Ann: Talisman Receives First Wonmunna Royalty Payment, page-68

Resources Top 5: All iron ore, all copper as prices surge
May 12, 2021 | Reuben Adams

• Helix hits 30m copper interval at Canbelego project
• Thor (copper) and Talisman (iron ore) fly on analyst reports
• Carpentaria finalises deal to buy Pure Metal’s 24% share of the Hawsons Iron Project

Here are the biggest small cap resources movers

TALISMAN MINING (ASX:TLM)

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Capital H’s Josh Baker reckons that the flagship asset of gold-copper explorer Talisman is actually a royalty over the Wonmunna iron ore project, acquired when it sold off the project in 2011.

The project is now owned by Mineral Resources (ASX:MIN), which is currently drilling to grow the resource.

“As such, we think there is a strong likelihood that the scope of the deposit will be expanded and able to support a 10Mtpa scale operation for 5yrs+,” Baker says.

“At the current average price for 58% graded ore for CY21 to date (~USD142/t), this implies a revenue run-rate of ~$9 million p.a. from TLM’s royalty.

“Should MIN be successful in doubling the production run-rate asap, it would imply a revenue run-rate of ~$18 million p.a. on the same assumptions, in stark contrast to [Talisman’s] current $37 million market cap.”

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