Resource stocks were driving the FTSE 100 to gains on Friday, lifting the index back toward levels not seen since before the COVID-19 pandemic.
TORONTO, June 11, 2021 /CNW/ – Laurion Mineral Exploration Inc. (TSXV: LME) (OTCPINK: LMEFF) ("LAURION" or the "Corporation") will host its annual and special meeting of shareholders (the "Meeting") on Tuesday, July 6, 2021 at 11:00 a.m. (Eastern time). Out of an abundance of caution, to proactively address potential issues arising from the ongoing public health impact of COVID-19 while enabling greater participation of LAURION's shareholders, the Meeting will take place in a virtual-only format.
The Meeting will allow shareholders to listen to the proceedings and submit votes through the web-based platform. Details for shareholders and interested parties in attending the virtual meeting are found below. Participants are encouraged to login in approximately 15 minutes prior to the start time.
Type in https://virtual-meetings.tsxtrust.com/en/1164 on your browser at least 15 minutes before the Meeting starts. Please do not do a Google search. Do not use Internet Explorer.
Click on "I am a Guest" if you are an interested party or a shareholder not intending to vote.
In order to streamline the virtual meeting process, the Corporation strongly encourages shareholders to vote in advance of the Meeting using the Voting Instruction Form ("VIF") and Form of Proxy for the Meeting, which are available on SEDAR at www.sedar.com and also at https://docs.tsxtrust.com/2025. Proxies must be deposited with the Corporation's transfer agent and registrar, TSX Trust Company ("TSX Trust"), on or before 11:00 a.m. (Eastern time) on July 2, 2021.
Registered shareholders entitled to vote at the Meeting may attend and vote at the Meeting virtually by following the steps set out below:
Enter your 12-digit control number (on your proxy form).
Enter the password: laurion2021 (case sensitive).
When the ballot is opened, click on the "Voting" icon. To vote, simply select your voting direction from the options shown on screen and click "Submit". A confirmation message will appear to show your vote has been received.
Beneficial Shareholders entitled to vote at the Meeting may vote at the Meeting virtually by following the steps set out below:
Appoint yourself as proxyholder by writing your name in the space provided on the form of proxy or VIF.
Sign and send it to your intermediary, following the voting deadline and submission instructions on the VIF.
When the ballot is opened, click on the "Voting" icon. To vote, simply select your voting direction from the options shown on screen and click Submit. A confirmation message will appear to show your vote has been received.
If you are a registered shareholder and you want to appoint someone else (other than the management nominees) to vote online at the Meeting, you must first submit your proxy indicating who you are appointing. You or your appointee must then register with TSX Trust in advance of the Meeting by emailing tsxtrustproxyvoting@tmx.com the "Request for Control Number" form, which can be found at https://tsxtrust.com/resource/en/75.
If you are a non-registered shareholder and want to vote online at the Meeting, you must appoint yourself as proxyholder and register with TSX Trust in advance of the Meeting by emailing tsxtrustproxyvoting@tmx.com the "Request for Control Number" form, which can be found at https://tsxtrust.com/resource/en/75.
Shareholders who have any questions or require further information with regard to voting their shares or attending the Meeting should contact TSX Trust, toll-free in North America at 1-866-600-5869 or by email at tmxeinvestorservices@tmx.com.
Further information related to the Meeting, including the matters to be voted on and how to attend the Meeting and vote, is set forth in the Corporation's management information circular dated May 27, 2021, which is available under LAURION's SEDAR profile at www.sedar.com.
About LAURION Mineral Exploration Inc.
The Corporation is a junior mineral exploration and development company listed on the TSXV under the symbol LME and on the OTCPINK under the symbol LMEFF. LAURION now has 228,052,731 outstanding shares of which approximately 79% are owned and controlled by Insiders who are eligible investors under the "Friends and Family" categories.
LAURION's emphasis is on the development of its flagship project, the 100% owned mid-stage 47 km2 Ishkoday Project, and its gold-silver and gold-rich polymetallic mineralization with a significant upside potential. The mineralization on Ishkoday is open at depth beyond the current core-drilling limit of -200 m from surface, based on the historical mining to a -685 m depth, in the past producing Sturgeon River Mine. The recently acquired Brenbar Property, which is contiguous with the Ishkoday Property, hosts the historic Brenbar Mine and LAURION believes the mineralization to be a direct extension of mineralization from the Ishkoday Property.
Follow us on Twitter: @LAURION_LME
Caution Regarding Forward-Looking Information
This press release contains forward-looking statements, which reflect the Corporation's current expectations regarding future events, including with respect to management's anticipated timing, format and conduct of the Meeting,LAURION's business, operations and condition, and management's objectives, strategies, beliefs and intentions. The forward-looking statements involve risks and uncertainties. Actual events and future results, performance or achievements expressed or implied by such forward-looking statements could differ materially from those projected herein including as a result of the interpretation and actual results of current exploration activities, changes in project parameters as plans continue to be refined, future prices of gold and/or other metals, possible variations in grade or recovery rates, failure of equipment or processes to operate as anticipated, the failure of contracted parties to perform, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the Corporation's publicly filed documents. Investors should consult the Corporation's ongoing quarterly and annual filings, as well as any other additional documentation comprising the Corporation's public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. Subject to applicable law, the Corporation disclaims any obligation to update these forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Under the guidance of CEO Diana Hu, Eastern Platinum Limited (TSE:ELR) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.
Comparing Eastern Platinum Limited's CEO Compensation With the industry
According to our data, Eastern Platinum Limited has a market capitalization of CA$49m, and paid its CEO total annual compensation worth US$393k over the year to December 2020. We note that's an increase of 26% above last year. In particular, the salary of US$288.4k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$242m, reported a median total CEO compensation of US$124k. This suggests that Diana Hu is paid more than the median for the industry.
Component
2020
2019
Proportion (2020)
Salary
US$288k
US$280k
73%
Other
US$105k
US$31k
27%
Total Compensation
US$393k
US$311k
100%
Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 7% is other remuneration. In Eastern Platinum's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.
ceo-compensation
A Look at Eastern Platinum Limited's Growth Numbers
Eastern Platinum Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. It achieved revenue growth of 22% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Eastern Platinum Limited Been A Good Investment?
With a total shareholder return of 13% over three years, Eastern Platinum Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude…
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Eastern Platinum (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
(Bloomberg) — BHP Group averted a strike at its second-largest copper mine in Chile after workers at the Spence operation accepted a final wage offer on the last day of mediated talks.
The deal will ease concerns over a potential stoppage that would have further tightened global supplies of the metal. It comes after staff at a BHP operations center in Santiago ended a strike and returned to work this week. Attention will now shift to wage talks at BHP’s giant Escondida mine.
About 92% of the 1,079 Spence operations and maintenance staff who voted accepted terms of the new three-year contract, according to a document provided by the union. Workers had rejected a previous proposal and BHP sought mediation that was extended through Thursday.
“In these times, the deal we reached is an important signal of how we should face Spence’s current and future challenges,” said Ana Zuniga, a spokesperson for BHP’s Pampa Norte, which comprises Spence and the Cerro Colorado mines.
Workers are “calm and glad” with a package that includes a 2% wage increase and a 15.5 million-peso ($21,600) bonus, as well as new benefits and other adjustments, Union President Ronald Salcedo said.
Surging copper prices and company profits are emboldening unions whose members have continued to work through the pandemic. On the other side, producers are looking to contain labor costs as inflation picks up, ore quality deteriorates and and host nations look for a bigger share of the windfall.
Still, the wage deal at Spence may bode well for collective bargaining that just kicked off at Escondida, the world’s largest copper mine that endured a 44-day strike in 2017. Wage talks in the top copper-producing nation add to supply risks at a time when recovering demand is tightening the global market.
BHP recently invested about $2.5 billion in upgrades at Spence, including a new concentrator, with the Pampa Norte division expected to produce 240,000-270,000 tons in fiscal year 2021, compared with 243,000 tons last year.
(Adds company comment and details on Spence.)
More stories like this are available on bloomberg.com
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KOLWEZI, DRC- JULY 7: The sun sets on one of the open pit copper mines at Mutanda Mining Sarl on July 6, 2016 in Kolwezi, DRC. The mine is owned (69%) by Glencore, an Anglo-Swiss multinational commodity trading and mining company. The mine is mainly producing copper but also some cobalt. The mine employs about 3,500 people and its located in Luabala Province in Southern DRC. A truck carries a load of ore to the processing plant. (Photo by Per-Anders Pettersson/Getty Images)
Mining stocks steamed ahead on Friday, helping the FTSE 100 (^FTSE) to push to its highest level in a month.
Glencore (GLEN.L) rose more than 3%, Antofagasta (ANTO.L) climbed 2.5% higher and Evraz (EVR.L) was up 2.7% in noon trade, lifting London’s benchmark index to its highest since 10 May, when it touched a new record level since the pandemic began.
Newly-listed Thungela Resources (TGA.L), a spin-off from Anglo American (AAL.L) also pushed 2.4% higher on the day, while healthcare stocks also joined the precious metal and base metal miners on the rally.
Glencore was amongst the biggest rises on the FTSE 100 on Friday. Chart: Yahoo Finance
It came as metal prices and oil prices rose on Friday as the International Energy Agency (IEA) said on Friday oil demand is set to rise above pre-COVID levels by the end of 2022, but that oil producers will need to boost production.
The Paris-based body expects consumption to rebound by 5.4 million barrels per day (bd) this year as vaccines are rolled out and economies reopen. Consumption declined by a record 8.6 million bd in 2020 as the coronavirus pandemic took a hold.
It expects a further 3.1 million bd increase in 2022, to average 99.5 million bd with an increase at the end of the year that will surpass the level of demand before the COVID pandemic.
Countries outside the Organisation of Petroleum Exporting Countries and its allies (OPEC+) group are expected to boost output by 1.6 million bd next year, to exceed 2019 levels.
While, OPEC+ countries will have 6.9 million bd of spare capacity even after lifting production by 2 million bd over the May-July period.
London miners were also boosted by reports that the UK economy grew 2.3% in April, the fastest rise since July 2020.
The figure, which follows strong growth of 2.1% in March, was slightly above Reuters poll consensus for a 2.2% increase as non-essential shops and outdoor hospitality reopened to the public after months of lockdown.
The services sector provided the biggest boost to the British economy, with output growing 3.4% during the month.
However overall output remains 3.7% below the pre-pandemic levels seen in February last year. Output in the production sector fell by 1.3% in April 2021, the first fall since January 2021 as three of the four sectors contracted.
Watch: Could mining make a comeback in Cornwall?
Under the guidance of CEO Diana Hu, Eastern Platinum Limited (TSE:ELR) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.
Comparing Eastern Platinum Limited's CEO Compensation With the industry
According to our data, Eastern Platinum Limited has a market capitalization of CA$49m, and paid its CEO total annual compensation worth US$393k over the year to December 2020. We note that's an increase of 26% above last year. In particular, the salary of US$288.4k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$242m, reported a median total CEO compensation of US$124k. This suggests that Diana Hu is paid more than the median for the industry.
Component
2020
2019
Proportion (2020)
Salary
US$288k
US$280k
73%
Other
US$105k
US$31k
27%
Total Compensation
US$393k
US$311k
100%
Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 7% is other remuneration. In Eastern Platinum's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.
ceo-compensation
A Look at Eastern Platinum Limited's Growth Numbers
Eastern Platinum Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. It achieved revenue growth of 22% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Eastern Platinum Limited Been A Good Investment?
With a total shareholder return of 13% over three years, Eastern Platinum Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude…
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Eastern Platinum (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Eastern and Western veining horizons are extended in the Shepherd Zone, with numerous high-grade gold intercepts along a 400 metre strike extent
Figure 1
Schematic cross-section of the Shepherd vein system highlighting its relationship to Youle and potential targets at depth.
Schematic cross-section of the Shepherd vein system highlighting its relationship to Youle and potential targets at depth.
Figure 2
Longitudinal section of the Shepherd Zone Eastern Veining.
Longitudinal section of the Shepherd Zone Eastern Veining.
Figure 3
Photomicrograph of gold within the vein at 193.21m of BC187 highlighting the spatial relationship with quartz, carbonate, stibnite and siltstone.
Photomicrograph of gold within the vein at 193.21m of BC187 highlighting the spatial relationship with quartz, carbonate, stibnite and siltstone.
Figure 4
Longitudinal section of the Shepherd Zone Western Veining
Longitudinal section of the Shepherd Zone Western Veining
TORONTO, June 08, 2021 (GLOBE NEWSWIRE) — Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, OTCQB: MNDJF) is pleased to provide an update on the newly discovered Shepherd Zone at its Costerfield Operation in Victoria, Australia.
The Eastern vein has now been traced over 300 metres (“m”) of strike length and approximately 100 m in vertical extent. The mineralization remains open to the south and at depth (Figure 2).
The Western vein has now been traced over 400 m of strike length and approximately 100 m in vertical extent and remains open to the south and at depth (Figure 4).
New Drilling Highlights:
Eastern Veining
172.3 g/t gold over true width of 0.27 m in BC213; and
69.5 g/t gold over true width of 1.11 m in BC210 including:
406.0 g/t gold over true width of 0.14 m
Western Veining
33.7 g/t gold over true width of 3.22 m in BC201 including:
127.0 g/t gold over true width of 0.69 m;
712.8 g/tgold over true width of 0.10 m in BC205; and
19.4 g/t gold over true width of 4.84 m in BC210 including:
657.3 g/t gold over true width of 0.13 m
Note: Further intercept details including significant intercepts within composite intervals can be found in Table 1 in the Appendix to this document.
Dominic Duffy, President and CEO of Mandalay, commented: “Over the past month, Mandalay’s increased focus on the Shepherd Zone has demonstrated great success with the Eastern and Western veining horizons extending 300 m and 400 m in strike length, respectively. The grades shown along strike within the Eastern veining are consistently high, with significant visible gold identified within each intercept along the top of the zone, demonstrating an exciting new high grade gold vein system (Figures 1,2 and 4).”
Mr. Duffy continued, “Mandalay is also encouraged by the indication that the two veining horizons merge towards the south, in an area that exhibits elevated widths and grades. This southern area remains unconstrained at depth.”
Mr. Duffy continued, “To date, drilling has been concentrated in the upper portions of the zone with a focus on optimizing the knowledge of the geometries and grades for near term mine planning. During the near-term, additional underground exploration drill platforms will be developed allowing for optimum drill intercept angle, which will slow the drill rates into the Shepherd Zone. Infill drilling will continue at an accelerated rate in the upper areas of the Shepherd Zone for medium-term mine planning, as well as to test for extensions of the vein system to the south and at depth.”
Mr Duffy concluded, “We are extremely excited about this discovery and the continuity of very high grades over many hundreds of meters in strike length. It is obviously important to understand the full dimensions of this vein system and the economic portions of the deposit to determine its overall impact on Costerfield’s long-term future. A video has been prepared by Mr. Chris Davis, Vice President of Operational Geology and Exploration, to further explain the information in this release. The video can be found on Mandalay’s website or by clicking here.”
The Shepherd Zone Extension
Since Mandalay’s last release on the Shepherd Zone drilling (April 26, 2021), drilling rates have been increased with a total of four underground drill rigs operating on the program. An additional 22 holes have been drilled with 29 significant intercepts assayed. Due to the accelerated nature of the program, not all significant intercepts have been assayed at present. Drilling to date has focused on delineating the upper reaches of the Shepherd system in support of short term mine planning activities, with further exploration at depth being prioritized in the following months once drill platforms have been established.
In general terms, the original interpreted orientation of the veining has been supported by the new drilling, and the two major horizons continue with new high-grade intercepts located as far as approximately 300 m south of the initial intercept encountered in BC176. The southern intercepts support the interpretation of a subvertical system extending down from the west dipping Youle structure with a shallow northern plunge to the interaction point. The concept of a convergence of these vein systems has also been demonstrated with the interpretation of this interaction at approximately 7000N leading to a zone of wide and high-grade veining to the south of the convergence. The southerly extension of the converged vein system is untested and represents an ongoing priority drill target.
Although the depth extension to this drilling has not been the recent focus, inferences of the system framework have been made with the forward modelling of results from the 2019 Costerfield Deeps drilling program. This work highlights a potentially significant interrupted anticlinal position at depth which has been shown to be anomalously mineralized within CD001 to the south. Vectoring analysis of the mineralization from the original Costerfield veining at surface to the Shepherd veining at depth suggest that this increasingly favourable environment exists approximately 400 m north of the CD001 intercept (initial Costerfield Deeps dill hole), indicating that this drill hole has intercepted south of the main endowment at depth (Figure 1).
A further 13 intercepts have been added to the previously defined Eastern veining. Excitingly, and consistent with targeting models, high grades have been discovered to the south underneath the southern high-grade domain of the currently modelled extents of Youle. Highlights include BC213 with 172.3 g/t gold over a true width of 0.27 m and BC212A with 69.5 g/t gold over a true width of 1.11 m. To date, consistent high grades are noted along the upper portion of the system with an approximate strike length of 200 m as shown in Figure 2.
Within the Eastern horizon, quartz veining becomes more consolidated south of BC187 and dispersed to the north with stibnite present alongside quartz veining within, and to the north of, BC187. Mineralogy remains consistent with the majority of gold as grains of up to 2mm hosted in quartz (Figure 3). At depth grades appears to diminish towards to the quartzite layer within the centre of the horizon shown in Figure 2.Drilling to date has not tested the corridor below the quartzite which has been known to be a disrupter of grade within the Cuffley orebody that lies approximately 2 km to the south of the Shepherd Zone. It is significant to note from the accumulated knowledge acquired from mining the Cuffley deposit that grade returns to the veining below the quartzite. Further drilling is therefore required to test this hypothesis at Shepherd.
The Western veining has also been intercepted repeatedly with recent drilling. Although intercepts have been less consistent in grade compared to the Eastern veining, structural continuity has been demonstrated to be consistent throughout the horizon indicating a strike length of approximately 400 m. The southernmost intercept BC210 is significant in both grade and width (19.4 g/t gold over a true width of 4.84 m), while BC201, approximately 40 m above, is likewise significant (33.7 g/t gold over a true width of 3.22 m) showing the mineralization is open still to the south. To the north the veining has been shown to extend up to the Youle structure with significant grades found in BC205 (712.8 g/t gold over a true width of 0.10 m). There is also veining approximately 20 m to the east of the Western veining intercepted in BC196 (58.8 g/t gold and 13.5% antimony over a true width of 0.23 m) and BC206 (115.0 g/t gold and 3.0% antimony over a true width of 0.14 m).
Gold bearing veining has been intercepted below the quartzite layer, however not to comparable levels of grade as encountered above the quartzite. Analysis of analogues within the Costerfield mineral field suggest that a westward shift of mineralization should be anticipated at depth, however, to date the area has not been adequately tested. Exploration of this area is expected in the coming months.
In 2015, Mandalay embarked on a drilling campaign to identify the depth extension of the Cuffley mineralization. This was undertaken drilling from East to West to test this sub-vertical system and identified a series of veins analogous in orientation and mineralization to those noted in the Shepherd Zone. Significant grades were encountered within the area, however the intercepts were deep and were lower priorities than follow-up of nearer surface extensions to Cuffley. The discovery of the westerly dipping Youle deposit highlights an exploration target opportunity for a westerly dipping mineralized system, analogous to Youle, that the 2015 exploration program would not have tested effectively due to the orientation of drilling being sub parallel to the target system. This is a target currently under investigation and the results of the 2015 program are being reviewed in detail in conjunction with the evolving Shepherd interpretation. This updated targeting exercise aims to pursue a significant parcel of mineralization under the mined extent of the Cuffley orebody that mirrors the mode of mineralization of the Youle / Shepherd system.
Drilling and Assaying
All drilling reported in this document was completed from underground in Youle using 3 x LM90 and 1 x LM30 Boart Longyear diamond drill rigs operated by drill contractor Starwest Pty Ltd. All diamond drill core was logged and sampled by Costerfield geologists. All samples were sent to On Site Laboratory Services (OSLS) in Bendigo, Victoria, Australia, for sample preparation and analysis by fire assay for gold, and Atomic Absorption Spectroscopy (AAS) for antimony. Samples featuring coarse grained visible gold were assayed using a variant of fire assay known as screen fire assay. This method is routinely used to mitigate potential problems associated with heterogeneity in the distribution of coarse gold within drill samples. The procedure collects all heterogenous coarse gold by screening at 75µm after crushing and pulverisation, and subsequently fire assays the full resultant +75µm mass to extinction. A mass weighted average of gold grade of the sample is subsequently calculated from the +75µm fraction and 3 x splits of the -75µm fraction of the sample. Site geological and metallurgical personnel have implemented a QA/QC procedure that includes systematic submission of standard reference materials and blanks within batches of drill and face samples submitted for assay. Costerfield specific reference materials produced from Costerfield ore have been prepared and certified by Geostats Pty Ltd., a specialist laboratory quality control consultancy. See Technical Report entitled “Mandalay Resources – Costerfield Operation NI 43-101 Report” dated March 30, 2021, available on SEDAR (www.sedar.com) for a complete description of drilling, sampling, and assaying procedures.
Qualified Person:
Chris Davis, Vice President of Operational Geology and Exploration at Mandalay Resources, is a Chartered Professional of the Australasian Institute of Mining and Metallurgy (MAusIMM CP(Geo)), and a Qualified Person as defined by NI 43-101. He has reviewed and approved the technical and scientific information provided in this release.
For Further Information
Dominic Duffy President and Chief Executive Officer
Edison Nguyen Manager, Analytics and Investor Relations
Contact: 647.260.1566
About Mandalay Resources Corporation
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine), with projects in Chile and Canada under care and maintenance, closure or development status. The Company is focused on growing its production profile and reducing costs to generate significant positive cashflow.
Mandalay’s mission is to create shareholder value through the profitable operation of both its Costerfield and Björkdal mines. Currently, the Company’s main objective is to continue mining the high-grade Youle vein at Costerfield, which continues to supply high-grade ore, and also focus on extending Youle’s Mineral Reserves at depth. At Björkdal, the Company will aim to increase production from the Aurora zone in the coming years, in order to maximize profit margins from the mine.
Forward-Looking Statements:
This news release contains "forward-looking statements" within the meaning of applicable securitieslaws,includingstatementsregardingtheexplorationanddevelopmentpotentialof theShepherd zone(Costerfield).Readersarecautionednotto place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things,changesincommoditypricesandgeneralmarketandeconomicconditions.Thefactors identifiedabovearenotintendedtorepresentacompletelistofthefactorsthatcouldaffect Mandalay.Adescriptionofadditionalrisksthatcouldresultinactualresultsanddevelopments differingfromthosecontemplatedbyforward-lookingstatementsinthisnewsreleasecanbe foundundertheheading“RiskFactors”inMandalay’sannualinformationformdatedMarch 31, 2021, a copy of which is available under Mandalay’s profile at www.sedar.com. In addition, there can be no assurance that any inferred resources that are discovered as a result of additionaldrillingwilleverbeupgradedtoprovenorprobablereserves.AlthoughMandalayhas attempted to identify important factors that could cause actual actions, events or results to differmateriallyfromthosedescribedinforward-lookingstatements,theremaybeotherfactors thatcauseactions,eventsorresultsnottobeasanticipated,estimatedorintended.Therecan be no assurance that forward-looking statements will prove to be accurate, as actual results andfutureeventscoulddiffermateriallyfromthoseanticipatedinsuchstatements.Accordingly, readersshouldnotplaceunduerelianceonforward-lookingstatements.
Appendix
Table 1. Shepherd Drilling Composites
DRILL HOLE ID
FROM (M)
TO (M)
DRILLl WIDTH (m)
TRUE WIDTH (m)
AU GRADE (G/T)
SB GRADE (%)
AU (G/T) OVER MIN. 1.8M MINING WIDTH
VEIN NAME
BC188
294.87
295.08
0.21
0.11
1.0
LLD
0.1
Western Veining
BC191
204.67
204.87
0.20
0.16
0.4
LLD
0.0
Eastern Veining
BC191
278.18
278.37
0.19
0.07
3.9
0.10
0.2
Western Veining
BC196
148.19
158.5
10.31
7.16
2.5
LLD
3.0
Eastern Veining
BC196
177.77
177.98
0.21
0.11
181.0
13.1
11.3
Unnamed
BC196
260.9
261.26
0.36
0.23
58.8
13.5
9.3
Unnamed
BC197
120.07
120.67
0.60
0.49
7.9
0.02
2.1
Western Veining
BC199
200.01
200.21
0.20
0.09
36.2
12
2.5
Eastern Veining
BC201
139.8
144.3
4.5
3.22
33.7
0.02
33.7
Western Veining
INCLUDING
141.78
142.63
0.85
0.69
127.0
0.04
BC202
141.54
141.92
0.38
0.32
59.8
LLD
10.6
Eastern Veining
BC202
170.87
171.09
0.22
0.19
310.4
LLD
32.5
Western Veining
BC203
67.68
68.30
0.62
0.52
18.4
LLD
5.3
Eastern Veining
BC203
101.19
101.32
0.13
0.10
29.1
LLD
1.6
Western Veining
BC204A
105.35
105.82
0.47
0.22
96.4
LLD
11.8
Eastern Veining
BC204A
143.61
144.19
0.58
0.22
0.5
LLD
0.1
Western Veining
BC205
105.49
105.63
0.14
0.10
712.8
0.02
40.5
Western Veining
BC205
146.14
146.34
0.20
0.14
8.9
LLD
0.7
Eastern Veining
BC206
131.39
131.56
0.17
0.14
115.0
2.98
9.0
Unnamed
BC207
104.62
105.02
0.40
0.23
1.9
LLD
0.2
Eastern Veining
BC207
133.8
134.06
0.26
0.20
0.2
LLD
0.0
Western Veining
BC208
123.5
123.75
0.25
0.11
7.2
LLD
0.5
Eastern Veining
BC209
124.95
126.15
1.20
0.79
10.1
LLD
4.4
Western Veining
BC210
171.58
177.9
6.32
4.84
19.4
LLD
19.4
Western Veining
INCLUDING
176.98
177.15
0.17
0.13
657.3
LLD
BC210
231.28
231.69
0.41
0.21
22.8
5.00
3.2
Unnamed
BC211
138.77
139.08
0.31
0.20
77.1
LLD
8.5
Eastern Veining
BC211
186.72
191.88
5.16
3.65
0.3
LLD
0.3
Western Veining
BC212A
153.66
155.5
1.84
1.11
69.5
0.04
42.8
Eastern Veining
INCLUDING
155.12
155.35
0.23
0.14
406.0
0.21
BC213
91.87
92.70
0.83
0.27
172.3
10.20
27.4
Eastern Veining
BC213
101.9
102.51
0.61
0.49
39.3
LLD
10.8
Western Veining
Note: LLD signifies an undetectable amount of antimony. Detection limit for the analysis used is 0.01%
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. Importantly, Base Resources Limited (ASX:BSE) does carry debt. But the more important question is: how much risk is that debt creating?
When Is Debt Dangerous?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.
The image below, which you can click on for greater detail, shows that at December 2020 Base Resources had debt of US$24.5m, up from US$14.1m in one year. But it also has US$99.6m in cash to offset that, meaning it has US$75.1m net cash.
debt-equity-history-analysis
How Healthy Is Base Resources' Balance Sheet?
The latest balance sheet data shows that Base Resources had liabilities of US$90.2m due within a year, and liabilities of US$32.4m falling due after that. On the other hand, it had cash of US$99.6m and US$32.9m worth of receivables due within a year. So it can boast US$9.84m more liquid assets than total liabilities.
This short term liquidity is a sign that Base Resources could probably pay off its debt with ease, as its balance sheet is far from stretched. Simply put, the fact that Base Resources has more cash than debt is arguably a good indication that it can manage its debt safely.
But the other side of the story is that Base Resources saw its EBIT decline by 5.7% over the last year. If earnings continue to decline at that rate the company may have increasing difficulty managing its debt load. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if Base Resources can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. While Base Resources has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. During the last three years, Base Resources produced sturdy free cash flow equating to 79% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.
Summing up
While we empathize with investors who find debt concerning, you should keep in mind that Base Resources has net cash of US$75.1m, as well as more liquid assets than liabilities. The cherry on top was that in converted 79% of that EBIT to free cash flow, bringing in US$75m. So is Base Resources's debt a risk? It doesn't seem so to us. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. Be aware that Base Resources is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable…
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt100% free, right now.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Vancouver, British Columbia–(Newsfile Corp. – June 3, 2021) – Affinity Metals Corp. (TSXV: AFF) (OTC: ARIZF) (FSE: 34IA) ("the Corporation") ("Affinity") reports that it has withdrawn from the Carscallen Extension property option agreement and no longer holds any interest in that property.
After a thorough evaluation of initial exploration results as well as observing the latest exploration developments on the neighboring Melkior Resources Carscallen project, and consistent with the Corporation's Project Generator model and philosophy, Affinity management decided that resources would be better allocated elsewhere rather than incurring forward cash and share payments and conducting additional grass roots exploration at the Carscallen Extension.
About Affinity Metals
Affinity Metals is focused on the acquisition, exploration and development of strategic metal deposits within North America.
The Corporation's flagship project is the Regal located near Revelstoke, British Columbia, Canada.
The Corporation also holds additional mineral properties in both Ontario and Quebec, Canada.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
In this article we discuss the 10 best dividend ETFs to buy according to Reddit. If you want to skip our detailed analysis of these ETFs, go directly to the 5 Best Dividend ETFs to Buy According to Reddit.
The volatility in the prices of technology stocks over the past few weeks has reinforced the importance of a diverse investment portfolio that finds the perfect balance between growth and value investing. Since most of the market interest in the recent past was devoted to the skyrocketing value of growth stocks, investors are now scrambling for some much-needed cover against the price volatility in the technology sector. Dividend paying ETFs can serve as a dependable option in this regard, as they market stable outlooks and offer regular payouts.
Some of the other advantages of owning dividend ETFs instead of individual stocks are that the funds are diversified across the industry, potentially lowering the overall risk associated with owning a stock in one sub-sector of the broader industry. It is also easier to manage price volatility in ETFs, although a certain level of risk is ever-present, as with any other investment. ETFs can offer investors significant respite from following the latest developments related to individual companies, freeing up important time that can be spent elsewhere.
Some sectors of the economy are in a better position to offer steady dividend payments and make it to the ETF indexes, such as established business segments like energy, finance, communications, and mining. Some companies that spring to mind in this regard include Rio Tinto Group (NYSE: RIO), Vale S.A. (NYSE: VALE), and Exxon Mobil Corporation (NYSE: XOM). These firms represent some of the top holdings of the best-performing dividend ETFs in the world over the past year.
Rio Tinto Group (NYSE: RIO), Vale S.A. (NYSE: VALE), and Exxon Mobil Corporation (NYSE: XOM) all have an impressive dividend history and are generally less susceptible to the price fluctuations that seem to sweep the market more often than not lately. These traits are generally what set dividend ETFs apart from the crowd in the finance world. However, the fees associated with owning ETFs and the effect an economic downturn might have on the fortunes of the fund are some of the factors that investors should take into account before committing to an ETF.
No sector of the market has been shielded from the profound changes that technology has brought about in our lives. Retail investors, who use internet platforms like Reddit, are having an increasingly important influence on the overall financial dynamics. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
best dividend ETFs
With this context in mind, here is our list of the 10 best dividend ETFs to buy according to Reddit. These dividend ETFs are very popular in Reddit communities.
iShares Asia/Pacific Dividend ETF (NYSE: DVYA) is an exchange traded fund that tracks the investment returns of the Dow Jones Asia/Pacific Select Dividend 50 Index which comprises companies that pay a sizeable dividend and are listed on exchanges in Australia, Hong Kong, Japan, Singapore, and New Zealand. The ETF invests at least 80% of total assets in stocks of the underlying index.
iShares Asia/Pacific Dividend ETF (NYSE: DVYA) has more than $45 million in net assets under management. It has a year-to-date daily total return of 11.83% and a net expense ratio of 0.49%. The 52-week price range of the ETF lies between $31 and $42.
One of the top holdings of this fund is Fortescue Metals Group Limited (ASX: FMG.AX), the Australia-based mining company that has stakes in operations related to iron, copper, and gold deposits. The fund has invested close to 4.5% of total assets under management in shares of Fortescue Metals Group Limited (ASX: FMG.AX).
9. First Trust Dow Jones Global Select Dividend Index Fund (NYSE: FGD)
Yield: 3.83%
First Trust Dow Jones Global Select Dividend Index Fund (NYSE: FGD) is an exchange traded fund that tracks the investment results of the Dow Jones Global Select Dividend Index which is an indicated annual dividend yield weighted index comprising companies that fall under the developed market class of the Dow Jones World Index. The fund invests almost 90% of net assets in stocks of the dividend index.
First Trust Dow Jones Global Select Dividend Index Fund (NYSE: FGD) has more than $470 million in net assets under management and the year-to-date daily total return of the fund is a remarkable 23.3%. The price of the fund has hovered between $17 and $27 over the past 52 weeks.
A leading holding of the fund is Centamin plc (LSE: CEY.L), a Jersey-based mining company with interests in precious metals projects in Egypt, Burkina Faso, Australia, and the United Kingdom. The fund has invested close to 1.43% of total assets under management into shares of Centamin plc (LSE: CEY.L).
8. Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS)
Yield: 3.89%
Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS) is an exchange traded fund that tracks the investment results of the MSCI EAFE Top 50 Dividend Index which comprises equally weighted companies that pay a sizeable dividend and are working in Europe, Australia, and the Far East.
Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS) has more than $11.7 million in net assets under management. The year-to-date daily total return of the fund is 13.8%. The net expense ratio is 0.56% and the 52-week price range of the fund lies between $11 and $16.
A premier holding of the fund, in which it has invested close to 2.24% of total assets under management, is the London-based mining company named Rio Tinto Group (NYSE: RIO) which engages in the exploration, mining, and processing of mineral sources worldwide. Rio Tinto Group (NYSE: RIO) markets aluminum, copper, diamonds, and gold, among other products. Like GlaxoSmithKline plc (NYSE: GSK), Vale S.A. (NYSE: VALE) and Exxon Mobil Corporation (NYSE: XOM), RIO is one of the best dividend stocks to buy.
7. iShares International Select Dividend ETF (BATS: IDV)
Yield: 3.93%
iShares International Select Dividend ETF (BATS: IDV) is an exchange traded fund that tracks the investment results of the Dow Jones EPAC Select Dividend Index which comprises stocks of companies that pay high dividends and are working in developed markets outside the United States. It is a fund that invests at least 80% of total assets in securities of the underlying index.
iShares International Select Dividend ETF (BATS: IDV) has more than $4.3 billion in net assets under management with a year-to-date daily total return of 15.2%. The net expense ratio is 0.49%, with the 52-week price range of $23-$34.
One of the top holdings of the fund is GlaxoSmithKline plc (LSE: GSK.L), the United Kingdom-based pharmaceutical firm. GlaxoSmithKline plc (LSE: GSK.L) develops and markets vaccines, over-the-counter medicines, and health-related products that treat respiratory diseases, HIV, immuno-inflammation, and other problems. GlaxoSmithKline plc (NYSE: GSK) is also trading in the US.
6. WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM)
Yield: 4.13%
WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM) is an exchange-traded fund tracking the investment results of the WisdomTree Emerging Markets High Dividend Index. It is a fund that invests at least 95% of total assets in the underlying stocks of the index. The index is a fundamentally weighted one that comprises high dividend paying firms on the WisdomTree Emerging Markets Dividend Index.
WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM) has close to $2 billion in net assets under management with a year-to-date total daily return of 12.8%. The net expense ratio of the fund is 0.63% with a 52-week price range of $34-$47.
A top holding of the fund is Vale S.A. (NYSE: VALE), the Brazil-based mining company. The fund has invested 7.32% of assets under management into the firm. Vale S.A. (NYSE: VALE) is mainly engaged in the iron and steel-making business. Like GlaxoSmithKline plc (NYSE: GSK), Rio Tinto Group (NYSE: RIO) and Exxon Mobil Corporation (NYSE: XOM), VALE is one of the best dividend stocks to buy.
VANCOUVER, BC, June 2, 2021 /CNW/ – The following issues have been halted by IIROC:
Company: Sego Resources Inc.
TSX-Venture Symbol: SGZ
All Issues: Yes
Reason: At the Request of the Company Pending News
Halt Time (ET): 9:25 AM
IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) – Halts/Resumptions
It is hard to get excited after looking at Mount Gibson Iron's (ASX:MGX) recent performance, when its stock has declined 8.3% over the past week. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Mount Gibson Iron's ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Mount Gibson Iron is:
16% = AU$114m ÷ AU$730m (Based on the trailing twelve months to December 2020).
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.16.
Why Is ROE Important For Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
Mount Gibson Iron's Earnings Growth And 16% ROE
To begin with, Mount Gibson Iron seems to have a respectable ROE. Even when compared to the industry average of 15% the company's ROE looks quite decent. Consequently, this likely laid the ground for the impressive net income growth of 22% seen over the past five years by Mount Gibson Iron. We believe that there might also be other aspects that are positively influencing the company's earnings growth. Such as – high earnings retention or an efficient management in place.
As a next step, we compared Mount Gibson Iron's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 28% in the same period.
past-earnings-growth
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Mount Gibson Iron is trading on a high P/E or a low P/E, relative to its industry.
Is Mount Gibson Iron Efficiently Re-investing Its Profits?
The three-year median payout ratio for Mount Gibson Iron is 34%, which is moderately low. The company is retaining the remaining 66%. By the looks of it, the dividend is well covered and Mount Gibson Iron is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
Additionally, Mount Gibson Iron has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 21% over the next three years. Accordingly, the expected drop in the payout ratio explains the expected increase in the company's ROE to 25%, over the same period.
Conclusion
On the whole, we feel that Mount Gibson Iron's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company. To know the 4 risks we have identified for Mount Gibson Iron visit our risks dashboard for free.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. And in light of that, the trends we're seeing at Ferrexpo's (LON:FXPO) look very promising so lets take a look.
What is Return On Capital Employed (ROCE)?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Ferrexpo is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)
0.41 = US$684m ÷ (US$2.0b – US$296m) (Based on the trailing twelve months to December 2020).
So, Ferrexpo has an ROCE of 41%. In absolute terms that's a great return and it's even better than the Metals and Mining industry average of 14%.
In the above chart we have measured Ferrexpo's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our freereport on analyst forecasts for the company.
What Can We Tell From Ferrexpo's ROCE Trend?
The trends we've noticed at Ferrexpo are quite reassuring. The data shows that returns on capital have increased substantially over the last five years to 41%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 73%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.
The Bottom Line
In summary, it's great to see that Ferrexpo can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And a remarkable 2,120% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
GRAND BAIE, Mauritius, May 26, 2021 (GLOBE NEWSWIRE) — Alphamin Resources Corporation (AFM:TSXV, “Alphamin”, or the “Company”) wishes to express its sincere condolences to the people of Goma following the loss of life and damage caused by the eruption of the Nyiragongo volcano adjacent to the city of Goma.
The Company’s Bisie tin mine is located some 200km to the West of the city of Goma with established import and export routes via Beni (350km north of Goma) in the DRC, through Uganda and ultimately Kenya. These routes do not transverse via Goma and the export route is currently unaffected by lava flows. The Company does operate a small support office in the city of Goma and all staff are accounted for, safe and continue to support the operations in their existing roles. Some disruption of Government Services relating to export documentation has occurred and assuming no further volcanic eruptions, these services are expected to return to normal in the first week of June.
FOR MORE INFORMATION, PLEASE CONTACT:
Maritz Smith CEO Alphamin Resources Corp. Tel: +230 269 4166E-mail: msmith@alphaminresources.com
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements contained herein are made as of the date of this news release and Alphamin disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
The performance at Grange Resources Limited (ASX:GRR) has been quite strong recently and CEO Honglin Zhao has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 24 May 2021. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
How Does Total Compensation For Honglin Zhao Compare With Other Companies In The Industry?
Our data indicates that Grange Resources Limited has a market capitalization of AU$596m, and total annual CEO compensation was reported as AU$888k for the year to December 2020. This means that the compensation hasn't changed much from last year. We note that the salary of AU$526.7k makes up a sizeable portion of the total compensation received by the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between AU$257m and AU$1.0b had a median total CEO compensation of AU$927k. So it looks like Grange Resources compensates Honglin Zhao in line with the median for the industry. Furthermore, Honglin Zhao directly owns AU$682k worth of shares in the company.
Component
2020
2019
Proportion (2020)
Salary
AU$527k
AU$512k
59%
Other
AU$361k
AU$400k
41%
Total Compensation
AU$888k
AU$911k
100%
Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Grange Resources sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.
ceo-compensation
A Look at Grange Resources Limited's Growth Numbers
Grange Resources Limited's earnings per share (EPS) grew 50% per year over the last three years. Its revenue is up 43% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Grange Resources Limited Been A Good Investment?
We think that the total shareholder return of 290%, over three years, would leave most Grange Resources Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude…
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Grange Resources that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this freelist of interesting companies.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Resolute Mining Limited (ASX:RSG) shareholders should be happy to see the share price up 22% in the last month. But that doesn't change the fact that the returns over the last three years have been disappointing. In that time, the share price dropped 51%. So it is really good to see an improvement. The rise has some hopeful, but turnarounds are often precarious.
Given that Resolute Mining didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last three years, Resolute Mining saw its revenue grow by 17% per year, compound. That's a fairly respectable growth rate. That contrasts with the weak share price, which has fallen 15% compounded, over three years. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
earnings-and-revenue-growth
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for Resolute Mining in this interactivegraph of future profit estimates.
A Different Perspective
While the broader market gained around 40% in the last year, Resolute Mining shareholders lost 42%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 6% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Resolute Mining that you should be aware of before investing here.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
If you want to know who really controls Mount Gibson Iron Limited (ASX:MGX), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of AU$1.0b, Mount Gibson Iron is a decent size, so it is probably on the radar of institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Mount Gibson Iron.
What Does The Institutional Ownership Tell Us About Mount Gibson Iron?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Mount Gibson Iron. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Mount Gibson Iron's earnings history below. Of course, the future is what really matters.
earnings-and-revenue-growth
Hedge funds don't have many shares in Mount Gibson Iron. The company's largest shareholder is APAC Resources Limited, with ownership of 36%. Shoucheng Holdings Limited is the second largest shareholder owning 13% of common stock, and FMR LLC holds about 6.1% of the company stock.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Mount Gibson Iron
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own less than 1% of Mount Gibson Iron Limited. However, it's possible that insiders might have an indirect interest through a more complex structure. It appears that the board holds about AU$8.0m worth of stock. This compares to a market capitalization of AU$1.0b. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
With a 29% ownership, the general public have some degree of sway over Mount Gibson Iron. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
It seems that Private Companies own 3.7%, of the Mount Gibson Iron stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Public Company Ownership
We can see that public companies hold 50% of the Mount Gibson Iron shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Even if it's not a huge purchase, we think it was good to see that James North, the Group COO of Ferrexpo plc (LON:FXPO) recently shelled out UK£55k to buy stock, at UK£3.86 per share. Although the purchase is not a big one, increasing their shareholding by only 4.9%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Ferrexpo
Over the last year, we can see that the biggest insider sale was by the Chief Financial Officer of OJSC Ferrexpo Poltava Mining, Nikoley Kladiev, for UK£69k worth of shares, at about UK£3.45 per share. That means that an insider was selling shares at slightly below the current price (UK£3.91). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 15% of Nikoley Kladiev's stake. Nikoley Kladiev was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid UK£143k for 56.10k shares. But insiders sold 20.00k shares worth UK£69k. In total, Ferrexpo insiders bought more than they sold over the last year. Their average price was about UK£2.55. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ferrexpo insiders own 51% of the company, currently worth about UK£1.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Ferrexpo Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Ferrexpo. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Ferrexpo (including 1 which is a bit concerning).
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
LOS ANGELES, CA / ACCESSWIRE / April 19, 2021 / The Planet MicroCap Showcase will take place on April 20-22, 2021, where 66 SmallCap, MicroCap and NanoCap public and private companies will be presenting via virtual webcast to a global investor audience.
The Planet MicroCap Showcase: VIRTUAL begins on Tuesday, April 20, 2021 with the "MicroCap Investing Workshop" starting at 8:00am EST and featuring well-known financial influencers, investors, fund managers, and key opinion leaders on current hot themes, including: SPACs, Cryptocurrency, Digital Assets, Cannabis, Psychedelics, and of course, Small-, Micro- and Nano-Cap investing.
Join us for a full day of Keynotes and Educational panels, the "MicroCap Investing Workshop" on Tuesday, April 20, 2021, and Presenting Company Webcasts on Wednesday, April 21 and Thursday, April 22, full agenda here: https://planetmicrocapshowcase.com/agenda
If you would like to attend and participate in the Planet MicroCap Showcase: VIRTUAL, please register here to listen to every webcast directly on the website and book 1×1 meetings with presenting companies: https://planetmicrocapshowcase.com/signup
On Wednesday, April 21, 2021 and Thursday, April 22, 2021, the following issuers will be presenting their companies virtually. Below are the webcasting links to view presentations.
The Planet MicroCap Showcase VIRTUAL EVENT brings together the most promising companies and the top dealmakers in MicroCap Finance for three (3) days of company presentations, 1×1 meetings and educational panels in The Premier Virtual Event in MicroCap Finance.
SNN.Network is your multimedia financial news platform for discovery, transparency and due diligence. This is your one-stop hub to find new investment ideas, check in on your watchlist, gather the most up-to-date information on the Small-, Micro-, Nano-Cap market with the goal to help you towards achieving your wealth generation goals. Follow the companies YOU want to know more about; read and watch content from YOUR favorite finance and investing influencers; create YOUR own watchlist and screen for ideas YOU'RE interested in; find out about investor conferences YOU want to attend – all here on SNN.Network.
Vancouver, British Columbia–(Newsfile Corp. – April 15, 2021) – Wealth Minerals Ltd. (TSXV: WML) (OTCQB: WMLLF) (SSE: WMLCL) (FSE: EJZN)(the "Company" or "Wealth") reports that, subject to TSX Venture Exchange ("TSXV") acceptance, and pursuant to news releases dated February 11, 2019, March 6, 2019, March 29, 2019 and July 15, 2019, the Company has agreed to amend the terms of certain loan agreements (the "Loan Amendments") entered into with one of its lenders, KF Business Ventures LP (the "Lender"), in February and March 2019 in the aggregate principal amount of $1,300,000 (the "Prior Loans"). Pursuant to the Loan Amendments, the term of the Prior Loans will be extended by 12 months and will bear interest at a rate of 8% per annum compounded annually, payable on the maturity date. In connection with the Loan Amendments, the Company has agreed, subject to TSXV acceptance for filing, to issue in aggregate 5,306,112 non-transferable bonus common share purchase warrants (each, a "Bonus Warrant") to the Lender. Each Bonus Warrant will entitle the holder to purchase one common share in the capital of the Company at an exercise price of $0.245 per share for a period of twelve months. All securities issued pursuant to the Loan Amendments will be subject to a hold period of four months and one day in Canada from the date of issuance.
None of the foregoing securities have been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Wealth Minerals Ltd.
Wealth is a mineral resource company with interests in Canada, Mexico, Peru and Chile. The Company's main focus is the acquisition and development of lithium projects in South America. To date, the Company has positioned itself to develop the Atacama Project alongside existing producers in the prolific Atacama region, where the Company has a substantial licenses package. The Company has also positioned itself to play a role in asset consolidation in Chile with various lithium properties throughout the country.
Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth is positioning itself to be a major beneficiary of this future mismatch of supply and demand. The Company also maintains and continues to evaluate a portfolio of precious and base metal exploration-stage projects.
For further details on the Company readers are referred to the Company's website (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
WEALTH MINERALS LTD."Hendrik van Alphen"Hendrik van AlphenChief Executive Officer
For further information, please contact:
Marla Ritchie/Henk van Alphen or Tim McCutcheonPhone: 604-331-0096E-mail: info@wealthminerals.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, TSXV acceptance of the Loan Amendments and the issuance of the Bonus Warrants, the Company's expectation that it will be able to enter into agreements to acquire interests in additional mineral properties, the discovery and delineation of mineral deposits/resources/reserves, and the anticipated business plans and timing of future activities of the Company, including the development of the Company's mineral assets, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "will", "believe", "expect", "anticipate", "intend", "estimate", "postulate" and similar expressions, or are those, which, by their nature, refer to future events. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that market fundamentals will result in sustained lithium demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the Loan Amendments, the Bonus Warrants and future development of the Company's mineral assets, including the Company's Chilean lithium projects in a timely manner, the availability of financing on suitable terms for the development, construction and continued operation of the Company projects, and the Company's ability to comply with environmental, health and safety laws.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, operating and technical difficulties in connection with mineral exploration and development activities, actual results of exploration activities, the estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits, the fact that the Company's interests in its mineral properties are options only and there is no guarantee that the Company's interests in same, if earned, will be certain, requirements for additional capital, future prices of lithium, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, lack of investor interest in future financings, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any necessary permits, consents, approvals or authorizations (including acceptance by the TSXV for the Loan Amendments and the Bonus Warrants), the timing and possible outcome of any pending litigation, environmental issues and liabilities, and risks related to joint venture operations, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.
Vancouver, British Columbia–(Newsfile Corp. – April 9, 2021) – Affinity Metals Corp. (TSXV: AFF) ("Affinity") ("the Corporation") reports that assay results have been received for the late fall 2020 Regal Project drill program however, upon initial examination of those results, it was discovered that significant cross-contamination appears to have occurred in the assaying process.
Affinity, as standard practice, employed a system of QA/QC which included inserting blanks, standards and duplicates periodically mixed with drill core samples in order to detect any potential assaying errors. In this instance, some of our quality control blanks and standards are showing erroneous significantly elevated levels of silver, lead, zinc and other elements, which is indicating cross-contamination and a problem somewhere in the assaying procedure.
The assay laboratory has been contacted and will be remedying the situation by re-running assays. Assay results will be released in due course.
Regal Project
The Regal property encompasses 8,800 hectares of the northern end of the prolific Kootenay Arc located approximately 25 km northeast of Revelstoke, British Columbia, Canada.
The late fall 2020 exploration program consisted of geological mapping and associated geochemical sampling, as well as diamond drilling of 19 holes totaling 3,442.5 meters.
Qualified Person
The Qualified Person for the Regal Project for the purposes of National Instrument 43-101 is Alicia Carpenter, P.Geo. She has read and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.
About Affinity Metals
Affinity is focused on the acquisition, exploration and development of strategic metal deposits within North America. Affinity is following a hybrid approach of combining the advancement of strategic assets along with following a Project Generator model.
Affinity presently holds two mineral properties in British Columbia as well as five properties located near Timmins, Ontario, and another in Quebec.
On behalf of the Board of Directors
Robert Edwards, CEO and Director of Affinity Metals Corp.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Vancouver, British Columbia–(Newsfile Corp. – April 1, 2021) – Wealth Minerals Ltd. (TSXV: WML) (OTCQB: WMLLF) (SSE: WMLCL) (FSE: EJZN) (the "Company" or "Wealth"), announces a non-brokered private placement (the "Placement") of up to 30,303,030 units (the "Units") at a price of $0.165 per Unit (the "Offering") for gross proceeds of up to $5,000,000. Each Unit will consist of one common share of the Company (a "Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire one additional share of the Company for a period of two years from the date of issuance at a price of $0.30 per share.
Finder's fees may be payable to arm's length parties that have introduced the Company to certain subscribers participating in the Offering. All securities issued in the Offering are subject to a four-month hold period, during which time the securities may not be traded. Closing of the Offering is subject to the approval of the TSX Venture Exchange.
The net proceeds from the Offering are intended for general corporate purposes.
This press release does not constitute an offer of sale of any of the foregoing securities in the United States. None of the foregoing securities have been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Wealth Minerals Ltd.
Wealth is a mineral resource company with interests in Canada, Mexico, Peru and Chile. The Company's main focus is the acquisition and development of lithium projects in South America.
The Company opportunistically advances battery metal projects, namely copper and nickel, where it has a peer advantage in project selection and initial evaluation.
Lithium market dynamics and a rapidly increasing metal price are the result of profound structural issues with the industry meeting anticipated future demand. Wealth is positioning itself to be a major beneficiary of this future mismatch of supply and demand. In parallel with lithium market dynamics, Wealth believes other battery metals will benefit from similar industry trends.
For further details on the Company readers are referred to the Company's website (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors ofWEALTH MINERALS LTD.
"Hendrik van Alphen"Hendrik van AlphenChief Executive Officer
For further information, please contact:Marla Ritchie Phone: 604-331-0096 Ext. 3886 or 604-638-3886E-mail: info@wealthminerals.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, statements with respect to the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that market fundamentals will result in sustained lithium, vanadium, copper and precious metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Company's projects in a timely manner, the availability of financing on suitable terms for the development, construction and continued operation of the Company's projects and the Company's ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, operating and technical difficulties in connection with mineral exploration and development activities, actual results of exploration activities, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits, requirements for additional capital, future prices of lithium and copper, risks relating to epidemics or pandemics such as COVID-19, including the impact of COVID-19 on the Company's business, financial condition and results of operations, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, lack of investor interest in the future financings, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any necessary permits, consents, approvals or authorizations, including acceptance by the TSXV, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and risks related to joint venture operations, and other risks and uncertainties disclosed in the Company's latest interim Managements' Discussion and Analysis and filed with the Canadian Securities Authorities. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.
**NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES**
Vancouver, British Columbia–(Newsfile Corp. – March 26, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that it has filed its Audited Consolidated Financial Statements for the years ending December 31, 2020 and 2019 and the corresponding Management's Discussion and Analysis and Annual Information Form. Below is a summary of the Company's financial results for the year ended December 31, 2020 (all amounts in USD):
43% growth in revenue for the year ended December 31, 2020 of $56.1 million compared to $39.2 million in the prior year. The growth in revenue is due to the strong operating results from the Retreatment Project (as defined below);
Mining operation income (eight consecutive quarters)- December 31, 2020 $5.6 million (2019 – $5.5 million) (some difficulties in direct comparison include: commercial production timing in 2019 and the most recent four quarters being negatively impacted by COVID-19 costs and 2020 South Africa lockdowns);
Cash generated from operations during the year December 31, 2020 – $1.6 million (2019 – negative $8.8 million);
Positive working capital (excluding non-cash deferred revenue and lease liability) of $8.5 million as at December 31, 2020; and
Net loss to equity shareholders of $8.0 million (loss of $0.08 per share) for the year ended December 31, 2020 compared to earnings to equity shareholders of $0.1 million (earnings of $0.00 per share) for the prior year, resulting from an increase in non-cash finance costs, foreign exchange losses and the legal settlement with AlphaGlobal (See news release of June 26, 2020).
Operations of the Retreatment Project
The availability of the Retreatment Project as a 24-hour continuous operation (including chrome recovery plant, deposition and remining on the tailings dam) including planned maintenance has improved significantly in 2020 to 86% up from 76% in 2019.
Eastplats reported 987,003 tons of chrome concentrate production, a 68% increase from 2019 production. (See news release of March 3, 2021 for a detailed review of the Retreatment Project).
On March 10, 2021, the Company and Union Goal signed updated Retreatment Project Agreements (See news release of March 15, 2021) which capitalized on Eastplats' two years of operating knowledge and continued commitment to the long-term benefits of the Retreatment Project.
Platinum Group Metals
During 2020, the Company completed the refurbishment of the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D"). The Company only restarted and began operating the PGM Circuit D during Q3 2020 (following the mandatory general lockdown imposed by the Government of South Africa in connection with the COVID-19 pandemic). The Company generated approximately 134 tons of pressed filter cake PGM concentrate and delivered approximately 32.18 tons during 2020.
During early 2021, the Company completed the reconfiguring and optimization of the PGM Circuit D which also includes funding for some of the initial work required to restart the main PGM plant circuit ("PGM Main Circuit").
Rights offering
On December 18, 2020, the Company issued rights to its existing shareholders for the acquisition of shares at a discounted price (the "Rights Offering"). On January 22, 2021, the Company completed the Rights Offering. Eastplats issued 36,841,741 common shares of the Company (each a "Common Share") at a price of Cdn$0.32 per Common Share for rights exercised on the Toronto Stock Exchange and R3.77136 per Common Share for rights exercised on the Johannesburg Stock Exchange. The Company is very pleased to have raised total gross proceeds of approximately $9.3 million (Cdn$11.8 million) to invest into additional capital projects.
Outlook
The Company's CRM Retreatment Project in South Africa was operating without restrictions at December 31, 2020. Additionally, the Company restarted the PGM Circuit D in 2020 and completed further improvements during March 2021.
The Company's targets for 2021 were updated following the completed Rights Offering in January 2021, and include the following:
Continue operating the Retreatment Project efficiently;
Complete the upgrades and operate the PGM Circuit D;
Complete the optimization project for the Retreatment Project;
Establish the appropriate phase II of the tailing storage facility capital works program;
Upgrade and repair the Crocodile River Mine ("CRM") Zandfontein underground shaft and rock winder to ensure they are available for PGM operations;
Complete the refurbishment of the existing PGM Main Circuit to increase the capacity and recovery opportunity of PGM recovery and sales;
Complete the environmental impact assessment ("EIA") regarding the haul road for the Mareesburg project;
Prospect and assess work in relation to Zandfontein, Crocette and Spitzkop ore bodies;
Conduct feasibility and assessment work regarding a vertical furnace and pelletizer of chrome concentrate;
Assess CRM underground including all chrome recovery activities in relation to the Retreatment Project; and
Fund capital requirements for care and maintenance, working capital and general and administrative costs.
Diana Hu, CEO of Eastern Platinum, commented, "Eastplats has established stable operations with the Retreatment Project, and is seeking to complete its optimization program by the end of Q3 2021. This stability will allow growth with PGM extraction through both the PGM Circuit D and the PGM Main Circuit. These projects are expected to increase the revenue and income of Eastplats. During 2021, the Company's focus is on operations and cash-flow to continue to build shareholder value."
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of PGM and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.
Operations at the Crocodile River Mine include re-mining and processing its tailings resource, with an offtake of the chrome concentrate to Union Goal from the Zandfontein UG2 tailings facility (the "Retreatment Project") and the processing and extraction of platinum group metals ("PGM").
COVID-19
South Africa remains at alert level 1 regarding COVID-19. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.
Annual filings
The Company has filed the following documents, under the Company's profile on SEDAR at www.sedar.com:
Audited consolidated financial statements for the year ended December 31, 2020 and 2019;
Management's discussion and analysis for the year ended December 31, 2020 and 2019; and
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: forecast of operational activity of the Retreatment Project, the Company's ability to complete the Optimization Project, ability to forecasted cashflows of the Retreatment Project and for the Company, the Company's ability to test and assess PGM recovery opportunities in connection with the Retreatment Project, the Company's ability to assess and make decisions with respect to monetizing its other assets; the Company's ability to meet any of its targets for 2021, estimated operations and production of PGM Circuit D and PGM Main Circuit; estimated ramp up or upgrades to the PGM Circuit D and PGM Main Circuit; potential additional revenue from the PGM Circuit D and PGM Main Circuit; potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Company Executives share vision and answer questions live at VirtualInvestorConferences.com
NEW YORK, March 26, 2021 /CNW/ – Virtual Investor Conferences, the leading proprietary investor conference series, today announced the agenda for the upcoming Extractive Industry Investment Options Conference on March 30th & 31st. Individual investors, institutional investors, advisors, and analysts are invited to listen to the executive management of global metals & mining companies discuss their property positions, development schedules, market opportunity, and investment highlights. This free conference features presentations and speakers who will address worldwide extractive industry investment opportunities. Participating companies will encompass exploration, development, and production of precious, critical, base, REEs, and strategic metals and materials. The program opens at 9:15 AM ET, with the first webcast at 9:30 AM ET on Tuesday, March 30th.
It is recommended that investors pre-register and run the online system check to expedite participation and receive event updates. There is no cost to log-in, attend live presentations or ask questions.
"OTC Markets is proud to host our inaugural two-day Extractive Industry Investment Opportunities conference co-sponsored by Murdock Capital and TAA Advisory, said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. We are pleased to deliver a visibility solution that allows today's industrial mineral leaders to showcase their strategies to a broader investor base. We welcome the contributions of our keynotes and presenters: Christopher Ecclestone, Mining Strategist, Hallgarten & Co; Jeffrey M. Christian, Managing Partner, CPM Group; Jack Lifton, Founder, Technology Metals Research, and Phillps S. Baker, Jr. President & CEO of Hecla Mining Company for this signature event."
"On behalf of TAA Advisory and Murdock Capital we think this two day event nicely focuses on a fine mix of critical metals companies, on day one, and precious metals companies, on day two – Two key sectors of great interest to many today. We welcome all to listen in and get your questions answered," said Thomas Dean, Co-Founder and President of Murdock Capital.
March 30th Agenda:
Eastern Time (ET)
Presentation
Ticker(s)
9:30 AM
Keynote Presentation: By-Passing China in the Economic Recovery
To facilitate investor relations scheduling and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com.
About Virtual Investor Conferences® Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly-traded companies to meet and present directly with investors.
A real-time solution for investor engagement, Virtual Investor Conferences is part of OTC Market Group's suite of investor relations services specifically designed for more efficient Investor Access. Replicating the look and feel of on-site investor conferences, Virtual Investor Conferences combine leading-edge conferencing and investor communications capabilities with a comprehensive global investor audience network.
Company Executives share vision and answer questions live at VirtualInvestorConferences.com
NEW YORK, March 26, 2021 /CNW/ – Virtual Investor Conferences, the leading proprietary investor conference series, today announced the agenda for the upcoming Extractive Industry Investment Options Conference on March 30th & 31st. Individual investors, institutional investors, advisors, and analysts are invited to listen to the executive management of global metals & mining companies discuss their property positions, development schedules, market opportunity, and investment highlights. This free conference features presentations and speakers who will address worldwide extractive industry investment opportunities. Participating companies will encompass exploration, development, and production of precious, critical, base, REEs, and strategic metals and materials. The program opens at 9:15 AM ET, with the first webcast at 9:30 AM ET on Tuesday, March 30th.
It is recommended that investors pre-register and run the online system check to expedite participation and receive event updates. There is no cost to log-in, attend live presentations or ask questions.
"OTC Markets is proud to host our inaugural two-day Extractive Industry Investment Opportunities conference co-sponsored by Murdock Capital and TAA Advisory, said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. We are pleased to deliver a visibility solution that allows today's industrial mineral leaders to showcase their strategies to a broader investor base. We welcome the contributions of our keynotes and presenters: Christopher Ecclestone, Mining Strategist, Hallgarten & Co; Jeffrey M. Christian, Managing Partner, CPM Group; Jack Lifton, Founder, Technology Metals Research, and Phillps S. Baker, Jr. President & CEO of Hecla Mining Company for this signature event."
"On behalf of TAA Advisory and Murdock Capital we think this two day event nicely focuses on a fine mix of critical metals companies, on day one, and precious metals companies, on day two – Two key sectors of great interest to many today. We welcome all to listen in and get your questions answered," said Thomas Dean, Co-Founder and President of Murdock Capital.
March 30th Agenda:
Eastern Time (ET)
Presentation
Ticker(s)
9:30 AM
Keynote Presentation: By-Passing China in the Economic Recovery
To facilitate investor relations scheduling and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com.
About Virtual Investor Conferences®Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly-traded companies to meet and present directly with investors.
A real-time solution for investor engagement, Virtual Investor Conferences is part of OTC Market Group's suite of investor relations services specifically designed for more efficient Investor Access. Replicating the look and feel of on-site investor conferences, Virtual Investor Conferences combine leading-edge conferencing and investor communications capabilities with a comprehensive global investor audience network.
Vancouver, British Columbia–(Newsfile Corp. – March 24, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report the completion of all the reconfiguring and optimization of the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D") including the additional work required as part of the restart for the main PGM plant circuit ("PGM Main Circuit") (See news release of February 2, 2021). The commissioning was completed last week and production has resumed with the first dispatch of PGM concentrate occurring on March 23, 2021.
The Company completed the upgrades to obtain higher quality concentrate in order to be able to consistently produce a minimum of 200 tons of PGM concentrate per month. This is expected to have a positive impact on the Company's revenue. The PGM Circuit D utilizes the initial work on the PGM Main Circuit. The next phase of the PGM Main Circuit work continues to be scheduled to start in May 2021, with commissioning expected in October 2021. The Company estimates this will add a further 800 tons of PGM concentrate per month to production, thereby increasing production four-fold and continuing to grow Eastplats' revenue.
Diana Hu, President and Chief Executive Officer of Eastplats stated, "The Company is ramping up its PGM production at a time of increasing demand and rising PGM pricing. Several countries recently legislated new curbs on pollution from gasoline and diesel engines boosting the use of PGMs in autocatalysts, the largest application of PGMs."
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of Platinum Group Metals ("PGM") and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.
Operations at the Crocodile River Mine currently include re-mining and processing its tailings resource, with an offtake of the chrome concentrate from the Zandfontein UG2 tailings facility (the "Retreatment Project") and the processing and extraction of PGMs.
COVID-19
South Africa remains at alert level 1 regarding COVID-19. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: estimated operations and production of PGM Circuit D and PGM Main Circuit; estimated ramp up to the PGM Main Circuit; potential additional revenue from the PGM Circuit D and PGM Main Circuit; potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
We can readily understand why investors are attracted to unprofitable companies. For example, Centrex Metals (ASX:CXM) shareholders have done very well over the last year, with the share price soaring by 150%. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse.
So notwithstanding the buoyant share price, we think it's well worth asking whether Centrex Metals' cash burn is too risky. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.
You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. As at December 2020, Centrex Metals had cash of AU$2.0m and no debt. In the last year, its cash burn was AU$1.4m. That means it had a cash runway of around 17 months as of December 2020. While that cash runway isn't too concerning, sensible holders would be peering into the distance, and considering what happens if the company runs out of cash. You can see how its cash balance has changed over time in the image below.
debt-equity-history-analysis
How Is Centrex Metals' Cash Burn Changing Over Time?
While Centrex Metals did record statutory revenue of AU$22k over the last year, it didn't have any revenue from operations. That means we consider it a pre-revenue business, and we will focus our growth analysis on cash burn, for now. The 83% reduction in its cash burn over the last twelve months may be good for protecting the balance sheet but it hardly points to imminent growth. Centrex Metals makes us a little nervous due to its lack of substantial operating revenue. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth.
How Easily Can Centrex Metals Raise Cash?
There's no doubt Centrex Metals' rapidly reducing cash burn brings comfort, but even if it's only hypothetical, it's always worth asking how easily it could raise more money to fund further growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Many companies end up issuing new shares to fund future growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.
Centrex Metals' cash burn of AU$1.4m is about 5.5% of its AU$26m market capitalisation. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money.
So, Should We Worry About Centrex Metals' Cash Burn?
As you can probably tell by now, we're not too worried about Centrex Metals' cash burn. For example, we think its cash burn reduction suggests that the company is on a good path. Its weak point is its cash runway, but even that wasn't too bad! Considering all the factors discussed in this article, we're not overly concerned about the company's cash burn, although we do think shareholders should keep an eye on how it develops. Separately, we looked at different risks affecting the company and spotted 6 warning signs for Centrex Metals (of which 3 are a bit unpleasant!) you should know about.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.
Given this risk, we thought we'd take a look at whether CZR Resources (ASX:CZR) shareholders should be worried about its cash burn. For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). Let's start with an examination of the business' cash, relative to its cash burn.
A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. In December 2020, CZR Resources had AU$2.6m in cash, and was debt-free. Importantly, its cash burn was AU$3.3m over the trailing twelve months. That means it had a cash runway of around 9 months as of December 2020. That's quite a short cash runway, indicating the company must either reduce its annual cash burn or replenish its cash. The image below shows how its cash balance has been changing over the last few years.
debt-equity-history-analysis
How Is CZR Resources' Cash Burn Changing Over Time?
In the last year, CZR Resources did book revenue of AU$14k, but its revenue from operations was less, at just AU$570. We don't think that's enough operating revenue for us to understand too much from revenue growth rates, since the company is growing off a low base. So we'll focus on the cash burn, today. Over the last year its cash burn actually increased by 43%, which suggests that management are increasing investment in future growth, but not too quickly. That's not necessarily a bad thing, but investors should be mindful of the fact that will shorten the cash runway. CZR Resources makes us a little nervous due to its lack of substantial operating revenue. We prefer most of the stocks on this list of stocks that analysts expect to grow.
Can CZR Resources Raise More Cash Easily?
Given its cash burn trajectory, CZR Resources shareholders should already be thinking about how easy it might be for it to raise further cash in the future. Companies can raise capital through either debt or equity. Commonly, a business will sell new shares in itself to raise cash and drive growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn.
Since it has a market capitalisation of AU$31m, CZR Resources' AU$3.3m in cash burn equates to about 11% of its market value. As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution.
How Risky Is CZR Resources' Cash Burn Situation?
On this analysis of CZR Resources' cash burn, we think its cash burn relative to its market cap was reassuring, while its cash runway has us a bit worried. Summing up, we think the CZR Resources' cash burn is a risk, based on the factors we mentioned in this article. On another note, we conducted an in-depth investigation of the company, and identified 6 warning signs for CZR Resources (3 are a bit concerning!) that you should be aware of before investing here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
LONDON, UK / ACCESSWIRE / March 16, 2021 / Alphamin Resources offers rare exposure to immediate positive cash flow from a metal both Rio Tinto and the Massachusetts Institute of Technology regard as being the most likely to benefit from the widespread electrification of transport networks and the world economy. Fortuitously, Alphamin's Bisie tin mine in the north-eastern Democratic Republic of the Congo (DRC) is hitting its stride at just the moment that the tin price is being forced upwards in the biggest squeeze in decades, providing it with a golden opportunity to repay debt and even to consider making distributions to shareholders as early as next year.
Bisie is now operating, to all intents and purposes, at full capacity. With the current tin price having risen by 30.2% since Q420, we estimate that there is scope for net debt to reduce to zero before end-FY21. Beyond that, at a long-term tin price of US$23,425/t, we estimate that Alphamin should be capable of generating revenues of c US$266m pa (average FY22-27), EBITDA of US$139m and EPS of 6.19 US cents per share. On this basis, we estimate a valuation for Alphamin of 39.1 US cents, or 49.6 Canadian cents per share. This valuation assumes that management executes the Bisie life of mine (LOM) schedule according to plan and applies a 10% discount rate to future forecast dividends. If, however, management proves itself adept at continually replenishing reserves and resources to the extent that it keeps its plant fully utilised beyond FY27 (NB see Exploration section on page 6), then our valuation of Alphamin's shares on average rises by 2.5 Canadian cents for every year at full capacity up to FY32 and, beyond that, potentially to as high as C$1.117/share (subject to capex etc).
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Vancouver, British Columbia–(Newsfile Corp. – March 15, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to announce the Board of Directors of the Company approved and the Company executed updated Retreatment Project Agreements. The Company, its subsidiary Barplats Mines (Pty) Limited ("Barplats") and Union Goal Offshore Solution Limited ("Union Goal") signed the original agreements in 2018 (See press releases of March 5, 2018 and September 4, 2018).
Operations at the Crocodile River Mine include re-mining and processing its tailings resource, with an offtake of the chrome concentrate to Union Goal from the Barplats Zandfontein UG2 tailings facility (the "Retreatment Project") and the processing and extraction of platinum group metals ("PGM").
The Company recently reported a review of the Retreatment Project operations for 2019 and 2020 (See the press release of March 3, 2021). This review highlighted the excellent operating results achieved. The updated Retreatment Project Agreements capitalize on two years of operating knowledge and Eastplats continued commitment to the long-term benefits of the Retreatant Project.
The benefits are summarized as follows:
Formalized the 2019 agreed rate per ton of R40.26/ ton (29% increase in the recovery rate);
Update of the rate charged on each ton re-mined and linking that to annual South African CPI increases, the rate for 2020 was R41.87/ ton and based on the SA CPI adjustment for 2021 is R43.17/ ton;
Recognition of the total capital recovery of the project required by Barplats, which includes the original capital estimated and provides for a future determination on how this recovery can be achieved;
Incorporation of the optimization program requirements (See press release of February 18, 2020);
Extension of the due date of the construction loan and the equipment payment to 210 days following the commissioning of the optimized equipment and circuits, which are currently delayed due to COVID-19, (allowing additional time for assessment and determining best corporate option);
Incorporation of the optimization equipment purchase on the same updated deferred terms as the original equipment;
Provided additional loan capacity to recognize the original loan amount and the optimization loan amount required and updated with the deferred repayment terms;
Removal of all the interest on the outstanding amounts due to COVID-19 delays (additional savings);
Updated warranties on all the optimized equipment;
Clearer language regarding the future use of all the Retreatment Project technology and equipment in other South African projects;
Improved notice requirements regarding the potential reprocessing of tailings at the end of the project; and
Cancelation of the 2018 escrow agreement based on the two-year operational history.
The Company and Barplats maintain the put option and Union Goal retains the call option for the re-purchase of the Retreatment Project equipment and loan in the event that both parties cannot agree on the pricing for the entire circuit once assessment is complete.
Diana Hu, President and Chief Executive Officer of Eastplats commented, "The Retreatment Project and the magnetic separation technology utilized have transformed Eastplats, from a company with potential but no operations or cashflows, into a resource company generating revenue and mining operation income from chrome concentrate, PGM operations and revenue, and multiple project opportunities for 2021 and beyond."
The updated Retreatment Project Agreements include:
The 2021 Revised and Restated Framework Agreement;The 2021 Revised and Restated Off-take Agreement;The 2021 Revised and Restated Eastplats Loan Agreement; andThe 2021 Revised and Restated Barplats Equipment and Chrome Plant Agreement.
The Company will arrange for the posting of these updated agreements on SEDAR.
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of PGM and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.
Operations at the Crocodile River Mine included the Retreatment Project discussed above and the processing and extraction of PGMs.
COVID-19
The alert level in respect of COVID-19 in South Africa was adjusted down to level 1 on March 1, 2021. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: benefits of the Retreatment Project Agreements, benefits of the Retreatment Project operations and production, potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
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