Rat’s Rant – The Nintendo Edition

16

What’s Hot – MRZ, TEG, CHN, ICI, LRS, VML, BIQ & WMX

What’s Not – LKE & JIN

What’s Doing – CAI (Calidus Resources – WA gold play/producer of the stuff) 

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Good Afternoon,

Did you know that on this day in 1889 Nintendo was founded.

The Japanese gaming company was created by entrepreneur Fusajiro Yamauchi as a card company called Nintendo Koppai, which was based in Kyoto.

The company originally produced and sold playing cards called Blumey’s Balls. 

The release of Donkey Kong, an arcade game in 1981, brought Nintendo to the forefront of electronic and video gaming industry which signalled the end of Blumey’s Balls for good.    

MRZ – Mont Royal Resources Limited today closed up 45% to finish at 37c on $1.6M stock traded. The reason they were up today was because they announced they entered into a binding JV option agreement with Azimut Exploration Inc.

This would mean they would acquire 70% of the Wapatik gold-copper project located in James Bay area which is a tier 1 mining jurisdiction of Quebec in Canada which some of you might already be aware of given today’s share price reaction. 

Back in June they featured at the top of our What’s Hot edition which you can find below.

I own stock in it myself and the MD who we will call Rabbitoh to keep him anonymous will read this tonight, so well done young man and may the bunnies be with you or should I say us:

https://bit.ly/3ed4aPV

Some details on today’s news are listed below:

OPTION TO JOINT VENTURE AGREEMENT TO ACQUIRE 70% OF WAPATIK GOLD-COPPER PROJECT, CANADA.

Mont Royal Resources Limited is pleased to announce that the Company has entered into a binding JV option agreement (“Agreement”) with Azimut Exploration Inc. (“Azimut”) (TSXV: AZM), to earn-in up to 70% of the Wapatik Gold-Copper Project (“Project”), located in James Bay area, a tier 1 mining jurisdiction of Quebec, Canada.

Highlights

  • Located in world class, mining-friendly jurisdiction of Quebec, Canada.
  • Mont Royal can earn up to 70% of the Wapatik Gold-Copper project. ▪ 220 claims totalling 115sq/km in continuous tenure.
  • Underexplored with highly limited modern exploration.
  • Located over the lower Eastmain greenstone belt, part of the Archean Superior Province.
  • Geological formation which hosts Azimut’s Elmer project extends east to west associated with high magnetic/iron formations.
  • A linear scale fault has been interpreted as striking from Elmer property into the Project (west-to-east).
  • Five faults identified on the eastern side of the property.
  • The transaction will enable Mont Royal to deploy its cash position via the earn-in partnership arrangement, whilst leveraging off Azimut’s strong technical exploration team, to unlock the full potential of the Wapatik project.
  • Transaction conditional upon Mont Royal gaining shareholder approval at the upcoming annual general meeting.

Mont Royal Executive Director, Peter Ruse, commented: “Mont Royal is excited to update both the market and the Company’s loyal shareholders, on this new Agreement with the option to earn 70% of the Wapatik Gold-Copper project in Quebec, Canada.

We look forward to forming a long term working relationship with Azimut Exploration, as we commence fieldwork in this exciting part of James Bay, Quebec.” “With proprietary technology and extensive exploration experience in the region, Azimut contributes significant value to the Project.

The province, which is strongly familiar to our Board, is arguably one of most attractive global exploration locations, with great geology, road access, cheap power, and a highly supportive mining government regulatory environment, creating an extremely attractive opportunity for Mont Royal.”

That even looks a little like my mate Rabbitoh……..same legs anyway !!! 

TEG – Triangle Energy Limited today closed up 38% to finish at 5.1c on $3.25m stock traded. There was no news out today however State Gas Limited (GAS) who are 32.5% owned by TEG are currently in a trading halt which must be highly anticipated by investors.

GAS is pending an announcement regarding its coal seam gas and natural gas project in central Queensland and maybe the rabbit got out of the bag with this one and people know tomorrow news will be good for GAS, hence the TEG share price should somewhat reflect that tomorrow.   

The boss of TEG will read this also – let’s call him the Town Planner to keep him anonymous and good luck tomorrow big fella !!!  

Some details on what GAS do are listed below:

ABOUT STATE GAS

STATE GAS LIMITED is a Queensland-based developer of the Reid’s Dome gas field, originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland.

State Gas is 100%-owner of the Reid’s Dome Gas Project (PL-231) a CSG and conventional gas play, which is well-located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline and interconnected east coast gas network.

Permian coal measures within the Reid’s Dome Beds are extensive across the entire permit but the area had not been explored for coal seam gas prior to State Gas’ ownership. In late 2018 State Gas drilled the first coal seam gas well in the region (Nyanda-4) into the Reid’s Dome Beds and established the potential for a significant coal seam gas project in PL 231.

The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 by the Company’s drilling of Aldinga East-1A (12 km north) and Serocold-1 (6 km to the north of Nyanda-4).

State Gas is implementing its strategic plan to bring gas to market from PL 231 to meet near term forecast shortfalls in the east coast domestic gas market. The strategy involves progressing a phased appraisal program in parallel with permitting for an export pipeline and development facilities to facilitate the fastest possible delivery of gas to market .

State Gas’ current focus has been to confirm the producibility of the gas through production testing of the wells.

CHN – Chalice Gold Mines Limited today closed up 30% to finish at $2.27 on $27m stock traded. The reason they were up today was because they announced new anomalies were identified at their Julimar project, giving investors and even my broking mate who we will call Wobble to keep him 

anonymous a little more than excited today.  

New Hartog EM Anomaly extends 6.5km beyond the northern limit of drilling at the Gonneville Intrusion, where Chalice made a significant greenfield PGE-Ni-Cu-Co discovery in March and if they can replicate that again then look out Queensland that’s all I will say. 

Some will get that most won’t but those that do will laugh pretty hard and those that don’t can just move right along.   

Some details on today’s news are listed below:

Major new 6.5km-long EM anomaly identified at Julimar 

Airborne EM survey reveals extensive new anomalies north of the Gonneville PGE-Ni-Cu-Co discovery, highlighting the world-class potential of the district

Highlights

  • Three new large EM anomalies identified (Hartog, Baudin and Jansz) in recent airborne EM survey at the 100%-owned Julimar Ni-Cu-PGE Project in WA.
  • New Hartog EM Anomaly extends ~6.5km beyond the northern limit of drilling at the ~1.6km x 0.8km Gonneville Intrusion, where Chalice made a significant greenfield PGE-Ni-Cu-Co discovery in March.
  • Results highlight the district-scale Ni-Cu-PGE potential of the ~26km long Julimar Complex.
  • Four rigs continue the resource drill-out at Gonneville, with assay results pending for 50 holes.
  • Chalice is fully-funded with ~$46 million in cash (as of 30 June 2020).

Chalice Gold Mines Limited is pleased to report exciting preliminary results from a recently completed airborne electromagnetic (AEM) survey over granted tenure within the 100%-owned Julimar Project in Western Australia.

Commenting on the results, Chalice’s Managing Director, Alex Dorsch, said: “We have speculated for some time that the area north of our recent Gonneville discovery is highly prospective. We have now supported that claim with major new, laterally extensive geophysical targets from the first airborne EM survey over the Company’s granted tenure, which is a very exciting and important development.

“Airborne EM is an effective first-pass screening technique that can detect shallow conductive sources, such as nickel sulphide mineralisation. It is important to emphasise though that our experience at Gonneville to date has shown that some high-grade mineralised zones do not necessarily have a strong EM response using either airborne or ground-based techniques.

Therefore, the absence of a strong latetime airborne EM response does not preclude the presence of mineralisation elsewhere within the Julimar Complex. “We are expecting initial feedback shortly regarding access to the State Forest for the next stage of reconnaissance exploration activities.

We are hopeful of being able to assess the compelling new anomalies and aim to expand Julimar into a district-scale, multi-discovery opportunity. “Meanwhile, our resource drill-out is continuing at Gonneville, with four rigs currently drilling and numerous assay results pending.”

Airborne EM survey A helicopter-borne low frequency electro-magnetic (EM) survey was recently flown across the entirety of Chalice’s granted tenure on 200m line spacing at the Julimar Project (~155km2). The survey was designed to test for conductors within and proximal to the Julimar State Forest. Cultural sources (houses, wires, etc) were avoided where possible in the acquisition path flown by the helicopter.

By also flying over Gonneville, the survey was able to calibrate against the known high-grade PGE-Ni-CuCo sulphide zones identified from ongoing drilling. 

The Gonneville G1 Zone hosts some of the highest-grade mineralisation within the Gonneville Intrusion and was successfully detected in the AEM survey. The survey has outlined three new extensive EM anomalies within the Julimar State Forest – Hartog, Baudin and Jansz .

The Hartog EM Anomaly, which extends for ~6.5km directly north and along strike from Gonneville, is the highest priority target. The anomaly appears to be offset to the west of the magnetic response of the interpreted Julimar Complex. The most likely explanation for this is that, given its location directly along strike of Gonneville, it is potentially a less magnetic extension of the mafic-ultramafic Gonneville Intrusion.

ICI – Icandy Interactive Limited today closed up 30% to finish at 7c on $8.7m stock traded. The reason they were up today was because they announced the successful completion of a trial for a new game which isn’t Donkey Kong. 

‘Masketeers’ is due to be released mid-October with already 870k+ subscribers already which is the highest pre-order number the company has ever seen.

It’s not one I follow nor really care too much about but the MD of ICI will read this tonight too as he’s also on this list !!!

Some details on today’s news are listed below:

Operational Update – Successful Completion of Trial for New Game: Masketeers 

Highlights:

  • Masketeers: Idle Has Fallen Full launch is scheduled for mid-October 2020, with 870,000+ pre-orders currently – The highest ever pre-orders the company has seen for any of its games
  • Completed successful trial with Google Play where 80,000 gamers played
  • Day-1 Retention Rate up as high as 40% (10% higher than Crab War): iCandy’s most successful game
  • In-game purchase: Average Revenue Per Paying User (“ARPPU”) of US$ 25.99
  • Advertising income: Average Revenue Per User (“ARPU”) of US$ 0.46 for USA
  • Monetization 2x+ compared to Crab War that generated US$2.5 million (~$3.5M AUD) revenue to date

Following our announcement dated 9 July 2019 on iCandy’s plan to develop 4 new inhouse mobile games, iCandy is pleased to announce that one of iCandy’s new game, Masketeers: Idle Has Fallen (“Masketeers”) has recently completed its early access trial (the “Trial”) in collaboration with Google Play.

Pre-Launch Success The Trial was highly successful with a total to 80,000 gamers. iCandy tracked gamers’ behaviors during the Trial and the results were very encouraging. “Day-1” retention, a closely watched user retention matrix in the video-games industry, hit as high as 40% for the Masketeers. Comparing this to Crab War, iCandy’s most successful game in its portfolio, Masketeers has recorded almost 10% higher Day-1 retention rates.

Highest Monetization Rate 

As with the majority of the mobile games in the market today, Masketeers is a free-to-play mobile game, where it generates revenue from in-game purchase of virtual items and in-game advertisements.

During the Trial, Masketeers recorded monetization rate that was significantly above any of the iCandy’s developed games. For in-game purchase revenue, Masketeers recorded an Average Revenue Per Paying User (“ARPPU”) of US$ 25.99.

For in-game advertising income Masketeers recorded Average Revenue Per User (“ARPU”) of US$0.46 in the USA and ARPU of US$0.25 for rest of the world. USA is one of the main markets for iCandy’s games.

For comparison, iCandy’s most successful game title to date, Crab War, has an ARPPU of US$12.63 and for advertising income it has an ARPU of US$0.26 in the USA and ARPU of US$0.11 for rest of the world.

Crab War has generated more than US$2.5 million (~$3.5M AUD) of revenue for iCandy since its launch and continues to generate substantial income to date. Masketeers has demonstrated approximately two times (2x)+ potential in in-game purchase and in-game advertising compared to Crab War.

Earlier this month, iCandy raised $1.25 million in an oversubscribed placement at $0.02 per share to grow its business in Australasia which was managed by Peak Asset Management.

More than $5 million in bids was received from a number of funds, sophisticated investors and existing shareholders including Chinese top three internet company Baidu, Japan’s VC Incubate Fund, and Animoca Brands.

“The overwhelming response for the placement demonstrates there is huge confidence in [our company] leading into the launch of our next suite of games,” Mr Lau said.“With the fresh capital, [we are] now better positioned to expand our mobile gaming and esports business and drive new marketing initiatives in Australia and Asia. 

LRS – Latin Resources Limited today closed up 20% to finish at 2.4c on $2.2m stock traded. There was no news out today and nor has there been for quite 

some time so your guess is as good as mine or maybe it’s all the coverage it get’s in here. 

Don’t know, don’t care, don’t blush baby & good luck to Chris Gale the MD and his little mate Ray down in Melbourne both whom should also read this tonight.

Sh*t there are plenty of you on this list isn’t there !!!     

Some details on what they do are listed below:

About Latin Resources

Latin Resources Limited is an Australian-based mineral exploration company with several mineral resource projects in Latin America and Australia.

The Australian projects include the Yarara gold project in the NSW Lachlan Fold belt, Noombenberry Halloysite Project near Merredin, WA, and the Big Grey Project in the Paterson region, WA.
 
The company is also actively progressing its Copper Porphyry MT03 project in the Ilo region with its joint venture partner First Quantum Minerals Ltd.

The Company recently signed a JV agreement with the Argentinian company Integra Capital to fund the next phase of exploration on its lithium pegmatite projects in Catamarca, Argentina.

  • Major Joint Venture in progress with First Quantum Minerals (TSX: FM) on Peru copper project 
  • Combined concessions of over 173,000 hectares – LRS largest pegmatite landholding in Argentina.
  • A Halloysite project located in Western Australia which presents a compelling opportunity as one of Australia’s few known occurrences of ultra-high-grade tubular Halloysite.
  • Catamarca drilling program proved high grade at depth.
  • Excellent Infrastructure -Close to main roads, power lines, rail roads, small cities and towns.
  • Mining friendly communities and active quarries provide advantages for exploration and mining companies.
  • LRS concessions strategically located in under-explored and unexplored ground throughout Argentina’s prime hard rock lithium districts.
  • The San Luis district has opportunity for short term production with a number of quartz and feldspar plants in the district and close to LRS concessions
  • LRS is spending significant time and geological resources investigating the lithium potential of Jequitinhonha valley region of Minas Gerais which hosts the Eastern Brazilian pegmatite province, home to Sigma Lithium and Companhia Brasileira de Lítio (CBL). 
She could be due to give them a speeding ticket the great Constable.  

VML – Vital Metals Limited today closed up 14% to finish at 2.4c on $1m stock traded. The reason they were up today was because they announced they signed a binding Term Sheet between Vital’s 100% owned subsidiary Cheetah Resources and Saskatchewan Research Council which has been a while in the making and looks like a catalyst to me.   

This sets out parameters for the design, procurement, construction, commissioning and operation of a rare earth extraction plant getting them closer to production and that rare dream of being able to mine the earth.  

Some details on today’s news are listed below:

VITAL AND SRC SIGN A BINDING TERM SHEET TO NEGOTIATE DEFINITIVE AGREEMENTS FOR THE CONSTRUCTION AND OPERATION OF A RARE EARTH EXTRACTION PLANT 

HIGHLIGHTS

  • Vital Metals and Saskatchewan Research Council (SRC) have signed a binding Term Sheet to negotiate definitive agreements for the construction and operation of a Rare Earth Extraction Plant to produce a mixed rare earth carbonate product
  • In August 2020, the Government of Saskatchewan and the Saskatchewan Research Council (SRC) announced a C$31 million funding package for the construction of Canada’s first Rare Earth Processing and Separating Facility in Saskatoon, Canada
  • Vital’s Rare Earth Extraction Plant is planned to be located adjacent to SRC’s Separation Plant which will convert mixed rare earth carbonate to commercial grade separated rare earth oxides
  • SRC’s facility will require mixed rare earth carbonate product for separation making Vital a likely customer
  • Capital cost estimate of the Rare Earth Extraction Plant is A$5.25M • Subject to execution of definitive agreements, processing operations are scheduled to commence in Quarter 3, 2021
  • Off-take negotiations are progressing well with a number of non-China buyers

Vital Metals Limited is pleased to announce the signing of a binding Term Sheet between Vital’s 100% owned subsidiary Cheetah Resources (“Cheetah”) and Saskatchewan Research Council (“SRC”) which sets out parameters for the design, procurement, construction, commissioning and operation of a Rare Earth Extraction Plant (“Term Sheet”).

It is intended that Cheetah’s Rare Earth Extraction Plant will produce a mixed rare earth carbonate product and will be located adjacent to SRC’s recently announced Rare Earth Processing Facility which will produce separated rare earth oxides.

SRC’s Separation Plant will be a potential customer of Cheetah’s mixed rare earth carbonate product. Investors are cautioned that even though the Term Sheet is binding, there is no guarantee that the Definitive Agreements (defined below) will be entered into.

Commenting, Vital Metals’ Managing Director Geoff Atkins said: “The signing of this Term Sheet with SRC marks an important milestone for Vital and the development of the Nechalacho Project. Whilst the Definitive Agreements continue to be finalised in line with the Term Sheet, the Company is excited about the prospect of the construction and operation of a rare earth demonstration extraction plant, as well as it being co-located with SRC’s recently announced rare earth separation plant.

“Being the only rare earth project in Canada with near term production capability, co-located with Canada’s only Separation Facility, provides Vital the opportunity to be a cornerstone of the North America Critical Minerals Strategy.”

Geoff the MD should read this too, if so I owe you a phone call too mate after the kind intro from the Brady bunch boys whom I also quite like.  

BIQ – BuildingIQ Incorporated today closed up 11% to finish at 1c on $275k stock traded. There was no news out today and nor has there been for quite some time.

Just after lunch today they were handed a speeding ticket with the same generic response as most others with no answer to the high volume and price movement and yet again no mention of Rat’s Rant. 

Some details on what they do are listed below:

BuildingIQ helps building owners and operators worldwide lower energy use, increase building operations efficiency and tenant comfort. BuildingIQ builds services and solutions based on a core set of technologies incorporated into its platform and methodology – data analytics, modelling and optimization technologies, purpose-built applications, and human powered, technology enabled managed services.

The company’s services deliver value to building owners and operators at any stage of a building’s lifecycle. Our unique five-pillared approach incorporates the best of internet of things solutions with none of their inherent drawbacks.

Investors in BuildingIQ include the venture capital unit of Siemens Financial Services, Aster capital – backed by Schneider Electric, Alstom and Solvay, Paladin Capital, Exto Partners, and the Energy Division of the Commonwealth scientific and industrial Research Organisation (CSIRO)

Part of BuildingIQ solutions use technology originally developed by CSIRO, Australia’s national lab and inventor of WiFi. Over 50 years of R&D were invested in creating the optimization technology that BuildingIQ engineers continue to improve every day.

WMX – Wiluna Mining Corporation Limited today closed up 11% to finish at $2.10 on $2.2m stock traded. The reason they were up today was because they announced they found more exceptional high-grade drilling results at the Wiluna gold project.

Encouraging bulk drilling intercepts (118m @ 1.46 g/t; 40m @ 3.09 g/t; 44m @ 2.92g/t; 64m @ 1.61g/t; 49.6m @ 1.87g/t) demonstrate potential for a very large, lower grade mineralised system that could be bulk mined.

Some details on today’s news are listed below:

“THE AWAKENED GIANT IS STIRRING” MORE EXCEPTIONAL HIGH-GRADE DRILLING RESULTS CONTINUE AT WILUNA

HIGHLIGHTS 

  • Further high-grade results grow and add geological confidence in the very large high-grade sulphide resource at the Wiluna Mining Centre.
  • Encouraging bulk drilling intercepts (118m @ 1.46 g/t; 40m @ 3.09 g/t; 44m @ 2.92g/t; 64m @ 1.61g/t; 49.6m @ 1.87g/t) demonstrate potential for a very large, lower grade mineralised system that could be bulk mined.
  • Drilling supports Stage 1 & Stage 2 expansion plans. Stage 1 is a low cost pathway to 100-120kozpa which will commence in September 2021 and Stage 2 +250kozpa is proposed to commence late 2023/early 2024.
  • The Company’s Mineral Resource update is due in late September 2020; Reserves update in December 2020.


DRILLING HIGHLIGHTS 

Results from drilling at Wiluna include:

  • WURC0907: 4.00m @ 17.47g/t, 4.00m @ 5.73g/t & 4.00m @ 6.76g/t (within broad halo of 118m @ 1.46g/t) 
  • WURD0077: 5.85m @ 10.16g/t 
  • BUUD0133: 4.95m @ 8.55g/t incl. 0.90m @ 40.50g/t
  • WURC0899: 8.00m @ 7.17g/t & 5.00m @ 6.37g/t (within a broad halo of 40.00m @ 3.09g/t)
  • WURC0905: 3.00m @ 6.51g/t & 3.00m @ 8.99g/t 
  • BUUD0124: 19.56m @ 6.15g/t (within halo of 44m @ 2.92 g/t) 
  • BUUD0122: 3.60m @ 5.91g/t 
  • WUDD0061: 8.00m @ 5.11g/ & 3m @ 6.93g/t 
  • BUUD0100: 13.71m @ 4.23g/t incl. 1.00m @ 5.89g/t & 4.71m @ 6.05g/t (within a halo of 64m @ 1.61g/t) 
  • BUUD0103: 14.00m @ 4.67g/t incl. 1.83m @ 11.04g/t & 5.60m @ 4.46g/t incl. 2.36m @ 9.61g/t (within halo of 49.6m @ 1.87 g/t)

Wiluna Mining Corporation Limited is pleased to report high-grade results from a further 41 holes and 9,925m of resource development infill drilling at the Wiluna Mining Centre.

These latest results span each of the high-priority development targets of Calvert, Essex, East Lode and Bulletin. The Company continues to drill with 4 rigs currently on site, while Mineral Resource estimates are in progress and due for release in late September.

The Company intends to release its Ore Reserves update in December 2020. Milan Jerkovic, Wiluna Mining’s Executive Chair commented: “More outstanding results from drilling ‘under the headframe’ means that our confidence level for delivering our Stage 1 sulphide strategy is now extremely high.

The drilling continues to define Wiluna as one of the largest under-developed gold systems in Australia”. “The outstanding results provide confidence in our Mineral Resource and Reserve estimates as we release them on a rolling basis from September 2020 through to December 2020 and into next year.

The sheer volume of data we now must evaluate is significant and the potential for the scale of the gold system at the Wiluna Mining Centre is extremely exciting. We do believe the drilling results show that now we have awoken the sleeping giant, the giant is starting to stir!”

What’s Not 

LKE – Lake Resources Limited today closed down 19% to finish at 7.3c on $7.9m stock traded. The reason they were down today was because they announced they secured further funds to raise $900k for the issue of 15m shares at an issue price of $0.06.

The funds raised would be used to accelerate the definitive feasibility study to develop their Lake’s Kachi lithium brine project, general exploration and working capital.

The stock has been going nuts lately so I don’t blame young Steve and his team for topping up the kitty albeit only smalls – which means not too much dilution for existing guys.    

Some details on today’s news are listed below:

LAKE SECURES FURTHER FUNDS TO ACCELERATE 

DFS Clean lithium developer Lake Resources NL announced today it has secured further funds by having utilised its Controlled Placement Agreement (“CPA”) with Acuity Capital to raise $900,000 (inclusive of costs) by agreeing to issue 15 million LKE shares to Acuity Capital at an issue price of $0.06.

The issue price of $0.06 is marginally above the 15 trading day VWAP of $0.0593 to 21 September 2020 (inclusive). The funds raised will be used, together with other funds on hand, towards accelerating the Definitive Feasibility Study (DFS) for the development of Lake’s Kachi Lithium Brine Project, general exploration and working capital.

The new LKE shares will be issued out of the Company’s LR7.1A capacity. An Appendix 2A will follow.

This may or may not be Steve the boss of Lake above who too will read this….

I may or may not only write about companies whose MD’s are on the list just FYI  ——like BHP, JIN, TAH, RIO, APT, Z1P, WBC & maybe even MQG. 

JIN – Jumbo Interactive Limited today closed down 13% to finish at $12.55 on $131m stock traded. The reason they were down today was because they announced yesterday after hours that Tabcorp Holdings had agreed to sell their 11.6% interest in the company.

Tabcorp CEO David Attenborough believed there was no longer a strategic rationale for their shareholding and he may or may not be that same guy that likes bird watching.

He may or may not read this tonight – he won’t as he’s not on this list but if you do happen to somehow read it don’t worry mate the audience will know you aren’t the bird watcher and please don’t try and sue me. 

I punt with you guys !!!

Some details on yesterday’s news are listed below:

Sale of Jumbo shareholding 

Tabcorp Holdings Limited announces that, via a subsidiary, it has entered into an agreement today to sell its 11.6% interest in Jumbo Interactive Limited (ASX code: JIN) (Jumbo). Pursuant to an underwritten Block Trade Agreement with UBS, Tabcorp has agreed to sell 7,234,178 shares in Jumbo at a price of $13.52 per share, for gross proceeds of approximately $98 million.

Settlement of the sale is expected to occur on 24 September 2020. The proceeds will be used to pay down existing drawn bank debt facilities. Tabcorp will record a profit after tax on the sale of approximately $69 million which is expected to be reported as a significant item as part of the 1H21 result.

Tabcorp’s Managing Director and CEO, David Attenborough said: “Following the recent extension of our long-standing commercial distribution relationship with Jumbo for a ten year term to August 2030, there is no longer a strategic rationale for Tabcorp’s shareholding in Jumbo.

As a result, we have decided to monetise this investment, with the resulting capital to be used to further strengthen the balance sheet and support the move towards our recently revised target gearing range.”

While Tabcorp is responsible for the vast majority of Jumbo’s revenues at present in 10 years it should be a very different scenario.
This is due to management’s bold international expansion plans for its Powered by Jumbo software as a service business. It’s said that the global lottery market is worth US$303b a year but only 7% of this market is online at the moment.

The sale wrapped up a lucrative investment for Tabcorp, which inherited the holding from Queensland gaming outfit Tatts Group as part of their merger.

Tatts took a 15 per cent stake in the online lotteries minnow for just $15.6m in May 2017.

What’s Doing

Yesterday I caught up with Dave Reeves (Christopher’s brother) from Calidus Resources (CAI.asx) to chat all things CAI gold talk especially after yesterday’s acquisition of one of Australia’s highest grade gold mines.

Calidus has just kicked off construction of the Warrawoona Gold Project in the hotter than hot Pilbara over in Western Australia.

They are targeting production of initially 85,000 oz pa at A$1,250 an ounce leaving a very heathy margin of $1,400/oz or A$120m of cashflow per annum, if they hit the targets then they should hit the dart board if you get my drift.  

Warrawoona is based around one large open pit and a conventional CIL mill so it appears pretty simple.

Calidus just announced the GR Engineering will build the plant (they have built the last few in WA) and Macmahon will do the open pit mining, so two reputable contractors to kick things off.
 
I asked Dave what the Blue Spec acquisition means to Calidus, but due to the lads and lasses at the ASX & Constable Chapman, he could only offer the standard “potential to increase production and mine life”.

Steu McIntyre from Blue Ocean Securities however appears not to be so hamstrung and he has put out some numbers on what he thought this would mean for Calidus and is a very good analyst, much better analist than me that’s for sure. 

Steu assumed a 50,000 oz pa increase in production to 135,000 ozs pa with an AISC of $1,000 to $1,200/oz generating an additional EBITDA of $80m pa rounding out potential future earnings per year to $200m.

Steu’s previous note can be found here as he’s been kind enough to let me share it with you – some smart cats at that shop too !!!

https://bit.ly/2Hf6NVO 

This looks like a pretty good punt to me if you like gold when you consider that the resource grade is higher than Spectrum which Ramelius just paid $210m for compared to the $19.5m Calidus has to pay.
 
Calidus has a market cap of A$167m, $30m in the bank, has commenced construction of an new Australian Gold mine and looks like one to watch if it can spit out $200m pa.

As always DYOR or just FO

Go Hard…………. but please stay inside most of the time when you are Going Hard 

We are almost there folks, stop fckn shaking hands would you and humping strangers in isolation while you are meant to be working !!!

I can do it and so can you !!!
Nick Kelso
Wealth Advisor | EverBlu Capital

L39, Aurora Place, 88 Phillip Street, Sydney NSW 2000
d: +61 2 8249 0052 | m: +61 404 003 613 
e: nick.kelso@everblucapital.com 
w: www.everblucapital.com

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Company announcements/share price data; source – asx.com.au 

Rats Rant – IMPORTANT INFORMATION
 
The idea of this report is to be informative and hopefully point out some stocks that you wouldn’t ordinarily have seen during the day.

This report IS NOT personal advice. EverBlu Capital DOES NOT PROVIDE personal advice, EverBlu Capital provides General Financial Product Advice.

All advice included in The Rat’s Rant is General Advice

Please refer to the General Advice Warning below

The views expressed in this report are my views and may not necessarily reflect the same views as Ever Blu Capital.      

It is very important to refer to the ASX website for information on any companies / stock that are contained in this report and as always please consult your financial adviser before acting. 

I will always disclose where I own or have bought stock or invested in companies that are the subject of the Rat’s Rant.

I will let you know about it but it doesn’t mean that it is a good buy or a good sell as I am no Warren Buffett and if I was I wouldn’t be sending this out to you would I……. I’d be rich and fat not skinny and poor. 

This report is written by myself, I don’t have the luxury of a large team contributing to this report and on occasions there will be errors, spelling mistakes, poor grammar and incorrect closing prices etc (please refer to the General Advice Warning below)

Please check all the facts yourself and don’t take what I have written quickly between 4 & 10pm everyday as gospel.

Whether you’re a broker or an investor receiving this report, I’m more than happy to receive ideas and feedback from you on any stocks that you think I should be looking at or writing about but please don’t annoy me. 

Please note keyboard warriors will not be tolerated !!!

You might not like what I write or indeed my writing style, no problem,  just email me “Unsubscribe” and I will happily remove you from the list or click the button at the bottom if you’re not lazy and wan’t it done quickly. 

My company and I may receive fees from some companies that are mentioned in this report. 

If you are receiving this from someone else please just send me an email directly and would be happy to add you to my distribution list or just click on the subscribe button above. 


Important Notice

This report has been prepared and issued (in Australia) by Nick Kelso in his capacity as an Authorised Representative (AR No: 001265800) of EverBlu Capital Pty Ltd  (ABN 23 612 793 683) (AFS Licence No. 499 601) (“EverBlu Capital”). 
The report remains the property of EverBlu Capital. No material contained in this report may be reproduced or distributed, except as allowed by the Copyright Act, without the prior written approval of EverBlu Capital.  This report is subject to the disclosures and restrictions set out below. 
 
General Disclosure & Conflict of Interest
 
EverBlu Capital and its associates (as defined in Chapter 1 of the Corporations Act 2001), officers, directors, employees and agents, from time to time, may own or have positions in securities of the company(ies) in this report and may trade in the securities mentioned either as principal or agent or may be materially interested in such securities. This may include providing equity capital market services to company(ies) in this report, holding a position in the securities or acting as principal or agent. EverBlu Capital and its associates therefore may benefit from any increase in the price of those securities. EverBlu and its associates may earn brokerage fees, commissions, other benefits as well as fees or advantages from the sale, purchase or dealing of securities mentioned therein.
The Author of this Report, Nick Kelso declares that he has received and will receive in the future, compensation from companies mentioned in this report and EverBlu Capital does and seeks to do business with companies mentioned in the report. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.
                                                                                                                                                                                                                                                                                                                       
General Advice Warning

EverBlu Capital provides General Advice. Nothing contained in the report should be considered Personal Advice. This report may contain General Advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This report does not purport to contain all the information that a prospective investor may require. Prior to making an investment or trading decision, the recipient must consider market developments subsequent to the date of this document, and whether the advice is appropriate in light of his or her financial circumstances or seek further professional advice on its appropriateness or should form his/her own independent view given the person’s investment objectives, financial situation and particular needs regarding any securities or Financial Products mentioned herein. Information in this document has been obtained from sources believed to be true but neither EverBlu Capital nor its associates make any recommendation or warranty concerning the Financial Products or the accuracy, or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. This document is not an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any Financial Product, and neither this document or anything in it shall form the basis of any contract or commitment. Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by EverBlu Capital, its associates, officers, directors, employees and agents.  The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors.

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Sometimes it feels like I need to disclose to you what I have had for breakfast but anyway and

……..to finish off possibly the worlds longest disclaimer

GO HARD    

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