Latest news with #PaulSummers
News.com.au
30-04-2025
- Business
- News.com.au
Capital raisings have these explorers cashed and ready to drill for precious metals
Capital raisings are the primary method for funding resource exploration programs Asra Minerals, Errawarra Resources and Trek Metals have all raised funds for exploration These drill programs could be the catalyst for a discovery that has the potential to transform the respective companies To make a discovery you need to drill and in order to drill you need to be able to secure funding. So if a junior explorer is running on empty, it's hard to envisage them pulling out that big, company-making find. While the mileage from such programs might vary widely, success can be game changing if the results are impressive enough. One notable example is Spartan Resources (ASX:SPR) which raised $19 million in early 2022 before drilling to test a westerly extension at Gilbey's North and uncovered the Never Never deposit. Then known as Gascoyne Resources, it went on to shut the Dalgaranga mine and raise another $50m in a recapitalisation which delivered the powder to drill out the new orebody fully. It now hosts ~1.5Moz at over 8g/t, with the nearby Pepper find taking its high grade underground inventory to over 2.3Moz at more than 9g/t. Without supportive shareholders that success, a ~1500% share price gain and $2.4bn takeover offer from Ramelius Resources (ASX:RMS) never come to fruition. So it pays to look out for companies which have tapped the market for fresh equity and have drilling programs on the horizon. You never know which could turn up trumps. Here a few who could be on the right path. Asra Minerals (ASX:ASR) In mid-April, Asra Minerals raised $3m through a two-tranche share placement priced at 0.2c per share to key new and existing institutional and sophisticated investors to fund an aggressive exploration campaign with a focus on its gold assets in WA's Leonora region. The company holds more than 725km2 of highly prospective tenure in this region with its Leonora North-Mt Stirling asset sitting close to Vault Minerals' (ASX:VAU) 4Moz King of the Hills mine. It is also located close to Genesis Minerals' (ASX:GMD) Leonora and Kookynie operations. Executive chairman Paul Summers told Stockhead that Leonora was really interesting as it was originally opened up by old timers from 1880-90 through to the beginning of World War One, which essentially ended their activity. However, they left behind a rich legacy that include an enormous amount of evidence of high-grade gold. 'I think we've got 155 individual shafts, and these were where the old-timers were working down on fairly narrow quartz veins, hoping to reach the source of that high-grade gold,' Summers said. 'A lot of the time that was pretty hard going, a lot of the time they didn't get there.' He adds that Leonora is home to some 'absolutely wonderful and profitable' gold mines and that the best place to make a new discovery is next to existing gold mines. 'We know we're in the right location. We know we've got the right rocks that are hosting the high-grade gold and that's really a starting point.' Summers noted the company's exploration strategy has two prongs, the first of which is aimed at methodically increasing its existing 200,000oz of established JORC resources that's spread across four areas. 'That's what I'd call the fairly high confidence drilling into something that you really know you know where it's at and you're drilling to expand an existing resource' he said. 'In parallel to that, we also did a lot of regional work last year where we used aeromagnetic to prove that areas previously mapped as being granites were in fact mafic rocks that are known to host gold deposits in this area.' This aeromagnetic survey data has been combined with mapping to identify new target areas that have never been drilled before. Summers said the company was going to stage operations to ensure it was busy for the next six months. 'We've got one operational team that will methodically work through the reverse circulation drilling, then the diamond drilling, and then we're going to do a lot of regional aircore drill,' he added. 'Because at this gold price, we feel that as much as it's obviously very good to improve your existing resources, we think we have the right ground to make a new discovery and I think in this market that's exactly what the market wants to see.' Drilling is expected to start imminently thanks to the ready availability of rigs in the Leonora region and will carry on for up to three months as the company works through various different phases and targets. 'I think we'll start to see results mid to late June just with assays and the time it takes you to get stuff done,' Summers said. 'Logically I think this will be a good program and it'll lead to the need to do more follow-up.' Errawarra Resources (ASX:ERW) Another company that has seen $3m flood into its coffers for exploration is Errawarra Resources which wrapped up a placement priced at 2.7c to advance the Elizabeth Hill project in WA's Pilbara region that it had acquired in March 2025. Elizabeth Hill is a historical producer from which some 1.2Moz of silver was extracted from just 17,000t of ore at an eye-popping head head grade of ~2200g/t. Operations at the mine ceased in 2000 because silver price dropped, but current silver prices – close to 7x higher than the US$5/oz seen when Elizabeth Hill closed – could inspire a revival. Historical drilling has returned bonanza grade intercepts including 11.7m at 5371g/t silver from 13m while various explorers over the years have identified anomalous silver soil results across land package, which has been consolidated for the first time by ERW. Speaking to Stockhead columnist Barry FitzGerald in early April, executive director Bruce Garlick said having the sole right to explore for silver at Elizabeth Hill was a game changer. 'We have an existing deposit there and we have to now expand our thinking. We also have the added advantage of a 180km2 tenement that has never really been in existence before,' he said. Having already done soil sampling and geochemical surveying, the company plans to identify drill targets in the coming weeks before launching drilling that will initially focused on near mine areas. 'What we are trying to do is identify the target areas, then hone in on those targets areas with ERM and decide which to put drilling into,' Garlick added. ERW, soon to be renamed West Coast Silver, will also follow up on the Munni Munni fault, which is considered to be prospective for repetitive deposits. 'Once we have got some good assays hopefully coming out of these drill holes, we will understand the future a lot better than we do right now,' he concluded. Late in April, Trek Metals saw such strong demand from new and existing sophisticated investors for a $3.5m placement priced at 5c per share that it had to implement scale-backs. This placement included a cornerstone investment of $500,000 from Patronus Resources (ASX:PTN). Proceeds from the placement will be used to fast-track the next phase of drilling at its Christmas Creek gold project in WA's Kimberley region. The 1183km2 Christmas Creek project to the southwest of Halls Creek is a previously unexplored, largely concealed district-scale gold and rare earths exploration opportunity. Previous exploration to test if the area is an extension of the prolific Granites-Tanami Orogen had demonstrated a correlation to the sequences that host Newmont Mining's Tanami gold mine in the Northern Territory. Drilling carried out by TKM in late 2024 returned thick, high-grade intercepts such as 10m at 12.66g/t gold from 59m and 10m at 7.34g/t gold from 94m. Visible gold has been noted in these high-grade intersections and the Martin prospect was interpreted to be an orogenic gold system, with similar characteristics to the large Tanami deposits over the border. Reverse circulation drilling scheduled to commence in May with an initial focus on expanding the high-grade gold hits at the Martin prospect. Drilling will also test other priority targets at Christmas Creek including Zahn and Coogan. 'In our view, the Christmas Creek project represents a major discovery opportunity as part of the upcoming drill season, with the potential to confirm a large-scale orogenic gold find of considerable scale that we believe could quickly re-rate the company as we drill test below and immediately along strike from the thick, high-grade intercepts reported late last year,' chief executive officer Derek Marshall said in the placement announcement on April 24.
Yahoo
05-03-2025
- Business
- Yahoo
5 under-the-radar UK shares that deserve more attention
Small or lesser-known companies can have significant growth potential. Buying shares in these UK-listed companies early on can yield high returns if they grow successfully. But which to consider? Read on… What it does: Central Asia Metals is a base metals producer with copper operations in Kazakhstan and a zinc and lead mine in North Macedonia. By Paul Summers. Holders of shares in Central Asia Metals (LSE: CAML) endured a volatile 2024. Starting the year at just over 150p a pop, the stock soared as high as 235p by May as the company benefited from strong prices and solid operational performance. However, this gain had all been lost by the end of December. As far as I can tell, this is due to general geopolitical concerns and lacklustre demand for lead. The shares now yield a monster 10% for FY25. Assuming analysts aren't wrong, that would represent a good return on its own. On an optimistic note, profit is expected to cover this cash distribution and the balance sheet looks robust. Although rising costs could prove problematic, a price-to-earnings (P/E) ratio of seven suggests quite a bit of negativity is already priced in. When sentiment for base metals improves, the stock could do very well. Paul Summers has no position in Central Asia Metals. What it does: Filtronic makes power amplifiers and transceivers that are used in the telecommunications, aerospace, and defence sectors. By Ben McPoland. With a market cap of £232m as I write, Filtronic (LSE: FTC) is still a relatively under-the-radar UK stock. That said, it's been a popular one recently, surging 172% over the past year. This can be almost entirely put down to one word: SpaceX. That's because Elon Musk's reusable rocket company has been ordering components from Filtronic for ground stations that form part of its fast-growing Starlink satellite network. In future, SpaceX intends to add tens of thousands more satellites to its mega-constellation. This could support years of rising sales at Filtronic, given its small size (less than £50m in revenue). What could go wrong? Well, losing the SpaceX contract it signed last year would be extremely negative, as this key customer is now contributing around 50% of sales. Also, the stock isn't cheap, trading at a forward price-to-earnings multiple of 38. Finally, the company doesn't have a history of sustained revenue and earnings growth. That might be about to change, but there could be lumpiness as SpaceX orders ebb and flow in future. Ben McPoland does not own shares in Filtronic. What it does: OXB is a contractor that develops and manufactures gene cell therapies for biotech and pharmaceutical firms. By Mark Hartley. OXB (LSE: OXB), previously Oxford Biomedica, is a UK-based contract development and manufacturing organisation (CDMO) specialising in cell and gene therapies. It was founded in 1995 as a spin-out from the University of Oxford and has evolved into a global leader in viral vector production, including lentivirus, adeno-associated virus (AAV) and adenovirus. As a contractor, OXB relies on securing partnerships with biotech and pharmaceutical firms. If it loses out on contracts to competitors, its performance could be impacted. Although its net margin has improved recently, the company is not yet profitable. If full-year results for 2024 miss expectations, it could hurt the share price. But a recent trading update outlined expectations of 78% organic revenue growth for FY2024, based on increasing demand for their CDMO services. Plus, its order book nearly doubled since August 2024, indicating strong commercial demand. I expect it will become a global leader in its field. Mark David Hartley owns shares in Oxford Biomedica. What it does: TBC Bank is listed on the FTSE 250 and provides financial services in Georgia and Uzbekistan. By Royston Wild. TBC Bank (LSE:TBCG) doesn't attract anywhere near the same degree of attention as FTSE 100 firms like Lloyds, Barclays and NatWest. Yet this is a bank which — thanks to its focus on fast-growing Georgian and Uzbekistani markets — could provide far better shareholder gains. Past performance isn't a reliable guide to future returns. But TBC Bank's 208% share price explosion over the last five years underlines its incredible investment potential. By comparison, Lloyds' share price has risen just 21% over the same period. Given the varying economic outlook for the UK and Georgia, I expect this outperformance to keep rolling on. While the IMF thinks Britain's economy will grow 1.1% in 2025, Georgian GDP is tipped to expand a whopping 6%, continuing the trend of recent decades. If accurate, earnings at TBC could soar as financial services demand rises. Pre-tax profit here leapt 15.8% over the course of 2024. A deterioration in Georgia's fragile political landscape could impact future growth. However, I believe this potential hazard is baked into the bank's low price-to-earnings (P/E) ratio of 5.2 times. Royston Wild does not own shares in any of the shares mentioned above. What it does: Yu supplies gas and electricity to UK business customers and installs and operates smart meters. By Roland Head. Yu Group (LSE: YU.) has delivered strong growth through a volatile period for energy markets. Revenue has risen fivefold to £578m since 2019. Profitability has also improved, with operating profit rising from £3.5m in 2021 to £47m over the 12 months to 30 June 2024. Yu is still run by its founder and 51% shareholder Bobby Kalar. I believe Kalar's twin role as CEO and major shareholder means he's likely to maintain tight financial discipline. This is a key risk for energy suppliers. Yu is exposed to big swings in commodity prices, customer bad debt and the financial hazards of fixed price contracts. Growing usage of smart meters, a new energy trading deal with Shell and falling bad debt levels suggest to me that Mr Kalar is managing this £252m business well. If he can continue to do so, the reward for shareholders could be higher profits and generous dividends. Roland Head owns shares in Yu Group. The post 5 under-the-radar UK shares that deserve more attention appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool The Motley Fool UK has recommended Barclays Plc and Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
09-02-2025
- Business
- Yahoo
5 FTSE 250 stocks Fools are backing for promotion to the FTSE 100 this year
In the last FTSE reshuffle, St James's Place, Games Workshop and Alliance Witan were promoted to the Footsie, while Frasers Group, Vistry (LSE:VTY) and B&M fell into the FTSE 250. Here, five contract writers put forward their candidates for FTSE 100 promotion in 2025! What it does: IG Group is a global financial technology company, providing online trading platforms for clients. By Paul Summers. At the time of writing, IG Group's (LSE: IGG) valuation puts it near the top of the FTSE 250. While it will still take a fair bit of good news to push it into the FTSE 100, I don't think this is beyond the realms of possibility. Part of IG's appeal is that it makes more money when markets are volatile. Put another way, clients are more active in times of uncertainty. With military conflicts rumbling on and many economies around the world struggling to grow as inflation bounces back, I'd say that's where we currently are. And although IG operates in a very competitive space that is often a target for regulators, the stock remains cheap relative to the UK market as a whole. That's despite rising over 30% in 2024. A chunky dividend and strong balance sheet could also bring more people to invest here in 2025. Paul Summers has no position in IG Group. What it does: Investec is engaged in investment banking, specialised finance and wealth management, mainly in the UK and South Africa. By Alan Oscroft. Investec (LSE: INVP) is towards the top end of the FTSE 250 market capitalisation range, so it might not have far to go to reach the FTSE 100. And I'm seeing signs of upbeat sentiment towards banks, especially ones with international and investing banking aspects. There's a fall in earnings expected for the year to March 2025, so that could keep the shares low at least until we see how the next year starts off. But from then on, forecasts show earnings growing at a pace that could drop the price-to-earnings (P/E) ratio as low as six by 2027. The South Africa operations present some geographic risk, I think. And the tight economic outlook could keep investors away from smaller financial stocks like this with their inherent higher risks. But if Investc can grow its dividend as predicted, I reckon a run to the FTSE 100 in 2025 might really be on. Alan Oscroft has no position in Investec. What it does: This Baillie Gifford trust invests in a diverse range of growth stocks including Microsoft and Nvidia. By Dr James Fox. The Monks Investment Trust (LSE:MNKS) is the lesser known sibling of the Scottish Mortgage Investment Trust. Managed by Baillie Gifford, the trust is a constituent of the FTSE 250 and currently has a market cap around 25% below the smallest company on the FTSE 100. The trust's stock is trading at a 10% discount to its net asset value (NAV) – the value of the investments held by the trust – and that's a good starting point. And while the trust's largest holdings are Microsoft and Amazon – both around 4% – it also holds shares in smaller growth-oriented companies, many of which haven't performed as well as the Magnificent Seven in recent years. Yes, the US market is running hot and there's a lot of volatility at the moment, but large parts of the market remain overlooked. Going into 2025, this trust's selective growth-oriented approach could position it for outsized returns in a market driven by artificial intelligence, possible interest rate cuts, and US-led growth. James Fox does owns shares in Monks Investment Trust. What it does: Polar Capital Technology Trust invests in quoted companies (mainly in the US) with long-term growth potential. By James Beard. Due to an impressive rise in its share price over the past 12 months, Polar Capital Technology Trust (LSE:PCT) looks certain to enter the FTSE 100 at the next reshuffle. Much of this growth has come from its holdings in Nvidia and other artificial intelligence (AI) stocks. The trust also has large stakes in Microsoft, Meta Platforms and Apple. And with the trust's shares trading at a 10% discount to its net asset value, now could be a good time for me to buy. But the bursting of the bubble is a reminder that the tech sector can be volatile. And it's still unclear who the AI winners will be. However, for those (like me) that see this new technology as a potential game-changer, this could be a good way of obtaining a wide exposure to the industry through a single investment. James Beard does not own shares in Polar Capital Technology Trust. What it does: Vistry is a UK housebuilder that looks to sell to registered partners and authorities, instead of the open market. By Stephen Wright. Vistry found itself ejected from the FTSE 100 at the end of last year when its stock crashed 56%. But I don't think it will be too long until it has made its way back again. The issues concern incorrect costings in its South Division. But the company has made moves to address this, including an independent investigation. Looking beyond this, I like Vistry's business model. Its strategy of selling to established partners means it has less exposure to the open market than its peers – and more guaranteed offtake. That sets it apart from other UK housebuilders. But one thing it has in common with them is it's being investigated by the Competition and Markets Authority. I have no idea what that will unearth, which is why I'm not buying the stock. But I wouldn't be at all surprised to see it back in the FTSE 100 this year. Stephen Wright does not own shares in Vistry. The post 5 FTSE 250 stocks Fools are backing for promotion to the FTSE 100 this year appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool UK has recommended Amazon, Apple, B&M European Value, Games Workshop Group Plc, Meta Platforms, Microsoft, Nvidia, and Vistry Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
