Resources Top 5: Sneaky takeover talks and an emerging niobium miner
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Here are the biggest small cap resources winners in early trade, Thursday August 19.
After an extended delay, aspiring niobium producer Globe has received its all-important mining license – positioning ‘Kanyika’ to be the first niobium mine in Africa and the first new producer in 50 years.
Over 90% of niobium is used in the manufacture of high strength alloy steels.
Intensity of usage is rising rapidly as markets, and in particular China, moves towards the manufacture of higher quality steels, Globe says.
“This is a momentous achievement for the Republic of Malawi and its people, the Kanyika community, the Company and the Kanyika Project,” Globe managing director Alistair Stephens.
“The grant ushers in a new era for the Malawi mining industry with the first ever award of a large-scale mining licence under the new Mines Act.”
“It also ushers in a new era for niobium, with Kanyika set to become the first new niobium mine in more than 50 years, subject to financing, off-take and construction.”
A project feasibility, also released today, envisages average annual production of 3,250 tonnes of niobium and 140 tonnes of tantalum across an initial 23 year mine life.
It would generate total revenues of USD$US5.6 billion over this time, the company says.
Pre-production capital costs of $US250m – which it still needs to find — would take just ~1.5 years to pay back from first production.
The $83m market cap stock is up 350% since early June.
(Up on no news)
The recently listed explorer is drilling to grow resources at the 674,000oz Ravensthorpe gold project.
The company is targeting over +1moz as a springboard to developing the project. Recent notable gold hits include 3.3m @ 10.1 g/t gold, 3.08 % copper, 38.6 g/t silver from 54m at the ‘Kaolin’ deposit.
Kaolin is the foundation of the current mine plan, contributing 54% of feed ounces to the feasibility study, managing director Paul Bennett says.
“This drilling demonstrates the pit will almost certainly extend to the west and at depth along its entire length,” he says.
“As the structures remain open there is also the potential for underground mining to extend off the base of the pit.
“With plenty of drilling still to come from Kaolin it’s going to provide a big boost to our aim of surpassing 1 million resource ounces.”
$18m market cap Medallion is down marginally on its IPO price of 25c per share.
Venture has just made the transition from explorer to producer, booking the company’s first iron ore shipment for early September.
“Through the now completed commissioning of the plant, Venture already has a significant stockpile of iron ore ready to ship,” Venture managing director Andrew Radonjic says.
“The achievement of steady state production and consequently continuous ore haulage has enabled the company to immediately charter a bulk carrier vessel to load and deliver the first shipment.”
Venture aims to ramps up production from one to two shipments per month.
The $135m market cap stock is up 110% year-to-date.
(Up on no news)
Earlier this month the uranium play raised $10.7m to accelerate its key projects – ‘Samphire’ in South Australia and ‘Alligator Rivers’ in the Northern Territory.
“Alligator can now aim to advance the Samphire Project through scoping and into feasibility work in an improving uranium market,” Alligator chief exec Greg Hall says.
“We believe our planned on-ground work on Samphire and the advanced work on the high-grade U40 Prospect extension will translate through to enhanced value to Alligator Shareholders.”
The $65m market cap stock is up 170% year-to-date.
This mid-tier nickel miner has emerged as a takeover target for major miner IGO (ASX:IGO).
Western Areas confirmed an approach from IGO to the market this morning, sending its shares skyrocketing by more than 12%.
“Western Areas confirms that it is in preliminary discussions with IGO Limited in relation to a change of control proposal and the basis upon which engagement and due diligence between the parties could proceed,” the company said in a statement.
IGO similarly confirmed the ‘preliminary discussions’ in its own statement to the ASX.
Like IGO, Western Areas is a supplier of nickel to BHP’s Nickel West division, which is engineering a major pivot from supplying stainless steel to battery makers and EV producers including Tesla.
$894m market cap Western Areas has trod water so far in 2021, gaining 2.5%.