Latest Research

Paragon Care (PGC) - Ceasing Coverage

Paragon Care logoFollowing a research review, we are ceasing coverage of PGC to focus on WA-based industrials. PGC currently has a $70m capital raising underway to help fund a number of acquisitions and continue its consolidation strategy. The new businesses are expected to be accretive to earnings and we believe the risks associated with the integration of these large acquisitions are mitigated to a degree by successful strategy execution to date. We cease coverage with a buy call and a $1.20 valuation.

read more...

Explaurum Ltd (EXU) - Gravitating Towards Production

Explaurum Ltd LogoExplaurum (EXU) is an ASX listed, gold exploration business with a large and highly prospective 330km2 ground position. EXU’s flagship Tampia Gold Project is located 240km east of Perth near the town of Narambeen in Western Australia’s Wheatbelt and 100km south of Ramelius Resources (RMS) Edna May mine. The Company owns a 90% interest in two mining leases and a surrounding exploration licence through a joint venture, and 100% interest in a further seven exploration licences that complement the original tenure. In November 2017, EXU released a Scoping Study demonstrating gold production of 94kozpa over the first five years, capex of A$95m and all-in sustaining costs of A$888/oz. Next steps involve the completion of a Feasibility Study in the March Q and drill testing of the high priority gravity anomalies to the south, west and north of Tampia. We initiate coverage with a SPECULATIVE BUY recommendation and target price of $0.21ps.

read more...

Argonaut Industrials - Contracting - The Drought Is Over

Argonaut Limited LogoWe have captured considerable detail on all contracts awarded to ASX-listed contractors since July 2010. Data on client, project, location, service, sector, stage and commodity can be sliced and diced to provide a visual indication of themes and trends. We discuss some of the general and company specific observations in this note.

read more...

Paragon Care (PGC) - Walking The Talk

Paragon Care LogoA $70m capital raising underway will help fund a number of acquisitions and allow PGC to continue effecting its consolidation strategy. The new businesses are expected to be accretive to earnings and we believe the integration risks are mitigated to a degree by successful execution to date. We maintain a buy call on a $1.20 valuation (prior $1.15).

read more...

Gage Roads (GRB) - On Track

Gage Roads LogoGRB posted a stronger 2Q, with proprietary brand volumes demonstrating further growth. This increased brand awareness as GRB rolls out a well-articulated craft strategy has garnered attention, and longer term we believe investors will be rewarded if the strategy continues to unfold to plan. Further, with increasing brand awareness, particularly on the east coast, the potential for corporate interest cannot be ignored. Our recent hold call (which we maintain) reflects share price gains of nearly 150% over the last 6 months and a current valuation of $0.080 (prior $0.078).

read more...