Resources Top 5: Forrestania turns focus to gold after banking cash in placement

Forrestania Resources has raised $500,910 in a placement with funds for upcoming gold drilling programs
Piche Resources is among the growing number of ASX-listed companies seeking uranium as global interest grows in electric vehicles and green energy
Nickel Industries does not expect to be impacted from an Indonesian Government proposal to increase royalties for mining companies across a number of commodities

Your standout small cap resources stocks for Wednesday, March 12, 2025.

Forrestania Resources (ASX:FRS)

Multi-commodity explorer Forrestania Resources will increase its focus on gold after raising $500,910 in a placement completed in what chairman John Hannaford describes as a “tough market environment”.

Firm commitments for the placement at 2.5c per share have been received from existing shareholders and new investor Evolution Capital.

The price represented a considerable premium to the company’s recent share price and investors have recognised the significance of this, driving shares as much as 47.83% higher to 3.4c. Since February 5, 2025, shares have risen almost threefold.

Directors have also put more skin in the game by committing $35,000 to the placement. The placement and participation of directors are both subject to shareholder approval.

“We are very pleased to have received commitments for this raising at a premium to the recent share price, in a tough market environment,” Forrestania chairman John Hannaford said.

“The support from existing shareholders and the introduction to Evolution Capital is a strong endorsement of the company’s gold projects at Lady Lila and Bonnie Vale.

“Funds from the placement will ensure we are well funded to undertake further gold exploration programs at both project areas.”

Lady Lila hosts a JORC-compliant inferred mineral resource estimate of 541,000t at 1.38g/t gold for 24,000oz and mineralisation remains open to the north, south and at depth

Further exploration at the Ada Ann prospect will also be planned after FRS receives drill results from a previous RC drill program.

At completion of the placement, the company will have 300m shares on issue, with director Daniel Raihani holding a 10% interest.

As well as gold, which is the primary focal point due to the strong price environment, Forrestania Resources is exploring for copper and lithium in the Forrestania, Southern Cross and Eastern Goldfields regions of WA.

The company’s namesake Forrestania Project hosts gold, lithium and nickel prospects in proximity to the historic Bounty gold mine, the Mt Holland Lithium Mine, and the formerly operating Flying Fox and Spotted Quoll nickel mines in the well-endowed southern Forrestania Greenstone Belt.

The Eastern Goldfields tenements are within the Norseman-Wiluna Greenstone Belt of the Yilgarn Craton while the Southern Cross Project is in the Southern Cross Greenstone Belt and has significant potential for gold mineralisation.

Piche Resources (ASX:PR2)

(Up on no news)

Uranium continues to attract strong global attention as the quest for non-fossil fuel sources gains momentum and Piche Resources is one of a growing number of Australian resource companies on the hunt.

Piche’s primary focus is on the Ashburton project area, which is about 140km west-southwest of Newman in the Pilbara region of Western Australia.

Results from Piche’s 2024 drilling program and historical drill holes have confirmed an extensive host of mineralisation and have led to a reinterpretation of the geology, included in an updated geological model.

This shows a previously unrecognised talus flow unit of Lower/Mid Proterozoic unconformity, which points to a widespread zone of increased permeability for uranium minerals.

“We are very excited by the significant advances this study has made in our understanding of the controls on mineralisation,” Piche Resources MD Stephen Mann said.

“Key discoveries include the identification of the talus unit, the critical role of carbonaceous shale and the strong correlation between pathfinder elements and uranium, are pivotal.

“I am confident that this deeper understanding will be instrumental in the next phase of drilling of the numerous uranium occurrences over the 55km of target horizon.”

Piche believes the identification of the talus unit, the critical role of carbonaceous shale and the strong correlation between pathfinder elements and uranium make it very likely that future drilling programs will significantly extend the mineralisation at the numerous uranium anomalies and occurrences over the 55km of strike target horizon.

The company has traded up to 21.31% higher at 7.4c, settling at 7c for a ~15% gain.

Nickel Industries (ASX:NIC)

Nickel Industries says is does not expect to be impacted significantly from a proposal by the Indonesian Government to increase royalties for mining companies across a number of commodities, including nickel.

That update came after NIC shares tanked on Tuesday as news broke of a new, tiered royalty system that could cost it 14-19% of revenue depending on nickel prices.

But this proposal, which is in the public consultation phase, will have the largest impact on nickel ore sales. NIC is further downstream, with its Hengjaya mine largely supplying its four rotary kiln electric furnace plants in the Southeast Asian nation that produce nickel pig iron for the stainless steel industry. That means the effect will be minimised.

NIC also holds a small stake in an HPAL project which produces nickel products for the electric vehicle battery supply chain.

Further, with the expected commissioning of the Excelsior Nickel Cobalt HPAL project in the second half of 2025, in which NIC will have the majority stake, the company will be adding significant production in higher-margin refined products, such as mixed hydroxide precipitate (MHP), nickel sulphate and nickel cathode.

These products are all consistent with Indonesia’s focus on creating a downstream industry of refined nickel products and are not currently subject to royalties, nor is this included in the public consultation proposal.

Investors have welcomed the company’s response to the royalty proposal, which coincided with a selldown by a major investor (PT Harum Energy) described by NIC on Tuesday as liquidity management. NIC shares rebounded 8.3% today.

Capstone Copper Corp (ASX:CSC)

Americas-focused copper miner Capstone Copper Corp has benefited from signing a water treatment contract covering the Mantos Blancos copper-silver mine in the Antofagasta region of Chile as well as being added to the S&P/ASX 200 Index.

These developments have seen the share price increase by 41c or 5.1% to $8.52.

With copper in increasing demand to feed the growing electric vehicle and green energy markets, the company is well-placed to benefit with its interests in Arizona, Mexico and Chile.

“We are very pleased to have been included in the S&P/ASX 200 Index as part of the March rebalance,” Capstone’s CEO John MacKenzie said.

“Inclusion in this index recognises the continued success of our secondary listing in Australia after its commencement of trading last year, highlighted by our growing CDI market capitalisation and robust trading liquidity on the ASX.”

Capstone owns and operates the Pinto Valley copper mine in Arizona, USA, the Cozamin copper-silver mine in Zacatecas, Mexico, the Mantos Blancas mine in Chile and 70% of the Mantoverde copper-iron-gold project in the Atacamna region of Chile.

In addition, CSC owns the fully permitted Santo Domingo copper-iron-gold project about 30km northeast of Mantoverde in Chile along with a portfolio of exploration projects elsewhere in the Americas.

AGL Energy (ASX:AGL)

In its half yearly report, AGL Energy recorded statutory profit after tax of $97 million and underlying EBITDA of $1.068 billion, which was down 1% on 1H24.

Underlying net profit after tax was down 7% to $373 million and the company declared a fully franked interim dividend of 23 cents per share.

As a result, the FY25 earnings guidance range has narrowed to between $1.935 and $2.135 billion for underlying EBITDA while the guidance range for FY25 underlying net profit after tax was also narrowed to between $580 and $710 million.

“We delivered a strong first half result in line with expectations, driven by the flexibility of our generation fleet and its ability to capture higher realised electricity pricing. This included continued strong earnings from our growing battery portfolio,” AGL MD and CEO Damien Nicks said.

“As anticipated, the result was impacted by increased consumer customer margin compression due to lower customer pricing and heightened market competition.

“Our increased investment in the growth of the business and reliability and flexibility of our assets, combined with the impact of inflation, led to higher operating costs and depreciation and amortisation.”

“Importantly, these results mean we are on track to deliver full-year earnings in line with our FY25 guidance range, and the reinstatement of a fully franked dividend for our shareholders.”

Shares have traded up to $10.42, a 2.42% increase.