Latest news with #US3500
West Australian
6 days ago
- Business
- West Australian
Dale Henderson keeps the faith amid deteriorating lithium market with $1m splurge on PLS shares
The chief of PLS keeps buying millions of dollars worth of his company's stock amid a share price slide showing no signs of abating. Dale Henderson last week bought 755,000 shares in PLS, formerly known as Pilbara Minerals, for a total of $1.01 million — according to filings released to the ASX on Monday. This on-market outlay equates to $1.34 per share and comes seven months after a $1.1m spend on PLS shares. Mr Henderson bought 500,000 shares at $2.23 apiece during this December cash splash. But the spending sprees are unlikely to make a big dent in his bank balance. Mr Henderson's package of salary, shares and performance rights totalled $4.5m for the 2024 financial year. He now owns almost 2.1 million PLS shares, worth approximately $2.5m at current prices, and 2.1m of performance rights. PLS shares have sunk 61 per cent over the past year and 78 per cent since a November 2022 peak of $5.37. Its shares were in the red on Monday despite Mr Henderson's top up, trading down 2 per cent to $1.20 by 11.30am. Mr Henderson has been a vocal lithium bull, even in comparison to his other lithium CEO counterparts. While most miners of the battery mineral were battening down the hatches during the latter half of last year, PLS inked a deal to buy Brazilian-focused lithium developer Latin Resources for $560m. Mr Henderson described the major acquisition as 'counter-cyclical'. At the time of the Latin deal, the benchmark price of the spodumene concentrate lithium product PLS produces was over $US900 per tonne. And a year prior to the date of the deal it was about $US3500/t. It is now currently languishing at just over $US600/t, as slower-than-expected uptake of electric vehicles plus booming supply out of South America, Africa and China drags prices down.
West Australian
16-06-2025
- Business
- West Australian
Greatland Gold guns for $4.4 billion ASX arrival next week
Australia's next big gold debutant will make a $4.4 billion splash when it arrives on the ASX this month, surpassing many of its WA mid-tier peers all uplifted by the yellow metal's thunderous run. Greatland Gold has locked in commitments to raise $50 million with Australian investors after landing on an offer price of $6.60 a share — a 19.5 per cent premium on the company's share price the day before its prospectus was lodged. The agreed rate for a slice of the Pilbara gold miner had been at the top end of the range Greatland had been shooting for, the company told the London Stock Exchange on Monday. 'The exceptional demand received for the Australian offering is testament to the quality and opportunity of Greatland's Telfer mine and world-class Havieron brownfield development project,' chief executive Shaun Day said. 'The ASX is a natural listing venue for Greatland.' The London-listed company took control of the famed Telfer gold mine in the Pilbara from behemoth Newmont in December last year, and has since churned out more than 90,000 ounces of gold. Still retaining its spot as the company's biggest backer, Newmont will offload $440m worth of Greatland shares — or about half its stake — as part of aJU secondary offer tied in with the listing deal. It was not disclosed who would take on the new shares. With a $4.4 billion market capitalisation, Greatland will sit among the top end of WA's mid-tier gold set when it begins trading on the ASX on June 24. The miner will be level pegging with Capricorn Resources, and ahead of the likes of Regis Resources, Ramelius Resources and Westgold Resources. As well as gold production, Greatland is also eyeing copper output from the undeveloped Havieron deposit it discovered in WA's Paterson region. Greatland also has a farm-in and joint venture arrangement with Rio Tinto's exploration subsidiary for 1500sqkm of ground south of the two projects. Gold's bull run has been spurred by fresh conflict in the Middle East, taking an ounce of the precious metal to $US3415.46 ($5244.95) at 5pm local time on Monday, closing in on touching an all-time high of $US3500 achieved in April. Brokers Barrenjoey, Canaccord Genuity and Bank of America are acting as joint lead managers. on the listing and raising.
West Australian
16-06-2025
- Business
- West Australian
Black Cat Syndicate becomes a next-level gold bull after building stockpile in lieu of growing bank balance
A fledgling gold miner is so confident the precious metal's price will continue to rise it has decided to stockpile at least $20 million of bullion instead of cashing in. Perth-based Black Cat Syndicate is taking the unusual step of hording the gold bars churned out from ore processed through its Lakewood mill near Kalgoorlie and Paulsens mill in the East Pilbara. Black Cat bought Lakewood from Westgold Resources in February for $85m and poured its first bar of gold doré at the site in April. The company plans to build up and store a minimum of about $20m worth of gold, which at current prices equates to roughly 4000 ounces of bullion. By the end of May, about $24m had been retained. 'While Black Cat is not a bullion bank, we are not a cash bank either,' managing director Gareth Solly said. 'It is hard to justify producing a safe haven asset, in gold, and then converting that asset into an asset losing its purchasing power, in cash. 'After working capital and growth requirements, we are setting $20m of gold aside, comfortable in the knowledge that gold is a high-quality, liquid asset. 'At the end of the day, we are in the gold business and investors can choose Black Cat because they are seeking leverage to gold. And yes, the gold price could go down, and we will hold sufficient cash to cover such a contingency.' Black Cat had $65.4m cash on hand at the end of the March quarter. Shares in the miner were up 1.1 per cent in early Monday trade on a down day for gold stocks after big gains last week. UBS on Monday reaffirmed its long-term gold price prediction of $US3600/oz. Gold is currently around $US3430/oz, hovering near the $US3500/oz record it hit in April, as the threat of an all out war between Israel and Iran induces another burst of demand for the safe haven asset.
AU Financial Review
28-04-2025
- Business
- AU Financial Review
Fundies bet on ‘dividend surprise' from ASX gold miners
Fund managers are betting on more Australian gold producers rewarding shareholders with chunky dividends as the soaring price of the precious metal buoys company profits and cash levels. Gold topped $US3500 an ounce for the first time last week bolstered by its safe haven appeal amid US President Donald Trump's escalating trade war that has pushed the spot price up more than 30 per cent this year. Profit takers stepped in on Monday with gold trading about $US3300 an ounce.
Courier-Mail
28-04-2025
- Business
- Courier-Mail
Alkane and Mandalay in gold merger
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. A merger of equals between Alkane and Mandalay will create a powerhouse gold and antimony producer Dart Mining has signed option agreements with Infinity Lithium for two non-core projects in Victoria Western Gold Resources has raised $1.05m to move its Gold Duke project towards production Your standout small cap resources stocks for Monday, April 28, 2025 High prices are seeing an increase in M&A activity in the gold sector with the latest involving the merger of two producers, ASX-listed Alkane Resources and TSX-listed Mandalay Resources. Another gold-related play has seen Dart Mining sign an options agreement with Infinity Lithium for INF to potentially acquire two non-core DTM gold prospective properties in Victoria. The yellow metal has come off its high of US3500/oz early last week and was trading just under $3300 at the time of writing but the market fundamentals remain in place for continued strong prices. Commbank mining expert Vivek Dhar even predicts that gold could rise to US$3750/oz by the end of the year. 'Even though gold prices and central bank gold purchases have shown virtually no correlation in the last two years to the end of 2024, the anticipation of more central bank buying, combined with extraordinary safe‑haven demand, may see gold rise to $US3750/oz by year‑end,' he said in a note. 'The risk that gold rises above our forecast can't be ruled out either but our expectation for price growth to slow relative to what we've seen so far this year is tied to the risk that Trump continues to walk back current trade policy and that gold has already priced in significant uncertainty.' The merger of equals Alkane and Mandalay is set to create a powerhouse gold and antimony producer with three high-performing mines across Australia and Sweden – Alkane's Tomingley in NSW and Mandalay's Costerfield in Victoria and Bjorkdal in Sweden. It will create a billion dollar gold producer that will also bring Australia's only operating antimony mine to the ASX. Costerfield is the only domestic producer of the critical mineral. The combined company will operate as Alkane Resources and will produce an estimated 160,000 gold equivalent ounces in 2025, growing to more than 180,000oz in 2026. There is also the likelihood of plenty more with Alkane's massive, pre-development Boda-Kaiser gold-copper project not far from Tomingley. Mandalay shareholders will receive just under eight Alkane shares for each Mandalay share … resulting in Mandalay and Alkane shareholders owning a respective 55% and 45% of the combined entity. The new Alkane will hold a robust proforma cash balance of $188m as of March 31, 2025. Investors welcomed the arrangement with ALK shares as much as 4.94% higher to 78.7c. From 61c on April 7, ALK shares increased to 83.5c on April 22, a 12-month high. Alkane's managing director Nic Earner will lead the Australian-based executive team while the board will include nominees from both companies, with Andy Quinn as chair. 'The transaction will take Alkane to a new level, bringing together two companies with complementary assets and a shared vision for growth,' Earner said. 'Mandalay's two high-quality mines match the attributes of Tomingley: a proven history of consistent production, cash generation and exploration upside. 'The combination of assets, leadership and supportive long-term shareholders enhances our scale and financial strength, and positions us well to continue to pursue additional growth opportunities.' 'We are excited to have found a like-minded partner committed to the same principles,' Mandalay president and CEO Frazer Bourchier said. 'The transaction aligns with our vision to create a mid-tier gold and antimony producer with mines in premier operating jurisdictions and with our strategy for continued growth.' As it intends to concentrate more fully on gold and antimony in Queensland, Dart Mining has signed option agreements with Infinity Lithium which could see the latter acquire two of its non-core gold-prospective projects in Victoria. The agreements could see Infinity Lithium acquiring 100% of its Mitta Mitta tenement package in eastern Victoria and entering an earn-in joint venture on the Corryong gold-copper-silver-molybdenum exploration project in the same region. Both are in the highly prospective southern part of the Lachlan Fold Belt (LFB), a geological region known for its long history of mineral production, complex geology and potential for new discoveries. The belt is home to more than 105Moz of gold and millions of tonnes of copper. INF has a 60-day exclusivity period in which it can enter into a 100% purchase agreement in respect to Mitta Mitta and a JV to earn up to 80% in Corryong. The agreement has seen INF shares as much as 40% higher to 2.8c and DTM shares up by 11% to 0.5c. DTM executive chairman James Chirnside said the board was delighted to enter into the option agreements with Infinity Lithium. 'The terms of the arrangements allow Dart to continue with its focus on progressing its other projects in Queensland and Victoria,' he said. 'The arrangements allow for Infinity Lithium to rapidly expand its footprint in Victoria – it really is a win for both parties.' For INF, the agreement with Dart follows the acquisition last month of four advanced gold assets in Victoria from Highland Resources, a subsidiary of private company Jubilee Metals. That acquisition comprised multiple drill-ready targets also in the LFB, offering immediate exploration opportunities while it awaits approval of a mining licence application for its flagship San José lithium project in Spain. INF executive chairman Adrian Byass said the agreements gave the company the opportunity to carefully assess its next move. If it decides to go ahead, the Mitta Mitta project adjoins existing INF tenure and would consolidate prospective geological host rocks as well as historical goldfields that have produced in excess of 160,000oz gold. 'That some project tenements under option immediately adjoin recently acquired existing tenure provides outstanding synergies,' he said. 'The opportunity to potentially expand our existing gold-copper-silver portfolio with opportunities such as walk-up drill targets extending high-grade results in the Lachlan Fold Belt and combine our immediate exploration focus is highly attractive.' Professional and sophisticated investors have demonstrated confidence in the push by Western Gold Resources to move its Gold Duke project towards production by supporting a $1.05m capital raising. Funds raised through the placement of 24.78 million shares at 4.25c each will be used to finalise negotiations and select a gold processing option, update the September 2024 scoping study, and finalise stage 1 grade control and infill drilling plans. Gold Duke is a shovel-ready project with a resource of 3.25Mt at 2.1g/t for 214,000oz of contained gold. WGR's planned stage 1 development will focus on the production of 34,000oz of gold from the Eagle, Emu, Gold King and Golden Monarch deposits. Based on the gold price of ~$3500/oz in September 2024, this would generate an estimated undiscounted accumulated cash surplus of $38.1m with capex estimated at between $2.1m and $2.5m. This could be hugely conservative as the combination of rising gold prices and the weakness of the Australian dollar against the US dollar has nudged the Australian price of the precious metal up close to the $5150/oz mark. Managing director Cullum Winn said the capital raise significantly strengthened the company's financial position and enhanced its ability to progress Gold Duke through its initial stage 1 development. 'The timing is particularly favourable, coinciding with strong gold market conditions as we advance discussions on gold processing and we welcome to the register the strongly performing Investius Microcap Fund,' he added. Shares have increased 14% to a daily high of 5.7c. (Up on no news) Metal Bank, which holds a portfolio of advanced copper, cobalt and gold exploration projects in Australia and in the Middle East, has advanced 30% to 1.3c. Earlier this month the company was granted $275,000 as part of the Queensland Government's critical minerals Collaborative Exploration Initiative program to further assess the graphite potential at the Millennium cobalt-copper-gold-graphite project near Cloncurry in the state's northwest. Grant-supported work will include additional diamond drilling, re-assaying of previous drill samples and preliminary metallurgical work. MBK has a 51% interest in Millennium and the right to earn up to 80%. Thick high-grade graphite intersections were returned in late 2024 within and adjacent the existing JORC 2012 inferred resource at Millennium of 8.4Mt at 0.09% Co, 0.29% Cu and 0.12g/t Au. The work programs will aid in understanding of the scope, distribution and economic implications of the graphite at Millennium that has now been defined over 2km of strike and has returned considerable grades in drilling up to 56m at 18.29% TGC. MBK has a 75% interest in the advanced Livingstone Gold Project in WA which holds a JORC 2012 resource estimate of 2.81Mt at 1.36g/t Au for 122,500oz along with the 8 Mile, Wild Irishman and Eidsvold gold projects in South East Queensland. It also holds the Wadi Al Junah project and exploration licence applications in Saudi Arabia along with three granted copper projects in Jordan A big mover has been Tambourah Metals, up as much as 54% to 4c on volume of more than 34 million after extending gold mineralisation at the high-grade Tambourah King lode system within its namesake project in WA. All 11 holes in an RC drilling program intersected the ~10m wide Tambourah King structure that extends over a strike distance of 200m and remains open to the north and south. Results include: 3m at 2.99g/t gold from 36m and 2m at 3.68g/t from 47m; 3m at 2.93g/t Au from 73m; 5m at 1.35g/t Au from 92m; 2m at 1.25g/t Au from 93m and 5m @ 1.46g/t Au from 100m. An EIS drilling grant of up to $180,000 to co-fund drilling of historical high-grade gold targets at Tambourah will start this quarter. The project is within the Tambourah Goldfield, is 85km southwest of Marble Bar and comprises a series of shallow workings developed on north-south oriented quartz lodes over 3km of strike. 'We're pleased with these results that have continued to identify extensions to the Tambourah King gold mineralisation,' Tambourah Metal's executive chairperson Rita Brooks said. 'We are now preparing the next part of the drill program to confirm and model a preliminary inferred gold resource.' This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions. While Western Gold Resources is a Stockhead advertiser, they did not sponsor this article. Originally published as Resources Top 5: Alkane and Mandalay to merge as gold activity heats up
