Category

Australia

Daily Brief Australia: Deep Yellow Ltd, QV Equities Ltd, Brainfish Pty and more

By | Australia, Daily Briefs

In today’s briefing:

  • S&P/​​​​​​​​​ASX Index Rebalance Preview: Regular & Ad Hoc Changes in June
  • QV Equities (QVE AU): 28th June Shareholder Vote
  • Surge leads self-service customer support platform Brainfish’s US$2.5M seed round | e27


S&P/​​​​​​​​​ASX Index Rebalance Preview: Regular & Ad Hoc Changes in June

By Brian Freitas

  • With the review period complete, we take a look at the potential index changes at the June rebalance as well as potential index inclusions due to M&A.
  • Timing is key for the ad hoc inclusions to the S&P/ASX 200 (AS51 INDEX) with an ad hoc inclusion being announced prior to the regular announcement.
  • Passive trackers will need to buy 1.3-27x ADV on the expected adds and have 0.8-4.7x ADV to sell on the expected deletes. Shorts have built up on the potential deletes.

QV Equities (QVE AU): 28th June Shareholder Vote

By David Blennerhassett

  • On the 12th March, Aussie-based investment plays QV Equities Ltd (QVE AU) and WAM Leaders Ltd (WLE AU)  entered into a Scheme
  • The current scrip terms are 0.739 new WAM shares per QVE share; OR A$0.989/share cash. Terms will be adjusted for updated pre-tax NTA/shares of both companies after the Scheme Meeting. 
  • The Scheme Booklet is now out, with a Scheme Meeting to be held on the 28th June. Expected implementation on the 15 July. The IE says fair & reasonable.

Surge leads self-service customer support platform Brainfish’s US$2.5M seed round | e27

By e27

  • Brainfish, an AI-powered self-service customer support platform for businesses, has raised US$2.5 million in seed funding.
  • The latest round was led by Peak XV’s Surge, with participation from Macdoch Ventures, Black Sheep Capital, existing angel Justus Hammer (CEO MadPaws), and new angels.
  • This brings its total capital to US$3.3 million.

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Daily Brief Australia: Telix Pharmaceuticals, Adriatic Metals PLC, Qantm Intellectual Property and more

By | Australia, Daily Briefs

In today’s briefing:

  • Telix Pharmaceutical US ADS – Past Deal Record Hasn’t Been Strong, but Fortune Could Be Turning
  • Another “fully funded” capital raise?
  • Qantm Intellectual Property – Revised guidance to incorporate scheme costs


Telix Pharmaceutical US ADS – Past Deal Record Hasn’t Been Strong, but Fortune Could Be Turning

By Clarence Chu

  • Telix Pharmaceuticals (TLX AU) aims to raise at least US$100m in its US ADS listing. The bookrunners on the deal are Jefferies, Morgan Stanley, Truist Securities, and William Blair.
  • TLX is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutic and diagnostic radiopharmaceuticals. 
  • In this note, we talk about the deal dynamics and the listing impact.

Another “fully funded” capital raise?

By Money of Mine

  • Adriatic is raising an additional $50 million in capital through a discounted offering
  • Orion is selling down half of their equity position in the raise, with plans to trim further after 90 days
  • Queens Road Capital converted their $20 million convertible debt into equity ahead of schedule in March

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.


Qantm Intellectual Property – Revised guidance to incorporate scheme costs

By Research as a Service (RaaS)

  • RaaS has published an update report on IP services group QANTM Intellectual Property (ASX:QIP) following its update on earnings guidance, incorporating the impact of transaction costs on reported EPS in FY24.
  • QIP said that as a result of transaction costs it expects to incur up to 30 June in relation to the Scheme of Arrangement with Adamantem Capital, FY24 EPS is now expected to be from $0.075 to $0.08/share.
  • The company also provided a new underlying EBITDA range of $33.0m to $33.5m, noting there has been no material change to underlying trading conditions.

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Daily Brief Australia: BHP Group Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • (Mostly) Asia-Pac M&A: KFC Holdings Japan, Shanghai Henlius, Alumina, BHP/ Anglo American, SciClone


(Mostly) Asia-Pac M&A: KFC Holdings Japan, Shanghai Henlius, Alumina, BHP/ Anglo American, SciClone

By David Blennerhassett


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Daily Brief Australia: RAS Technology Holdings and more

By | Australia, Daily Briefs

In today’s briefing:

  • Ras Technology Holdings Ltd (RTH) – Friday, Feb 23, 2024


Ras Technology Holdings Ltd (RTH) – Friday, Feb 23, 2024

By Value Investors Club

  • Racing and Sports provides data, content, and SaaS solutions to global racing and wagering industries
  • Despite challenges post-IPO, such as founders selling stakes and market volatility, RAS shows solid execution and progress towards profitability
  • Considered undervalued by investors due to strong business model and impressive financial metrics, RAS remains promising in sports wagering industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.


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Daily Brief Australia: Amaero International Ltd, Ionic Rare Earths and more

By | Australia, Daily Briefs

In today’s briefing:

  • Amaero International Ltd – Atomiser on schedule for 30 June commissioning
  • Ionic Rare Earths (IXR) Flash Note AUD5.5m Placement 16052024
  • IXR Update Note – The Circular Economy 06022024
  • Ionic Rare Earths (IXR) Flash Note Makuutu Licence Signed 25012024
  • Ionic Rare Earths (IXR) Post-Results 1H24 21032024
  • Ionic Rare Earths (IXR) Initiation 05122023


Amaero International Ltd – Atomiser on schedule for 30 June commissioning

By Research as a Service (RaaS)

  • RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been installed at its Tennessee facility and is expected to be commissioned by 30 June. Key points from our report: • Installation and cold testing of the atomiser has been completed and hot testing of the atomiser has commenced on schedule. • In conjunction with commissioning, Amaero expects to produce two tonnes of titanium alloy (Ti64) powder. Following commissioning and cleaning of the atomiser, the company says it expects to commence parameter optimisation for production of C103 powder. Amaero says it expects to deliver initial samples of C103 powder to its offtake counterparty by mid-August. • The company’s announcement is in line with our forecasts for production timing and powder type. • We have adjusted our cost estimates, in particular employee costs in the near term and for conservatism have increased our estimates for research and development costs, without incorporating income estimates for government grants. • Our base-case DCF valuation is now $1.25/share fully diluted (previously $1.37/share) while a +15/-15% sensitivity analysis to our base-case valuation provides a valuation range of $0.67 to $1.72/share.

Ionic Rare Earths (IXR) Flash Note AUD5.5m Placement 16052024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation at this stage.
  • IXR is currently ahead of its most recently published schedule.

IXR Update Note – The Circular Economy 06022024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR).
  • We have raised our valuation range 26%.
  • IXR is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).

Ionic Rare Earths (IXR) Flash Note Makuutu Licence Signed 25012024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation at this stage.
  • Since ACF’s IXR Initiation note published on 05 Dec 2023 IXR’s ownership in the Makuutu project has increased to 94% up 34pp from 60%.

Ionic Rare Earths (IXR) Post-Results 1H24 21032024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation at this stage.
  • IXR is currently ahead of its most recently published schedule.

Ionic Rare Earths (IXR) Initiation 05122023

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation.
  • IXR appears significantly undervalued on an intrinsic and EV/M+I basis compared to its peers.

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Daily Brief Australia: IDP Education and more

By | Australia, Daily Briefs

In today’s briefing:

  • Tax-Loss Selling in Australia 2024 – A Trade Basket [Updated]


Tax-Loss Selling in Australia 2024 – A Trade Basket [Updated]

By Travis Lundy

  • Three weeks after instantiation of Phase 1, the ASX200 vs LiquidBasket is +1.8% if you traded the basket VWAP the next day. vs LessLiquid it is +8.5%. 
  • Equal weight all names in the two is +3.1%. Trade VWAP over two days it is +0.7%, +7.6%, and +2.7%. So far things are OK. 
  • Next week one would add another basket, then in the last week of June, one would cover and reverse the trade and hold on for 30-40 trading days or so.

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Daily Brief Australia: AUB Group Limited, Empire Energy and more

By | Australia, Daily Briefs

In today’s briefing:

  • AUB Group Placement – Good Track Record, Accretive Acquisition
  • Empire Energy Group Ltd – Benefiting from the Future Gas Strategy


AUB Group Placement – Good Track Record, Accretive Acquisition

By Sumeet Singh

  • AUB Group Limited (AUB AU) is looking to raise up to AUD200m (US$133m) to fund the acquisition of Pacific Indemnity.
  • The company has a good track record and the deal will be accretive to EPS.
  • In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

Empire Energy Group Ltd – Benefiting from the Future Gas Strategy

By Research as a Service (RaaS)

  • Empire Energy Group Limited (ASX:EEG) is an oil and gas producer/developer, with onshore Northern Territory (NT) gas exploration and development assets.
  • EEG has the largest tenement position in the highly prospective Greater McArthur Basin, which includes the Beetaloo Sub-basin.
  • The release of the Federal Government’s Future Gas Strategy Paper, adds some certainty to the economic outlook and highlights the need for new supply sources to meet forecast demand through the energy transition and to service existing LNG contracts.

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Daily Brief Australia: Star Entertainment Group, Ricegrowers Ltd, Iron Ore, Alkane Resources and more

By | Australia, Daily Briefs

In today’s briefing:

  • Star Entertainment (SGR AU): Hard Rock Rolls The Dice
  • Ricegrowers Ltd – Ample rice encourages lower plantings
  • Champion Iron (CIA CN): Another Expansion Iron Ore Pure Play on High-Grade Ore
  • Alkane Resources – Kaiser takes on the World


Star Entertainment (SGR AU): Hard Rock Rolls The Dice

By David Blennerhassett

  • Troubled casino operator Star Entertainment (SGR AU) announced it had “received inbound interest” from several parties, including “Hard Rock Hotels & Resorts … a local partner of Hard Rock”.
  • Star is in the doghouse, again,  as the regulator conducts (another) review amid concerns Star did not do enough to remedy the problems identified in the first review. 
  • Facing “serious and systemic non-compliance” with anti-money laundering laws, Star faces the distinct possibility of losing is casino licence in Sydney; and potentially the one in Queensland.  

Ricegrowers Ltd – Ample rice encourages lower plantings

By Research as a Service (RaaS)

  • Ricegrowers Limited, trading as SunRice (ASX:SGLLV), has updated rice growers on paddy prices for CY23 and CY24, and more importantly provided planting guidance for CY25.
  • Despite additional US supply and continued shipping disruptions, the lower end of the CY23 paddy price range (sold from FY24) has been increased $10/tonne to $425/tonne.
  • The CY24 price range is unchanged at $370 to $430/tonne given the above uncertainties.

Champion Iron (CIA CN): Another Expansion Iron Ore Pure Play on High-Grade Ore

By Sameer Taneja

  • Following our initiation on Mount Gibson Iron (MGX AU) and Kumba Iron Ore (KIO SJ), recently we initiate coverage on Champion Iron (CIA AU), a pure play with Canadian assets.
  • Although it is more richly priced than the other two names, it offers a 50% volume expansion opportunity in FY25/26, subject to financing availability. 
  • Trading at 8.6x FY25 (March-end) PE, 4.6x EV-EBITDA, and a 6% dividend yield (subject to capex), this is not our favorite name at the current price due to production uncertainty. 

Alkane Resources – Kaiser takes on the World

By Edison Investment Research

As with Boda before it, April’s resource update at Kaiser saw substantially all of its resource promoted from the inferred to the indicated category at a materially higher grade of both gold and copper. The close-spaced nature of the drilling required to achieve this will now allow these resources to be quickly and easily promoted to reserve status for the purpose of Alkane’s scoping study – or preliminary economic assessment – to be announced later this quarter.


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Daily Brief Australia: Judo Capital, Qantm Intellectual Property and more

By | Australia, Daily Briefs

In today’s briefing:

  • Quiddity Leaderboard ASX Jun 24: Intra-Review Replacement Surprise Possible
  • Qantm Intellectual Property – Binding offer of $1.817/share accepted


Quiddity Leaderboard ASX Jun 24: Intra-Review Replacement Surprise Possible

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the June 2024 index rebal event.
  • We expect one ASX 20 change and two ASX 100 changes during the regular rebalance event.
  • For the ASX 200 index, there could be two intra-review changes in the month of June 2024 and one of those names could be a surprise.

Qantm Intellectual Property – Binding offer of $1.817/share accepted

By Research as a Service (RaaS)

  • QANTM Intellectual Property Ltd (ASX:QIP) has announced it has entered into a binding Scheme of Arrangement for an entity associated with Adamantem Capital to acquire all its shares for $1.817/share.
  • Shareholders will have the opportunity to elect to receive 100% cash or a combination of 50% cash, 50% scrip, subject to a scrip issuance cap of 24%.
  • The QANTM board can elect to pay a special dividend of up to $0.071/share, which will be included in the offer price and enable shareholders who are eligible to benefit from franking credits of up to $0.03/share.

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Daily Brief Australia: Actinogen Medical and more

By | Australia, Daily Briefs

In today’s briefing:

  • Actinogen Medical – Funding in place through key catalysts


Actinogen Medical – Funding in place through key catalysts

By Edison Investment Research

Actinogen announced a capital increase of up to A$8.9m on 3 May, consisting of a A$5.0m (gross) placement along with a shareholder rights offering (‘entitlement offer’) designed to raise up to A$3.9m (gross) from existing shareholders. The closing date of the rights offer is 29 May and, given that Actinogen shares are currently trading at c A$0.028, we assume full exercise of the rights offering in Q424 (Q2 CY24). The company expects that the proceeds (assuming full exercise of the rights offering) will extend its operating runway beyond the interim results release of the first 100 patients of the XanaMIA Phase IIb study in cognitive impairment (CI) in patients with mild-to-moderate Alzheimer’s disease (AD), expected in mid-CY25. These results and the results from the XanaCIDD Phase IIa study in patients with CI associated with major depressive disorder (MDD), expected in early Q3 CY24, represent major potential value inflection points, and Actinogen is now funded past these two key catalysts. Our risk-adjusted net present value (rNPV) is A$544m (vs A$528m previously).


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