Will this ASX small cap go up further?Team Veye | 03 May 2018 ASX - THR
Thor Mining PLC (ASX:THR)
The company published its H1 FY2018 report on 19th Mar’18 highlighting losses and shared the following updates:
· Significant progress on core tungsten and copper projects during the half year has influenced the directors to affirm absolute focus on Pilot Mountain, Molyhil, and Kapunda projects for the foreseeable term.
· Molyhil (Australia): An increase in the Open Cut Ore Reserve extends the life of Molyhil to 7 years as an open cut mining operation, with demonstrated additional extensions beyond that period as an underground mine. Conditional acquisition of interest in Bonya project in Mar-Apr’18 added multiple outcropping tungsten deposits adjacent Molyhil.
· Pilot Mountain (USA): Successful drilling program intersects a new zone of mineralisation at Desert Scheelite and confirms high grade mineralisation at Good Hope. The Company has now commissioned a scoping study and stage two metallurgical test work to Pre-Feasibility standard.
· Kapunda Copper (Australia): Low cost entry into the Kapunda copper development project, followed by a resource estimate well above expectations 6 months later. · Capital raisings, plus exercise of warrants and options provides sufficient funding for budgeted programs through until 2019.
On 20th Mar’18, The Company advised of a Central high grade core, or zone, of mineralisation, contained within the previously announced Resource boundaries, of 29.0 million tonnes, @ 0.32% copper containing 91,200 tonnes of copper in its Copper Resource - Kapunda Project.
On 11th Apr’18, Hawkstone proposed to acquire 100% of the shares on issue in USA Lithium for the consideration of 262,500,000 fully paid shares (including 12,500,000 non-refundable shares as option consideration) in Hawkstone. The agreement is subject to securing necessary shareholder approvals (scheduled for late May 2018). Assuming the transaction with Hawkstone completes, Thor will be issued 15,625,000 fully paid shares in Hawkstone on completion (Data Source – Company Reports).
The company has a market cap of 25.29m and a Share Volume of 648.57m. The Debt-to-Equity ratio is 0.04 against the sector average of 22.93. The stock price of the company has grown 291 % during the last 6 months and is very volatile, however, it does have a lot of upside potential (Data Source – Reuters.com).
We give a “Speculative Buy” to “Thor Mining PLC” at the current price of $0.046
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