Materials Analyst/Strategist, Janus Analysis

Gaius King

Materials Analyst/Strategist

Janus Analysis

Equity Bottom-Up

<ul>
<li>Our bearish outlook on the nuclear industry could be too optimistic</li>
<li>No Chinese nuclear station has commenced construction since 2016</li>
<li>5-year forecast for uranium demand to decelerate due to growth in decommissioning </li>
<li>Est. prices &lt;US$20/lb U3O8 within the next several years to restore mkt equilibrium</li>
<li>Despite low inventories, non-critical nature of Zn depresses prices</li>
<li>Political pressure increasing against NPI mining in Indonesia and Philippines</li>
<li>Indonesia and Philippines account for ~40% of global Ni supply</li>
<li>Ni consumption predicted to grow at 4.7% CAGR over the next few years</li>
<li>
<a href="https://www.smartkarma.com/entities/nac-kazatomprom-jsc" target="_blank" data-smartkarma-citation="entities:27845:1" rel="noopener">NAC Kazatomprom JSC (KAP LI), </a><a href="https://www.smartkarma.com/entities/cameco-corp" target="_blank" data-smartkarma-citation="entities:25364:1" rel="noopener">Cameco Corp (CCO CN), </a><a href="https://www.smartkarma.com/entities/yellow-cake-plc" target="_blank" data-smartkarma-citation="entities:27844:1" rel="noopener">Yellow Cake PLC (YCA LN), </a><a href="https://www.smartkarma.com/entities/bhp-billiton-ltd-adr" target="_blank" data-smartkarma-citation="entities:5424:1" rel="noopener">Bhp Billiton Ltd (Adr) (BHP US), </a><a href="https://www.smartkarma.com/entities/lynas-corp-ltd" target="_blank" data-smartkarma-citation="entities:20374:1" rel="noopener">Lynas Corp Ltd (LYC AU), </a><a href="https://www.smartkarma.com/entities/peel-mining-ltd" target="_blank" data-smartkarma-citation="entities:4111:1" rel="noopener">Peel Mining Ltd (PEX AU), </a><a href="https://www.smartkarma.com/entities/golden-rim-resources-ltd" target="_blank" data-smartkarma-citation="entities:8395:1" rel="noopener">Golden Rim Resources (GMR AU), </a><a href="https://www.smartkarma.com/entities/focus-minerals-ltd" target="_blank" data-smartkarma-citation="entities:10577:1" rel="noopener">Focus Minerals (FML AU), </a><a href="https://www.smartkarma.com/entities/liontown-resources-ltd" target="_blank" data-smartkarma-citation="entities:20488:1" rel="noopener">Liontown Resources (LTR AU), </a><a href="https://www.smartkarma.com/entities/jameson-resources-ltd" target="_blank" data-smartkarma-citation="entities:1923:1" rel="noopener">Jameson Resources (JAL AU), </a><a href="https://www.smartkarma.com/entities/red-5-ltd" target="_blank" data-smartkarma-citation="entities:7940:1" rel="noopener">Red 5 Ltd (RED AU), </a><a href="https://www.smartkarma.com/entities/pacifico-minerals-ltd" target="_blank" data-smartkarma-citation="entities:11085:1" rel="noopener">Pacifico Minerals (PMY AU), </a><a href="https://www.smartkarma.com/entities/tietto-minerals-ltd" target="_blank" data-smartkarma-citation="entities:28006:1" rel="noopener">Tietto Minerals Ltd (TIE AU), </a><a href="https://www.smartkarma.com/entities/ausmex-mining-group-ltd" target="_blank" data-smartkarma-citation="entities:11167:1" rel="noopener">Ausmex Mining Group (AMG AU), Calidus Resources (ASX: CAI), Venturex (ASX: VRX), Saturn Minerals (ASX: STN), Indiana Resources (ASX: IDA), Ora Banda (ASX: OBM) </a>
</li>
</ul>


Our bearish outlook on the nuclear industry could be too optimistic
No Chinese nuclear station has commenced construction since 2016
5-year forecast for uranium demand to decelerate due to growth in decommissioning 
Est. prices &lt;US$20/lb U3O8 within the next several years to restore mkt equilibrium
Despite low inventories, non-critical nature of Zn depresses prices
Political pressure increasing against NPI mining in Indonesia and Philippines
Indonesia and Philippines account for ~40% of global Ni supply
Ni consumption predicted to grow at 4.7% CAGR over the next few years

NAC Kazatomprom JSC (KAP LI), Cameco Corp (CCO CN), Yellow Cake PLC (YCA LN), Bhp Billiton Ltd (Adr) (BHP US), Lynas Corp Ltd (LYC AU), Peel Mining Ltd (PEX AU), Golden Rim Resources (GMR AU), Focus Minerals (FML AU), Liontown Resources (LTR AU), Jameson Resources (JAL AU), Red 5 Ltd (RED AU), Pacifico Minerals (PMY AU), Tietto Minerals Ltd (TIE AU), Ausmex Mining Group (AMG AU), Calidus Resources (ASX: CAI), Venturex (ASX: VRX), Saturn Minerals (ASX: STN), Indiana Resources (ASX: IDA), Ora Banda (ASX: OBM) 



New J Hutton – Exploration Report Pt 2 (Weeks Ending 02/08/19)

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<ul class="">
<li>
<a href="https://www.smartkarma.com/entities/6698" target="_blank" data-smartkarma-citation="entities:6698:1">Gold Road Resources (GOR AU)</a> Recommend BUY
</li>
<li>Gruyere JV (50/50) 91% complete, on schedule and budget</li>
<li>150koz pa Au attributable production to GOR, first bullion pour Q219</li>
<li>
Forecast EBIT $A74-84m pa, substantial cashflows starting Q419</li>
<li>
Price/EBIT ratio 8 to 9.1, A$44m cash - no debt</li>
<li>Own virtually the entire Yamarna Greenstone Belt (~ 6,500km2) </li>
<li>A$20m 2019 exploration budget - exceptional prospectivity</li>
<li>Corporate takeover target likely by <a href="https://www.smartkarma.com/entities/25109" target="_blank" data-smartkarma-citation="entities:25109:1">Gold Fields Ltd (GFI SJ)</a></li>
<li>
<a href="https://www.smartkarma.com/entities/10152" target="_blank" data-smartkarma-citation="entities:10152:1">Aura Energy Ltd (AEE AU)</a>, <a href="https://www.smartkarma.com/entities/4293" target="_blank" data-smartkarma-citation="entities:4293:1">Catalyst Metals (CYL AU)</a>, <a href="https://www.smartkarma.com/entities/20488" target="_blank" data-smartkarma-citation="entities:20488:1">Liontown Resources (LTR AU)</a>, <a href="https://www.smartkarma.com/entities/11276" target="_blank" data-smartkarma-citation="entities:11276:1">Millennium Minerals (MOY AU)</a>, <a href="https://www.smartkarma.com/entities/12743" target="_blank" data-smartkarma-citation="entities:12743:1">Southern Gold (SAU AU)</a>, <a href="https://www.smartkarma.com/entities/5124" target="_blank" data-smartkarma-citation="entities:5124:1">Azumah Resources (AZM AU)</a>, <a href="https://www.smartkarma.com/entities/10577" target="_blank" data-smartkarma-citation="entities:10577:1">Focus Minerals (FML AU)</a>, <a href="https://www.smartkarma.com/entities/14492" target="_blank" data-smartkarma-citation="entities:14492:1">Oklo Resources (OKU AU)</a>, <a href="https://www.smartkarma.com/entities/7940" target="_blank" data-smartkarma-citation="entities:7940:1">Red 5 Ltd (RED AU)</a>, <a href="https://www.smartkarma.com/entities/14062" target="_blank" data-smartkarma-citation="entities:14062:1">Troy Resources (TRY AU)</a>
</li>
</ul>



Gold Road Resources (GOR AU) Recommend BUY

Gruyere JV (50/50) 91% complete, on schedule and budget
150koz pa Au attributable production to GOR, first bullion pour Q219

Forecast EBIT $A74-84m pa, substantial cashflows starting Q419

Price/EBIT ratio 8 to 9.1, A$44m cash - no debt
Own virtually the entire Yamarna Greenstone Belt (~ 6,500km2) 
A$20m 2019 exploration budget - exceptional prospectivity
Corporate takeover target likely by Gold Fields Ltd (GFI SJ)

Aura Energy Ltd (AEE AU), Catalyst Metals (CYL AU), Liontown Resources (LTR AU), Millennium Minerals (MOY AU), Southern Gold (SAU AU), Azumah Resources (AZM AU), Focus Minerals (FML AU), Oklo Resources (OKU AU), Red 5 Ltd (RED AU), Troy Resources (TRY AU)



New J. Hutton Exploration Report (Week Ending 01/02/19)

Australia

Focus Minerals Limited is a gold mining and production company with it's primary operations located in the Coolgardie gold belt in Western Australia.  The Company also has nickel mining operations.

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Focus Minerals (FML AU)

New J Hutton – Exploration Report Pt 2 (Weeks Ending 02/08/19)

Our bearish outlook on the nuclear industry could be too optimistic No Chinese nuclear station has commenced construction since 2016 5-year...

Gaius King

New J. Hutton Exploration Report (Week Ending 01/02/19)

Gold Road Resources (GOR AU) Recommend BUY Gruyere JV (50/50) 91% complete, on schedule and budget 150koz pa Au attributable production to GOR,...

Boost Research

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52-week Range

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