Weekly | Mineral Resources share price surges 17% as the company bunkers down with $1.3 billion sale
As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,099.90 on Friday, up 1.08% in the past 5 days.
1. $MINERAL RESOURCES LTD(MIN.AU)$ +25.06%
MinRes gained 25.06% to $38.33 by this week, having closed 16.47% higher on Wednesday after securing approval by the Foreign Investment Review Board to sell a 49% stake in its Onslow Iron project's haul road to Morgan Stanley Infrastructure Partners.
Morgan Stanley analyst Rahul Anand reaffirmed an 'overweight' rating on the company, noting that the stock is cheap and offers "significant upside for value investors with a long-term horizon". Anand said he did not see an equity raise being required, unless a weakening of up to 25% was seen in both iron ore and lithium spot prices over the course of FY25.
Citi analyst Kate McCutcheon noted that 40% of Mineral Resource's capital expenditure cuts was across lithium, with the rest across iron ore, energy and corporate. Citi has a price target of $50 on the stock while Morgan Stanley's price target is at $70.
2. $DEEP YELLOW LTD(DYL.AU)$ +21.81%
Deep Yellow Limited has released an update about the Advancement of Uranium Project Life Span, which may drives the stock price up! The institutional investors ended up benefitting the most after the company hit AU$1.1b in market cap. The one-year return on investment is currently 12% and last week's gain would have been more than welcomed.
Deep Yellow Limited reports a significant upgrade in mineral resources for the Tumas 1, 2, and 3 deposits, achieving a Measured and Indicated Resource totaling 102.1 million pounds at 268 ppm uranium, with a projection to extend the mine’s life to over 35 years. The upgrade follows an extensive drilling program and is expected to enhance project financing and mining operations. The company is optimistic about the project’s potential to deliver high-quality uranium resources.
3. $PILBARA MINERALS LTD(PLS.AU)$ +20.33%
This week’s swift rebound was ignited by reports on Wednesday that Chinese battery maker CATL suspended production from its Jiangxi lepidolite mine. The next day, Russian President Vladimir Putin threatened to limit exports of uranium, nickel and titanium to Western economies.
That unleashed a rally in heavily shorted lithium and uranium shares, putting the Australian sharemarket on track to close at a record high on Friday. Among those, Pilbara Minerals – the AU’s most shorted stock – has rallied 23 per cent since CATL speculation surfaced, while Mineral Resources has surged 20 per cent.
When a short seller holds a company's shares, they benefit when the shares fall in value. But if they experience a sharp rise, these shorters often have to sell out of their positions to reduce risk. This can have a compounding effect known as a short squeeze. This also could also be what is helping these AU lithium shares to surge in value this Week.
4. $TABCORP HOLDINGS LTD(TAH.AU)$ +16.88%
Tabcorp Holdings operates in gaming services and wagering and media, with a market cap of approximately A$4.38 billion, which has released an update this week.
Tabcorp Holdings Limited has announced an update to their dividend distribution, revealing the Dividend Reinvestment Plan (DRP) price as set by the DRP Rules. This update follows their previous announcement on August 28, 2024, and pertains to the dividend related to the six-month financial period ending June 30, 2024.
Tabcorp Holdings, a small-cap stock, has seen significant insider confidence with share purchases in the last quarter. Earnings are forecasted to grow by 117.91% annually. The company’s recent dividend decrease to A$0.003 per share and its reliance on external borrowing highlight both challenges and potential for future growth in this sector.
5. $DE GREY MINING LTD(DEG.AU)$ +14.95%
De Grey Mining Ltd has released an update this week and Australia's battered mining industry regained momentum, which drive the stock price up!
De Grey Mining Ltd has issued an investor update cautioning that the forward-looking statements provided should not be overly relied upon, as they involve risks and uncertainties that could cause actual outcomes to differ materially. The company has underlined the speculative nature of gold exploration, project development, and various regulatory and environmental challenges. Additionally, De Grey confirmed the Hemi Gold Project’s financial viability does not depend on the less certain Inferred Mineral Resources.
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