CAPITAL MARKETS

Stocks to Watch: July

MANY miners will be hoping for a strong start to the new financial year with plenty of news flow ...

Kristie Batten
Stocks to Watch: July

Aside from quarterly reports, many companies have flagged milestones this month.

Perhaps the most hotly anticipated news of the month will be the release of the definitive feasibility study and maiden ore reserve for Sirius Resources’ Nova-Bollinger nickel-copper discovery in Western Australia.

The DFS was due to be completed by the end of June and is likely in the review stage before being released in time for the mid-July target.

The maiden ore reserve is being estimated using a conservative $US7.44 per pound nickel price.

Native title is also expected to be finalised in the coming weeks, potentially paving the way for a mining lease to be granted in August.

Rapidly growing gold producer Northern Star Resources is due to complete the $A82.5 million acquisition of the Jundee mine today.

The company has wasted no time in making productivity improvements at its other new mines, Plutonic, Kundana and Kanowna Belle, so its quarterly report will be one of the most anticipated of the season.

Northern Star is planning to release more details on its Jundee strategy, as well as updated reserves and resources at the end of the month.

July also brings changes at the top of three of Australia's biggest gold producers.

Bob Vassie takes over from Tim Lehany as CEO of St Barbara today and Sandeep Biswas becomes managing director of Newcrest Mining on Friday.

Kingsgate Consolidated announced this morning it would name its new leader next week after the sudden passing of long-time boss Gavin Thomas last month.

Paladin Energy announced yesterday that the $US190 million ($A201 million) sale of a 25% stake in its Langer Heinrich uranium mine in Namibia to China National Nuclear Corporation would settle on July 23 with a signing ceremony to be held in Perth.

Aurelia Metals (formerly YTC Resources) is expected to feed first ore into its Hera processing plant in New South Wales by mid-month.

The company will become Australia’s newest gold and base metals producer once the underground mine and plant ramp up.

South Boulder Mines spin-off Duketon Mining is seeking to raise as much as $A8 million in its initial public offering, which opened last week.

The priority offer to South Boulder shareholders will close next week with the main offer to close on July 16, ahead of a proposed listing date of July 28.

On the takeover front, Baosteel Resources and Aurizon Holdings are set to succeed in their bid for Aquila Resources, which closes next Friday.

As of yesterday, the bidders had secured 25.5%, but that doesn’t include the shares held by Aquila founders Tony Poli and Charles Bass, which account for an additional 40%.

Both have agreed to accept the offer this week.

Norton Gold Fields is also closer to success in its hostile takeover for Bullabulling Gold after reaching 41.3% acceptances.



The company had to receive 30% acceptances by close of business yesterday to trigger a 1c price increase to 8c per share.



The offer will close on July 16.

Meanwhile, gold explorer Chesser Resources is set to release the prefeasibility study for its flagship Kestanelik project in Turkey and update the 703,400-ounce resource.

Graphite play Kibaran Resources is also flagging a resource update to its Epanko project in Tanzania this month, with the existing 1.5 million tonne inferred resource to be upgraded to measured and indicated by mid-month.

Subject to the resource upgrade, the company will also release the scoping study for Epanko.

On the exploration front, Gold Road Resources rose around 75% in June, making it a stock to watch this month as it continues work on its Yamana gold project in WA.

Also on the radar is Resource and Investment which, after strong gains in May, has just restarted drilling at its Forrest copper-gold discovery in the Bryah Basin.

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