Saw this one today on twitter
Invast Blog
Small Cap Favourites: Panoramic Resources Limited
June 9, 2016
It’s been a long time since we looked at small, single producing Australia mining stocks. But we think it’s time to start running the ruler of the names that have survived. Basically all of the stocks in the sector have been priced for collapse. Some will, others won’t. The ones that survive will undergo a rerating in the coming months and years and this can be a great time to start finding and building that list. PAN is one of those names that remains stuck – a victim of lower nickel prices. We don’t know when the underlying commodity will rebound, but at some stage it will, because of its use in industry.
A recent Bloomberg article noted nickel demand from the auto industry is set to rise as much as threefold in five years as output of electric and hybrid cars gathers pace, according to Russia’s largest producer of the metal. Electric and hybrid vehicles are increasingly becoming a low-cost alternative for consumers as their batteries — which use nickel — get cheaper and more efficient. That may aid a recovery in the market for the metal after prices slumped because of oversupply in the stainless-steel industry.
PAN is one of the largest domestic Nickel producers, has recently raised capital to sustain its operations, shed staff and curtailed production in order not to deplete its ore base until prices recover. The current market cap of around $50-60m and strong backing from one of its key shareholders – Zeta Resources – means it has nice upside optionality when nickel prices do rebound. It’s one of the few resources stocks on our list.
Invast is very well placed to bring you some huge opportunities in the coming months. Execution costs for ASX stocks are 0.06% (6 basis points), which means for a trade with a notional exposure of AUD $10,000, the applicable commission is only AUD $6.00.
To be onboard with the full set of benefits, you need to become an Invast client.
About Invast Global
Established in 1960, the Invast Group has grown to become one of the most trusted firms in the Japanese financial markets. In recent years, the firm has expanded globally, employing the Japanese principle of Kaizen 改善(かいぜん) (continuous improvement) and a dedication to client service and innovation, to become a powerhouse within the industry.
Invast Financial Services Pty Ltd in Australia is a wholly-owned subsidiary company of Invast Securities Co Ltd which is listed in Japan.
Our size has meant that we have the resources and standing to assemble industry-leading liquidity, cutting edge technology and a highly regarded team of experts ready to provide a brokerage solution tailored to your needs. From private clients to Prime-of-Prime institutional solutions, Invast is recognized globally as a premium multi-asset broker.
http://www.invast.com.au/our-firm/why-invast.aspx
- Forums
- ASX - By Stock
- PAN
- Will Nickel demand rise 3x in 5 years?
Will Nickel demand rise 3x in 5 years?
-
- There are more pages in this discussion • 7 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add PAN (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online