There's no doubt that money can be made by owning shares of unprofitable businesses. 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.

So, the natural question for Arafura Resources (ASX:ARU) shareholders is whether they should be concerned by its rate of cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. Let's start with an examination of the business' cash, relative to its cash burn.

See our latest analysis for Arafura Resources

How Long Is Arafura Resources' Cash Runway?

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. When Arafura Resources last reported its balance sheet in June 2020, it had zero debt and cash worth AU$23m. Importantly, its cash burn was AU$12m over the trailing twelve months. Therefore, from June 2020 it had roughly 23 months of cash runway. 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. However, if we extrapolate the company's recent cash burn trend, then it would have a longer cash run way. Depicted below, you can see how its cash holdings have changed over time.

How Is Arafura Resources' Cash Burn Changing Over Time?

In our view, Arafura Resources doesn't yet produce significant amounts of operating revenue, since it reported just AU$58k in the last twelve months. Therefore, for the purposes of this analysis we'll focus on how the cash burn is tracking. With cash burn dropping by 17% it seems management feel the company is spending enough to advance its business plans at an appropriate pace. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.

How Easily Can Arafura Resources Raise Cash?

While Arafura Resources is showing a solid reduction in its cash burn, it's still worth considering how easily it could raise more cash, even just to fuel faster growth. Companies can raise capital through either debt or equity. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).

Since it has a market capitalisation of AU$90m, Arafura Resources' AU$12m in cash burn equates to about 13% 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.

Is Arafura Resources' Cash Burn A Worry?

The good news is that in our view Arafura Resources' cash burn situation gives shareholders real reason for optimism. One the one hand we have its solid cash burn relative to its market cap, while on the other it can also boast very strong cash runway. While we're the kind of investors who are always a bit concerned about the risks involved with cash burning companies, the metrics we have discussed in this article leave us relatively comfortable about Arafura Resources' situation. Separately, we looked at different risks affecting the company and spotted 5 warning signs for Arafura Resources (of which 1 shouldn't be ignored!) you should know about.

If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow.

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@simplywallst.com.

In this article we are going to estimate the intrinsic value of Hillgrove Resources Limited (ASX:HGO) by taking the expected future cash flows and discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.

Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

View our latest analysis for Hillgrove Resources

The model

We have to calculate the value of Hillgrove Resources slightly differently to other stocks because it is a metals and mining company. In this approach dividends per share (DPS) are used, as free cash flow is difficult to estimate and often not reported by analysts. This often underestimates the value of a stock, but it can still be good as a comparison to competitors. We use the Gordon Growth Model, which assumes dividend will grow into perpetuity at a rate that can be sustained. The dividend is expected to grow at an annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.3%. We then discount this figure to today's value at a cost of equity of 9.1%. Compared to the current share price of AU$0.05, the company appears about fair value at a 19% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.

Value Per Share = Expected Dividend Per Share / (Discount Rate – Perpetual Growth Rate)

= AU$0.01 / (9.1% – 2.3%)

= AU$0.06

Important assumptions

Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Hillgrove Resources as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.1%, which is based on a levered beta of 1.137. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

Next Steps:

Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Hillgrove Resources, we've put together three additional elements you should explore:

1. Risks: Case in point, we've spotted 3 warning signs for Hillgrove Resources you should be aware of.

2. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!

3. Other Environmentally-Friendly Companies: Concerned about the environment and think consumers will buy eco-friendly products more and more? Browse through our interactive list of companies that are thinking about a greener future to discover some stocks you may not have thought of!

PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search 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@simplywallst.com.

Bisichi PLC's (LON:BISI) price-to-earnings (or "P/E") ratio of 6.6x might make it look like a strong buy right now compared to the market in the United Kingdom, where around half of the companies have P/E ratios above 17x and even P/E's above 35x are quite common. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.

For instance, Bisichi's receding earnings in recent times would have to be some food for thought. One possibility is that the P/E is low because investors think the company won't do enough to avoid underperforming the broader market in the near future. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

Check out our latest analysis for Bisichi

Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Bisichi will help you shine a light on its historical performance.

How Is Bisichi's Growth Trending?

Bisichi's P/E ratio would be typical for a company that's expected to deliver very poor growth or even falling earnings, and importantly, perform much worse than the market.

If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 68%. Even so, admirably EPS has lifted 118% in aggregate from three years ago, notwithstanding the last 12 months. Although it's been a bumpy ride, it's still fair to say the earnings growth recently has been more than adequate for the company.

In contrast to the company, the rest of the market is expected to decline by 3.8% over the next year, which puts the company's recent medium-term positive growth rates in a good light for now.

With this information, we find it very odd that Bisichi is trading at a P/E lower than the market. It looks like most investors are not convinced at all that the company can maintain its recent positive growth rate in the face of a shrinking broader market.

The Final Word

While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.

Our examination of Bisichi revealed its growing earnings over the medium-term aren't contributing to its P/E anywhere near as much as we would have predicted, given the market is set to shrink. We think potential risks might be placing significant pressure on the P/E ratio and share price. Perhaps there is some hesitation about the company's ability to stay its recent course and swim against the current of the broader market turmoil. It appears many are indeed anticipating earnings instability, because this relative performance should normally provide a boost to the share price.

Having said that, be aware Bisichi is showing 4 warning signs in our investment analysis, and 1 of those is concerning.

If these risks are making you reconsider your opinion on Bisichi, explore our interactive list of high quality stocks to get an idea of what else is out there.

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@simplywallst.com.

With the business potentially at an important milestone, we thought we'd take a closer look at Mincor Resources NL's (ASX:MCR) future prospects. Mincor Resources NL engages in the exploration, development, and mining of mineral resources in Australia. The company’s loss has recently broadened since it announced a AU$13.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$16.3m, moving it further away from breakeven. As path to profitability is the topic on Mincor Resources' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Mincor Resources

Consensus from 3 of the Australian Metals and Mining analysts is that Mincor Resources is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$40m in 2022. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 64%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Mincor Resources given that this is a high-level summary, though, keep in mind that typically a metal and mining business has lumpy cash flows which are contingent on the natural resource mined and stage at which the company is operating. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Mincor Resources has no debt on its balance sheet, which is quite unusual for a cash-burning metals and mining company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Mincor Resources to cover in one brief article, but the key fundamentals for the company can all be found in one place – Mincor Resources' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Valuation: What is Mincor Resources worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Mincor Resources is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Mincor Resources’s board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks 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@simplywallst.com.

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Empire Resources Limited (ASX:ERL).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Empire Resources

The Last 12 Months Of Insider Transactions At Empire Resources

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman Michael Ruane for AU$158k worth of shares, at about AU$0.099 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.014). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Empire Resources insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.014. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Empire Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Empire Resources Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Empire Resources. Not only was there no selling that we can see, but they collectively bought AU$71k worth of shares. This makes one think the business has some good points.

Does Empire Resources Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 16% of Empire Resources shares, worth about AU$2.0m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Empire Resources Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Empire Resources we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Empire Resources is showing 6 warning signs in our investment analysis, and 3 of those make us uncomfortable…

Of course Empire Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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@simplywallst.com.

Conductive targets identified by Typhoon™ surveys remain open for further testing

Photo 1

SM2020-1 semi-massive to massive sulphides showing chalcopyrite, pentlandite and pyrrhotite grading 2.70% Nickel, 1.47% Copper and 3.31 gpt Palladium over 1.50 m at a depth of 110 m from surface

Photo 2

BN2020-1 semi-massive to massive sulphides showing similar composition as seen at Samapleu and Yepleu returning 1.24% Ni and 1.14% Cu over 0.35 m at a depth of 540.2 m from surface.

Figure 1

Sama 2020’s Typhoon surveys completed and target zones remaining.

Figure 2

Samapleu deposits surface map showing holes SM2020-1 to 5 and the layout of the Typhoon survey.

Figure 3

The Typhoon target at the Bounta sector together with boreholes BN2020-01. The mineralisation intercepted in BN2020-01 couldn’t explain the high conductivity target (11,000 CT) defined by the surface Typhoon. The following-up field program will include DHTEM in BN2020-01 for a more precise location of the highly conductive target defined by the Typhoon.

Figure 4

Targets at the Yepleu sector showing the mineralized trend and results from the three boreholes drilled in 2020.

MONTREAL, Aug. 13, 2020 (GLOBE NEWSWIRE) — Sama Resources Inc. (“Sama” or the “Company”) (TSX-V: SME | OTC-PK: SAMMF) is pleased to announce the assay results from boreholes drilled during the first half of 2020. The boreholes targeted the highly conductive zones defined by surveys completed using HPX TechCo Inc’s (“HPX”) proprietary Typhoon™ electromagnetic geophysical technology (“Typhoon”). Boreholes were drilled at three sites: Samapleu, Bounta and Yepleu, and located over 25 kilometers of strike distance within the Yacouba Ultramafic-Mafic intrusive complex, which was discovered by Sama in 2010 (Figure 1).

Assay results (see Table 1 below) indicate the high potential for additional nickel-copper-palladium mineralization at all three targeted zones. The follow-up field program will include performing downhole electromagnetic surveys (“DHTEM”) in recent holes at Yepleu and Bounta for additional definition of the highly conductive targets delineated by the Typhoon surveys.

“It is clear that we are gaining a greater understanding of the entire system through the use of Typhoon and believe that our drilling is getting closer to discovering the sources of massive sulphides veins and lenses observed near surface. Our partners at HPX have been key to increasing the speed at which we are able to unlock this evolving new discovery,” stated Dr. Marc-Antoine Audet, President & CEO of Sama Resources Inc.

The mineralization encountered at the three target zones is characterized by aggregates of the nickel, copper and iron sulphides – pentlandite, chalcopyrite and pyrrhotite, respectively. Pentlandite occurs together with pyrrhotite, while the chalcopyrite is either mixed with the pentlandite and pyrrhotite or occurs as millimetric to centimetric sulphide veins/accumulations. The textures of the sulphide mineralization vary from disseminated to semi-massive and massive (> 80% of sulphide material).

Table 1: Drilling results for the 2020’s drilling campaign. Mineralised composites defined using 0.1% Ni cut-off-grade (“COG”) and including intervals defined using 0.5% Ni COG.

Borehole SM2020-01 (Refer: Press Release January 29, 2020, Figures 1 & 2) returned 53 meters grading 0.43% nickel, 0.30% copper and 0.52 grams per tonne (“gpt”) palladium, including 4.6 m grading 1.98% Ni and 0.92% Cu and 2.54 gpt Pd (see Photo 1 below). SM2020-1 was drilled 200 m southwest of the current mineral resources and extended the mineralized trend of the Samapleu surface deposit.

Photo 1: SM2020-1 semi-massive to massive sulphides showing chalcopyrite, pentlandite and pyrrhotite grading 2.70% Nickel, 1.47% Copper and 3.31 gpt Palladium over 1.50 m at a depth of 110 m from surface
https://www.globenewswire.com/NewsRoom/AttachmentNg/d11378a4-9153-4b71-9733-f245dc8fa370

Borehole SM2020-02, drilled down to 688 m from surface returned 166 m of disseminated mineralization with stringers of semi-massive sulphides (Table 1).

At Bounta, a new discovery located midway between Samapleu and Yepleu, borehole BN2020-01 returned disseminated and a stringer of semi-massive to massive sulphide grading 1.23% Ni and 1.14% Cu over 0.35 m at a depth of 540 m from surface (Photo 2). The mineralization encountered by BN2020-01 closely matched the moderately conductive EM plate but could not fully explain the high conductivity target defined by Typhoon survey (Figures 1 & 3). The follow-up field program will include DHTEM in BN2020-01 to more precisely locate the highly conductive target defined by the Typhoon.

Photo 2: BN2020-1 semi-massive to massive sulphides showing similar composition as seen at Samapleu and Yepleu returning 1.24% Ni and 1.14% Cu over 0.35 m at a depth of 540.2 m from surface.
https://www.globenewswire.com/NewsRoom/AttachmentNg/9a7e1635-52ee-4b74-9ac7-9cef229b86a0

Figure 1: Sama 2020’s Typhoon surveys completed and target zones remaining.
https://www.globenewswire.com/NewsRoom/AttachmentNg/65d9bfc9-46cb-4daa-bbbc-05af3a4720eb

Figure 2: Samapleu deposits surface map showing holes SM2020-1 to 5 and the layout of the Typhoon survey.
https://www.globenewswire.com/NewsRoom/AttachmentNg/36c09474-ef35-4037-b6fb-dd83d78cc5d8

Figure 3: The Typhoon target at the Bounta sector together with boreholes BN2020-01. The mineralisation intercepted in BN2020-01 couldn’t explain the high conductivity target (11,000 CT) defined by the surface Typhoon. The following-up field program will include DHTEM in BN2020-01 for a more precise location of the highly conductive target defined by the Typhoon.
https://www.globenewswire.com/NewsRoom/AttachmentNg/490f5400-4228-4358-9a29-5af228965b73

Three holes were drilled at Yepleu (YE2020-01 to 03) were aimed at testing three Typhoon EM targets along a mineralized trend of more than 4,500 m of strike length (Figures 1 & 4). The mineralized horizon starts near surface, reaches a depth of more than 850 m toward the south-southwest and appears remain open. The very strong conductive target at 850 m depth from surface defined by Typhoon EM (15,000 conductivity thickness (“CT”)), remains untested as hole YE2020-03 deviated and intercepted the edge of the system. The mineralization encountered in YE2020-03 is encouraging but it does not explain high conductivity target defined by the Typhoon DHEM. Further downhole EM will better locate this target.

Figure 4: Targets at the Yepleu sector showing the mineralized trend and results from the three boreholes drilled in 2020.
https://www.globenewswire.com/NewsRoom/AttachmentNg/dfaab5c8-cb73-41bb-81bf-3a802e7270dd

About HPX

HPX is a privately-owned, U.S.-domiciled mineral exploration and development company. For further information, please visit www.hpxploration.com.

About Sama Resources Inc.

Sama is a Canadian-based mineral exploration and development company with projects in West Africa. On October 23, 2017, Sama announced that it had entered into a binding term sheet in view of forming a strategic partnership with HPX TechCo Inc., a private mineral exploration company in which mining entrepreneur Robert Friedland is a significant stakeholder, in order to develop its Côte d’Ivoire Nickel-Copper and Cobalt project in Côte d’Ivoire, West-Africa. For more information about Sama, please visit Sama’s website at http://www.samaresources.com.

The technical information in this release has been reviewed and approved by Dr. Marc-Antoine Audet, P.Geo and President and CEO of Sama, and a ‘qualified person’, as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Core (NQ size) logging and sampling was performed at Sama’s facility in Yorodougou village. Sample preparations was performed at Bureau Veritas Mineral Laboratory’s facility in Abidjan. Sample pulps were shipped by courier to Activation Laboratory (Actlab) in Lancaster, Ontario, Canada. All samples were assayed for Ni, Cu, Co, Pt, Pd and Au.

FOR FURTHER INFORMATION, PLEASE CONTACT:

SAMA RESOURCES INC./RESSOURCES SAMA INC.
Dr. Marc-Antoine Audet, President and CEO
Tel: (514) 726-4158
OR
Mr. Matt Johnston, Corporate Development Advisor
Tel: (604) 443-3835
Toll Free: 1 (877) 792-6688, Ext. 5

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Certain statements made and information contained herein are "forward-looking statements" or “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking statements and forward-looking information such as “evidence”, “potential”, “appears”, “seems”, “suggest”, are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties.

In addition, forward-looking statements and forward-looking information are based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.

TORONTO, July 13, 2020 (GLOBE NEWSWIRE) — Waseco Resources Inc. (“Waseco” or “the Company”) (“WRI”-TSX-V) is pleased to report that its wholly owned U.S. subsidiary, today, has entered into an Option Agreement with a wholly owned subsidiary of SSR Mining Inc. (“SSRM”), relating to the Company’s Battle Mountain Ridge (“BMR”) leased gold property in Nevada.

The 29 claim BMR property is strategically located on the Battle Mountain-Eureka Trend, immediately adjacent to the Trenton Canyon Mine, which SSRM recently acquired from Newmont. It is approximately 10 km south of SSRM’s current Marigold Mine operations.

BMR hosts oxide gold mineralization identified by drilling programs carried out by several previous operators over the past 30 years. To date, three gold zones have been identified on the property. The South and West zones are oxide hosted and drilling by Waseco has extended the West Zone laterally.

Additionally and importantly, Waseco has made a sulphide hosted gold discovery near the Northern property boundary with SSRM. (see WRI News Releases Jan. 12^th, 2012 and Jan 26^th, 2017). This zone appears to be on trend with a recently announced discovery by SSRM, on its Marigold property, approximately 1.5km to the north-west from the BMR property boundary, where SSRM announced a gold intercept of 5.19g Au over 94.5 meters (see SRRM News Release- May 14^th, 2020).

Under the terms of the Agreement, SSRM has agreed to carry out exploration expenditures of US$1.5 million within the next 5 years and assume all of the carrying costs of the BMR property during the option period. At the end of the exploration phase, SSRM may acquire Waseco’s interests by paying US$25 per ounce of gold in all resource categories discovered (measured, indicated and inferred). This acquisition will involve a minimum payment to the Company of US$1 Million and a maximum payment of US$6 Million as well as a 1% NSR royalty on production payable to the Company. Waseco will also receive a US$100,000 payment and re-imbursement of certain expenses on the effective date of the Option Agreement. The transaction is subject to TSX-V approval.

Company President, Richard Williams, commented: “The operations at the nearby Marigold Mine, which has consistently produced over 220,000 ounces of gold per year at an extremely low cut-off gold grade, is a testament to their team’s understanding of the oxide gold ore environment in the area.

The pending addition of the Alacer Gold Corp. team, which has extensive sulphide hosted gold production experience, provides us with added comfort that Marigold are best placed to effectively and successfully develop BMR and Waseco’s new discovery there. We look forward to working with Marigold’s exploration staff.”

Note: The mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the BMR property.

Mr. A. Lee Barker, BASc., MSc. (App.), P. Eng., a Qualified Person under National Instrument 43-101, has reviewed and approved the technical content of this release.

Waseco is an exploration company focused on exploring for gold in Nevada. The Company is listed on the TSX Venture Exchange (“WRI”) and the Frankfurt Stock Exchange (“WSE”). There are currently 41,681,390 shares issued and outstanding.

For further information on the Company, please visit the Waseco web site at www.wasecoresources.com or contact Richard Williams at (416) 364-3123- e-mail: rickw@wasecoresources.com.

On Behalf of the Board of Directors

Richard Williams

President & C.E.O.

Neither the TSX Venture Exchange nor its regulatory service providers as that term is defined in the policies of the TSX Venture Exchange accepts responsibility of the accuracy or adequacy of this release.

We seek safe harbour.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES

TORONTO, July 06, 2020 (GLOBE NEWSWIRE) — Olivut Resources Ltd. (“Olivut” or the “Company”) (OLV.V) is pleased to announce that it has exercised its option to earn 50% of the Seahorse Project, located in the Northwest Territories, Canada in accordance with the terms of the Option Agreement signed with Talmora Diamond Inc. (“Talmora”) on July 6, 2018. Olivut and Talmora will be joint (50/50) owners of the assets.

All earn-in requirements have been completed: on December 9, 2019 Olivut provided notice to Talmora that it had incurred the minimum work cost requirement of $1,200,000 ($1,295,000 spent to October 31, 2019) and a cash payment of $200,000 was made to Talmora in July, 2018. Talmora retains a 1% net smelter return royalty on certain land.

The Company considers the Seahorse Project to have the potential to host diamondiferous kimberlite bodies of significant size and perhaps other mineral deposits, based on a combination of: 2019 program results as described below; favourable diamond stability indicator minerals found regionally and locally, including 18 macro diamonds found in regional samples to the west and northwest; specific geophysical targets; regional and local faults that would favour kimberlite emplacement; occurrence of diamondiferous kimberlites to the north and southeast, as well as other geochemical data in the area.

As previously announced, Olivut successfully completed a helimag geophysical program during April and May 2019. Detailed, low-level, 50 metre line spacing magnetic information was collected and analyzed over multiple anomalies previously identified from regional geophysics.

During August and September 2019 six holes were drilled to test certain regional geophysical targets that had been confirmed and further delineated by the detailed helimag program. The holes were drilled to a maximum depth of 316’ (96.3 metres) using a reverse circulation, heli-portable drill.

Beneath tills, each of the holes intersected varying depths of a distinct homogeneous, extremely fine-grained clay that did not appear to be derived from the dolomite country rock that is exposed proximal to the targets. Down hole drilling conditions were exceptionally challenging, as was the recovery of drill sample material, due primarily to the nature of these intersected clays. Samples were collected from each of the holes and sent for analysis to Saskatchewan Research Council (“SRC”).

Preliminary visual inspection, as well as further microscopic examination of many of the collected samples, could not specifically identify the host rock from which the clay material is derived. Subsequently, whole rock and multi-element geochemical results returned complex chemistry characterised by elevated Rare Earth Element (“REE”) content. Further analysis is ongoing to relate these findings to till samples taken down-ice in the general region. These REE levels are generally higher than, or consistent with, levels of REE detected in clays found to occur over some identified kimberlites in some locations of the world (e.g. western Australia and Namibia). Sulphides, including pyrite, galena and sphalerite, as well as other mafic minerals were easily identified in many downhole samples.

The Seahorse Project area underwent periods of extreme warming and laterization that destroyed silicate indicator minerals as evidenced from regional till sampling results. However, some opaque oxide indicator minerals and diamonds survive this type of weathering.

To determine the potential presence of any kimberlitic indicator minerals (“KIM”), additional samples from five drill holes, each consisting mostly of the homogeneous clay, were submitted for heavy mineral analysis to SRC. Chromites, ilmenites (some manganese bearing) and abundant pseudorutile (an alteration product of ilmenite which is common in intensely weathered kimberlite) are present. Although the chromites and ilmenites are not unequivocally kimberlitic, a few definite KIMs (G-9 pyropes and picroilmenites) were recovered from beach sand concentrates taken from a lake in the vicinity of the drill holes.

A surprising result of the heavy mineral analysis is the number of microfossils and the abundance of various forms of pyrite (some replacing organic material and microfossils) found in the concentrates. Also present are spherules (tiny bead-like features) believed to be associated with a meteorite impact. Microfossils and pyrite associated with anoxic (low oxygen) conditions require a different explanation for the origin of the clay than intensely altered kimberlite. Given the results to date, there are a number of possible scenarios that could explain the genesis of these clays and further work is required to obtain more information before arriving at a conclusion.

In addition to the drilling program described above, limited regional prospecting was conducted. A large gossan zone was identified on the property comprising the Seahorse Project that appears to have a strike length of approximately eight kilometres. Very limited sampling was conducted due to budget and fuel constraints. Some of these samples returned trace amounts of gold which may be significant given the limited number of samples collected. Further work is required to obtain more information before arriving at a conclusion. The linear gossan zone occurs within the dolomite country rock and likely represents a sulphide bearing fault zone. The Company’s interest in the Seahorse Project includes any mineral deposits discovered, whether diamonds or other minerals.

This region has been subjected to no known previous detailed exploration work. The Company will report further details once they are available. Due to its remoteness, the project area must be supplied by small aircraft and helicopter. Although Talmora has been active in the area of the Seahorse Project, prior to Olivut’s involvement it had not been able to conduct meaningful exploration due to a lack of financing during the prolonged negative capital market environment for junior exploration companies.

The Coronavirus pandemic and its effects particularly on planning and work in the Northwest Territories will likely prevent any field work being conducted in 2020. Measures have been put in place to mitigate risks to the health and safety of northern people and communities.

Olivut is a diamond exploration company with a 100% mineral interest in the HOAM Project (the “HOAM Project”) and a 50% interest in the Seahorse Project, both projects being located in Canada’s Northwest Territories. Please visit www.olivut.com for detailed corporate and project information.

This press release contains forward-looking statements with respect to the Company, and matters concerning the raising of additional capital, the business, operations, strategy, and financial performance of the Company. Actual results may differ materially from those indicated by such statements. These statements generally, but not always, can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the estimates and projections regarding the Company’s properties are realized. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Unless otherwise stated, all forward looking statements speak only as of the date of this press release and the Company does not undertake any obligation to update such statements except as required by law.

Martin St. Pierre, P.Geophys., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure in this press release.

Leni Keough, P.Geo.
President and Chief Executive Officer

For further information, please contact:
Leni Keough
President and Chief Executive Officer
Olivut Resources Ltd.
(780) 866-2226

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Every investor in Altura Mining Limited (ASX:AJM) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Altura Mining is a smaller company with a market capitalization of AU$197m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about Altura Mining.

See our latest analysis for Altura Mining

What Does The Institutional Ownership Tell Us About Altura Mining?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Less than 5% of Altura Mining is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Hedge funds don't have many shares in Altura Mining. Ningbo Shanshan Co.,Ltd. is currently the largest shareholder, with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 10% of the stock. In addition, we found that James Brown, the CEO has 1.1% of the shares allocated to his name

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Altura Mining

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 a reasonable proportion of Altura Mining Limited. Insiders own AU$60m worth of shares in the AU$197m company. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 46% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 5.8%, private equity firms could influence the AJM board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Public Company Ownership

We can see that public companies hold 15%, of the AJM 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Altura Mining (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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@simplywallst.com.

GABORONE, June 25 (Reuters) – Botswana issued its first licences allowing three private companies to generate their own power which will mostly be destined for export, the energy regulator said on Thursday.

The Independent Power Producers (IPPs) have received 15-year generation licences and will produce a combined 827 megawatt (MW) of power.

State-owned Botswana Power Corporation (BPC) is currently the sole producer of electricity but the country is looking to diversify with several private investors at various stages of setting up coal, gas and solar power projects.

“We need to come to a point where we no longer import but become exporters of electricity,” said Botswana Energy Regulatory Authority chief executive officer, Rose Seretse.

Energy & Natural Resource Corporation, which is owned by Strata, plans to construct a 600 MW coal-fired power station, Tlou Energy has been granted a licence to produce 2 MW of power through coal-bed methane and Sese Power, owned by First Quantum Minerals and African Energy have been licensed to generate and export 225 MW of power.

Despite its huge estimated coal resources of 212 billion tonnes, the diamond-rich country only has two operating coal mines with several investors at various stages of setting up coal mines for either export or power generation.

Lack of adequate rail infrastructure and the high costs of road transportation have been holding back investments in Botswana coal sector. (Reporting by Brian Benza Editing by Tanisha Heiberg and Chizu Nomiyama)

VANCOUVER, BC , June 24, 2020 /CNW/ – The following issues have been halted by IIROC:

Company: Liberty One Lithium Corp.

TSX-Venture Symbol: LBY (all issues)

Reason: At the Request of the Company Pending News

Halt Time (ET): 1:07 PM

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

View original content: http://www.newswire.ca/en/releases/archive/June2020/24/c2948.html