RIO, ARK, WGX x 2, TUO
And we have the next catalyst for Rio2 aka RIO, who are close to finishing the construction of their Fenix gold mine in northern Chile, with the first gold pour expected in January. They are being uplisted from the TSXV to the TSX in Tuesday.
This will open up the stock to a new class of institutional investors, who tend to have firm hands on whatever stocks they buy. A good piec e of news to get when the share price looks poised for another breakout...
ca.finance.yahoo.com
If you look at the YTD chart for Arras Minerals aka ARK, you will see that the share price more than tripled, then suddenly lost one third of its value a few weeks ago, and has since regained half that sudden loss.
The reason for all this movement is the drill results from the 8.8 km long Berezski trend on their Elemes property in Kazakhstan, where they are looking for large Cu/Au porphyries similar to those being mined nearby. The rise in the share price came as they found long intercepts of mineralization, and the precipitous drop came when one of the two holes reported in a PR was not as good. (The other hole was fine.)
So a lot was riding on today's PR with the next assays, from two holes drilled into Berezski North. Again ot was a mixed bag, with one miss and one hit, but it seems the hit, which included 154m @ 1.09% CuEq (0.29% Cu and 0.72 g/t Au), including 118m @ 1.38% CuEq (0.36% Cu and 0.91 g/t Au) as well as 24m @ 2.32% CuEq (0.42% Cu, 1.73 g/t Au), was good enough that the share price is holding steady on big volume.
It is disappointing that one hole was a miss, but the successful hole greatly increased the confidence in Berezski North. Drilling ar Berezski is scheduled to continue into next year, so there will be plenty more assays to evaluate.
Message 35239526
It's not easy being listed on both the TSX and ASX. Even though West Australian gold producer Westgold Resources aka WGX had already released its quarterly production results a month ago, on the release their FY25 financial results, WGX posted no fewer than seven new documents on their website. (Recall that FY25 ran from July 2024 to June 2025.)
As you would expect due to the merger with Karora, the annual numbers for WGX were all up substantially from FY24. Revenue increased 90% to $1.36B, EBITDA 84% to $466M, and FCF 120% to $224.Though earnings were down due to the costs of the merger, WGX was able to increase its cash stash to $364M as of June 30, an $132M increase in three months.
Message 35240781
As long at the PoG stays high, WGX should be able to continue to add substantially to that cash stash. One thing having that much stash does is make the company a takeover target, so it is no surprise that one of the documents they posted on their website and PRed concerns what they are going to do with the money.
First, the FT25 yearend dividend was increased by 50% to 3 cents per share, making the dividend payout ratio 78%. I expect further generous dividends in the coming year.
Second, WGX has instituted an ATM share buyback programme which over the next year is authorized to purchase and cancel over 47M shares. We'll see how many they end up buying, and remember that WGX currently has 952M shares FD.
The market appears to like the number, as WGX is trading over $3 on the TSX for the first time.
newswire.ca
I've been thinking a lot about what might happen with Teuton Resources aka TUO, their Treaty Creek property which is JVed with Tudor Gold aka TUD, and TUD itself.
Recently, TUD bought out AMK, the third partner in the JV, so now TUD has a single focus, Treaty Creek. Here are various scenarios I have imagined for what might come next.
1) TUD buys out TUO's share of Treaty Creek, leaving TUO with a large set of prospects in the Golden Triangle. A variation on this scenario is for TUD to buy TUO outright, with those exploration prospects either spun out into a new company or sold to a third party, which could even be LUXR recently spun out by TUO to hold yet another set of prospects in the Golden Triangle.
2) A third party buys TUD outright to get their hands on Treaty Creek. Then they could either buy out TUO's share of Treaty Creek or buy TUD and do a spinout or sale of the exploration properties. It is also possible that SEA, which is developing the nearby KSM deposit, is included somehow, as Treaty Creek and KSM would be best developed together.
In either scenario, TUO as it is disappears, perhaps replaced by a new company holding the exploration properties, or just continuing on as it is now without its share of Treaty Creek.
The timeline for any of this coming about remains unclear, but big deals like this are normally done when the prices of the underlying commodities are at cyclical highs, i.e. likely within the next six months. |
