In today’s briefing:
- Azure Min’s (AZS AU)’s “Boost” As Gina Ups Stake in Lynas
- HighPeak Energy, Inc. -Moderating Growth for Free Cash Flow Generation
- JEV: Exploring Spin-off for Hydrogen Assets
- Ocean Power Technologies, Inc. – Announces MDAS Agreement…
Azure Min’s (AZS AU)’s “Boost” As Gina Ups Stake in Lynas
- On the 8th April, Azure Minerals (AZS AU) shareholders overwhelmingly approved the Sociedad Quimica y Minera (SQM US)/Gina Rhinehart’s Hancock transaction. Shares promptly closed down 7% on regulatory approval fears.
- Those fears are unwarranted. China’s Tianqi Lithium would indirectly own just ~11% in Azure post-deal. China has recently lifted anti-dumping tariffs on a range of Aussie products. FIRB won’t block.
- An expected approval may have spurred Gina to buy more shares in Lynas (LYC AU). Why buy now if FIRB dings Azure; that outcome would push the whole sector lower.
HighPeak Energy, Inc. -Moderating Growth for Free Cash Flow Generation
- HighPeak has pivoted its FY24 development plan to concentrate on free cash flow generation from growth.
- Our updated adjusted EBITDA and free cash flow estimates, incorporating NYMEX reference prices of $79.19/bbl for oil and $2.33/MMBtu for natural gas, are $858 million and $168 million, respectively.
- FY23 free cash flow was negative $271 million.
JEV: Exploring Spin-off for Hydrogen Assets
- What you need to know: • JEV announced that it has commenced a strategic process to explore the spin-off of its hydrogen portfolio.
- We view this as a strong positive for shareholders.
- • Over the past month, JEV also closed a $2.2M private placement and amended the terms on its debentures, setting up the Company for this transaction.
Ocean Power Technologies, Inc. – Announces MDAS Agreement…
- OPT has entered into a teaming agreement with a major international defense contractor to offer OPT’s Merrows suite of solutions in specific international regions.
- The partnership aims to improve maritime domain awareness through OPT’s Maritime Domain Awareness Solution (MDAS).
- The agreement grants the defense contractor exclusive rights to sell MDAS in certain areas.
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