In today’s briefing:
- Red 5/Silver Lake: US$1.5bn Aussie Gold Merger
- Rent.com.au Ltd – Strong Across the Board Growth in Revenue in Q2
- EDG: Successful Initial Work on the Olympic Claims
- Tethys Oil AB (SSE: TETY): All Eyes on Block 56. Outcome of Strategic Review Expected in 1Q24
- Vitesse Energy, Inc. – Estimate Update
Red 5/Silver Lake: US$1.5bn Aussie Gold Merger
- Aussie gold miners Red 5 Ltd (RED AU) and Silver Lake Resources (SLR AU) have announced a “merger of equals” via a Scheme of Arrangement.
- Red is offering 3.434 new shares for every SLR share, and will hold ~51.7% of the merged entity, with SLR shareholders holding the remaining 48.3%.
- This has the unanimous backing of both boards. Yet SLR appears to be given short shrift on the merger ratio. Plus SLR holds ~11.9% of shares out in Red.
Rent.com.au Ltd – Strong Across the Board Growth in Revenue in Q2
- Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through its technology platform and a growing number of aligned transactional services.
- The company has reported a 33% year-on-year increase in Q2 FY24 revenue to $0.808m, in what is seasonally the weakest quarter for the group.
- Search portal revenue grew 11% on the previous corresponding period (pcp) but, not unexpectedly, dropped 7% on Q1 due to seasonal factors.
EDG: Successful Initial Work on the Olympic Claims
- EDG reported prospective soil sample results from the Olympic Claims of its Reliance Gold Project.
- The Company collected 19 rock grab samples of which five assayed greater than 5.5 g/t Au with the best results including 25.1 g/t Au and 22.3 g/t Au.
- This release highlights to investors the significant exploration upside beyond the Royal Shear.
Tethys Oil AB (SSE: TETY): All Eyes on Block 56. Outcome of Strategic Review Expected in 1Q24
- Overall 4Q23 financials were ahead of our expectations and, despite a small underlift position, YE23 cash was US$25.8 mm, above our forecasts of US$22.2 mm.
- Tethys expects to spend US$90-94 mm capex in 2024.
- This is above our forecasts of US$70 mm that incorporated only US$10 mm of exploration and appraisal capex on Block 56 and Block 58.
Vitesse Energy, Inc. – Estimate Update
- We are updating our 4Q23 and FY24 estimates to reflect actual 4Q23 reference prices and lower estimated FY24 natural gas prices.
- Our 4Q23 NYMEX reference prices averaged $78.32/bbl for oil and $2.92/MMBtu for natural gas compared with our $85.00 and $3.00/MMBtu estimates.
- We have lowered our average FY24 natural gas price estimate to $2.66/MMBtu from $3.44/MMBtu. We are currently modeling average FY24 oil prices of $80/bbl.
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