Connect with us

Base Metals

MoneyTalks: Armytage Private’s Lee Iafrate likes these diversified fin services and infrastructure stocks

Iafrate says diversified financial services have seen a spate of takeovers and mergers because of the Hayne Royal Commission. … Read More
The post MoneyTalks:…

Share this article:

Published

on

This article was originally published by Stockhead

MoneyTalks is Stockhead’s regular recap of the ASX stocks, sectors and trends that fund managers and analysts are looking at right now.

Today, we hear from Lee Iafrate, founding chairman of Melbourne-based boutique investment firm Armytage Private.

 

What’s hot right now?

Iafrate says diversified financial services along with platforms have seen a spate of takeovers and mergers because of the Hayne Royal Commission.

“What we’ve seen in the last 6 to 12 months in Australia has been a plethora of takeovers and mergers and consolidations, and we’re likely to see this continue,” he said.

“This is the fallout from the Royal Commission. It spawned an enormous amount of corporate activities, takeovers, mergers and consolidations.”

Did you hear that?

Iafrate said this has spilled across from platforms and tech into the wealth advisory sector.

“It stems from Hayne which has resulted in increasing compliance and the increasing operational costs for advisory firms,” he said.

“And there’s also been a significant change to the education requirement.

“So, those three things have led to substantial realignment of the wealth advisory business. The banks have sold up and gone and when the banks sell, you buy.”
 

Wealth advisory demand looks strong

Around 9,000 financial advisors have left the sector since 2018, and Iafrate reckons there’ll be less than 12,000 licensed advisors by 2022.

“And this is in a backdrop of an aging population in Australia that requires high quality advice,” he said.

“You know as well as I do when demand goes up and supply falls, what moves? Price.

“So, the price to the consumer is going to skyrocket and the advisory firms that are still left operating are going to be in for a beautiful period from about the back end of 2022, right through to 2025.

“There’s going to be this really good period for about three years where wealth advisory businesses are going to do very, very well.”
 

Top picks

“The wealth businesses that are listed are going to experience the solid run and our tips are things like WT Financial Group ASX:WTL), a small financial planning firm. It’s just merged with Sentry Group Pty Ltd,” Iafrate said.

“It’s one that’s certainly worth looking at it, it should have a good 12-18 months.”


 

“The other one is Praemium (ASX:PPS), we suspect there’ll be corporate activity there,” Iafrate said.

“We feel that Centrepoint Alliance (ASX:CAF) has become the biggest listed player with the number of advisors over 1300.

“It’s probably bigger than AMP (ASX:AMP) and pretty well in line with where IOOF (ASX:IFL) is, so you have IOOF and CAF as the two behemoths in the listed space.

“CAF has got a market cap of $30-35 million – but how long it will remain as an independent listed company? It’s a potential target.”


 

Other potential targets he flagged included E&P Financial Group (ASX:EP1).

“They’re sitting around the 60 odd cents level, and we suspect there could corporate activity,” Iafrate said.

“Mercury Private Equity owns 20%, so it will be interesting to see what transpires in the next three to six months.

“Then you’ve got things like Easton Investments (ASX:EAS), which is still 35-40% owned by Hub24 (ASX:HUB) – is that a bankable relationship going forward? Will they move to privatising it? Who knows, but there’s potential there.”

Then there’s another player coming out of left field in Perpetual (ASX:PCI) who have set up Perpetual Private to grow and expand the wealth advisory business.

“They’ve got a few dollars in their bank account, so things like WTL and EP1 and CAF might be of interest,” Iafrate said.

“So, quite quickly somebody like a Perpetual Private could move to practically corner the whole wealth advisory market in Australia and be the king pin.” 


 
 

Infrastructure sector steady as always

The get-out-of-jail sector for Iafrate is the infrastructure sector, where industry funds have made takeover offers for Sydney Airport (ASX:SYD), Spark Infrastructure (ASX:SKI) and AusNet (ASX:AST).

“These three assets, the Sydney Airport, Spark and AST have very boring consistent revenue lines over 20-30 years and these super funds like to invest in these very predictable, very reliable revenue lines and revenue streams,” he said.

“Three that we think are likely to still be targets in this space are APA Group (ASX:APA) – that’s the gas pipelines over in WA, Aurizon (ASX:AZJ), the coal and railway handler in Newcastle, which is now doing more rare earths, iron ore and also bulk commodities.

“And then the other one is Graincorp (ASX:GNC) – and it’s been a target twice already so, third time lucky.”

 

The views, information, or opinions expressed in the interviews in this article are solely those of the interviewee and do not represent the views of Stockhead.
Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.

 

 

The post MoneyTalks: Armytage Private’s Lee Iafrate likes these diversified fin services and infrastructure stocks appeared first on Stockhead.



Author: Emma Davies

Share this article:

Energy & Critical Metals

Pegasus Resources Expands Its Uranium Assets In Saskatchewan

Pegasus Resources Inc. (TSXV:PEGA) continues to make its presence in the prolific Athabasca Basin uranium camp with the recently announced
The post Pegasus…

Share this article:

 

Pegasus Resources Inc. (TSXV:PEGA) continues to make its presence in the prolific Athabasca Basin uranium camp with the recently announced acquisition of three uranium properties at the northwest edge of the Basin. The 54,026 hectare properties comprising 13 mineral claims contain a cumulative total of 535,718 lbs of uranium, and significantly, includes a historic resource estimate of 202,200 tons at 0.119% U308 at an average width of 4.8 metres.

These new properties add to the previously announced Pine Channel uranium property which consists of six mineral claims covering 6,028 hectares and is located at the northern edge of the Athabasca basin, roughly 40 km west of the town of Stony Rapids. The Athabasca Basin in Northern Saskatchewan is host to several of the world’s largest and highest-grade uranium mines, including Cameco’s (TSX: CCO) McArthur River Mine and Cigar Lake Mine.

The Wollaston Northeast property is located in the 20A zone within the prolific Wollaston Domain, 45 kilometres northeast of the Eagle Point Uranium Mine. The property has at least eight known base metals showings and five previously documented uranium occurrences, and is considered highly prospective for basement hosted uranium mineralization.

Much of the recent renewed interest in uranium in the region is due to recent discoveries within the Wollaston Domain where the Eagle Point deposits are hosted within its basement rocks. In addition to the Eagle Point Mine, the area also hosts the historic Rabbit Lake Mine and Cameco/Orano Key Lake Mine, the world’s largest high-grade uranium mine.

The 12,397 hectare Bentley Lake Uranium Property consisting of three mineral claims, and is located 35 kilometres northeast of the edge of the Athabasca Basin, within a transition zone between the Wollaston and Mudjatic Domains. This trend is host to several major uranium deposits, including Cigar Lake, Roughrider, McArthur River and Midwest. It is located at the transition zone between the Wollaston and Mudjatik geological domains.

The third property is located approximately 40 kilometres northeast of the edge of the Athabasca Basin and within the Charlebois-Higginson Lake Uranium District. The 6,908 hectare Mozzie Lake Uranium Property consists of three mineral claims and has a historical resource estimate of 204,200 tons at 0.119% U308, with an average width of 4.8 metres, and containing 535,718 lbs of uranium. What makes the Mozzie Lake Property particularly compelling, aside from the historical resource estimate that Pegasus’s exploration efforts may be able to increase significantly, are the pegmatite deposits of the Charlebois-Higginson Lake Uranium District.

Since being initially explored from the 1940’s through to the 1960’s, there has been virtually no exploration on the property. Previous work in the region, as well as on the Pinkham Lake property at Mozzie Lake, indicated that the pegmatite deposits may also host mineralization which contains rare-earth-element bearing minerals. Rare earth minerals are in high demand today due to the needs of the various technology, consumer electronics, and electric vehicle manufacturing industries. PEGA plans to examine the property’s rare earth potential as part of its uranium exploration program at Mozzie Lake.

Pegasus will next review the historical data on the properties to determine an exploration strategy and work programs, and will provide shareholders with updates in the near future. The company’s recent announcements of the uranium assets have certainly rekindled interest in PEGA shares, and its market capitalization has increased by almost 50% to $7.98 million in recent weeks, signifying that investors are enthused about the direction management has taken.

PEGA last traded at $0.095 on the TSX Venture exchange.


FULL DISCLOSURE: Pegasus Resources is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Pegasus Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

The post Pegasus Resources Expands Its Uranium Assets In Saskatchewan appeared first on the deep dive.

Author: Phil Gracin

Share this article:

Continue Reading

Articles

Emerita Sees Continued Success In Spain

Emerita Resources Corp (TSXV:EMO) continues to report excellent results from the Infanta drill program at its Iberia Belt West Project
The post Emerita…

Share this article:

Emerita Resources Corp (TSXV:EMO) continues to report excellent results from the Infanta drill program at its Iberia Belt West Project in Spain, which hosts three previously identified high-grade deposits: La Infanta, Romanera and El Cura. These are all open for expansion along strike and at depth.

On October 22, the company announced assays for the first step-out drill hole from the Infanta drill program and also the final in-fill drill holes. The significance of the in-fill program was to verify the historical drill results. They will now enable a proper 3D modelling of the deposit and will also provide additional data to be used for future metallurgical testing.

At Infanta, the step-out was conducted to expand the outer perimeter of the deposit, and the in-fill drilling was intended to confirm historical drill data within Infanta’s known mineralization zone. Step-out drill hole IN018 was drilled 40 metres to the west of the historical limits of the deposit and intersected 8.2 metres with a grade of 2.5% copper, 8.7% lead, 17.3% zinc, 223.5 g/t silver and 0.5 g/t gold. A second step-out hole was drilled 50 metres to the west of hole IN018 and intersected two zones of massive sulfide but assays have not been returned yet.

In-fill drill hole IN014 intersected 5.7 metres of 2.4% copper, 7.3 %lead, 13.4% zinc, 225 g/t silver and 0.6 g/t gold. The ongoing geophysical survey, which was suspended along with other exploration activities for the region’s hunting season, is expected to resume by the end of October.

Emerita plans to have five drill rigs operating by the end of 2021 and will include the Romanera deposit, El Cura, and other targets identified by previous geophysics work. The two drills currently on site will now focus on step-out drilling to increase the size of the deposit.

Emerita also recently provided investors with an update on the legal proceedings for the Aznalcóllar Project and the company is expecting a ruling by the Administrative Court of Andalucia in Emerita’s favour in the near future.

The Aznalcóllar Zinc Project is located in the prolific Iberian Pyrite Belt in the Andalusia region of southern Spain and is considered to be one of the world’s largest and most productive volcanogenic massive sulfide (VMS) structures. It has been mined for over a thousand years and has produced over 2000 million tons of ore.

Aznalcóllar is considered to be one of the world’s top undeveloped zinc deposits, and the project is essentially a world-class pre-production development asset. Here, the main deposit is referred to as Los Frailes, which contains a historical open pit mineral resource. Two other deposits exist on the property as well, which require further development. The Los Frailes mine operated during the 1990s until it closed due to a combination of tailings-related environmental failure and low metal prices.

After the Aznalcóllar site was rehabilitated, the government initiated a public tender process for the rights to the project and it was initially awarded to another major mining company, however Emerita believed that their bid was superior. It subsequently requested an investigation into the tender process for the property and filed a lawsuit in 2015.

In early 2021, the Spanish court concluded that the process was fraught with corruption, fraud and other malfeasance and rescinded the rights that were awarded and criminal charges were sought for the perpetrators and their enablers. In July 2021, a Spanish judge issued additional criminal indictments against the mining company and government officials who participated in undermining the public tender process for the project.

Under Spanish law, if a crime was committed during the tender process, the rights are then awarded to the next best qualified competing bid, which in this case was Emerita. Subsequently, Emerita has been waiting for the Administrative Court to conclude the process to formally award the rights to the Aznalcóllar Project to the company, which brings us to present day.

The company is planning to develop the deposit into an underground mining operation focused on mining the high-grade zones, which are estimated to contain 20 million tonnes at a grade of 6.65% zinc, 3.87% lead, 0.29% copper and 84 ppm silver. As a requirement of the project’s public tender process, Emerita submitted comprehensive. engineering, environmental and water management studies to the government, and now the company is expecting to be given the green light to proceed developing the Aznalcóllar project into an eventual producer.

Emerita is well financed, having completed a $20 million bought deal private placement in July 2021. Emerita has 182.42 million shares outstanding and due to the recent increase in the Company’s share price, a market capitalization now of $556.38 million. Even so, barring any unforeseen negative developments regarding the legal issues, Emerita Resources Corp still appears to be potentially undervalued relative to the potential value of the world-class assets it is developing.

Shares of Emerita Resources Corp last traded at $3.05.


FULL DISCLOSURE: Emerita Resources is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Emerita Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

The post Emerita Sees Continued Success In Spain appeared first on the deep dive.







Author: Phil Gracin

Share this article:

Continue Reading

Precious Metals

Torq Resources Options Santa Cecilia Gold-Copper Project, Shares Up

Torq Resources Inc. [TORQ-TSXV; TRBMF-OTCQX; S8QA-FSE] has acquired an option to earn a 100% interest…

Share this article:

[nxtlink id="269591"]Torq Resources Inc.[/nxtlink] [TORQ-TSXV; TRBMF-OTCQX; S8QA-FSE] has acquired an option to earn a 100% interest by paying US$25 million and spending US$15.5 million on exploration, subject to an NSR, on the 3,250-hectare (32.5 km2) Santa Cecilia gold-copper project, located approximately 100 km east of the city of Copiapo, northern Chile.

The project is in the southern region of the world-class Maricunga belt and immediately north of the El Indio belt. It is estimated the Maricunga belt could host up to 90 million ounces of gold in a belt is characterized by gold epithermal and gold-copper porphyry deposits, including multi-million-ounce deposits such as Salares Norte, La Coipa, Cerro Maricunga, Marte, Lobo, La Pepa, El Volcan, Caspiche and Cerro Casale.

The Santa Cecilia project is located immediately adjacent to the Norte Abierto project, held by Newmont and Barrick, which is comprised of the Caspiche and Cerro Casale gold-copper porphyry deposits. Collectively, these deposits contain proven and probable reserves of 23.2 million oz gold and 5.8 billion lbs copper and measured and indicated resources of 26.6 M oz gold and 6.7 B lbs copper.

Limited historical exploration work at Santa Cecilia was performed by the previous operator, a major international mining company in 1988-1990 when it drilled 47 holes, totaling ~14,000 metres, and completed 1,200 metres of exploration tunnel development that defined epithermal gold and gold-silver mineralization as well as gold-copper porphyry mineralization at surface and shallow depths, respectively.

A subsequent operator drilled two deeper holes in 2012 that successfully encountered gold-copper-molybdenum porphyry mineralization underlying the shallow mineralization defined by the previous operator.

Shawn Wallace, Executive Chair, said, “The Santa Cecilia gold-copper project represents the culmination of our acquisition strategy in Chile. It is our belief that exploration at a project of this magnitude will be transformative for Torq.”

There are three primary target types associated with the 10 square km surficial hydrothermal alteration footprint: Surface epithermal disseminated oxide gold mineralization defined by the previous operator’s shallow drilling, high-grade gold-silver epithermal structures and veins, as observed in the previous operator’s exploration tunnel and associated drilling, and underlying copper-gold-molybdenum porphyry mineralization analogous to the Newmont/Barrick Caspiche and Cerro Casale deposits, as defined by the 2011-2012 drill holes.

At the Cerro del Medio Target, drill highlights from previous operator (1988 – 1990) included 256 metres of 0.43 g/t AuEq, or 0.37 g/t gold and 0.04% copper in hole SP-SC-23. Hole SP-SC-24 returned 162 metres of 0.58 g/t AuEq, or 0.36 g/t gold and 0.14% copper. Refer to company press release for more similar drill results.

The Vetas Condor high-grade gold – silver epithermal mineralization is encountered on the western flanks of the Cerro del Medio target area where east-west trending quartz-alunite structures are exposed over a 1 km by 350-metre area.

The previous operator completed 1,100 metres of horizontal exploration tunnels that were oriented sub-parallel to parallel to the quartz-alunite ledges. Highlighted intercepts from this section of the tunnel, while not true width, demonstrate the high-grade potential of the structures, and include 2.38 g/t gold and 101 g/t silver over 32 metres and 0.66 g/t gold and 13.5 g/t silver over 134 metres. In addition, ~436 metres into the tunnel, a high-grade vein sampled 58 g/t gold and 27 g/t silver over 2 metres. At the Vetas Condor Target, drill results from previous operator (1988-1990) included 20 metres of 7.05 g/t AuEq.

In late trading October 22, shares of Torq gained $0.16 to $0.80 on a volume of 890.000.

Author: Staff Writer

Share this article:

Continue Reading

Trending