Resources Top 5: ‘Green’ phosphate play up 230pc on monster offtake deal
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Here are the biggest small cap resources winners in early trade, Thursday October 21.
The small cap phosphate project developer is re-rating after subsidiary Agriflex signed an offtake and marketing agreement with Samsung C&T, one of the world largest fertiliser traders.
The initial deal is for the first 3 years of production from Agriflex’s planned $78m, 800,000tpa ‘Ardmore’ phosphate project in Queensland.
In August, an updated definitive feasibility study envisaged gross revenue of $1.453 bn and free cash of $429m over a 10-year life.
The price to be paid by Samsung will be the market ‘netback’ price, defined as the actual sales price minus direct costs and a marketing service fee.
The deal is contingent on a few things, like Centrex getting finance to go ahead with the development, and Samsung finalising internal approvals.
Centrex is also in advanced discussions with several other Australian and international potential customers “and will keep the market informed as these develop”.
The $50m market cap stock is up 212% over the past month, and 316% year-to-date.
Former public relations firm R3D Global became R3D Resources after acquiring QLD copper-gold explorer Tartana Resources earlier this year.
R3D is now drilling to test targets outside an existing open pit on the Tartana mining leases, and early signs are promising.
The three holes completed so far have pulled up some juicy hits east of the pit.
There’s also a 10m intersection of semi massive sulphides 300m below historical drilling under the open pit “with likely extension to near surface”.
Drill core is being cut and submitted for assaying with expected 4-week turnaround, the company says.
The Tartana mining leases contain an existing heap leach – solvent extraction – crystallisation plant. Work has kicked off to restart this plant to provide future cash flow through the sale of copper sulphate.
In Tasmania, R3D has also secured permitting to sell low-grade zinc furnace slag/matte from its Zeehan stockpiles into South Korea.
These two projects have the potential to generate a cash flow to “underpin the Company’s extensive exploration activities”, R3D says.
The $14m market cap stock is up 30% over the past month.
Exploration plans at the flagship ‘Mt Nakru’ project in PNG have been stymied by COVID-19 in 2021, COY says.
To keep busy, the company has applied for – and secured – a 320sqkm gold-base metals project called ‘Fox Creek’ in Queensland.
A review of historic copper mining areas is now underway. COY says it will follow up and rank targets “before commencing work on ground shortly”.
The $44m market cap stock is up 60% over the past month.
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Ramelius has now kicked off maiden drilling at ‘Mt Finnerty’, where historical drilling pulled up hits like 9m at 98.2 g/t gold from 62m.
Ramelius can earn up to a 75% of the project by spending $2,000,000 over a three-year period.
$6m market cap WSR is up 11% over the past month, but down 21% year-to-date.
(Up on no news)
One of ‘Tolga Kumova’s stocks worth keeping an eye on’, Bulletin is also one of the latest ASX-listed goldies to diversify into lithium exploration.
In September, the company uncovered “multiple opportunities” at the ‘Ravensthorpe’ lithium project, 12km from Galaxy Resources’ (ASX:GXY) Mt Cattlin operation.
This area is underexplored, Bulletin says.
“Outcropping pegmatites [lithium ore] have been initially tested by rock chip sampling by past explorers,” it says.
“Only one pegmatite outcrop has had follow up exploration with a costean and a small drill program.
“Costean sampling of the lepidolite-spodumene mineralised Horseshoe pegmatite returned a result of 10m @ 1.1% Li2O including 1m @ 2.91% Li2O.”
Bulletin’s upcoming rock chip/soil sampling program will lock in targets for drilling, the company says. The potential for gold will also be assessed.