China considering US$1.1 trillion infrastructure stimulus

Jul 15, 2022

Macro: Commodities

China plans to make up to US$1.1 trillion in financing available for infrastructure spending, which we think will increase commodity demand. Read the following Bloomberg article for details.

Read the full article here.

Below are our key takeaways:

  • China is making 7.2 trillion yuan ($1.1 trillion) in funds available for infrastructure spending.
  • According to Citigroup, infrastructure investment in 2022 is likely to rise by 7.7% versus 2021.
  • President Xi Jinping has called for an “all out” effort to increase infrastructure spending this year to fuel economic growth and meet a GDP growth target of around 5.5%.

The Bloomberg article touches on the impacts of China’s COVID induced lockdowns on the domestic economy.

With economic growth tipped to slow, the Chinese government is getting ready to lean on fiscal stimulus through infrastructure investment to spur economic growth.

We think this type of fiscal stimulus is likely to become a common theme in China and the West, with macro themes like decarbonisation requiring massive CAPEX.

This infrastructure spending forms part of our “commodities supercycle” investment thesis, where we see increased fiscal stimulus and CAPEX investment spurring higher demand for commodities already facing supply shortages.

Battery material supply putting EV revolution at risk

Jul 15, 2022

The following Bloomberg article highlights the supply shortages in the battery minerals space and the requirement for increased investment in new supply.

Read the full article here.

Below are our key takeaways:

  • Electric vehicle (EV) adoption is increasing the demand for batteries while cutting costs to help EV's go mainstream.
  • Downstream battery manufacturing capacity is being built faster than supply chains can keep up. The build out of manufacturing capacity is leading to shortages of specialist materials like copper foil and, more importantly, metals needed for battery chemicals.
  • Factories can be built in about 18 months, whereas mines typically take seven years or longer to come online.
  • Manufacturing capacity for lithium-ion batteries is expected to increase almost fivefold through 2025 if companies deliver on their existing plans.
  • The article specifically focuses on the following minerals being in severe deficit: lithium, cobalt, nickel, and graphite.

We have previously touched on the difference in investment capital going into downstream (manufacturing) capacity versus upstream (mining) projects.

The main takeaway that keeps popping up when we look into this thematic is the difference in time to get a mine from exploration to production versus the building of a manufacturing plant.

Bloomberg highlights that it takes about 18 months to build a large-scale battery manufacturing plant but seven years or longer for a new discovery to reach production.

This is why we think the prices for these battery minerals are likely to remain elevated in the short-medium term.

We hold exploration and development exposures across several different battery metals, which you can view by clicking on the image below.

Pursuit Establishes an At Call Funding Facility

ASX:PUR   Jul 15, 2022 Announcement

Our junior exploration Investment, Pursuit Minerals (ASX:PUR) established an At-the-Market Facility (ATM) yesterday with Alpha Investment Partners for up to $5M.

The funding facility is basically a line of financing available to PUR that the company can tap at its discretion.

If PUR decides to use any of the $5M, then it will simply undertake a placement with Alpha Investment Partners based on a reference share price.

The key terms for the facility are as follows:

  • PUR can access the funding facility at its own discretion.
  • Shares will be issued at the GREATER of the floor price set by PUR and up to a 10% discount to a Volume Weighted Average Price (VWAP) over a period of PUR’s choosing

The key takeaway for us is that PUR now has even more cash available to it if it needs it.

We think this should allow it to quickly ramp up drilling activities should they find anything of value in the upcoming assays (late August) from their Commando gold project in WA.

PUR had over $6.9M in cash at the end of the March quarter so we don't expect the company to need to tap the facility unless there is a compelling reason to spend a large sum of money.

As a result, we think PUR (currently capped at ~$16M) is in a pretty enviable position as a junior explorer, at a time in the market when raising cash is hard for small companies.

What’s next for PUR?

Assay results from the company’s 5,500m AC drilling campaign at its Commando gold project in WA (late August).

Drilling commenced targeting resource growth

ASX:TMZ   Jul 13, 2022

Investment Memo: TMZ IM-2022
Objective 1 : Combine multiple deposits’ Mineral Resource Estimates to Hit 100 Moz AgEq (silver equivalent)

Our precious metals exploration investment Thomson Resources’ (ASX:TMZ) has just kicked off another round of drilling at its silver project on the NSW and QLD border.

Drilling commenced today in and around TMZ’s “Silver Spur” resource which currently sits at 3.3M ounces silver equivalent at a silver equivalent grade of 156 g/t.

TMZ is planning an initial 2,000m of RC and diamond drilling to test for extensions to the current resource both at depth and along strike.

Most of the drilling will be focused on the drilling targets that TMZ put together after some geophysical surveys which highlighted seven clusters of chargeability anomalies that have never been tested previously.

More specifically these clusters centre around the historic Silver Spur mine where mineralisation seems to be trending in the direction of TMZ’s Twin Hills deposit where TMZ holds a silver equivalent resource of ~10.3M ounces.

Today’s news fits in with our Objective #1 of our 2022 Investment Memo — TMZ to deliver a total combined resource across its silver deposits of ~100 million silver equivalent ounces.

Presently, TMZ’s overall resource sits at 87.1M silver equivalent ounces at a silver equivalent grade of 119 g/t.

We hope that this round of drilling can add to that resource as TMZ works towards achieving one of our key objectives for the year.

Second round of drilling completed, assays expected in August.

ASX:GAL   Jul 13, 2022 Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman

This morning our long term exploration Investment Galileo Mining (ASX: GAL) put out an update on the ongoing drilling program at its “Callisto” PGE discovery at its 100% owned Norseman project in WA.

Today, GAL confirmed that eleven additional drill holes have now been completed with every drill hole intersecting sulphides that are geologically consistent with the first round of drilling.

The drilling results have now increased the mineralised sulphide zone so that:

  1. Extends over a 300m strike length in the southern/central sections.
  2. Extends over a 200m strike length over the northern sections

GAL also confirmed that all of these drill samples are now at the assay labs with results expected in August this year.

Next: GAL expects the next round of RC drilling to commence in late July, which will then be followed up with diamond drill rigs in August.

⏯️ Drilling update at flagship base metals project

ASX:AKN   Jul 13, 2022 Announcement

Investment Memo: AKN IM-2022
Objective 1 : More drilling at the Copper-Zinc project to upgrade the JORC resource.

Earlier today, our junior base metals investment AuKing Mining (ASX:AKN) provided an update on drilling progress at its flagship Koongie Park project in the Halls Creek region of WA.

The current drilling campaign aims to expand the resource base at Koongie Park. This follows last year’s drilling campaign that led to a 30% increase in resources to 8.9Mt (from 6.8 Mt), containing 1.01% copper, 3.67% zinc, 0.77% lead, 0.16g/t gold, and 26g/t silver.

4,334m of RC (reverse circulation) drilling has now been completed, primarily at the Onedin South prospect. 1600m of diamond drilling will now follow, which will target strong conductive anomalies offset from known mineralisation at the project’s two primary deposits, Onedin and Sandiego.

We anticipate first assay results sometime in late July/ early August.

Metallurgical test work progressing at LRS’s lithium discovery

ASX:LRS   Jul 13, 2022 Announcement

Investment Memo: LRS IM-2022
Objective 4 : JORC resource at the Brazilian lithium projects
Objective 1 : Start feasibility studies

This morning our lithium exploration Investment Latin Resources (ASX: LRS) confirmed that metallurgical test work was being progressed concurrently to its 25,000m resource drilling program.

LRS said that samples had been dispatched to the required labs with preliminary metallurgical test work commenced as part of the Company’s fast-track strategy to define a JORC resource for its new lithium discovery.

The planned test work will ultimately look to determine final lithium concentrate recovery rates.

This will mean LRS have the information needed to progress its project towards a maiden JORC resource and eventually into feasibility studies.

Potential strike zone at lithium discovery increased to 2.2km

ASX:LRS   Jul 13, 2022 Announcement

Investment Memo: LRS IM-2022
Objective 4 : JORC resource at the Brazilian lithium projects
Risk 2 : Exploration risk

This morning our lithium exploration Investment Latin Resources (ASX: LRS) managed to increase the size of its new lithium discovery in Brazil.

The increase comes through the securing of tenements immediately to the south of LRS’s 21.1m @1.2% lithium intercept, where the lithium deposit is open trending southwards.

Before the increase in the project area, LRS’s discovery sat on a ~1km strike length, after today’s news, LRS has an additional 1.2km of potential strike to test.

This means LRS could potentially increase the size of its project over a total strike length of ~2.2km.

LRS currently has three diamond drill rigs running on site (with a fourth rig arriving in late July) as part of a 25,000m resource drilling program.

With the deposit open along strike to the south LRS have already started drilling into this newly secured strike zone with drillholes 24 and 25 testing for extensions to its lithium discovery to the south.

Second helium well being planned for Q3-4 2022

ASX:GGE   Jul 13, 2022 Announcement

Investment Memo: GGE IM-2022
Investment Thesis 3 : Near term drilling event
Investment Thesis 1 : Helium a critical raw-material for Semiconductors

Our 2021 Catalyst Hunter Pick of The Year Grand Gulf Energy (ASX: GGE) just announced that it plans to drill a second well at its helium project in Utah, USA.

Along with an announcement confirming GGE would re-enter its Jesse #1A well, GGE confirmed that it has already started ranking other prospects across its helium project in preparation for the drilling of a second well over its project area.

GGE confirmed that the drilling of the second well was being planned for Q3-4 2022.

We previously covered GGE’s other exploration prospects and especially like the following:

  1. That GGE has four mature step out drilling locations whereby it can follow up its recent discovery at the Jesse prospect
  2. That GGE has three NEW and Independent prospects where GGE can drill to try and make an entirely new discovery.

We covered these exploration prospects in a previous note, to see our deep dive click here and scroll down to the section “Plenty of other targets to follow up after this well”:

Workover rig secured for flow testing program in August.

ASX:GGE   Jul 13, 2022 Announcement

Investment Memo: GGE IM-2022
Investment Thesis 3 : Near term drilling event
Objective 3 : Drilling First Well

This morning our 2021 Catalyst Hunter Pick of The Year Grand Gulf Energy (ASX: GGE) detailed its next steps for its helium discovery in Utah, USA.

Today, GGE confirmed that a workover rig had been secured ahead of a planned re-entering of the Jesse #1A well in August, where the ultimate aim will be to obtain a flow test for the helium discovery.

This news comes after GGE completed the drilling of its first pure play helium well (Jesse #1A) and confirmed a new helium discovery with helium grades consistently measuring between 0.44 and 0.65%.

Importantly this was well above our base case expectations, even surpassing our bullish case expectation of a helium grade >0.4%.

We now know that GGE has the following:

  1. A proven helium structure that can be followed up with additional drilling. ✅
  2. Commercially viable helium grades above our 0.4% expectation (GGE’s grades were between 0.44 and 0.65%). ✅

The only missing link for GGE to go from helium explorer to producer was a commercially viable flow rate.

Today’s announcement now gives us a timeframe for when we can expect to see GGE go back and test the well again to see if its discovery can produce commercially viable flow rates.

  1. Commercially viable flow rate 🔄- GGE now expecting to re-enter the Jesse #1A well in August.

In a previous GGE note we detailed our bullish, base and bearish case expectations for the flow test results, to read that note click here.

Strategic cooperation agreement signed with cornerstone investor

ASX:MNB   Jul 12, 2022 Announcement

Investment Memo: MNB IM-2022
Investment Thesis 3 : Green ammonia optionality
Objective 4 : Green Ammonia progress

This morning our fertiliser and green ammonia/hydrogen Investment Minbos Resources (ASX:MNB) announced the signing of a strategic cooperation agreement.

The strategic cooperation agreement has been signed with the same group of investors that made a $15M cornerstone investment in MNB and the term sheet signed for a potential US$25M debt facility.

The syndicate is led by Hong Kong based Mr. Liang Feng who is also founder and chairman of Shanghai listed “Shanghai Putailai New Energy Technology” which has a market cap of US$18 billion and is the world’s largest anode materials maker for lithium batteries.

The strategic cooperation agreement covers MNB’s green ammonia/hydrogen project as well as a commitment to explore opportunities in the “ferro phosphate” and “lithium ferro phosphate” space. The key details across both are as follows:

Green ammonia/hydrogen project:

  • Investigate the availability of up to 500MW hydropower for new green ammonia projects.
  • Evaluate/develop potential downstream ammonia products.
  • Complete feasibility studies on a large-scale Ammonia Project.
  • Identify, approach and secure financing to fund the CAPEX requirements for production facilities.
  • Assist with securing a suitable site for construction of the plant.
  • Secure customers and offtake arrangements for the Ammonia products
  • Assist with government relations and permitting during development process.
  • Provide phosphate feedstock under a long-term offtake agreement.

“Ferro phosphate” and “lithium ferro phosphate” (LFP Projects):

  • Identify, approach and secure technology/service providers + investment/offtake partners. Partner to collaborate on project feasibility.
  • MNB to commit to long term offtake for 100,000 tonnes per annum of high-grade phosphate rock at agreed market rates.

The significance of this agreement is that it has been signed with the same group of investors who will soon become major shareholders in MNB (after the $15M cornerstone investment shares are issued).

With a major shareholding in MNB, we think the group of investors will be incentivised to create shareholder value by bringing added downstream capabilities to MNB, both at its phosphate (fertiliser) project and its green ammonia/hydrogen project.

Non-binding term sheet signed for US$25M debt facility

ASX:MNB   Jul 12, 2022 Announcement

Investment Memo: MNB IM-2022
Objective 1 : Definitive Feasibility Study and Project Financing
Risk 2 : Funding risk

This morning, our fertiliser and green ammonia/hydrogen Investment Minbos Resources (ASX:MNB) made more progress towards financing the development of its Angolan fertiliser & green ammonia/hydrogen projects.

In addition to a $25M capital raise, MNB also confirmed that a non-binding term sheet had been signed for a $25M debt facility.

The term sheet was signed with the same group of investors who cornerstoned the capital raise for a total of $15M (syndicate of investors led by the chairman of the world’s largest battery anode producer).

The term sheet is non-binding meaning the debt facility hasn’t been put in place as yet, this just means that MNB have interest from a group of financiers and should the company wish to take out the facility they can go back and negotiate a final agreement with them.

The specifics of the term sheet are set out in the announcement as follows:

  • Facility size: US$25 million available in tranches of US$5 million
  • Term: 5 years
  • Interest rate: Market interest rates with potential equity participation
  • Use of proceeds: CAPEX for MNB’s phosphate (fertiliser) project.
  • Conditions: MNB needs to complete a DFS, secure offtake agreements and the financiers have a right to complete due diligence.

The significance of this term sheet is that it encompasses most of the CAPEX requirements that MNB had estimated in its 2020 scoping study.

The 2020 scoping study had estimated that MNB’s phosphate (fertiliser) project could be put into production at a low upfront CAPEX cost of only US$22-28M.

Given that the debt facility covers US$25M and potential equity participation in the future, MNB now have a non-binding commitment from a group of investors.

With the non-binding term sheet backstopping its project, MNB confirmed in today’s announcement that MNB that a DFS is to be delivered and construction expected to begin Q3-2022.

$25M capital raise secured with $15M cornerstone investment

ASX:MNB   Jul 12, 2022 Announcement

Investment Memo: MNB IM-2022
Objective 1 : Definitive Feasibility Study and Project Financing
Risk 2 : Funding risk

This morning our fertiliser and green ammonia/hydrogen Investment Minbos Resources (ASX:MNB) came out of a trading halt after completing a capital raise.

MNB managed to raise $25M via a placement at 11c per share with a $15M cornerstone investment from a syndicate of investors led by the chairman of the world’s largest battery anode producer.

The syndicate is led by Hong Kong based Mr. Liang Feng who is also founder and chairman of Shanghai listed “Shanghai Putailai New Energy Technology” which has a market cap of US$18 billion and is the world’s largest anode materials maker for lithium batteries.

We also noticed that MNB’s directors and management team are also participating in the capital raise for a total of $845k.

We like seeing management teams that have skin in the game and see this as a vote of confidence from the managers leading our Investment in MNB.

The capital raise will see MNB issue a total of 227,272,728 shares split as follows:

  • 131,414,473 shares to be issued on the 20th of July 2022.
  • 95,858,255 shares to be issued after shareholder approvals in August.

In the short term, we expect to see the share price hold around the 11c per share level as some of the investors who participated in the capital raise are likely to sell on market and take their profits.

With the market looking a little fragile, we suspect there will be more of these type investors than we are otherwise used to seeing.

That being said, we think the big glowing positive from today’s announcement is that MNB was able to raise this much capital in an otherwise tough market.

For us, this level of funding underlines the serious potential that MNB’s fertiliser and green ammonia/hydrogen projects have.

Australian PM: “we see enormous potential in hydrogen”

ASX:PRL   Jul 12, 2022

Investment Memo: PRL IM-2022
Investment Thesis 2 : Australia is aiming for net zero emissions by 2050

This morning Prime Minister Anthony Albanese addressed the Sydney Energy Forum with a 26-minute speech about the future of the energy industry in Australia.

One thing that stood out to us was his remarks concerning the hydrogen industry. As you can see in the clip below, he said that the Australian government “see enormous potential in hydrogen”.

He added that “Australia has all of the ingredients needed to become a major hydrogen producer and exporter [...] with over 91% of hydrogen production planned being green hydrogen”.

He also stated, “we have plans to establish hydrogen refuelling infrastructure to support the next generation of heavy vehicles right around the country”.

Clearly, the Australian government is taking the hydrogen industry seriously and has big ambitions to make Australia a hydrogen superpower on the world stage.

We have long held the view that Australia’s access to abundant natural renewable energy resources, including solar and wind power, uniquely positions it to produce the cleanest form of hydrogen - green hydrogen.

As a result, we are Invested in Province Resources (ASX: PRL), which is looking to develop Australia's first truly zero-carbon, green hydrogen project.

To see why we are Invested in PRL, the key objectives we want to see the company achieve in 2022 and the key risks to our Investment thesis, check out our 2022 PRL Investment Memo here.

Some of the best graphite in the world?

ASX:EV1   Jul 12, 2022 Announcement

Investment Memo: EV1 IM-2022
Objective 2 : Assess Downstream “Value Add” Opportunities
Milestone 3 : Market update battery specific value add (studies or partnerships)

This morning our 2021 Wise-Owl Pick of the Year, Evolution Energy Minerals (ASX:EV1) made further progress with its commercial verification program to evaluate the suitability of its graphite fines product for battery anode materials.

EV1 confirmed that thermal purification achieved an industry-leading purity level of 99.9995% carbon (C).

What we’re really interested in from today’s EV1 announcement is the “inversion” of the traditional battery anode process flow sheet:

Importantly, this flow sheet results in a product that exceeds the required purity level for battery grade spherical graphite, while also using an environmentally friendly thermal purification processing methodology.

This compares to the conventional approach which is currently responsible for producing 100% of the world’s battery grade graphite.

The key difference between the two is that the conventional process uses highly toxic chemicals such as hydrofluoric (HF) acid — existing anode manufacturers use between 400-600kg of HF acid for every tonne of graphite feedstock.

Thermal purification, on the other hand, is completely sustainable using no toxic chemicals. This fits in with EV1’s strategy of producing net zero carbon graphite.

We think this is a step in the right direction towards positioning EV1 as the world’s leading producer of the most green and sustainable battery anode materials.

The thermal purification process also has cost advantages. EV1 explains that the cost of the conventional process is ~US$700 per tonne as compared to the thermal purification process which EV1 expects to cost ~US$500 per tonne.

EV1 is making strong progress towards qualifying its graphite fines product as suitable for use in both high performance batteries and in the nuclear industry — where graphite products can fetch as high as US$30,000 per tonne.

We covered this test work in our last EV1 note which you can read here: EV1’s Graphite Meets Purity Standards – Good for Batteries and Nuclear Energy

What’s next for the ongoing test work:

EV1 has confirmed that downstream processing and battery anode testwork is ongoing. The company expects to release the results of testwork on the production of coated spherical graphite in the coming weeks.

Subject to the results of that testwork, EV1 intends to undertake a feasibility study on the production of coated battery anode materials and other advanced battery products.

This, we hope, will lead to improved overall project economics for EV1 as it moves towards making a final investment decision to develop its graphite project in Tanzania.

African gas in high demand, EU looks to replace Russian supply

ASX:IVZ   Jul 11, 2022

Investment Memo: IVZ IM-2022

The following article from Bloomberg highlights the European rush to African gas supplies to replace Russian supply.

Read the full article here.

Below are our key takeaways:

  • The EU wants to import as much African gas as it can.
  • Nigeria has 3% of the world's proven gas reserves, yet has tapped almost none of it. Like most African countries, what has been extracted is mostly sent to Europe, which now wants to import even more to make up for supplies lost to Moscow’s invasion of Ukraine.
  • Italy recently signed a deal to buy gas from Angola and the Democratic Republic of the Congo, while Germany has been looking to secure supplies from Senegal.
  • Many African leaders support boosting gas exports to help their cash-strapped governments, but they also want access to financing that would allow them to harness the fuel’s potential to create domestic natural gas markets.
  • A recent spate of major discoveries has led to big private projects with supermajors including Exxon Mobil, BP and Shell spending tens of billions in Mozambique, Tanzania, Senegal and Mauritania to extract more gas for export.
  • The supermajors plan to grow existing LNG facilities in Nigeria and Angola to help Africa produce 470 billion cubic metres of gas per year by the late 2030s, equal to about 75% of Russian output this year, according to consultants Rystad Energy.

The article clearly lays out the structural demand for African gas from developed EU nations like Germany, Italy and Spain.

The demand comes as gas prices reach astronomical highs all across the EU and the need to transition away from a reliance on Russian gas becomes a lot clearer.

We have exposure to this macro thematic through our 2020 Energy Pick Of The Year Invictus Energy (ASX: IVZ) which is gearing up to drill its elephant scale prospect in Zimbabwe with the potential to open up an entirely new oil and gas basin in Zimbabwe.

Just last week, IVZ upgraded its prospective resource to a giant 20 trillion cubic feet (Tcf) and 845 million barrels of gas condensate.

The prospective resource now stands at a total of 4.3 billion barrels of oil equivalent on a gross mean unrisked basis.

With drilling expected to commence in August, we think IVZ has timed its drilling program to perfection — any new discovery is likely to garner a lot of international interest, especially from the EU.

Natural gas to speed up Australian transition to clean energy?

ASX:TEE   Jul 11, 2022

Investment Memo: TEE IM-2022

The following Bloomberg article highlights the need for gas as a transitional energy source from fossil fuels toward cleaner energy technologies.

Read the full article here.

Below are our key takeaways:

  • Natural gas will help accelerate Australia’s transition to cleaner energy, according to Former Chief Scientist and government special adviser on low emissions technologies, Alan Finkel.
  • With Australia looking to phase out its reliance on coal-fired power plants and pivot toward solar and wind, natural gas will need to act as a stopgap to ensure reliable energy supply, said Finkel.
  • Finkel also said that energy generated from coal is “too slow to respond” and won’t be able to support the kinds of green technology that will turbocharge the transition.
  • Finkel closed by saying, “There is a pursuit of perfection to say get out of fossil fuels completely, and eventually we will. But for the next 10, 15, and 20 years, being able to call on natural gas to firm up the solar and wind electricity in a country like Australia will enable us to develop and deploy solar and wind at enormous scale -- more quickly than if we cannot call on natural gas”.

As of 2020, ~54% of all electricity generation in Australia was produced by coal fired power plants, gas contributed ~20%, and renewables contributed ~24%.

The interview with Finkel states what we think is obvious, that it isn’t possible to just shut down 54% of power generation capacity and replace it with cleaner renewable technologies overnight.

We agree with Finkel’s comments about needing new investment in the gas industry to act as a “stopgap” for the next “10-15-20 years”.

Eventually the world, along with Australia, can transition away completely from fossil fuels. But over the medium term we think the oil and gas industry is being starved of new investment at the expense of energy security.

We’ve long held the view that gas is the natural transitional fuel that can bridge the gap between fossil fuels and cleaner energy sources. Burning gas to produce power has a far lower carbon footprint compared to coal and oil, with the added benefit of having all of the infrastructure in place to produce and consume it.

As a result, we are Invested in gas explorer Top End Energy (ASX: TEE), which holds prospects in the NT and in QLD.

To see why we are invested in TEE and what we are looking to see the company achieve over the next 12 months check out our 2022 TEE Investment Memo here.

Highest grade palladium-platinum assays yet

ASX:GAL   Jul 11, 2022 Announcement

Investment Memo: GAL IM-2022 [Archive]
Objective 3 : Cobalt and palladium exploration at Norseman

It was more good news for our long term exploration Investment Galileo Mining (ASX:GAL) this morning.

GAL announced the highest grade palladium and platinum assays to date at its “Callisto” PGE discovery at its Norseman project in WA.

Assays from four drill holes measured as high as 8.25 g/t Pd and 1.94 g/t Pt over one metre in drillhole NRC275 — the highest-grade palladium and platinum assays GAL has recorded so far.

These high-grade palladium and platinum results show potential for the occurrence of high-grade zones within the overall mineralised system.

Importantly, the assays confirm that the discovery extends along strike to the east over 300m. GAL also confirmed that mineralisation remains open in all directions, which means the discovery has more room to grow into.

With over five kilometres of prospective strike length at Callisto, there remains a lot more drilling to come.

Assays received for drillholes NCR274, NRC275, NRC276, NRC277 (circled in blue).
Assays received for drillholes NCR274, NRC275, NRC276, NRC277 (circled in blue).

As you can see, the mineralisation (in red) remains open and starts to dip east, further onto GAL’s mining lease. NRC278 ended in mineralisation at this location and will be completed with a diamond drill rig, as will further step out holes to the east.

GAL also reported significant thicknesses of mineralisation of over 20 metres.

With grades remaining relatively strong and the higher grade 8.25g/t intercept made today, we think the drilling program so far sits firmly in our bull case which was to see the deposit get bigger to the east and grades increase towards the 2.5g/t measure we had set.

GAL now has the funds needed to accelerate that RC and diamond drilling and test along the five-kilometre prospective strike length, having just raised $20.4M in an oversubscribed placement that saw cornerstone investments by major shareholders Mark Creasy and IGO.

The second drill program is nearly complete with next assays expected next month.

The third round of RC drilling is scheduled to begin in late July, followed by diamond drilling which is planned to start in August.

GAL’s share price was already up 535% since announcement of the discovery hole on 11 May 2022 and was up a further 23% this morning on this latest news.

Billion $ capped neighbour spuds production well

ASX:88E   Jul 11, 2022

Investment Memo: 88E IM-2022
Investment Thesis 3 : North Slope in Alaska - one of the most oil rich places on the planet
Investment Thesis 2 : Nearology to Pantheon Resources

Over the weekend we noticed that London-listed Pantheon Resources’ (capped at $1.26 billion), started drilling its first horizontal production well right next door to our oil and gas exploration Investment 88 Energy (ASX: 88E).

Drilling commenced on the 7th of July at Pantheon’s first horizontal well on the Alaskan North Slope.

Pantheon in its press release mentioned that the ultimate objective for this well would be “to gain robust production test data to accurately assess the ultimate potential of the reservoir”.

Pantheon estimate that the Alkaid prospect has ~900 million barrels of oil in place and have previously estimated a US$595M NPV across the prospect at an oil price of US$55/barrel, this compares to the current oil price which sits at around US$105 per barrel.

If Pantheon can make a discovery anywhere near these estimates then we suspect interest in the area will start to come into our portfolio company 88E.

88E recently acquired got access to 3D seismic data which covers the reservoir units that Pantheon Resources’ (capped at $1.26 billion) is drill testing.

These reservoir units are interpreted to extend from Pantheon’s acreage onto 88E’s, so any good news from 88E’s neighbour will be great news for 88E.

88E have also confirmed that the datasets would provide key data for potential farm-out partners as part of their due diligence programs leading up to the drilling of a new exploration well currently being planned to spud in 2023.

In the meantime we will be closely watching for some news from Pantheon with the drilling of its horizontal well.

To see our deep dive into all of the exploration work Pantheon have been doing next door to 88E check out our last note here: 88E - What to watch out for in the next 12 months

Side Bet #2: Covid-19 trial recruitment closed, results soon.

ASX:DXB   Jun 28, 2022 Announcement

Investment Memo: DXB 2022

Objective #3: Complete Phase III Clinical Trial to treat pneumonia in patients with COVID-19 (REMAP CAP)

Yesterday our 2021 Biotech Pick of the Year Dimerix (ASX:DXB) announced that recruitment for one of its two Phase III COVID-19 trials (Side Bets) is now closed.

In February, recruitment for critically ill patients in this particular Side Bet was paused due to safety complications unrelated to DXB’s treatment. Recruitment has now officially closed.

The efficacy results will be analysed and published soon, however we don’t expect that to be enough patients in the trial to warrant commercialisation based on the results.

That said, these results will add to a growing body of evidence to support DXB’s lead treatment “DMX-200” capacity to reduce inflammation, and may lead to better targeted clinical trials for patients with pneumonia in the future.

For DXB, this investigator-led study was a ‘free swing’ with the majority of the study funded by a $1M government grant from last year.

DXB still has one more active Phase III study for COVID-19, targeting patients with mild COVID, while the main prize is the Phase III FSGS clinical for a rare kidney disease trial that is currently underway.

What’s next for DXB?: We are awaiting patient recruitment updates for DXB’s FSGS trial, with the key number being 72 patients recruited by the end of this year.

Rig secured, drilling at newly acquired gold project in July.

ASX:TG1   Jun 28, 2022 Announcement

Investment Memo: TG1 2022

Key Objective #1: Drilling at the newly acquired gold project

This morning our junior exploration Investment Techgen Metals (ASX: TG1) confirmed that it has secured an RC rig for its upcoming drilling program at its gold project in NSW.

With the RC drilling rig secured, TG1 expects its drilling program to commence on 15 July 2022.

We covered the various targets TG1 has identified at its gold project in our most recent TG1 note which you can read here: Microcap TG1 pinpoints gold drill targets.

TG1’s gold project has historic surface trenching results which returned results of 160m @ 1.2 g/t gold including higher grade intervals of 5m @ 18.0 g/t gold and 5m @ 7.1 g/t gold.

After reprocessing some historic IP survey data, TG1 has also identified IP chargeability anomalies right below this surface trenching work.

Importantly, none of these targets have been drilled before, and TG1 will be the first company to drill test the structures beneath the surface trenching work.

Stifel to advise EMN on project finance

ASX:EMN   Jun 28, 2022 Announcement

Investment Memo: EMN 2022

Objective #4: Early Progress on Project Financing

It’s good to see our European battery metals Investment Euro Manganese (ASX:EMN) getting its financing ducks in a row ahead of the commissioning of its Demonstration Plant.

EMN appointed US financial services company Stifel (market cap ~US$6B) as Project Finance Advisor for EMN’s Czech Republic high-purity manganese project.

Stifel is very experienced in the battery metals financing space, and is expected to help with moving EMN towards a final investment decision in 2023.

This appointment is good progress on Objective #4 from our EMN Investment Memo:

What’s next for EMN? Completion of the Feasibility Study for the Chvaletice Manganese Project is expected in the coming weeks. EMN has been in “quiet execution mode” for the first half of this year but we expect the second half of the year to be a busy period for EMN with plenty of news flow.

3D Seismic data to help define drill targets and secure funding?

ASX:88E   Jun 27, 2022 Announcement

Investment Memo: 88E 2022
Objective #2: Funding partner for Project Icewine

Objective #3: Clear Exploration Program laid out for Project Icewine

This morning, our oil and gas exploration Investment 88 Energy (ASX: 88E) put out an update on its Project Icewine in Alaska, USA.

88E announced an agreement signed with SAExploration which would see 88E gain access to 3D seismic survey data over its Project Icewine east leases.

Importantly, the 3D seismic data actually covers the area over the reservoir units that 88E’s neighbour Pantheon Resources’ (capped at $1.2 billion) has been drilling and which are interpreted to extend from Pantheon’s acreage onto 88E’s.

Ultimately, 88E will be using the 3D seismic data to identify “sweet spots” for each of the reservoir units and to determine the optimal drilling locations for future exploration and appraisal wells.

To gain access to the 3D seismic data 88E is paying US$1M via a share issuance at 0.8c per share with the shares expected to be issued on the 30th of June 2022.

Ultimately, 88E will be using the 3D seismic data to identify “sweet spots” for each of the reservoir units and to determine the optimal drilling locations for future exploration and appraisal wells.

88E also confirmed that the datasets would provide key data for potential farm-out partners as part of their due diligence programs leading up to the drilling of a new exploration well, currently being planned for drilling in 2023.

Due diligence period extended on copper acquisition

ASX:MAN   Jun 27, 2022 Announcement

Investment Memo: MAN 2022

Objective #1: Complete 12 week due diligence period and proceed with acquisition

This morning, our junior exploration investment Mandrake Resources (ASX: MAN) updated the market with respect to the progress being made with its new copper acquisition in Chile.

MAN first announced the acquisition of the “Delfin” copper project on the 25th of March this year and since then has been conducting due diligence on the project.

Today, MAN confirmed that it had secured a two month extension to its diligence period at no extra cost, taking the due diligence period end date to 24 August 2022.

MAN also confirmed that the due diligence extension would allow it to complete all of the required works that would ensure a clear pathway to commencing exploration activities as soon as the acquisition is completed.

We are looking forward to MAN completing the acquisition given that the project sits in one of the most copper rich regions on the planet. The world's biggest copper mine, operated by BHP/Rio Tinto and contributing ~5% of global copper production, sits only ~100km away from MAN’s project.

We covered the acquisition in detail in our last MAN note which you can read here: Cashed up MAN picks up high grade Chilean copper asset

Trading halt, flow test results pending.

ASX:GGE   Jun 27, 2022 Announcement

Investment Memo: GGE 2022

Objective #1: Drilling of first well

Our 2021 Catalyst Hunter Pick of The Year Grand Gulf Energy (ASX: GGE) just went into a trading halt pending the flow test results from its potential company making pure play helium well in Utah, USA.

We have been looking forward to GGE completing and then reporting on the results from this drilling program ever since we first Invested back in October 2021.

Only 9 months later we get to see whether or not GGE has in fact made a new helium discovery in the US, which could see it go from explorer to producer off the back of one drilling program.

GGE expects to come out of a trading halt at the earliest of “the commencement of normal trading on Wednesday, 29 June 2022 or when the announcement is released to the market” so we only have to wait another two days.

In our last note on GGE we detailed our bullish, base and bearish case expectations for the flow test results, to read that note click here.

New products planned as bedding market hit

ASX:AJX   Jun 27, 2022 Announcement

Investment Memo: AJX 2022

Objective #2: New Markets Cooling Technology

Alexium International Group Limited (ASX: AJX) has outlined its planned H1 2023 commercial initiatives for microclimate regulation. These include new retail product releases under the Biocool and Eclipsys product lines for body armor, mattress, and top of bed applications.

While AJX’s focus has historically been on the bedding market, the evolution of its product portfolio sees the company primed to grow into Phase II markets —  body armor, helmet, and shoe markets.

Over the past three years, AJX has significantly expanded its product portfolio to create solutions for a wide array of microclimate regulation-related issues:

AJX plans to release new products both in its existing platforms and new platforms to round out its microclimate regulation product portfolio. Leveraging this product portfolio is the key to the company’s strategy for driving growth in 1H FY23.

The commercialisation of new microclimate regulation products and improving the market penetration of existing products has been critical to growing revenues.

News of these upcoming products releases is inline with our Objective #2: New Markets Cooling Technology for AJX, as per our 2022 Investment Memo.

AJX also provided an update on our #1 Objective - Cash Flow positive

AJX says that in H2 FY2022 global macroeconomic conditions have suppressed economic growth expectations and this is being seen across the US bedding/mattress market.

As such, AJX expects revenue to fall in H2 FY2022. However, having increased its market share over the past five months, AJX forecast a “significant rebound in bedding revenue once the economy recovers”.

To address lower consumer spending, AJX is accelerating the availability of its technology for higher-volume, lower-value bedding accessories such as pillows and mattress toppers. These Biocool and/or Eclipsys-branded products will be sold in US department stores and online beginning in 1H FY23.

Target Markets for Microclimate Regulation (Sphere size represents the addressable market size)
Target Markets for Microclimate Regulation (Sphere size represents the addressable market size)

Body armor demand, meanwhile, is largely insulated from general consumer spending. On that front, three customers have completed testing and approved Eclipsys for incorporation in their body armor products and another 30 prospective customers are now evaluating Eclipsys.

Stellantis to become a substantial shareholder, invests $76M

ASX:VUL   Jun 24, 2022 Announcement

Investment Memo: VUL 2022

Objective #2: Secure Project Financing

Objective #5: More Strategic Partnerships

Vulcan Energy Resources (ASX:VUL) today announced that it has agreed to a A$76M (€50M) equity investment from Stellantis N.V., plus a 5-year extension to their offtake agreement.

This investment marks the world’s first upstream investment by a top tier automaker into a listed lithium company.

We were very surprised (positively) by this announcement - having a key offtaker as a substantial shareholder is a huge win for VUL, and a strong signal to the broader lithium market that has been rattled in recent weeks.

Not to mention a material cash injection at a time of tightening capital markets.

Once the fully paid ordinary shares are issued, Stellantis will become the company’s second largest shareholder with a 8% shareholding. The shares are to be issued at the 30-day Volume Weighted Average Price of A$6.622 (€4.367) per share, representing ~11.45M shares.

Stellantis is one of the world’s leading automakers and has 14 vehicle brands and two mobility companies — Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.

It also has one of the largest electrification and decarbonisation plans of any automaker globally: to reach 100% of European passenger car sales to be battery electric vehicles (BEV) by 2030.

On that note, Carlos Tavares, Stellantis CEO, said, “this highly strategic investment in a leading lithium company will help us create a resilient and sustainable value chain for our European electric vehicle battery production”.

Today’s announcement sees further progress against two of our 2022 objectives for VUL, per our Investment Memo:

Objective #2 - Secure Project Financing

While VUL is already financed through to completion of its DFS, it plans to use the Stellantis proceeds for its planned production expansion drilling in its producing Upper Rhine Valley Brine Field.

Objective #5 - More strategic partnerships

VUL had already locked away much of its first five years of its initial forecast lithium production, including with Stellantis. Today’s announcement has extended that binding lithium hydroxide offtake agreement with Stellantis by five years, to 2035.

BOD to launch low dose CBD schedule 3 product

ASX:BOD   Jun 23, 2022 Announcement

Investment Memo: BOD 2022

Objective #2, Objective #3: Insomnia trial, Schedule 3 CBD product registration

Our cannabis Investment, BOD Australia (ASX:BOD) has just confirmed it intends to launch a new product in July for the Australian SAS-B channel (medicinal cannabis prescription).

Bio-Absorb 100 is a soft gel formula that delivers a low dose of CBD and is currently the product being used in BOD’s phase II insomnia trial.

Successful completion of that phase II trial is Objective #2 in our BOD Investment Memo, and subsequent registration of registration of Bio-Absorb 100 is Objective #3 in our BOD Investment Memo.

Here’s how we see today’s news helping BOD achieve these two Objectives:

  • It provides important product awareness ahead of a potential Schedule 3 registration (no prescription needed)
  • It will act as a good trial run for larger scale manufacturing by getting it in the market early

What’s next for BOD: We’re looking forward to recruitment updates from BOD about their insomnia trial which BOD says is progressing well. This is in addition to the Long-Covid trial. The Long-Covid trial is Objective #1 in our BOD Investment Memo and could unlock additional prescription sales while also giving

Stimulation work completed, flow testing next

ASX:GGE   Jun 23, 2022 Announcement

Investment Memo: GGE 2022

Objective #1: Drilling of first well

Our 2021 Catalyst Hunter Pick of The Year Grand Gulf Energy (ASX: GGE) is now almost ready to start flow testing it’s potentially company making pure play helium well in Utah, USA.

Today, GGE confirmed that it had completed stimulation work at its Jesse #1A well and is now completing the final preparation works leading up to the all important flow testing program.

GGE will perform several days of flow testing before final samples for helium concentrations will determine whether or not GGE has in fact made a new helium discovery.

In our last note on GGE we detailed our bullish, base and bearish case expectations for the flow test results, to read that note click here.

Purple specs of lithium intersected at lithium/rubidium project

ASX:ARN   Jun 23, 2022 Announcement

Investment Memo: ARN 2022

Key Objective #1: Drilling across the company’s rubidium/lithium projects

This morning our exploration investment Aldoro Resources (ASX: ARN) put out a drilling update for the RC drilling program being run at its lithium/rubidium project in WA (Wyemandoo).

As of today, ARN had completed a total of 26 RC holes for a total of 3,286m down to depths of ~202m. From these drillholes the majority of holes have intersected pegmatites.

Importantly today, ARN confirmed that it has intersected lithium and rubidium with purple lepidolite in the RC rock chips. The images look encouraging but the ultimate determinant of success will be the assay results which will determine just how much lithium ARN has found.

We also note that the intersection is largely lepidolite and not spodumene bearing pegmatites, this will mean the metallurgical testwork results will be important to see. ARN has confirmed that analytical & mineralogical works are ongoing and that results will be released shortly so it will be interesting to see what comes of this.

Off the back of these results, ARN also confirmed that it is currently going through the planning process to increase it’s drilling program from ~4,000m to 6,000m of total drilling.

Updated investor presentation

ASX:AKN   Jun 23, 2022 Announcement

Investment Memo: AKN 2022

General: Investor presentation

This morning our exploration Investment Auking Mining (ASX: AKN) released a new investor presentation.

The slide deck was put together ahead of a presentation the company made at the Gold Coast Investment Showcase Conference.

The presentation highlights the ongoing exploration activities AKN are currently undertaking and also provides an update on the metallurgical testwork that is ongoing at the Onedin deposit.

To check out the updated investor presentation click here, alternatively click on the image below:

Mt Carrington restated MRE gets TMZ close to 100Moz target

ASX:TMZ   Jun 22, 2022 Announcement

Investment Memo: TMZ 2022

Objective #1: Combine multiple deposits’ Mineral Resource Estimates to Hit 100 Moz AgEq (silver equivalent)

Today, our silver exploration Investment Thomson Resources (ASX:TMZ) released its restated Mt Carrington MRE to include base metals.

This gets TMZ mighty close to hitting the important 100Moz silver equivalent target that TMZ thinks is needed to make their “Hub and Spoke” strategy work.

The fresh look at Mt Carrington increases TMZ’s total resource base to 22.8 Mt at 119 g/t silver equivalent for 87.1 Moz of silver equivalent across the various deposits that TMZ is working with.

This 21% increase in tonnes was driven by a 2% increase in gold ounces, 17% increase in silver ounces and 100% increase in the zinc and copper tonnes.

We flagged how zinc and copper would be an important part of the Mt Carrington restated MRE given they had a good swathe of historical zinc and copper hits to incorporate.

Importantly, this was from just the Kylo and Strauss deposits at Mt Carrington with a cohesive and Mt Carrington-wide polymetallic resource to come.

We set out our bull, base and bear cases for TMZ in our latest note which can be found below:

What’s next for TMZ: We want to see TMZ complete all of its resource updates and come as close to our base case target of a portfolio wide 100m ounce silver equivalent JORC resource base. With metallurgical testwork ongoing, we are watching to see what comes from the rest of the Mt Carrington deposits (Guy Bell-Carrington-Lady Hampden-Silver King-White Rock).

AKN: Flagship base metals project progress update

ASX:AKN   Jun 22, 2022 Announcement

Investment Memo: AKN 2022

Key Objective #2: Metallurgical testwork progress

Earlier today, our junior base metals investment AuKing Mining (ASX:AKN) provided an update on recent activities at its flagship Koongie Park project in WA.

Koongie Park has an existing JORC resource of 8.9Mt at 1.01% copper, 3.67% zinc, 0.77% lead, 0.16g/t gold, and 26g/t silver, with drilling programs planned to expand this further.

The latest drilling campaign began on 24 May, and has now completed 16 RC (reverse circulation) holes for 2694 metres, primarily at the Onedin South prospect. Another 8 holes totalling at least 1000 metres is planned for the nearby Emull prospect. We can expect first assay results sometime in late July/ early August.

In addition, AKN provided some encouraging news on the metallurgical testwork for the oxide and transition ores at Onedin, quoting directly from today’s ASX announcement:

  • “An ammonia leach in conjunction with certain reagents has shown that some copper (and, to a lesser extent zinc) is releasing from the iron oxide/hydroxide material that is prevalent in the upper sections of the Onedin oxide zone; and
  • There exists a supergene blanket beneath the oxide zone that contains high grade copper oxide minerals (such as cuprite and native copper). Based on testwork utilising an ammonia leach solution combined with certain reagents, AKN has established a likely commercial recovery for these copper minerals in the supergene blanket zone.”

Whilst more met testwork is required, today’s news bodes well that a solution can be found that can ultimately result in the economic recovery of the valuable commodities within AKN’s flagship. This is what we want to see next from AKN, along with our #2 Objective from our AKN Investment Memo, namely the met results:

Next items we’re keeping our eyes open for are assay and further met testwork results in the next quarter.

Earaheedy basin drilling along strike from Rumble restarted

ASX:BPM   Jun 22, 2022 Announcement

Investment Memo: BPM 2022

Key Objective #1: First lead-zinc drill holes in the Earaheedy Basin

This morning our exploration Investment BPM Minerals (ASX: BPM) announced that drilling at its Hawkins Project in the Earaheedy basin had been restarted after a brief pause due to unexpected extreme weather in the Pilbara.

The exploration program is for a total of ~7,500m of drilling comprising both aircore and RC drilling. This will mean BPM can drill with the aircore rig first and then follow up any interesting deeper prospective targets with the heavier RC rig concurrently.

The drilling program is being done approximately 40km to the northwest along strike from $168M capped Rumble Resources lead-zinc discovery.

To get a better idea of the context for BPM’s drilling program and to get our deep dive into what we what we think BPM are targeting, check out our last note on BPM here: $10M capped BPM drilling now, 40km along strike from $223M capped Rumble Resources

Extended pilot production program planned for August 2022.

ASX:EXR   Jun 22, 2022 Announcement

Investment Memo: EXR 2022

Key Objective #1: Pilot production program at the gas project

In today’s operations update our 2019 Energy Pick of the Year Elixir Energy (ASX:EXR) also detailed what stage the extended pilot production program was at.

EXR confirmed that it has appointed experienced Mongolian contractor “Monbag LLC” to complete the civil construction works and mentioned that these works were expected to “commence shortly”.

The drilling of the first production well (of two) is expected to spud around the end of August 2022 in line with the timeframe expectations set by EXR at the start of the year.

From there, the production testing will take around 6 months, and we’ll have a better idea of the commercial flow rates of EXR’s gas project.

New coal bearing sub-basin discovered, more drilling to come

ASX:EXR   Jun 22, 2022 Announcement

Investment Memo: EXR 2022

Key Objective #2: Exploration drilling program

Our 2019 Energy Pick of the Year Elixir Energy (ASX:EXR) just put out an operational update with respect to the exploration works happening across its coal bed methane (CBM) gas project in Mongolia.

In the update EXR confirmed the discovery of an entirely NEW coal bearing sub-basin with an intercept returning ~21m of coals.

Importantly the intercept now opens up an entirely new sub-basin inside EXR’s project area which could be prospective for coal bed methane (CBM) gas and more significantly is a sign of how much exploration potential EXR’s project still has.

EXR also confirmed that it plans to follow up this discovery with an appraisal well at a location ~four kilometres away.

US based director with uranium experience appointed

ASX:GTR   Jun 22, 2022 Announcement

Investment Memo: GTR 2022

General: Director appointment

Yesterday our uranium exploration Investment GTI Resources (ASX: GTR) announced the appointment of a new US based director - James Baughman.

Mr Baughman has 30+ years’ experience as a geologist in the exploration industry and has held senior positions (i.e., Chief Geologist, Chairman, President, Acting CFO, COO) in private & publicly traded mining companies through this period.

We especially like that Mr Baughman has experience specifically in the uranium industry from his time as President & CEO of High Plains Uranium which was sold for US$55m in 2006 to Uranium One.

With the extended drilling program likely to commence across its Wyoming acreage in July, we think GTR have managed to strengthen the in country team significantly with this appointment.

Next: We want to see GTR kick off its ~100,000 foot exploration program across its uranium project in Wyoming, USA.

✅ FOD partners with Costco and expands distribution with Woolies

ASX:FOD   Jun 21, 2022 Announcement

Investment Memo: FOD IM-2022
Objective 2 : Consolidate the growth of newly launched products

Woolworths, Coles, Metcash and now Costo Australia. The Food Revolution Group (ASX:FOD) has now launched its juice products in almost every major supermarket in Australia.

Costco Australia has agreed to to range FOD’s flagship Original Juice Company products in a 4x1 litre pack.

In addition to the Costco deal, Woolworths has agreed to increase distribution of the Juice Labs Wellness Shots - highlighting the success of the product amongst consumers.

The Shots are also being exported to Asian markets through distribution partner, Easychef.

According to CEO Steven Cail “increasing distribution remains a key pillar of the strategy in FY23”.

We think that FOD’s domestic distribution and new product strategy will position the company well for FY23 with the exciting ‘blue sky’ potential for export into key Asian markets the key catalyst for business expansion and growth.

✅ New product launch: Veggie Goodness and Calm shots

ASX:FOD   Jun 21, 2022 Announcement

Investment Memo: FOD IM-2022
Objective 1 : New products and innovations

In a big update today The Food Revolution Group (ASX:FOD) announced that it has launched two new products:

  • Vegetable-based juices to target health conscious Australians
  • An extension to the Juice Labs Wellness Shots range with “Calm”

These new products will be ranged nationally in Woolworths and available to purchase from early July.

The new Veggie Goodness products continue FOD’s momentum of new product releases over the last 12-18 months, with Plant Based Smoothies, Carbonated Wellness Cans and Juice Shots all released within that time frame.

This has put FOD in a strong position to increase its market share and target consumers beyond orange juice.

Seeing a new product extension like the “Calm” shot is always a good sign, as it is indicative that the products are resonating with consumers.

We look forward to seeing how these new product developments will translate into increased product distribution and increased sales for the company.

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