The All Ords finished up 1.64% for the week to Thursday, Healthcare (+1.26%) and Banks (+1.77%) doing their bit while Resources (+2.96%) took on the heavy lifting.

But it was an off week for Emerging Companies, down 0.67%, and marking 6 out of 14 days in the red for August so far.

Highlights from the XEC cohort were few, but still outstanding. Copper minnow Cobre (ASX:CBE) led the way, rocketing another 141% on news it had hit copper in all four of its first four diamond holes in Botswana’s Kalahari Copper Belt. In less than two months, it’s shot from 2c to 35c.

Somebody had it. Somebody who’s very happy right now.

Here’s what the experts are looking at this week.

 

Barry Fitzgerald

Garimpeiro reckons there had been no better confirmation that copper stocks had been over-sold than BHP’s attempt to snare OZ Minerals for a 32% day one premium. Until minutes later, when OZ still turned it down.

That’s helped the red metal rally from $US3.17/lb in mid-July to $US3.61/lb which even so is still well down on the FY2022 average of $US4.37/lb. No one’s believing the “essential metal of the future” hype.

True value, though, still lies with the juniors, according to Fitz. Since he picked it in July, New World Resources (ASX:NWC) has clawed to 3.4c from 3.1c. Garimpeiro’s now adding Caravel Minerals (ASX: CVV), trading at 24c, to his bargain barrel list.

He likes the projected 28-year mine life, the production cost of US$1.72/lb… and the fact it’s still available at a 37% discount to its top price when copper was running hot in March.

Guy Le Page

There’s a lot of talk about gas supply through Europe right now; namely, the lack of it. So it feels like a good time to hunt around for an emerging, cheap player.

Only you don’t have to, because Guy Le Page has done the hard work already and come up with Hartshead Resources (ASX:HHR). It’s got a 100% owned licence over five blocks on the UK Continental Shelf in the Southern Gas Basin.

The licence, Le Page says, “contains multiple gas fields”, and HHR is closing in on a Final Investment Decision in 2023 with first gas sale in late 2024.

The best part? It’s only 3c. Le Page reckons 5-10c pre-production next year is fair value. Auctus Advisers reckons once the gas starts flowing, the market could pay anything between 14-30c.

 

ASX directors

How bullish do you want to get on coal? This earnings season has been dominated by frankly obscene profits from the black death industry, but a read of the executive tea leaves signals there’s more money to be made.

Shares in TerraCom (ASX:TER) have risen more than 430% in the past year and ~12% in the past month to 85c, but directors Danny McCarthy, Graeme Campbell and Glen Lewis are still building positions. Together they’ve shelled out more than $527,000 for more of the former Guildford Coal, which counts the Blair Athol coal mine in central Queensland as its main asset.

Car dealer Eagers Automotive’s (ASX:APE) director and largest shareholder Nicholas Politis tipped another $1 million+ into the kitty as APE rose 13% in the past month.

And despite (or due to) an earnings revision which saw United Malt Group (ASX:UMG) plummet 12.5% on August 1, several leadership members aped in while the beer and whisky supplier was suddenly on sale. Sláinte!

 

Something completely different

It’s complicated – crypto always is – but here’s a very readable explainer with all you need to know about Ethereum’s life-changing shift in September, and where potentially big opportunity lies for Joe Average crypto investor.

If you’re sharp. And brave.

The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.

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