Quarterlies: The best and the worst of today’s 4Cs released on the ASX
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Quarterly release day can be the best of times or the worst of times for shareholders. Stockhead has gone through them so you don’t have to.
Here are the some of the best and worst of today’s 4C releases, judging by shareholders’ responses.
Marmota (ASX:MEU) +25%
The best performer was Marmota, which is a South Australian gold explorer. For junior explorers, it is less about cash flow (because they usually don’t have any) and more about their discoveries — in this case gold.
Marmota began its most recent drilling campaign in December, which delivered an intersection averaging 24 grams per tonne (g/t) gold over 4m. Gold is a hot commodity right now, with prices climbing up from $1,800 to over $2,300 per ounce in 12 months.
The company also has copper and uranium tenements and reminded shareholders it was well placed for an uptick in the uranium sector. It owns one of only four permitted mines in Australia, but like other explorers is waiting for prices to rise to appropriate levels.
Roto-Gro (ASX:RGI) +13%
It was another successful quarter for this ag-tech and cannabis play. CEO Adam Clode said this morning the company entered the new year “with much promise and poise”.
Roto-Gro’s achievements included finding a business partner to help it cultivate cannabis in Thailand –where soon cannabis will be able to be grown like any other herb.
This quarter it also anticipates a ramp-up in operations in Canada with Health Canada expected to grant its first cultivation and processing licences. Roto-Gro also reported a strong sales pipeline for its vertical rotation plant growing machines.
K-Tig (ASX:KTG) +8%
The industrial welding play’s first full quarter on the ASX was a good one. K-Tig has sold the technology to over 20 countries and says it has a substantive pipeline to come. It is employing additional sales executives to facilitate this.
One of these market opportunities is in the UK’s nuclear decommissioning market. K-Tig said its technology had been proven to work and it anticipated further participation in the months ahead.
Another newcomer to the ASX which had a good quarter is 3D additive manufacturer Amaero. It made its debut last month after raising $8m.
During the quarter it worked on its facilities, in particular the El Segundo facility in the US and executed a research and development project agreement with the CSIRO.
This quarter it hopes to commission two of its machines, EOS M400 and AM400, begin the CSIRO project and complete certification audits for its Melbourne facility.
The company announced record quarterly revenue from cannabis sales – up 400 per cent from the December 2018 quarter.
Additionally, it began an observational study on its anti-cancer drug candidate NanaBis. A clinical trial is expected to report in February but Medlab said internal reviews showed encouraging results.
The beauty clinic operator raised $6m in capital and booked $3.85m in sales receipts. But it had $3.5m in the bank and anticipates outflows of $7.4m next quarter.
ImExHS (ASX:IME) – 33%
The CEO of this healthcare tech play admitted today that the company “learned important lessons on cash flow management” and that ImExHS is “working diligently to improve our internal controls and processes”.
The company had expected quarterly receipts to reach $2.7m and cash outflows to be $2.6m. But it only brought in $1.9m and saw outflows of $4.2m.
ImExHS blamed timing issues and promised things would improve as it focused on recurring revenue. The company stressed annual recurring revenue was up by 94 per cent to $8.5m.
Splitit (ASX:SPT) -12%
Nearly a year on from listing, Splitit still sits triple it’s IPO price but took a tumble today. While the buy now, pay later firm reported record merchant sales volume, revenue was down 7 per cent at $US433,000 ($644,427). Its operations witnessed cash outflows of $US4.76m.
During the quarter it obtained over a dozen new merchants and it has $US16.3m in the bank.
It’s been a rough few months for Rhythm, which is developing a blood-based test to replace the faecal test that the federal government uses for bowel cancer screening. It was developed by the CSIRO but it wants to undertake a 1,000 patient clinical trial to prove the test in its own right.
In six months it has halved in value as shareholders (including holders which were escrowed until last month) became frustrated with the slow progress made. Rhythm promised a change of pace but shareholders would need to wait until next month’s half yearly report for more details.
However, it still claimed it made progress this quarter, appointing a new chairman and obtaining a patent in China. It also still has $3.7m in the bank.
After hitting as high as 17c last April, Osprey — which makes medical devices protecting kidneys from protective dyes — now sits at just over 2c. While sales continued to grow, by 36 per cent, so did its cash outflows.
It spent $US4m during the quarter and $US16.9m for the 2019 calendar year, and expects to drop another $US5.95m next quarter.