Far East Capital Newsletter
Astral Resources is another example of strong value in the gold sector
9 Sep 2023

In This Issue

Astral Resources is another example of strong value in the gold sector

Just when the market was looking boring we have seen some elephant juice injected into a few stocks last week, thereby underlying why we are in the game. Picking the right stocks can still lead to big wins even whilst the general market is recessed.

Southern Cross Exploration came out with another cracker intercept down in Victoria, reporting 404m at 5.1 gpt AuEq as it drilled through 13 high grade veins at Sunday Creek. As good as this sounds, it would be more correct to analyse it according to the smaller high grade intercepts of 5.6m at 17.8 gpt AuEq, 5.4m at 39.3 gpt AuEq, 4.9m at 36.1 gpt AuEq and 6.9m at 205.2 gpt AuEq. It seems that some of these intercepts were enhanced by exceptionally high antimony grades. One cannot help but be impressed, especially with the share price performance. In the previous week the shares closed at 52c. They spiked to 91.5c on the announcement before settling down in the following days.

On the other side of the continent Torque Metals (TOR) more than doubled, jumping from 12.5c to peak at 35c on Tuesday when it announced an option to acquire gold and lithium ground adjacent to Paris Gold Camp and the Bald Hill project that the AFR reported has been bid for by Mineral Resources. Alita Resources, which went into Administration when an earlier development of Bald Hill failed, is rumoured to be subject to an ambition to be relisted by Glencore with a valuation of $1.8bn.

It is premature to get too bullish yet, but these sort of performances are just what the market needs to bring players back to the table. Maybe we have seen the bottom of the market for the time being, consistent with what the Sentiment Oscillator was telling us last weekend. Time will tell.

Continuing on from the comments following Kerry Stevenson's Gold Conference in Sydney and the view that there is good value in the gold sector, we feature Astral Resources this week.

Suite 24, Level 6
259 Clarence St
Sydney NSW 2000

Phone: +61 417 863 187
Far East Capital