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Trading Places: Terra Uranium’s new substantial shareholder loves its board, grade and a very promising anomaly
News
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- Resources stocks in high demand during the past fortnight with several attracting new substantial shareholders
- Newly listed Terra Uranium has a new substantial shareholder
- Rate sensitive sectors have lost substantial shareholders over the past fortnight
Trading Places is Stockhead’s semi-regular, pretty damn fascinating recap of the latest red flag buying and selling of ASX stocks. It is here that the rubber really hits the road for fund managers, stakeholders, distant (and not-so-distant) relatives and other famous or infamous investors.
Specifically, Trading Places tracks substantial shareholder movements – namely when a trade in a company’s stock crosses or falls below the 5% threshold.
Substantial shareholders are usually directors, individual investors, institutional investors… or their distant (and not-so-distant) relatives, which they will refer to as listed related bodies corporate or something similar. You can see in detail these listed bodies on the company’s ASX announcement.
Shareholders are required by basic human decency (and the law) to publicly declare via the exchange when their personal stake goes below or above 5%, and from there, every movement in their holdings while owning above 5%.
The becoming and ceasing to be substantial shareholders are the ones we think are worth noting, where a trade takes an investor over the 5% threshold or has them drop back below.
Here’s the form to get you started, if reading this makes you twitchy.
Fortnight Overview
Days where the ASX has been up in the past fortnight have been outnumbered by the downs. Some sharp falls have followed figures showing US annual inflation remaining stubbornly high at 8.3% and forecasts of further interest rates hikes spooked investors both at home and abroad.
The S&P/ASX 200 ended last week more than 2% down with all sectors in the red. The S&P/ASX 200 continued its falls on Monday, down ~0.3% to its lowest level in two months but recovered some lost ground on Tuesday, up 1.29%.
Recent buys – Terra Uranium
| Code | Company | Market cap | Date | Holder | Holding |
|---|---|---|---|---|---|
| T92 | Terra Uranium | $17.88M | - | 10 Bolivianos Pty Ltd, Freedom Trader Pty Ltd and Niv Dagan | 13.15% |
| MP1 | Megaport | $1.19B | Sept 8 | JPMorgan Chase & Co and affiliates | 5.26% |
| MIN | Mineral Resources | $13.25B | Sep 12 | State Street Corporation and subsidiaries named | 5.18% |
| MEK | Meeka Metals | $73.03M | Sept 14 | Aigle Royal Superannuation Pty Ltd ATF The A. Poli Superannuation Fund | 5.44% |
| LKE | Lake Resources | $1.52B | Sept 14 | Name JPMorgan Chase & Co. and its affiliates | 5.37% |
| ILU | Illuka Resources | $4.25B | Sept 16 | Yarra Capital Management | 5.02% |
| PRU | Perseus Mining | $1.97B | Sept 16 | Macquarie Group and its controlled bodies corporate listed | 5.01% |
Resources stocks have been in demand during the past fortnight with new substantial shareholders for lithium play Lake Resources (ASX:LKE),rare earths explorer Meeka Metals (ASX:MEK), Whitehaven Coal (ASX:WHC), Illuka Resources (ASX:ILU) and Perseus Mining (ASX:WHC).
Terra Uranium (ASX:T92), which listed on the ASX on September 8, has a new substantial shareholder in none other than Peak Asset Management founder and executive director Niv Dagan.
Terra Uranium holds some 775sqkm of the Athabasca Basin in Canada, with three projects – the HawkRock, Parker Lake and Pasfield Lake – containing what the blurb calls the world’s largest and highest-grade uranium deposits.
Peak led the IPO and when asked about the substantial holding Dagan told Stockhead he was bullish on both uranium and T92, saying it had a strong leadership team and quality assets.
“We’ve got a formidable board led by executive chairman Andrew Vigar, who founded Alligator Energy (ASX:AGE) which is now sitting with ~$220 million market cap,” Dagan said.
“For a nano-cap we have a formidable team and board and we have put together three projects that are 100% owned.”
Dagan said Terra Uranium is drilling this coming winter at Athabasca, which has the largest uranium deposits in the world and highest grade.
“Just put that in perspective, BHP’s Olympic dam only has uranium of 0.003% and we are seeking deposits of 200 or 300 million pounds at over 5% grade,” he said.
T92 has also identified a very large uranium anomaly at the Pasfield project, which is one of the largest ever encountered.
“The anomaly, which will be verified in the next few weeks on the basis of the new Z-10 technology, has the earmarks of the same size and grade as Macarthur, in northern Saskatchewan, Canada, which is the world’s largest high-grade uranium deposit,” Dagan said.
He said since the latest change in substantial holding he has added another 900,000 shares.
He said Terra Uranium has several notable shareholders including the Liberman Family, Tristar, Altor, Tribeca and Terra Capital, while directors have also bought in for the action.
The company’s plan is to explore and develop the projects as well as seek out further complementary mineral exploration and resource opportunities
The Terra Uranium share price is up more than 80% since its 20 cents/share IPO to ~37cents/share.
Recent Sells
| Code | Company | Market Cap | Date of change | Holder |
|---|---|---|---|---|
| LOV | Lovisa Holdings | $2.45B | Sept 12 | ECP Asset Management Pty Ltd (and its associated entity EC Pohl & Co) |
| BBN | Baby Bunting Group | $536.46M | Sept 9 | Commonwealth Bank of Australia and its related bodies corporate |
| ACL | Australian Clinical Labs | $766.97M | Sept 14 | River City Capital |
| UMG | United Malt Group | $1B | Sept 14 | State Street Corporation and subsidiaries named |
| PWR | Peter Warren Automotive Holdings | $498.57M | Sept 13 | Quadrant Private Equity |
| EML | EML Payments | $329.01M | Sept 15 | JPMorgan Chase & Co. and its affiliates |
| RBL | Redbubble | $206.94M | Sept 14 | Mitsubishi UFJ Financial Group |
Several rate sensitive stocks have seen selldowns in the past fortnight. Retail stocks can have mixed performance during inflation and while it recorded strong FY22 results and is a pick of 8020 Invest investment manager Angie Ellis, low-cost jeweller Lovisa Holdings (ASX:LOV) has seen ECP Asset Management cease to be a substantial shareholder.
The Lovisa share price has risen more than 16% year to date.
EML Payments (ASX:EML).
