Juniors on Radar: Explorers on the Move Today
Here are several junior miners to keep on your radar today.
Mentioned
KEY POINTS
- Underappreciated graphite stocks are on the move
- Altech Chemicals +30% on silicon graphite feasibility study
- Big River Gold receives a 33.3% premium takeover bid
- Australian Pacific Coal +25% on coal acquisition
The S&P/ASX 200 Materials Index is down -0.4% in early trade, underperforming the ASX 200.
Intraday chart of the S&P/ASX 200 Materials Index, with the ASX 200 shown in red
Graphite
Some positive flow is coming through to graphite names, perhaps prompted by the US$107m loan offered to Syrah Resources (ASX: SYR) by the US Department of Energy. Notable graphite movers include:
Volt Resources (ASX: VRC) +15% is developing the long-life, multi-decade producing Zavalievsky Graphite Project in Ukraine
Greenwing Resources (ASX: GW1) +9% operates the Graphmada Graphite Mining Complex, Madagascar
Evolution Energy Minerals (ASX: EV1) +9% hopes to make a final investment decision for its Chilalo Graphite Project in Tanzania by year end
Company announcements
#1 Altech Chemicals
Altech Chemicals (ASX: ATC) revealed “outstanding results” from a preliminary feasibility study for the development of an energy-saving silicon graphite product. The company's stock is up 30% in early trade.
The proposed plant will produce 10,000 tonnes per annum of silicon-graphite anodes for the European electric vehicle market. A US$95m capital investment is required to bring the project online, which is expected to generate US$185m revenue per annum.
You can read more about the announcement here.
#2 Big River Gold
Big River Gold (ASX: BRV) has received an all-cash offer from Canada-listed Aura Minerals.
Big River shareholders are being offered 36 cents per share, representing a premium of 33.3% to the stock’s last closing price of 27 cents.
The Independent Board Committee of Big River has recommended shareholders vote in favour of the takeover scheme.
#3 Australian Pacific Coal
Australian Pacific Coal (ASX: AQC) has entered into a conditional binding agreement to purchase the Dartbrook Coal Project in NSW for $30m. The company’s stock was up 25% as the market opened.
AQC has faced a number of legal challenges with recommencing underground mining operations at Dartbrook. The company is currently seeking approval for a five-year extension for mining approvals to recommission the mine.
