Capricorn Metals Limited (ASX: CMM)
Capricorn Metals Limited (ASX: CMM) has announced the acquisition of the highly prospective Sylvania Project tenements, spanning 1,740 sq km adjacent to its Karlawinda Gold Project (KGP) in Western Australia. The $1.5M transaction will be settled through Capricorn shares, with additional royalties of 1% NSR for precious and 1.5% NSR for non-precious minerals. The acquisition significantly enhances KGP's exploration footprint, particularly along the Central Zone prospect, bolstering future ore discovery potential. At the Mt Gibson Gold Project (MGGP), drilling has increased the Ore Reserve Estimate (ORE) by 41% to 2.59Moz, positioning MGGP as a transformative, fully funded second mine for Capricorn. This project is now one of Australia’s most compelling gold developments, with ongoing drilling at shallow depths and emerging underground opportunities providing further growth potential. Capricorn is expediting development preparations, pending permitting.
To support growth initiatives, Capricorn successfully raised $200M via institutional placement at $6.00/share, reflecting a 4.9% discount to the last close. Strong demand from domestic and international investors underscores confidence in Capricorn’s growth trajectory. Operationally, Q1 FY25 performance at KGP was steady, with gold production of 25,559oz at an all-in-sustaining-cost (AISC) of $1,647/oz. Production remains on track to meet FY25 guidance of 110–120koz at an AISC of $1,370–$1,470/oz. AISC is expected to decline as earthmoving volumes reduce and productivity improves. Recovery rates have stabilized at 91.9%, aligning with budgeted expectations.
KGP generated $38.0M in Q1 operating cash flow (Q4: $40.4M). Cash and gold on hand rose to $144.6M (Q4: $125.0M) after $4.5M discretionary MGGP expenditure. Total Q1 revenue reached $83.1M from gold sales of 22,285oz at $3,729/oz, with additional gold on hand valued at $18M. With planned improvements in open-pit ore volumes and grades, Q2 production is expected to increase. The robust financial position and operational performance underscore Capricorn’s strong cash generation and execution capability as it advances transformative growth projects. The company plans to further grow and create value for its shareholders.
Sonic Healthcare Limited (ASX: SHL)
Sonic Healthcare Limited (ASX: SHL) has announced the acquisition of LADR – Laboratory Group Dr. Kramer & Colleagues, a leading medical laboratory group in Germany. With annual revenues of approximately €370 million (A$610 million) in 2024, LADR is one of the top five laboratory groups in Germany. The acquisition, valued at €423 million, will be primarily funded through Sonic's existing cash reserves and debt facilities, with a combination of cash and ordinary shares issued to LADR's sellers. The deal is expected to be immediately accretive to Sonic's earnings per share (EPS), with strong synergy potential in areas such as procurement, logistics, and laboratory operations. Over time, these synergies are expected to yield significant returns, with a projected return on invested capital (ROIC) of more than 11% annually by 2027.
For Sonic’s full-year 2024 results, the company faced a material impact from the reduction in COVID-19-related revenue, though organic growth remained robust at 6%. Sonic also secured approximately A$655 million in new revenue through acquisitions, contributing to positive growth despite the pandemic’s lingering effects. The company demonstrated a return to margin expansion in the second half of FY 2024, with a progressive dividend strategy expected in the future, underpinned by anticipated earnings growth. FY 2025 guidance reaffirms revenue and EBITDA growth, with an expected 10% increase in total revenue (constant currency) and strong organic growth in its Australian pathology and radiology businesses.
Sonic Healthcare is focused on driving earnings margins higher through a major group-wide project, leveraging strong revenue growth and cost management initiatives. Organic growth in most divisions, particularly in Germany and Switzerland, is expected to contribute to profit gains, while cost management efforts, including post-pandemic headcount reductions, are set to continue. Additionally, Sonic is enhancing its operational efficiency with digital pathology and improvements in its revenue collection systems, positioning the company for further growth in the coming years.
Source: Company’s Report
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