A recent release from Canaccord Genuity lists 14 Australian stock picks, three of which are mining companies well known in their respective sectors.

In February, Western Australia took the top spot on the Fraser Institute’s yearly survey of best jurisdictions for mining investment. South Australia took the number six spot.

The Canadian think tank uses several criteria to determine the most hospitable locales for mining investment. The annual list is often a precursor to increased mining activity in top-ranking regions.

“The mining survey is the most comprehensive report on government policies that either attract or discourage mining investors,” said Ashley Stedman of the Fraser Institute in the report.

“A sound regulatory regime coupled with competitive taxes are key to making a jurisdiction attractive to investors,” added the senior policy analyst.

Australia’s resource sector has a longstanding history that has asserted the nation as the leader in alumina and tantalum output. The country is second in terms of uranium, lithium and zinc, and is a formidable producer of iron ore, diamonds and gold as well.

A recent capital markets release from Canaccord Genuity lists 14 Australian stock picks. It’s no surprise that the rundown includes three mining companies that are well known in their respective sectors.

Below the Investing News Network lists the three resource firms with a brief overview of their recent activity. All company details were accurate as of August 18, 2020.

1. Paladin Energy (ASX:PDN)

Market cap: AU$283.9 million; share price: AU$0.14; year-to-date move: +45.8 percent

Uranium miner Paladin Energy owns a 75 percent stake in the Langer Heinrich mine, located in Namibia. Operations at the open-pit mine were suspended in 2018 due persistently low uranium prices.

That all changed this year as the spot price for the energy fuel finally broke free of its price rut and began gaining value. With prices holding above US$30 per pound for the first time since early 2016, Paladin has commenced restart efforts at the Langer Heinrich.

In its announcement, the ASX-listed miner outlines an ambitious 17 year plan for the mine, noting the effort will cost US$81 million. In addition to the Namibian project, Paladin also has a portfolio of several uranium exploration assets in Canada and Australia.

Considering these factors, Canaccord selected Paladin as its top pick for uranium exposure, citing its US$400 million of sunk infrastructure and short lead time.

“We believe (Paladin) provides the greatest torque of its ASX peers to a rising uranium price, a commodity that is up 33 percent this year and has momentum, in our view,” reads the report. “Almost a decade of under-investment and increasingly rational producers have highlighted supply side frailties, and this has been compounded by COVID-19-related mine shutdowns.”

2. Resolute Mining (ASX:RSG)

Market cap: AU$1.4 billion; share price: AU$1.34; year-to-date move: +9 percent

Gold miner Resolute Mining has three production assets located in Africa: Mako in Senegal, Ghana’s Bibiani and Syama in Mali. Despite the challenges brought on by COVID-19 lockdowns, Resolute reported no impact to its latest quarterly output.

“Production of 107,183 ounces of gold during the June quarter meets our expectations and results in year to date production to 217,946 ounces, placing the company in a strong position to deliver our full year guidance of 430,000 ounces,” said John Welborn, CEO and managing director.

Other developments during the quarter include a new emissions-reducing power grid at Syama, as well as continued exploration for life-of-mine extensions.

Calling Resolute a “sector leader on a relative and absolute basis,” Canaccord highlights some of the company’s financials in its report.

The firm points to the difference between its free cash flow yield of 21 percent — well above the sector average — and its current price to net asset value of 0.51x, which is considered low. “A successful ramp-up at Syama could lead to a closing of this valuation gap, in our view,” states Canaccord.

3. St. Barbara (ASX:SBM)

Market cap: AU$2.4 billion; share price: AU$3.55; year-to-date move: +30.3 percent

Multinational gold miner St. Barbara has projects in Australia, Canada and Papua New Guinea, as well as a portfolio of exploration assets.

In its most recent quarterly update, the gold company reported 108,612 ounces worth of production.

“The year ahead is an important one for our business,” Craig Jetson, CEO and managing director, said in the release. “Our mature operations, Leonora (Australia) and Simberi (PNG), are entering new phases and Atlantic Gold (Canada) has a strong project pipeline that we intend to realise.”

Additional work accomplished during the period includes completing the final vent shaft of the Gwalia extension project at Lenora, a point that is cited in Canaccord’s overview of the miner.

The company’s production rate, development plans at the Atlantic project, as well as the spike in the gold price and St. Barbara’s valuation in relation to its peers, are all mentioned as providing price appreciation in the future.

Don’t forget to follow us @INN_Australia for real-time news updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

In exceptional market conditions, Rio Tinto achieves record financial results and declares total interim dividend of 561 US cents per share, 75% of underlying earnings

Rio Tinto Chief Executive Jakob Stausholm said “Government stimulus in response to ongoing COVID-19 pressures has driven strong demand for our products at a time of constrained supply resulting in a significant spike in most prices. We focused on safely running our world-class assets and supplying products to our customers. This enabled us, despite operational challenges, to deliver record financial results with free cash flow of $10.2 billion and underlying earnings of $12.2 billion, after taxes and government royalties of $7.3 billion. We are further strengthening the portfolio with our commitment to fund the high-quality Jadar lithium project, which signals our large-scale entry into the fast-growing battery materials market. We will pay an interim dividend of 561 US cents per share, representing 75% of underlying earnings.

“We are making progress on our four priorities, identifying opportunities for operational improvement, advancing our ESG agenda, taking important investment decisions and stepping up our external engagement. We are making real and lasting changes to the way we engage, interact and operate and are committed to ensuring that we have strong and positive relationships wherever we do business. We have identified what we need to do to make Rio Tinto a better company for the long term, with the right teams in place to unleash our full potential.”

Keep reading... Show less

Lake Resources NL Bonus Issue to Shareholders

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF), in recognition of the support received from its shareholders, wishes to advise that it intends to undertake a bonus issue of options (Bonus Options) to all shareholders with an address in Australia or New Zealand (Eligible Shareholders) at 5:00 pm (Sydney time) on the Record Date (set out in the indicative timetable set out below*).

As the Bonus Options will be issued for nil consideration, Lake is raising no capital from their issue. For every ten (10) shares held at 5:00 pm (Sydney time) on the Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option.

The Bonus Options will have an exercise price $0.35 each, expiring on 15 October 2021 and, if exercised, each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake will not seek listing of the Bonus Options on ASX.

Keep reading... Show less

Lake Resources NL Argentina based Director Strengthens Board

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF) has strengthened its Board, announcing today the appointment of experienced energy/natural resources lawyer, Sra. Amalia Saenz as a Non-Executive Director.

Based in Buenos Aires, Sra. Amalia’s appointment will assist Lake and its local team in Argentina in engaging with local stakeholders and preparing for the development of clean lithium production in Argentina.

Sra. Saenz is a partner at the law firm, Zang, Bergel & Viaes in Buenos Aires, where she leads the firm’s energy and natural resources practice.

Keep reading... Show less

Classic Minerals Limited Quarterly Activities Report

Perth, Australia (ABN Newswire) – Classic Minerals Limited (ASX:CLZ) has made significant progress at Kat Gap during the quarter as it strives to become a gold producer.

Highlights of the quarter include:

– Assay results returned for infill RC drilling testing the gap between oxide and deeper fresh rock high-grade gold mineralisation at Kat Gap.

Keep reading... Show less

Rio Tinto commits funding for Jadar lithium project

Rio Tinto has committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. The project remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities, the Government of Serbia and civil society.

The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.

Keep reading... Show less

In exceptional market conditions, Rio Tinto achieves record financial results and declares total interim dividend of 561 US cents per share, 75% of underlying earnings

Rio Tinto Chief Executive Jakob Stausholm said “Government stimulus in response to ongoing COVID-19 pressures has driven strong demand for our products at a time of constrained supply resulting in a significant spike in most prices. We focused on safely running our world-class assets and supplying products to our customers. This enabled us, despite operational challenges, to deliver record financial results with free cash flow of $10.2 billion and underlying earnings of $12.2 billion, after taxes and government royalties of $7.3 billion. We are further strengthening the portfolio with our commitment to fund the high-quality Jadar lithium project, which signals our large-scale entry into the fast-growing battery materials market. We will pay an interim dividend of 561 US cents per share, representing 75% of underlying earnings.

“We are making progress on our four priorities, identifying opportunities for operational improvement, advancing our ESG agenda, taking important investment decisions and stepping up our external engagement. We are making real and lasting changes to the way we engage, interact and operate and are committed to ensuring that we have strong and positive relationships wherever we do business. We have identified what we need to do to make Rio Tinto a better company for the long term, with the right teams in place to unleash our full potential.”

Keep reading... Show less

Lake Resources NL Bonus Issue to Shareholders

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF), in recognition of the support received from its shareholders, wishes to advise that it intends to undertake a bonus issue of options (Bonus Options) to all shareholders with an address in Australia or New Zealand (Eligible Shareholders) at 5:00 pm (Sydney time) on the Record Date (set out in the indicative timetable set out below*).

As the Bonus Options will be issued for nil consideration, Lake is raising no capital from their issue. For every ten (10) shares held at 5:00 pm (Sydney time) on the Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option.

The Bonus Options will have an exercise price $0.35 each, expiring on 15 October 2021 and, if exercised, each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake will not seek listing of the Bonus Options on ASX.

Keep reading... Show less

Lake Resources NL Argentina based Director Strengthens Board

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF) has strengthened its Board, announcing today the appointment of experienced energy/natural resources lawyer, Sra. Amalia Saenz as a Non-Executive Director.

Based in Buenos Aires, Sra. Amalia’s appointment will assist Lake and its local team in Argentina in engaging with local stakeholders and preparing for the development of clean lithium production in Argentina.

Sra. Saenz is a partner at the law firm, Zang, Bergel & Viaes in Buenos Aires, where she leads the firm’s energy and natural resources practice.

Keep reading... Show less

Classic Minerals Limited Quarterly Activities Report

Perth, Australia (ABN Newswire) – Classic Minerals Limited (ASX:CLZ) has made significant progress at Kat Gap during the quarter as it strives to become a gold producer.

Highlights of the quarter include:

– Assay results returned for infill RC drilling testing the gap between oxide and deeper fresh rock high-grade gold mineralisation at Kat Gap.

Keep reading... Show less

Rio Tinto commits funding for Jadar lithium project

Rio Tinto has committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. The project remains subject to receiving all relevant approvals, permits and licences and ongoing engagement with local communities, the Government of Serbia and civil society.

The Jadar project would scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.

Keep reading... Show less

Lake Resources NL Appoints New CFO

Sydney, Australia (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX:LKE) (FRA:LK1) (OTCMKTS:LLKKF) has appointed Peter Neilsen as Chief Financial Officer (CFO). The Company is ramping up its international project funding and development activities.

A key focus of the new CFO will be to guide a panel of international project financiers to successfully secure funding for Lake’s lithium production.

His other key role will be to develop and assist Lake’s team in Argentina to organise development activities and lithium production. He will also serve as joint Company Secretary.

Keep reading... Show less

Top News

Related News