.

Todd River Resources reported the results of geochemical sampling over ground in Western Australia prospective for nickel-copper-PGE mineralisation.  The target area is located north of Perth and the Chalice Mining Julimar discovery. Verdict: Sizzle.

Infinity Lithium announced that it had signed a non-binding memorandum of understanding for the supply of lithium hydroxide with LG Energy Solutions, a South Korean lithium-ion battery producer.  The potential supply agreement is based on the company’s access to mica feedstock at a site in Spain. Verdict: Sizzle.

12 months  ended June 2021

Comments about the sources of the share price action over the year to June 2021 for the following companies can be viewed through the links below. The earlier comments largely explain the performance over relatively short periods and reflected in the outcomes for the year as a whole. 

Magnetite Mines experienced a rising share price trend throughout the first half of 2021. As the 16 April 2021 comment about the investment performance to that point indicated, there had been no disclosure or company event which precipitated the price action. Very late in the fiscal year, the company's share price ascent accelerated in the lead up to the release of a maiden resource statement on the last day. Throughout the period of unusually strong performance during 2021, company performance would have benefited from unanticipated strengthening in iron ore prices. Verdict: Sizzle.

Quarter ended June 2021

Comments about the sources of the improved share price action in the June quarter for the following companies can be viewed through the links below:

 

Month ended June 2021

The following companies have not made any subsequent disclosures which may have impacted their investment performance since being commented upon previously: 

 

Week ended 25 June 2021

Ragnar Metals reported having intersected a wide zone of potential nickel-copper mineralisation in a maiden drill program at its exploration site in Sweden, based on visual inspection.  Investigation of the drill targets, dating from 2018, has had to await an improvement in the company’s financial position. The company ended March 2021 with cash assets of just $89,000. The company recommenced trading in late May after an eight month suspension and after a $5.5 million capital raising.  While trading was suspended, the company had flagged a redirection of its business emphasis toward gold exploration in Western Australia. Verdict: Sizzle.

AustChina Holdings reported that it had received a $110,000 payment due from an asset sale dating from September 2018. Verdict: Sizzle.

Bathurst Resources told investors that the company’s 2020/21 profit would exceed the EBITDA guidance of $55.4 million due to improved prices for its coking coal exports.  The price reaction came after the company’s share price had fallen to the lowest levels in five years due to shipments from its New Zealand mines having fallen and amid pressures to defund coal production. Verdict: Steak.

Rey Resources announced that the maturity of a loan facility had been extended by 12 months to the end of October 2022. The facility is currently undrawn after prior borrowings had been repaid.  The company had cash assets of $68,000 at the end of March 2021. The company holds Western Australian Canning Basin oil exploration permits.  Subsequent to the share price move, the market value remained within the range which had prevailed since November 2020. Verdict: Sizzle.

Lachlan Star did not make any formal disclosure which might explain the heightened investor interest and associated price action.  Prior to last week’s price action, the company’s share price had been on a rising trend since November 2020. Queried by ASX in early June about an earlier share price surge contributing to the rising trend, company directors said they were unaware of any reasons.  In early May, the company had announced an agreement under which Liontown Resources could earn a 51% interest in the company’s copper-nickel PGE exploration tenements north of the Chalice Mines Julimar discovery.  It had also announced acquisition of a property north of Norseman prospective for gold mineralisation. Verdict: Sizzle.

Week ended 18 June 2021

Fertoz lodged an update with ASX describing its efforts to market a blended rock phosphate and potash fertiliser with reduced greenhouse gas emissions. The company did not quantify any commercial benefits but will have been seeking to take advantage of the strong current interest in climate change related investments.  The beginning of the strengthening share price trend, as it recovered from historically low levels, predated the ASX release.  The company holds phosphate mining interests in British Columbia. Verdict: Sizzle.

Truscott Mining Corporation did not make any formal disclosure which might explain the share price action. Queried by ASX, directors said they had nothing material to disclose. Nor could they proffer any explanation for the heightened investor interest. Over the prior two weeks, several directors of the company had disclosed modest market purchases of shares. The company holds gold exploration interests in the Tennant Creek area of the Northern Territory.  The company has previously said that it would recommence drilling to coincide with an upturn in gold prices. The company had not spent anything on exploration or development during the first nine months of 2020/21 and ended March with cash assets of just $98,000.  Verdict: Sizzle.

Doriemus did not make any formal disclosure which might explain the continuing rise in the share price (see 11 June 2021).  Strengthening oil prices will be helping to sustain interest in companies leveraged to the improved market conditions. Verdict: Sizzle.

AustChina Holdings did not make any formal disclosure which might explain the stronger investor interest.  In any event, the share price rise occurred after the company’s shares had traded at unusually depressed levels. At the end of the week, they remained below levels which had prevailed in May.  In May, the company had disclosed that a convertible note due to mature had been extended for six months.  The company holds coal mine development interests in Queensland. Verdict: Sizzle.

Globe Metals and Mining did not make any further disclosure which might explain a second week of  unusually strong investor interest following a recommendation to the government that it  grant of a niobium mining licence in Malawi (see 11 June 2021). Verdict: Steak.

Week ended 11 June 2021

Coda Minerals reported a thick zone of iron oxide copper-gold mineralisation from the first deep diamond hole at the company’s Emmie Bluff Deeps prospect in South Australia. Verdict: Steak.

Globe Metals and Mining announced that the relevant Malawi government advisory body had recommended that the company receive a mining licence covering its niobium development prospect in the country. The company expects the minister to follow the 2019 mining laws and grant a licence. Verdict: Steak.

Doriemus announced that it would raise $3.34 million through a placement and rights issue. The London and ASX listed oil and gas company has minority oilfield development interests in the south of England. Verdict: Sizzle.

Torrens Mining holds a 30% interest in the Coda Minerals managed copper exploration project at Emmie Bluff in South Australia (see above). Verdict: Steak.

Zeus Resources announced that it would raise $810,000 via a placement of shares and options. The company also announced that it had entered an agreement with a Singapore-based intermediary under which the latter would introduce new mining exploration or development opportunities. Zeus’ business had revolved primarily around exploration tenements in Western Australia but directors had also said that they continue to investigate gold and copper project in Laos.  In practice, the company had no evident business strategy. Verdict: Sizzle.

Week ended 4 June 2021

Iron Road drew attention, in an ASX released statement, to an earlier decision by the South Australian power network manager to construct a high voltage transmission line which would connect with the company’s iron ore development opportunities.  The company’s share price had been on the rise for several days prior to the statement during which time the company completed a share purchase plan. The share price had weakened significantly through May while the purchase plan was open. Verdict: Sizzle.

Variscan had announced a week earlier that underground drilling had intersected high-grade zinc mineralisation above and below mine stopes at the company’s San Jose mine (see 28 May 2021). The company had not made any further formal statement which might explain the share price action. Verdict: Steak.

Prominence Energy announced that it had raised $3.2 million which would be used to fund drilling at the company's Bowsprit oilfield in Louisiana and its investment in a regional Victorian hydrogen production facility. In any event, the price reaction produced only a partial recovery from a losing trend which had persisted through May. Verdict: Sizzle.

MetalsTech announced that it had raised $6 million from a royalty deal based on the company’s lithium assets in Slovakia. The company, which is spinning out the lithium assets in favour of pursuing gold mining opportunities, also placed shares valued at $9 million in the new vehicle.  The company subsequently announced that it had encountered visible gold in nine out of 16 holes drilled at the Sturec site. Verdict: Sizzle.

Sayona Mining announced that the administrator of North American Lithium had supported the joint Sayona/Piedmont Lithium bid for the company.  The bid remains the subject to shareholder approval.  Later in the week, the company announced that a new drilling campaign had commenced at its Authier lithium project in Quebec.  Directors also disclosed that an earn-in agreement covering the company’s Pilbara lithium exploration interests had been signed with Altura Mining. Verdict: Sizzle.

Month ended May 2021

The following companies have not made any subsequent disclosures which may have impacted their investment performance since being commented upon previously: 

 

Week ended 28 May 2021

Caspin Resources reported that two completed diamond drill holes had encountered sulphides at the company’s Yarawindah Brook exploration site north of Perth in Western Australia. The observed copper sulphides were consistent with the targeted nickel-copper PGE mineralisation. Assays have not been completed. Verdict: Sizzle.

Traka Resources did not make any formal disclosure which might explain the surge in buying activity on the last day of the week. The company is drilling for gold mineralisation at its Mt Cattlin exploration prospect in Western Australia. Further assays are expected in the near term. Verdict: Sizzle.

Variscan Mines reported that underground drilling had identified a high-grade zinc-lead mineralised lens below historically mined areas at the company’s San Jose mine in Spain. Verdict: Steak.

Audalia Resources did not make any formal disclosure which might explain the uplift in the market price of the stock with heightened turnover on the final day of the week. The company is seeking vanadium-titanium-iron mineralisation southeast of Perth in Western Australia. The company is testing samples to assess the commercial potential of the ore.   Queried by ASX about the price action, directors said that they had no news to impart and were not aware of what might have stimulated the fresh investor interest. Verdict: Sizzle.

Desert Metals did not make any formal disclosure which might explain the unusually strong investor interest. Queried by ASX, company directors said they had nothing to disclose. Nor were they aware of any reason for the price action.  Early in May, the company had reported finding sulphides in two holes used to test conductors on a property prospective for nickel-copper-PGE mineralisation north of Perth. Verdict: Sizzle.

Week ended 21 May 2021

Great Northern Mining disclosed the first batch of assey results from drilling at the company’s Camel Creek gold exploration site in north Queensland. Verdict: Sizzle.

Force Commodities did not make any formal disclosure which might explain the share price movement or the substantially higher volume of shares traded. Queried by ASX about the market action, directors said they had no information to impart and were unaware of what might have caused the change in market interest. The company, which recently completed a board reshuffle, holds copper-gold exploration interests in Oman and New South Wales. Verdict: Sizzle.

BPM Minerals announced that it had acquired an unlisted company with exploration interests on the boundary of the Earaheedy Basin in the midwest region of Western Australia. The area had attracted interest recently after a lead-zinc discovery in the region by Rumble Resources (see 24 April 2021). Verdict: Sizzle.

Adavale Resources announced progress in identifying drill targets for a first phase drilling program scheduled to commence in June and targeting copper-nickel mineralisation in Tanzania. Verdict: Sizzle.

Perpetual Resources announced that it had signed a memorandum of understanding with a Chinese logistics group covering 600,000 tonnes a year of high grade silica from the company’s Beharra project situated between Perth and Geraldton in Western Australia. Prior to the most recent rise, the company’s share price had been on an uptrend since early April when it announced that it had lodged a mining lease application covering the project site. Verdict: Sizzle.

Week ended 14 May 2021

Carpentaria Resources announced that it had reached an agreement with Pure Metals on the terms for it to acquire the 24% interest held by Pure Metals in the Hawsons iron ore project near Broken Hill, paving the way to complete a feasibility study and pursue financing options. Prior to the agreement, Carpentaria had alleged that Pure Metals was in breach of its project obligations. Verdict: Steak.

Helix Resources disclosed that a second diamond drill hole at a Cobar Basin exploration site had intersected copper sulphide mineralisation between 90 and 120 metres downhole. Assays are expected in June. Verdict: Sizzle.

Aeris Resources holds a 30% interest in the Cobar Basin exploration area from which Helix Resources reported having intersected copper sulphide mineralisation. Verdict: Sizzle.

Ikwezi Mining did not make any formal disclosure which might explain the share price movement and the pick up in investor interest.  In any event, the value of shares changing hands during the week was less than $10,000 and the share price remained below the level at which it had traded throughout the period from August to March. The company holds coal production interests in South Africa.  Verdict: Sizzle.

Alligator Energy announced that commodity trading firm Traxis had agreed to provide Alligator with marketing services connected with future uranium production and act as a conduit to market.  Traxis would also provide acquisition advice. Alligator has uranium exploration interests in the Northern Territory and South Australia. Verdict: Sizzle.

Week ended 7 May 2021

Great Boulder Resources announced that zones of primary gold mineralisation had been confirmed over 450 metres of strike at an exploration site in the Yilgarn region of Western Australia, describing the result as a “large scale gold discovery”.  In the prior week, the company had reported having held cash assets of $3.2 million at the end of March 2021. Also in the prior week, the company had reported a continuous zone of thick, shallow gold mineralisation over 300 metres in length from an initial round of drilling.  In this case, the announcement had no discernible impact on the share price. Verdict: Steak.

Marenica Energy, with uranium development and exploration interests in Namibia and Western Australia, did not make any formal disclosure which might explain the share price action although the heightened investor interest was consistent with movements in the market value of a broad range of uranium related stocks.  Bullish expectations about future uranium market conditions have become more common, spurred more recently by news of a large new investment vehicle targeting the sector. Verdict: Sizzle.

Hillgrove Resources reported the first diamond drilling results from its Kanmantoo exploration interests near Adelaide in South Australia with 13 holes encountering copper-gold mineralisation.  The company subsequently reported results from another three holes which had all encountered mineralisation. The drilling program is continuing. Verdict: Steak.

Lotus Resources did not make any formal disclosure which might explain the stronger share price. The company has an 85% interest in a uranium prospect in Malawi. With a more bullish outlook for the uranium sector, valuations for a broad range of uranium related investments improved during the week. Verdict: Sizzle.

Metallica Minerals did not make any formal disclosure which might explain the unusually strong investor interest. The improved share price came a day after a webinar presentation by the company in which it updated investors about its business plans.  The company is seeking to develop a high purity silica sand project at Cape Flattery in northern Queensland. While saying that the company is focused on becoming a silica sand producer, directors have also said that “management continues to evaluate new opportunities in the gold/precious metals-copper and other mineral commodities sectors”.  The company held cash assets of $1.9 million at the end of March 2021. Verdict: Sizzle.

Month ended April 2021

The following companies have not made any subsequent disclosures which may have impacted their investment performance since being commented upon previously: 

Mount Ridley Mines announced, at the end of March, that it had received commitments from investors for a capital injection of $858,603 to be used to fund iron ore exploration activities in the Midwest region of Western Australia, including a drilling program scheduled to commence in mid-April. The bulk of the share price gain occurred in the first half of the month. Verdict: Sizzle.

Week ended 30 April 2021

Fin Resources announced that the company had agreed to acquire an 80% interest in a solar salt project north of Onslow in Western Australia.  Release of a scoping study, now being updated, is expected during the third quarter of 2021. Consideration for the transaction is 83.3 million shares which would have had a value of $2.2 million immediately prior to the transaction. A payment of $500,000 is also due.  The company held cash assets of $2.8 million at the end of March. Earlier in 2021, the company announced that a maiden drilling program near Halls Creek, at another project, did not intersect significant sulphides. Verdict: Sizzle.

Cullen Resources did not make any formal disclosure which might explain the share price rise. The company holds several base metal exploration interests in Western Australia.  After the price rise, the shares remained within a trading range which had prevailed since September 2020. Verdict: Sizzle.

Venturex Resources did not make any formal disclosure which might explain the share price action. Queried by ASX about the market activity, the company said it had no new information to disclose. In responding, directors did refer to an earlier statement about the company's efforts to upgrade an inferred copper-zinc resource near Port Hedland in Western Australia.  See also previous announcements about changed shareholder arrangements (see 26 February 2021). Verdict: Sizzle.

Venture Minerals announced that Chalice Mining had commenced a ground electromagnetic program on a Julimar lookalike south of Perth. Chalice can earn a 70% interest in the exploration project with potential nickel-copper-PGE mineralisation. The Venture Minerals share price had risen significantly both before and after the announcement. The company also has an iron ore project in Tasmania, due to make its first shipment before the end of June, which will have benefited from the recent strength in iron ore prices. Verdict: Sizzle.

Mount Burgess Mining announced the results of test work on ore from a polymetallic zinc-lead mineral deposit, also containing vanadium mineralisation, in Botswana.  The company also issued its quarterly reports which showed it having cash assets at the end of March of just $62,000. Despite the share price move and the unusually heavy stock turnover at the same time, the company’s share price remained within a trading range dating from September 2020. Verdict: Sizzle.

Week ended 23 April 2021

Rumble Resources has been experiencing a rising share price trend since the end of March. Queried by ASX early in April about the reasons for the price surge, the company said that knowledge of its drilling program at the Earaheedy lead-zinc project may have had an effect. Stock turnover in the company during the week exceeded 50% of its outstanding shares.  Directors said that they had received information following visual inspection of the drill samples but had not received any assays. The company subsequently released details of drilling which directors referred to as a major zinc-lead discovery. Verdict: Steak.

Brockman Mining announced that agreement had been reached with Mineral Resources to transfer a 50% joint venture interest in Brockman’s Marillana iron ore project after farm-in preconditions, dating back to a July 2018 agreement, had been satisfied.  Mineral Resources will undertake initial development works costing around $105 million. Verdict: Steak.

Lion Energy had announced a tripling in 2P oil reserves at properties in Indonesia, in the prior week.  A sharply positive reaction was quickly reversed before the latest surge took prices back to similar levels.  In the past week, the company announced that it intends to explore green hydrogen opportunities in Australia.  Directors also said they intend to undertake studies into hydrogen production in Indonesia. The company also announced that it had commitments to raise $2.5 million via new shares and convertible notes arranged through a Melbourne intermediary.  The company had reported having cash assets of $633,000 at the end of December 2020. Verdict: Sizzle.

Zenith Minerals reported that all 26 drill holes at the Earaheedy zinc project intersected visual zinc-lead mineralisation.  The project is a joint venture with Rumble Resources in which Zenith has a 25% interest. Verdict: Steak.

Podium Minerals did not make any formal disclosure which might explain the further escalation in the share price which has been on a rising trend since mid-March. Podium is involved in exploration for PGM and base metals in Western Australia. The company has previously reported results of a 2021 drilling program which will feed a resource upgrade expected in late May or early June. The company will have benefited from improved PGM prices as well as investor interest as a result of recent discoveries of similar styles of mineralisation in Western Australia. Verdict: Sizzle.

Week ended 16 April 2021

Walkabout Resources announced that a Tanzanian bank had agreed to provide a US$20 million debt facility for its use in developing a jumbo graphite mine in the country. The funding is equivalent to slightly more than 60% of the total development capital needs of the project. The new funding initiative raises the chance of development but now requires smaller investors, without any vested African economic interests to support the venture. Verdict: Steak.

Magnetite Mines has had a rising share price since the beginning of 2021 (see March 2021) but has not made any formal disclosure recently which might explain the further price action. Verdict: Sizzle.

Legacy Iron Ore did not make any formal disclosure which might explain the share price action. Queried by ASX about the reason for the investment performance, the company said it was not aware of any undisclosed information but drew attention to continuation of feasibility work on its Mt Celia gold project in Western Australia. The company has a wider range of exploration interests which have been given a lower priority as the company has reoriented its exploration emphasis. The company had cash assets of $7.4 million at the end of December 2020 to pursue its exploration efforts. Verdict: Sizzle.

Talisman Mining announced that it had received the first monthly royalty payment from iron ore miner Mineral Resources. The company did not quantify the size of the payment, which will increase as production ramps up.  The announcement appeared to catalyse a break in the recent trading range as investors were reminded about the company’s iron ore exposure at a time of near record iron ore prices. Verdict: Sizzle.

Volt Resources announced that it had joined the European Battery Alliance as it pursues acquisition of a Ukrainian producer of graphite products, although most of the recent price rise occurred prior to this announcement.  The business acquisition had been announced in early February and should have been well embedded in the minds of investors. Verdict: Sizzle.

Week ended 9 April 2021

Octanex did not make any formal disclosure which might explain the stronger investor interest. The company has a 100% interest in a Bonaparte Basin gas accumulation. The initial six-year term of the licence, designed to inform a decision about an appraisal well, was due to expire in February 2022. The period has been extended for 12 months. In January, the company acquired permits to explore for gold in a little explored region of the eastern goldfields of Western Australia. Verdict: Sizzle.

Oilex announced that it had received approval to complete the purchase of the 55% interest in a Gujarat oil exploration venture it did not already own. The $2.2 million transaction will permit the company to start drilling two planned vertical wells which had been put on hold pending resolution of a dispute with the company’s state-owned partner in the venture.  The company had cash assets of $103,000 at the end of December 2020 leaving it in need of funding if it is to take advantage of the commercial standoff in India coming to an end. Verdict: Sizzle.

Jindalee Resources disclosed an upgraded 10.1 million tonne lithium carbonate equivalent mineral resource at its McDermitt deposit on the northern border of Nevada, describing it as “the largest lithium deposit in the USA”.  The company completed a $9 million capital raising in March, leaving it with around $10 million to maintain its exploration and resource enhancement activities. With a market capitalisation of more than $150 million, investors are already anticipating significant future success. Verdict: Sizzle.

Silver City Minerals announced that it had agreed to purchase an 80% interest in the Austin gold project in the Murchison greenstone province of Western Australia. The project is a combination of mining leases and exploration permits. The project area has been in the hands of private investors with little modern-day exploration having been undertaken. The vendor will receive 300 million shares at a deemed issue price of 1.5 cents a share.  The company will also issue 100 million new shares to raise $1.5 million. At the end of December 2020, the company had cash assets of $1.7 million. The acquisition allows the company to reduce its focus on the New South Wales exploration interests which have failed to sustain investor interest after several years of disappointing field activity. Verdict: Sizzle.

Otto Energy did not make any formal disclosure which may explain the share price action in the past week. Queried by ASX about the reason, the company said it had no new information to impart but drew attention to “mainstream and investor social media sites” referring to the company being fundamentally undervalued due to a holding in oil explorer Pantheon Resources. The latter had acquired Otto’s Alaskan oil and gas exploration assets.   At the end of March, the company’s Pantheon holding had a value of approximately US$7.4 million.  Well testing operations by Pantheon had commenced in late March.  Verdict: Sizzle.

Week ended 2 April 2021

Red Sky Energy did not make any formal disclosure which might explain the share price performance in the past week which followed similarly strong price action in the prior week. Queried by ASX, the company could not offer any explanation for the increased investor interest other than to point to its earlier announcement about petrophysical testing (see 26 March 2021). Verdict: Sizzle.

88 Energy continued to provide updates about drilling progress at operations in the North Slope of Alaska. In the latest update, the company referred to drilling data indicating “multiple potentially hydrocarbon-bearing zones”. The further report was issued prior to wireline logging needed to confirm accessible hydrocarbons.  Their absence might yet throw doubt on field commercialisation. Verdict: Sizzle.

Golden Mile Resources disclosed that air core drilling at its Wanghi North prospect north of Kalgoorlie had intersected a wide zone of high-grade gold mineralisation. The result being reported was from the first of 81 holes being drilled for a total of 3,000 metres.  The company also disclosed that its geologists had identified a previously unrecognised structural trend. Verdict: Steak.

Gas2Grid did not make any formal disclosure which might explain the share price action which, in any event, left the company’s market value within the lower end of a trading range it had occupied since the beginning of February. The company’s share price had been influenced for some months by changing expectations about the outcome of a commercial dispute with the French government (see 12 February 2021). VVerdict: Sizzle.

Fremont Petroleum confirmed completion of an acquisition of an operator of conventional natural gas wells in Kentucky, Virginia and Tennessee.  The acquisition had been announced in early March. Directors also said that production rates had been running ahead of those to which the company had referred at the time of the acquisition announcement. The original announcement had made little impact on the share price. Verdict: Steak.

Quarter ended March 2021

The following companies have not made any subsequent disclosures which may have impacted their investment performance since being commented upon previously: 

Renascor Resources experienced a rising share price trend throughout the March quarter making relatively frequent gains to lead the companies producing the strongest quarterly returns. The investment fortunes of .the company are driven primarily by its plans to develop a graphite anode mining and production centre in South Australia. Renascor has been reporting consistent progress in metallurgical test work, government approvals, sales efforts and funding. The company says it will become the first integrated mining and processing hub outside China. The company reported having cash assets at the end of December 2020 of $4.6 million. The company experienced a 30% reversal in its market value over the last few days of the March quarter. Verdict: Steak.

Month ended March 2021

The following companies have not made any subsequent disclosures which may have impacted their investment performance since being commented upon previously: 

Magnetite Mines has experienced a rising share price since the beginning of 2021 largely as a consequence of firm iron ore market conditions. The company is seeking to develop the Razorback iron ore deposit in South Australia.  A pre-feasibility study into development of the 3.9 billion tonne resource is scheduled for completion by the end of June 2021. The March share price action did not appear to be linked directly to any formal disclosure during the month. At the beginning of the month, the company disclosed that it had been awarded a tenement package by the South Australian government following a competitive process. The newly acquired area contains a large inferred resource based on earlier exploration and resource estimation work. Verdict: Sizzle.

Week ended 26 March 2021

Red Sky Energy disclosed that it had conducted petrophysical testing of two wells in South Australia dating from 1998 and 2011. The recent report identified oil bearing zones which will be incorporated into the company’s study of how to recommence production at the site. The new detail was a known part of the assessment being undertaken and does not significantly alter any prior understandings of the commercial potential. Verdict: Sizzle.

Lefroy Exploration issued an activity update on the last trading day of the week which appears to have precipitated the share price surge. The exploration report covered activity at the company’s Burns gold-copper prospect south east of Kalgoorlie which had been the subject of earlier speculation (see 26 February 2021). Directors referred to one out of 22 completed and planned drill holes as having “intersected a spectacular gold and copper interval”. The company expects assays by mid-April as the drilling activity continues. Verdict: Sizzle.

88 Energy disclosed that commencement of a 6,000 foot production hole at the company’s Alaskan exploration site was imminent. The share price activity continued form the prior week (see 19 March 2021) as speculation mounted over the outcome of the upcoming drilling.  Directors also announced that a share subscription agreement, priced at a premium to the prevailing market, had been signed with one of the company’s contractors. The company foreshadowed that initial indications of prospectivity could be sighted within three to five days. Verdict: Sizzle.

Rey Resources had announced a week earlier that it had extended by 12 months the maturity date for a $500,000 loan facility due to expire on 31 March 2021. Subsequently, the company’s share price traded sharply lower before recovering in the past week to produce what, misleadingly, looks like a strong short term investment return.  The company held $92,000 in cash assets at the end of December 2020 after having drawn down loans of $7.95 million from finance facilities totalling $10.5 million. The company is seeking to develop gas interests in the Canning and Perth basins in Western Australia.   It has been seeking to finalise a farm-out agreement with Origin Energy. Verdict: Sizzle.

Kore Potash has been experiencing a rising share price trend since early March. There has been no formal disclosure from the London headquartered and Republic of Congo focused company which might explain the ongoing price action and heightened volume of shares being traded. Directors have foreshadowed a definitive feasibility study during May 2021. Verdict: Sizzle.

Week ended 19 March 2021

QEM announced that it had commenced studies into hydrogen production opportunities at the company’s Julia Creek vanadium and oil shale project in Queensland. The proposed production process would utilise solar power. In its December quarter activities report, the company outlined testing plans prior to a pre-feasibility study phase. Verdict: Sizzle.

88 Energy had reported in the prior week that it had commenced drilling a well on a site in Alaska. Queried by ASX about of the reason for the price action, directors referred to the drilling which had got underway. Verdict: Sizzle.

Cannindah Resources announced that directors had commenced a review of the Mt Cannindah copper-gold project in Queensland. The company referred, in particular, to the higher prices for the commodities present in the mineralisation as enhancing its prospectivity. The company took the opportunity to raise $1.25 million and, in doing so, dampened the share price rise. The share price rise mirrors a similar price gain two weeks earlier which was quickly reversed. Verdict: Sizzle.

Emetals did not make any formal disclosure which might explain the stronger share price. In late February, the company had reported assays from drilling at a property in the eastern goldfields of Western Australia.  Earlier in February, the company had reported having identified high-grade tantalite bearing pegmatites in the Murchison region of the state.  The company held cash assets of $2.2 million at the end of December 2020. Verdict: Sizzle.

Ausmon Resources announced that it had begun to test cobalt-zinc targets at a property near Broken Hill. On the same day, the company announced commencement of geochemical sampling in another area near Broken Hill prospective for base metals. Verdict: Sizzle.

Week ended 12 March 2021

Austpac Resources did not make any formal disclosure which might explain an extraordinary surge in share volumes traded over two days.  Directors responded ambiguously to a query from ASX about the reasons for the market activity. They said that the company was continually assessing its options, hinting that there might be good reason for investors to get excited, without confirming or denying the possibility of a strategically important forthcoming event. The company has been seeking to commercialise a process for recovery of zinc contaminated iron dust. The company also holds a base metal/gold exploration interest in Victoria.  No work has been conducted for the past year but tenders were let recently for a new round of drilling in the second quarter of 2021. The company has not yet confirmed having retained a driller and did not mention its Victorian exploration interests in its ASX response.  Directors had previously reported having cash assets of $271,000 at the end of December 2020. Verdict: Sizzle.

Talon Petroleum did not make any formal disclosure which might explain the most recent share price action.  The company’s share price had been on a rising trend since the end of February. At the start of March, the company released a presentation document describing its existing assets which include Perth Basin gas targets. It also holds exploration interests in Mongolia and the North Sea. The presentation refers to the next 12 months as being “a game-changer”, listing a series of news making events across all three elements of the portfolio. Verdict: Sizzle.

Centrex Metals did not make any formal disclosure which might explain the most recent phase of a share price surge which commenced in mid-February.  The company is developing the Ardmore phosphate project in Queensland where it announced in late February that small-scale mining had commenced. The data collected from the mining activity would supplement feasibility work which had already been completed. Directors had previously referred to uncertainties over phosphate prices as hindering development progress. Verdict: Sizzle.

Brookside Energy, which has experienced a rising share price trend since late February (see 5 March 2021), did not make any formal disclosure which might explain the continued market re-rating.  The company holds oil production interests in the Anadarko Basin in Oklahoma. Verdict: Sizzle.

Pure Hydrogen Corporation is the new name for Strata-X Energy which is in the process of merging with Real Energy Corporation. The merger completion is expected during March. The relevant court approval for the scheme of arrangement, one of the critical last steps, occurred on 5 March.  On the final day of the week, Real Energy announced completion of stimulation at the company’s coal seam gas venture in the Surat Basin in Queensland. Flow testing will now proceed. Verdict: Steak.

Week ended 5 March 2021

Mandrake Resources had begun a swift price uplift a week earlier after the company announced that it had entered into a land access agreement which grants its entry into an exploration area 30 kilometres east of the Julimar discovery in Western Australia. The company has drawn parallels between the PGE-nickel-copper potential of its newly accessed area with that of the Chalice Mining ground at Julimar. Verdict: Sizzle.

Tasman Resources announced that a subsidiary of Fortescue Metals Group had completed two diamond drill holes at a property 30 kilometres north of Olympic Dam. Fortescue is earning a 51% interest in the Tasman property.  No assays had been prepared and the announcement appeared primarily to be an effort to stoke interest.   A day later, on the last day of the week, the company announced that it had completed a $4.8 million capital raising.  Whether or not the drilling effort culminates in a substantial mineral find, the information so far imparted is wholly insufficient to permit such a conclusion. Verdict: Sizzle.

Tlou Energy announced that it was discussing financing for a gas based energy distribution project in Botswana. The project involves construction of transmission lines and associated infrastructure.  Presumably, the company would not have made the announcement if it had foreseen a risk of the mooted deal falling through. That said, no details of the proposed funding arrangements were offered. The announcement appeared to be designed primarily to stoke short-term investor interest. Verdict: Sizzle.

Brookside Energy did not make any formal disclosure which might explain the unusually strong share price action. Queried by ASX about the reasons, company directors said they had nothing to disclose and could not point to any explanation. The company had previously announced that it had entered into an agreement to farm out a 50% share in oil exploration interests in the Anadarko Basin in Oklahoma.  The beginnings of the share price rise followed immediately after the company’s release of a notice of meeting of shareholders on 1 April. The notice of meeting did not propose consideration of any resolutions of strategic importance. Verdict: Sizzle.

Astron Corporation did not make any formal disclosure which might explain the noticeably stronger investor interest in the company.   In mid-February, the company had announced a 31% upgrade to ore reserves at its mineral sands project in the Wimmera region of Victoria. The company describes the deposit as “one of the largest known zircon and titanium orebodies in the world”. Verdict: Sizzle.

Month ended February 2021

The following companies have not made any subsequent disclosures which may have impacted their investment performance since being commented upon previously: 

Week ended 26 February 2021

Venturex Resources announced that Bill Beament, the executive chairman of Northern Star Resources, will take a 26% voting position in the company via his participation in its recapitalisation. The company intends raising $18.4 million. Venturex has an exploration interest in the Pilbara prospective for copper-zinc-silver mineralisation. It held cash assets of $2.6 million at the end of December 2020. Verdict: Sizzle.

Lefroy Exploration reported intersections of copper-gold mineralisation following a drilling program at the company's Burns prospect south east of Kalgoorlie.  Further assay results are expected. While the announcement has stoked interest, the company remains unsure about the nature of the structure which has underpinned the recent drilling results. Verdict: Sizzle.

AustChina Holdings did not make any formal disclosure which might explain the unusually high market turnover and resulting share price uplift. Queried by ASX about the reasons for the price action, directors speculated that it might have been caused by a press report referring to a transaction involving a company in which AustChina has a minority equity stake.  The company which had been the subject of the press coverage is seeking to develop alternative energy facilities in Queensland and has no evident connection with the Blackall coal deposit AustChina has been seeking to develop. Verdict: Sizzle.

Carawine Resources announced multiple high-grade gold intersections at its Tropicana North project in Western Australia. The results come from a maiden drilling program which raises expectations of a new high grade gold deposit. The company held cash assets at the end of December 2020 of $6.4 million. Verdict: Steak.

Redbank Copper announced that it had secured $7.3 million in fresh equity to underpin its 2021 copper exploration effort in the Northern Territory.  The company had previously reported having cash assets of $2.3 million at the end of December 2020. The company is seeking to rehabilitate historical mine workings as part of an effort to identify a regional mineral structure which directors suspect exists in the surrounding area. Verdict: Sizzle.

Week ended 19 February 2021

Oilex disclosed that discussions were proceeding to resolve a long-running dispute with the Gujarat State Petroleum Corporation, a partner in a gas production venture. The company foreshadowed the possibility of acquiring the interest it did not already hold in the project while emphasising that there was no certainty of a deal being concluded. The transaction will require additional financial resources. Verdict: Sizzle.

Accent Resources did not make any formal disclosure which might explain the strengthening investor interest in the early part of the week. The price action follows a similarly strong performance a week earlier (see 12 February 2021). The company holds 100% of a magnetite project development in Western Australia as it "continues to assess investment opportunities and projects for acquisition or development". The company held cash assets of $123,000 at the end of December 2020 after a $3.9 million of shareholder loan. Verdict: Sizzle.

Sagalio Resources did not make any formal disclosure which might explain a jump in investor interest on the last day of the week. Queried by ASX about the reason for the change, directors said they had nothing to disclose and could not suggest a cause of the share price move. The Hong Kong headquartered company with oil production interests in Kyrgyzstan had experienced a far wilder swing in its share price in January and mid-September 2020 (see 15 January 2021 and  18 September 2020) which was quickly reversed and left unexplained. Verdict: Sizzle.

Pursuit Minerals disclosed, on the last day of the week, that strong electromagnetic conductors had been encountered at an exploration site in Western Australia.  The company raised the prospect of the readings signalling PGE-nickel-copper sulphide mineralisation. Verdict: Sizzle.

Lodestar Minerals announced that it had agreed to acquire a company which holds a 20% interest in the Nepean nickel project near Coolgardie and operated by Auroch Minerals, owner of the remaining interest. A $1.3 million capital raising coincided with the announcement. The company had previously held gold exploration interests in Western Australia. Verdict: Sizzle.

Week ended 12 February 2021

Accent Resources did not make any formal disclosure which might explain the share price rise in what is a usually very lightly traded stock. Directors had previously announced that they had submitted a mining licence application in December covering a magnetite resource in the midwest region of Western Australia.  A mining lease application covering ground prospective for gold mineralisation in Western Australia was granted in December.  The company held cash assets at the end of December of $123,000.  Its major shareholder has a 67% stake in the company after a note conversion. Directors said, at the end of January, that the company and its principal shareholder are assessing investment opportunities and projects for acquisition or development. Verdict: Sizzle.

Blackearth Minerals announced that it had struck a deal with a European graphite sourcing group to access graphite raw materials to meet demand from processing facilities and act as a bridge to production from its own properties in Madagascar. The company also holds copper-nickel exploration interests in the south-west region of Western Australia.   It held cash assets of $2.0 million at the end of December 2020.  The company will have been caught up in the increasingly frenzied search for energy storage investment opportunities. Verdict: Sizzle.

Gas2Grid did not make any formal disclosure which might explain the share price move.  The company has been engaged in a dispute with the French government after officials refused to renew a hydrocarbon exploration permit.  A lower court has already found in favour of the company.  A higher tribunal had given the government until 15 February 2021 to submit a defence after it had failed to meet an earlier deadline to respond to a compensation claim. Verdict: Sizzle.

NuEnergy Capital did not make any formal disclosure which might explain a surge in share turnover and the accompanying higher share price. The company is seeking to develop oil and gas properties in Indonesia for which it is awaiting relevant approvals. Queried by ASX about the reasons for the price action, the company indicated that no further information is available about the progress of its contact with the government. Verdict: Sizzle.

Pilot Energy did not make any formal disclosure which might explain the higher share price and accompanying increase in the volume of shares traded.  The company holds oil and gas exploration interests over Western Australian offshore locations, centred on the Perth Basin. Midweek, the company was granted a trading halt and, at the end of the week, was suspended from trading to give directors time to prepare a response to ASX questions. Verdict: Sizzle.

Week ended 5 February 2021

Orion Metals, a rarely traded stock, did not make any formal disclosure which might explain the single day $1,895 turnover which precipitated the share price shift.  The company has been seeking to renew copper-gold tenements in Queensland. It had already resolved to sell rare earth and gold exploration interests in Western Australia for $250,000. The company reported having just $9,000 in cash assets at the end of November and having to rely on borrowings to meet very modest spending commitments in anticipation of a remaining payment of $120,000 due from asset sales. Verdict: Sizzle.

Emperor Energy did not make any formal disclosure which might explain the stronger share price.  Queried by ASX about the reason for the price action, the company said it had nothing to disclose but drew attention to rising LNG prices.  The company holds exploration permits over an area off the coast of Victoria.  At the end of 2020, the relevant regulator approved a request by the company for a 30 month postponement of a February 2021 drilling commitment. Verdict: Sizzle.

Grand Gulf Energy did not make any formal disclosure which might explain the share price uplift.  In the prior week, the company reported on its December quarter activities when it had net operating proceeds of $13,000 from production of 5,215 barrels of oil.  The company, which had cash assets at the end of December of $928,000, has production interests in Louisiana. Verdict: Sizzle.  

King Island Scheelite announced that it had received a $10 million loan from the Tasmanian state government to support redevelopment of its Dolphin tungsten project, estimated to cost $73 million.  The loan should give the company�s ongoing fundraising efforts a boost. The company held cash assets of $1.8 million at the end of December with borrowings of $5.5 million. Verdict: Sizzle.

EcoGraf continued on a share price uplift dating from mid-January (see 22 January 2021). The company announced the results of test work using its process for recovering carbon anode material from production waste arising from manufacture of lithium-ion batteries. The testing will feed into further testing and analysis but will not precipitate any immediate commercial outcomes.  The company also announced that volumes of shares traded through a Frankfurt listing were accounting for a rising share of total turnover. Verdict: Sizzle.

Month ended January 2021

The following companies have not made any subsequent disclosures which may have impacted their investment performance since being commented upon previously although all have an exposure to the ongoing repricing of lithium related assets: 

Lake Resources announced, near the beginning of January, that a definitive feasibility study relating to its Kachi lithium brine project in Argentina had commenced. The company has been emphasising a development approach which utilises ion-exchange technology rather than evaporation of brine ponds to significantly reduce the environmental impact of development. The technology also allows a much quicker production cycle.  The company�s steps toward development have coincided with a sharp upturn in investor support for battery storage related investments.  Lake has also sought to take advantage of the heightened investor interest by facilitating trading of its shares in US over the counter markets.  While the longer term need for more lithium has been a near universally accepted investment theme, much of the near term interest has failed to differentiate among investments of different quality and reflects, at least in part,  a search for concept stocks by retail investors with little regard for value underpinnings. Verdict: Sizzle.

Week ended 29 January 2021

Bounty Oil and Gas did not make any formal disclosure which might explain a huge uplift in the number of shares traded. Queried by ASX about the reason for the higher share price, the company drew attention to an application to extend the permit term for an offshore gas exploration area adjacent to Sydney.  Once granted, the extension would enable the company to complete an exploration well.  The company noted that the website of the relevant regulator had referred to the application being in its last stages.  The company also drew attention to news reports about carbon capture and storage technology. The exploration area is also thought by some to be a way to facilitate the New South Wales government geosequestration strategy. Verdict: Sizzle.

Magnis Energy Technologies did not make any formal disclosure which might explain the share price uplift.  Magnis has not reported any progress towards the development of its Nachu graphite project in Tanzania for several months, instead putting the emphasis on establishing joint research ventures into alternative energy technologies, including fast charge batteries. Verdict: Sizzle.

Hawkstone Mining has experienced a steeply rising share price since the second week in January.  During the last week, Hawkstone reported metallurgical test results of mineralisation from the company�s Big Sandy property in Arizona. The company also holds gold exploration interests in Nevada and Idaho, where it has recently completed a drill program. Verdict: Sizzle.

Ironbark Zinc did not make any formal disclosure which might explain the share price appreciation.  At the end of the week, after a surge in market turnover, the company requested a trading halt.  Ironbark is seeking project funding for the Citronen zinc mine in Greenland. Verdict: Sizzle.

Australia United Mining did not make any formal disclosure which might explain the single day surge in investor interest.  The company did not offer any explanation for the price action, after having been queried by ASX.  The company holds gold exploration interests in Queensland and New South Wales.  The company had previously reported having cash assets at the end of September 2020 of $12,000, drawing on a loan facility from directors of the company to fund day-to-day expenses. Verdict: Sizzle.

Week ended 22 January 2021

Enova Mining did not make any formal disclosure which might explain the unusual share price action.  Queried by ASX about the reasons for the price move, directors said they had nothing to disclose and were unaware of what might have contributed to the stronger investor interest.  The company is seeking to develop a rare earth deposit near Alice Springs in the Northern Territory for which it is seeking funding. At the end of September 2020, the company had cash assets of $25,000 and was relying on borrowings and small equity placements with retail investors. Verdict: Sizzle.

Parkway Minerals did not make any formal disclosure which might explain the stronger share price outcome.  The company has moved away from its once primary aim of building a phosphate and potash mining business in Western Australia, preferring to focus on waste water treatment technologies with a special interest on coal seam gas extraction.  The company is also seeking to work with project owners to process potash brines. Verdict: Sizzle.

Hammer Metals announced copper and gold intercepts at a joint venture property near Mount Isa in Queensland.  The area under consideration has not previously been drill tested.  The company also has gold exploration interests in Western Australia.  It held cash balances of $6.9 million at the end of September 2020. Verdict: Sizzle.

Ecograf did not make any formal disclosure which might explain the share price movement.  Queried by ASX about the reasons for the price action, directors said that they had nothing to disclose which might have led to the shift in price.  The company took the opportunity, in responding to the regulator�s questions, to provide a lengthy explanation of the company�s strategy which includes construction of an anode manufacturing facility at Kwinana in Western Australia. The company also has a graphite mine development opportunity in Tanzania and plans for storage battery recycling.   Ecograf will have benefited from the unusually strong recent interest among investors in battery storage innovations.  For each of its strategic endeavours, the company needs development capital to make more meaningful progress.  In each instance, investors and customers will have to be convinced about the company�s proposed technological solutions. Verdict: Sizzle.

Real Energy Corporation announced that it had signed a term sheet with a proposed joint venture partner under which the two companies will develop four hydrogen fuel hubs along the east coast of Australia.  As well as its hydrogen fuel development business, the company has traditional oil and gas exploration interests in Queensland and South Australia. Verdict: Sizzle.

Week ended 15 January 2021

Sayona Mining announced a strategic link with ASX-listed Piedmont Lithium. Piedmont will take an investment stake in Sayona and the latter will supply Piedmont with spodumene concentrate, accounting for as much as 50% of its output, from its proposed mine in Quebec.  Piedmont is developing a processing plant in North Carolina. In the week before, ASX had queried the company about the reasons for the rise in the share price which had commenced in the first days of January. In response, the company referred to improved investor interest in the lithium industry but made no reference to the Piedmont transaction. Verdict: Steak.

Sagalio Energy did not make any formal disclosure which might explain the steep increase in investor interest.  Queried by ASX about the share price movement, directors said that they did not have any new information to impart or any knowledge of what may be influencing the price.  The Hong Kong headquartered company has oil and gas interests in Kyrgyzstan. The usually very lightly traded stock is prone to occasional inexplicable price surges such as in September 2020 (see September quarter 2020).  Verdict: Sizzle.

Stonehorse Energy and Brookside Energy, its joint venture partner, disclosed new production and development data for a new Oklahoma oil well where production has commenced at a rate of 130 barrels a day.  The company�s rising share price trend began prior to the announcement and earlier in the month. Improved oil prices will have bolstered the outlook for oil producers generally but investors will have also been speculating about the upcoming production start. Verdict: Steak.

Hexagon Energy Materials did not make any formal disclosure which might explain the share price performance.  Queried by ASX about the share price action, company directors said that they had nothing to disclose. Nor could they explain why the share price had risen.  In late December, Hexagon had launched a takeover for a company aiming to produce hydrogen in the Northern Territory. Hexagon already had base metal and gold exploration interests in the Kimberley region of Western Australia.  Despite the orientation toward traditional mining in its existing portfolio of interests, company directors have characterised their strategy as having �a focus on clean energy opportunities�.  Investor interest in companies with alternative energy exposures has been strong in recent weeks. The company reported having cash assets of $0.77 million at the end of September 2020.  Verdict: Sizzle.

Anson Resources announced that it had sent samples of lithium hydroxide and lithium carbonate for testing in lithium-ion battery cells.  The testing is expected to take several months.  The move is not unexpected being a natural consequence of the company�s development ambitions.  With investor interest in lithium related stocks improving, the sensitivity of prices to announcements by companies with such exposure has increased dramatically. Verdict: Sizzle.

Week ended 8 January 2021

Cohiba Minerals did not make any formal disclosure which might explain the share price performance. Queried by ASX about the reasons for the price action, directors said that they had no new information to impart but drew attention to several factors that may have had an impact. Among the factors to which directors referred was the recent completion of drilling at the company�s Olympic Domain exploration area in South Australia, near BHP�s interests in the region, and for which assays have been delayed. Cohiba is earning an 80% interest although its joint venture partner has challenged whether it has a met its threshold expenditure obligations. The company will also have benefitted from the positive investor sentiment arising from recently strong copper prices. The company also drew attention to the recent completion of a share purchase plan which may have added to short-term trading weakness while open. Verdict: Sizzle.

Coppermoly did not make any formal disclosure which might explain the share price action. Queried by ASX about the reasons for the share price move, directors said they had no fresh information to impart and declined to offer any explanation for the unusual trading activity. The company had put its Papua New Guinea copper-gold exploration activities on hold due to the impact of COVID-19 travel restrictions on its staff movements. At the end of September, the company held cash assets of $4.3 million, giving it a buffer against a prolonged delay in restarting field activity. Verdict: Sizzle.

Lepidico disclosed that it was in discussions with �up to 6� lithium hydroxide consumers. In making the announcement, directors held out the hope that discussions would continue through January, enabling completion of supply agreements to support project financing in the second quarter of 2021. The company is seeking to employ its proprietary technology to extract lithium from mineralisation in Namibia. Verdict: Sizzle.

Norwest Energy did not make any formal disclosure which might explain the share price movement. The company�s last substantive statement about its activities was at the time of its annual meeting of shareholders in November when the chief executive outlined oil and gas exploration plans within the Perth Basin where it owns minority stakes in several ventures. Verdict: Sizzle.

Doriemus, a UK domiciled company with oil and gas exploration interests in southern England, did not make any formal disclosure which might explain the improved share price outcome. The company, which held cash assets of $1.4 million at the end of September, will have benefited from recently stronger oil prices. Verdict: Sizzle.

Week ended 1 January 2021

Core Lithium did not make any formal disclosure which might explain the share price action. Two weeks earlier, directors had reported completion of a drilling program at the company�s Northern Territory lithium resource.  Drilling was designed to upgrade an inferred spodumene resource. Assays are expected in January. A week before that, the company had reported finding over 80 gold nuggets within a soil anomaly in the Northern Territory. Verdict: Sizzle.

PepinNini Minerals did not make any additional disclosure to explain the further period of strong performance following on from the announcement of an acquisition earlier in the month (see 25 December 2020). Verdict: Sizzle.

Allegiance Coal released details of its Elk coking coal mine plan. The Colorado mine is now scheduled to start production in June 2021, subject to adequate funding. The company announced that the start-up capital requirement has been reduced from a previously estimated US$24 million to US$13.5 million. It had previously reported having cash assets of $1.3 million at the end of September.  Those cash resources were subsequently supplemented by a $7.5 million share placement. Verdict: Steak.

Lion Energy did not make any formal disclosure which might explain the share price rise. The usually lightly traded oil and gas exploration company with interests in Indonesia had last reported, on 11 November, that a seismic survey over one area of interest had been completed at a cost of $800,000. No results have since been disclosed. The company had ended September 2020 with cash assets of $774,000. Verdict: Sizzle.

GWR Group announced that road haulage of iron ore from the company�s mine site to the port of Geraldton in Western Australia had commenced with the first shipment of ore expected in January 2021. The company�s share price has been rising since mid November during which time directors have released several reports detailing progress towards the company�s first sales. At the same time, improved iron ore prices will have helped boost investor sentiment towards the company. The company has taken a low capex route with direct shipping ore to enter the global iron ore trade. The company also has gold interests in the Wiluna area in Western Australia. Verdict: Sizzle.