This is a fitting week for some market action - since its my birthday!! - Celebrated with 3 of my stocks making positive announcements. These are:
1. Union Resources (UCL.ASX) - Its JV partner in the Mossbecker phosphate deposit, Minemakers (ASX.MAK) sold its share in the mine for $25mil to UCL's major shareholder (a third party interest). This values the UCL stake at 34c/share, compared to their current share price of 16c. Of course the Oman engineering company would not make this investment unless they thought the project was worth more. This stock has not really moved yet, but we note that the Oman state engineering firm is already a 19% shareholder in Union Resources. Might we expect a takeover of UCL? There is good reason of course to expect as much since UCL also holds a 34% interest in an Iranian project, at a time when Iran is under sanctions for its nuclear escalations, its President is hugely unpopular, and the civil unrest in the Arab world has already precipitated conflict. Rest assured that next time the US will help the Iranians if they flare up again. Fortunately I believe the shareholders alligned with the management of UCL will ensure a reasonable bid to reflect the value of the Iranian Mediabhad zinc-lead project, the latest undeveloped project of its type.
2. Global Metals & Mining (ASX:GBE) - This company has just had some very appealing deeper drilling suggesting wider ore zones at depth. This company is cashed up ($25mil), and with its Chinese banking, its an appealing and strategic investment. Note that the company is trading at its cash backing...though that will disappear as they spend $5-7mil on a feasibility study. Maybe cheaper since they will probably do the metallurgy through China. Even the feasibility study might be done in China because it will likely be Chinese financing. The problem of course is that this project is still 2 years off from production.
2. Gippsland Ltd (ASX:GIP) - This company has a large-scale tantalum-tin project in Egypt (50% equity share with govt). The company has just secured finance from 4 Egyptian banks, which will allow this project to progress. Not the best commodity market, but both tin and tantalum prices are buoyant. This project is probably 1yr off production, though mine overburden removal can start earlier. Of course it will need a capital raising.