The recent M&A activities which get executed this month is likely to shake up S&P/ASX indices. If the scheme is finally approved, Altium (ASX: ALU) will see its exit from the ASX 100, 200 and 300 indices.
Among the potential replacements, Telex Pharmaceuticals has been highlighted for inclusion in ASX 100 index. Telex ranks 90 as of today and is the highest rank not included in ASX 100. The next stock that is seen as an alternative is Sandfire Resources Limited (ASX: SFR).
Telix Pharmaceuticals Limited (ASX: TLX)
Telix Pharmaceuticals Limited (ASX: TLX) recently declared its Q1 FY2024 results for the quarter ending 31 March 2024.
Revenue surged to $175.0 million, marking an impressive 75% increase compared to Q1 2023. Furthermore, Research and Development (R&D) investment, including both internal and external costs, amounted to $38.4 million, consistent with previously issued guidance.
Gross profit reached $115.4 million, demonstrating a remarkable 84% surge compared to the same quarter in the previous year. Operating profit also significantly improved to $28.5 million, in contrast to the $5.6 million operating loss reported in the prior corresponding quarter.
During the quarter, Telix achieved significant milestones, including the submission of an Investigational New Drug (IND) application to the U.S. Food and Drug Administration (FDA) to initiate the ProstACT GLOBAL Phase III trial of TLX5913 in the U.S. Additionally, the company continued the enrolment for the ProstACT GLOBAL trial at Australian sites, with 13 new sites on boarded during the quarter.
Moreover, Telix completed two strategic acquisitions during the period. The first was the acquisition of ARTMS, a company specializing in cyclotron-produced radionuclides. This acquisition brings an advanced cyclotron-based diagnostic and therapeutic isotope production platform, along with a manufacturing plant and a stockpile of ultra-pure rare metals.
The second acquisition was IsoTherapeutics, a prominent radiochemistry and bioconjugation firm. This acquisition further strengthens Telix’s in-house development capabilities and expands its U.S. manufacturing footprint, particularly in bioconjugation and isotope processing.
Telix maintains its focus on achieving key regulatory milestones in the short term. Following the recent receipt of a Fast Track Designation for TLX101-CDx, the company is diligently working towards finalizing its U.S. New Drug Application (NDA), slated for submission by the first half of 2024. Concurrently, progress is being made on an NDA for a novel prostate cancer imaging agent, with plans for submission by the end of the upcoming quarter.
Sandfire Resources Limited (ASX: SFR)
Sandfire Resources Limited has been persistent in increasing mill throughput at Motheo to an annualized rate of 4.7Mt throughout Q3 FY24, resulting in CuEq production of 11.7kt. Subsequently, the company maintained an annualized throughput rate of 6.0Mt over a 20-day period until 26 April (or 5.6Mt considering planned availability of 93%) following a three-day maintenance shutdown earlier in the month.
The company effectively managed the impact of a blockage in the paste fill delivery pipeline, which limited access to higher grade, polymetallic ore at Aguas Teñidas, resulting in a 7% decrease in CuEq production at MATSA. This was achieved by maintaining a record 4.7Mtpa mining rate across the three underground mines, showcasing the growing resilience of the operation.
Sandfire reported unaudited, preliminary Group sales revenue of approximately $206M and Underlying Operations EBITDA of around $93M in Q3 FY24, leading to an Underlying Group EBITDA of about $76M.
The company's unaudited cash balance at 31 March 2024 was $115M, with unaudited Net Debt amounting to $481M.
Sandfire remains on track to deliver the first ore from the A4 open pit at Motheo in the first quarter of FY25, aligning with its strategy for a low-cost and rapid expansion to 5.2 Mtpa at Motheo. This marks a significant milestone in the company’s overall expansion plans. Additionally, Sandfire maintains a strong near-mine exploratory focus at Motheo, with an extensional drilling program currently underway.
Source: Company's Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.