In today’s briefing:
- Slater & Gordon (SGH AU): Allegro’s Opening Salvo
- Connexion Telematics Ltd – A Step Change in Price Per User
- Kingston Resources Limited – Building a Production Base
- Best & Less Group Holdings Ltd – Growth off the FY23 Base Not Dependent on Sales Growth
- Rent.com.au Ltd – RentPay Making Good Progress with ARPU and Customers
- Southern Cross Gold Ltd – Leading the Renaissance in the Victorian Goldfields
- Pacgold Ltd – Seeking to Unlock an Entire Gold Corridor, at Scale
Slater & Gordon (SGH AU): Allegro’s Opening Salvo
- Beleaguered law firm Slater & Gordon (SGH AU) has announced an A$0.55/share cash off-market Offer from Aussie PE outfit Allegro.
- The key condition is Allegro acquiring a a 50.1% interest. This condition may be waived.
- The Offer was more than welcome by S&G’s board. “We don’t belong on the stock exchange,” said CEO John Somerville.
Connexion Telematics Ltd – A Step Change in Price Per User
- Connexion Telematics (ASX:CXZ) is a software supplier for Courtesy Transportation Programs (CTPs) run by OEMs in the automobile space.
- General Motors (GM) in the US is CXZ’s key customer. CTPs are seen as a key marketing programme, incentivising franchise dealer groups to provide new vehicle models for customers to drive, be it for a service loan, rental or a test drive.
- Dealers are compensated for every day and mile the car is on loan, but to receive compensation, they must subscribe to the OnTRAC software powered by CXZ for audit/compliance purposes.
Kingston Resources Limited – Building a Production Base
- Kingston Resources Limited (ASX:KSN) is an ASX-listed gold and copper mining company with two significant projects at Mineral Hill (Cobar, NSW), where the tailings production project is delivering record quarterly results, and the 3.8Moz Misima Gold Project in PNG, with a recently completed DFS.
- The tailings project at Mineral Hill is a precursor to the company’s aim to return to full-scale mining through building the reserves and resources base during 2023.
- The company expects to commence open-pit operations at the Pearse deposits in early 2024, progressing to underground works and first copper in late 2024 from the Southern Ore Zone.
Best & Less Group Holdings Ltd – Growth off the FY23 Base Not Dependent on Sales Growth
- Best & Less (ASX:BST) is a leading ‘value apparel speciality retailer’ with a particular focus in baby and kids wear (~50% of revenue).
- The group has 245 stores under the Best & Less brand in Australia (183 stores) and Postie brand in New Zealand (61 stores).
- As an apparel based omni-channel retailer the cycling of lockdowns and a wet/cold beginning to the FY23 summer period impacted both like store sales and resulting gross margins due to clearance activity.
Rent.com.au Ltd – RentPay Making Good Progress with ARPU and Customers
- Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through their technology platform and a growing number of aligned transactional services.
- The company has reported H1 FY23 revenue of $1.43m, down 12.6% on the previous corresponding period (pcp) and below our forecast for $1.95m for the half.
- Underlying EBITDA was a loss of $1.0m, compared with $0.82m in H1 FY22. The EPS loss for the period was flat year on year.
Southern Cross Gold Ltd – Leading the Renaissance in the Victorian Goldfields
- Southern Cross Gold Ltd (ASX:SXG) is an ASX-listed gold and critical metals company with three projects in the Victorian goldfields and one in Mt Isa, Queensland.
- The company’s flagship project Sunday Creek is an epizonal gold-antimony deposit with antimony a critical metal used across the semi-conductor, defence and energy sector, in particular in lithium ion battery production.
- SXG listed on the ASX in May 2022 after raising $9.093mn at $0.20/share in an initial public offering to give a market capitalisation at listing of $31.25mn.
Pacgold Ltd – Seeking to Unlock an Entire Gold Corridor, at Scale
- Pacgold Limited (ASX:PGO) is an ASX-listed minerals exploration company focused on the Alice River gold project at the northern end of the North-east Queensland Mineral Province.
- Pacgold has a 100% interest in Alice River, covering an historical high-grade goldfield and open-pit mine with eight mining leases and five exploration permits over an area spanning 377km2.
- The company commences drilling in March/April with a pipeline of high-grade targets along a previously overlooked 30km trend.
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