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What follows should make you feel even better about this greatinvestment. Taken from Livewire:
Five 'Undiscovered Gems' from Diggers
LIVEWIRE EXCLUSIVELivewire
about 13 hours ago
One of Australia’s biggest mining conferences, Diggers and Dealers, has just wrapped up in Kalgoorlie. Scores of mining juniors present to the 2,000+ strong audience, and it is a well known hunting ground for new ideas and opportunities. Livewire reached out to a panel of contributors that are experts in the space to get their take on which stocks were the absolute standouts from the event. We asked them what was the most impressive presentation, which undiscovered gems caught their eye, and what their pick of commodities is. Read on for the good oil from Hedley Widdup, Lion Selection; Matt Langsford, Terra Capital; Steve Thomas, Katana Asset Management; and Sam Berridge, Perennial Value.
The commoditIes with the best outlook
Matt Langsford, Terra Capital: Cobalt and lithium
It’s hard to go past the ‘battery’ commodities of lithium and cobalt in terms of supply and demand dynamics. Clearly on both commodities the risk is on the supply side rather than risk of demand not increasing dramatically. With both commodities, I am investing in those companies that have the potential to be in production sooner rather than later.
Hedley Widdup, Lion Selection: Tin and Gold
I think tin is the metal that hasn't moved yet in the battery / semi conductor thematic, and it's pretty well recognised that there is little new production approaching whilst some older sources of supply are dwindling. Gold - I love investing in gold mining because the commodity bestows fewest risks on the project. It's generally very easy to liberate and simple to sell, and requires no logistics infrastructure so projects can be scaled according to capital availability and deposit understanding. The fundamental looks positive too - gold tends to do well in low or negative real interest rate environments or uncertainty.
Steve Thomas, Katana: Gold
Gold is our favourite commodity also in these turbulent times and with the Forum’s guest speaker from the US expecting a return of inflation as QE is gradually removed - that should see gold go north also.
The undiscovered gems
Sam Berridge, Perennial Value: Finders Resources (ASX:FND)
Many a great opportunity can come from going booth to booth, talking to the smaller companies which don't present. Of those, Finders Resources (FND) was a standout for me. This company has built, commissioned and is running a copper mine in Indonesia. Based on the last two quarters, FND is annualising EBITDA of roughly A$100m pa. This compares with a market cap of $162m.
Finders produces copper metal rather than a copper concentrate, thus the ore and concentrate export restrictions which have hampered Freeport McMoran and the nickel laterite miners in Indonesia hasn't impacted Finders. The company is rapidly repaying is debt, which means cash sweep provisions which have restricted exploration spend to date are likely to end next year. There are existing resources which await reserve conversion.
Matt Langsford, Terra Capital: Oklo Resources Ltd (ASX:OKU)
Oklo continues to impress with recent drilling results including 66m @ 2.2g/t and what will hopefully shape up to be an exceptional deposit. If investors remember the Papillon (ASX
IR) discovery in Mali which was sold to B2Gold for $680m, this project is nearby and has the same geological team working on the exploration program.
Hedley Widdup, Lion Selection: Egan St (ASX:EGA), Calidus and Riversgold
Around half a dozen companies caught my eye - they are either new or have been rejuvenated by fresh people or projects. Generally speaking it feels as if there is a large proportion of motivated entrepreneurs that are high on willingness and capability promoting these new ventures - as opposed to just spruikers. Several of these were unlisted. In the listed space I'm interested to watch Calidus (gold in the Pilbara) and Allan Kelly's new IPO Riversgold which has attracted $2.5m backing from Evolution. Whilst it wasn't a discovery to me - I observed a fair few ears turning toward small gold hopeful Egan Street Resources who delivered high grade discovery results on day two.
Steve Thomas, Katana: Breaker Resources (ASX:BRB)
On the new players it was Breaker Resources that captured much of the limelight with its Bambora discovery just north-east of Kalgoorlie. The company has been delivering some great drilling results over the last 6 months, which has now been augmented with this weeks release of deeper drilling results suggesting the discovery may be of size. A maiden resource is eagerly awaited for and is due by the end of the calendar year. The other up-and-comer features a high-grade gold discovery by West Africa Resources at Sanbrado. Recent drilling has delivered a number of 50-60metre drill intersections at +10 grams per tonne gold. These sorts of widths and grade haven't been seen in Australia for quite awhile so it may be worth the extra risk involved in West Africa. They expect and updated resource shortly incorporating the latest of their successful drilling.
ASX:NST ASX:SAR ASX:TAW ASX:EGA ASX:OKU ASX:FND ASX"MLX
Comments
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JAMES MARLAY AUG 09, 2017
Great little wrap!
