Minerals explorer Zenith Minerals has enjoyed a massive rerating over the past 12 months, with its share price soaring more than 80%.

That came on the back of exposure Zenith Minerals (ASX:ZNC) had to the emerging top-tier Earaheedy zinc discovery made by joint venture partner Rumble Resources in WA, as well as exploration success on its 100% owned Split Rocks and Develin Creek projects.

It has seen the $70 million-capped company undertake a strategic review as it looks to demonstrate its development from a general explorer to a pre-development mining company focused on precious and base metals.

Zenith has engaged advisors Grant Samuel to assist in the transition process.

Zenith’s board and management now see a clear line of sight over the next 1-2 years for what was a small scale explorer to grow into one directly and indirectly involved in pre-development drill outs, project prefeasibility work, development funding and potential corporate activities.

One of the key triggers will be the progress on the Earaheedy project, where Zenith holds a 25% stake and is free carried until the delivery of a bankable feasibility study.

But it is also set to lodge a maiden resource at the Split Rocks gold project near Forrestania in WA next year, and is having growing success with its exploration push at the Develin Creek copper project across the Nullarbor in Queensland.

“In the early part of CY2020 the company refocussed its strategy with the key emphasis being on base and precious metals,” executive chairman Peter Bird said.

“Since that time the core projects have all been advanced and a series of non-core assets have been divested or partnered (restructured).”

That has included Zenith’s rare earths and lithium asset in the USA, its Fraser Range nickel project and the Flanagans copper-gold project, enabling the company to focus its attention in its core assets.

New direction for Zenith board

Part of Zenith’s transition will include the appointment of a new non-executive director geared towards its future growth, with experience in project financing and deal structuring.

It will follow the retirement of long-time non-executive director Graham Riley from the Zenith board, who will be exiting at Zenith’s upcoming AGM to focus on private interests.

Since moving from a career as a respected corporate lawyer into resources and exploration companies, Riley has been executive chairman of Giralia Resources NL, Buru Energy NL, Entek Energy Limited and Red Hill Iron Limited, and a director of Adelphi Energy NL, as well as a non-executive director of Arc Energy Limited.

“We very much appreciate Graham’s contribution and we will continue to interact with him as a significant shareholder,” Bird said.

“Graham will be available over the ensuing period to ensure an appropriate handover to the new incumbent, and be available for consultation regarding any ongoing corporate matters where his past experience may assist.

“The business is well placed to capitalise on the success to date and we believe that the only thing that will remain constant in the upcoming 12 months is change.

“This change will take place in several areas. We will continue to adjust human capital needed to match the strategy, continue to plan for ongoing asset growth and always consider business restructuring – all aimed at delivering value to shareholders.”



This article was developed in collaboration with Zenith Minerals, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.