Market Open(ed) Issue #20

Market Open

Managing Director Stewart Walters

Managing Editor Rueben Hale

Art Direction Lauren Hale

Sub Editor Tom Duggan

Cover Photo Adobe Stock Images

Photography Sam Gosling Market Analyst Mansoor Jan

Sales Stewart Walters

Accounts & Administration Katrina Liu

Contributing Writers Tom Duggan/Amanda Ellis/Mansoor Jan/Rueben Hale

EDITORIAL OFFICE

47 Havelock St, West Perth, WA, Australia, 6005 +61 437 736 098|info@marketopen.com

www.MarketOpen.com.au

Editor’s Letter

There seems to be a tense atmosphere in West Perth and other small-cap mining areas, both nationally and globally. As Western nations approach recession, funding is becoming scarce, making it crucial for Australia to step beyond its usual boundaries and take bold actions to improve the situation. Following the example of the Great FDR and his successful New Deal, we must be prepared to take risks, even if there are consequences, to achieve positive change.

Amanda Lacaze, CEO of Lynas, brings to light some harsh realities in this regard. Lynas is investing $730 million in a cracking and leaching plant in Kalgoorlie to reduce China’s stronghold on the rare earths market. This is the kind of industry that Australia is counting on to lead it into the future. However, according to Lacaze, the new industrial relations laws make Australia’s highest-paid miners even less competitive against the US, where Lynas also has operations. If Australia cannot produce raw materials cost-effectively, then the Albanese government’s goal of becoming a high-tech green manufacturer may be unattainable. Which direction will we choose?

RUEBEN HALE

Managing Editor

AUSTRALIA’S HIGHEST PAID MINERS MAKE US EVEN LESS COMPETITIVE AGAINST THE US

LYNAS CEO AMANDA LACAZE

08

IMMURON

Drug relief insight for jetsetters struck down with Travelers’ Diah

14

MANSOOR’S RADAR

Comet Lithium

10

OPEN(ED) SHORTS

Widgie Nickel, Copper Metlas, Flynn Gold & Basin Energy

16

THE LIZARD KING

Our favourite reptile goes hard on the tragic state of the ASX, potato cakes and his favourite hangout Hot Copper.

12

SAUDI FINANCE

Suadi Arabia’s oil riches opens it up to the world as the new commodity powerhouse.

Travelers’ Diarrhea An Inconvienient Medical Dilema

W

ould you be shocked to learn that an Australian pharmaceutical biotech company has been dosing people with potentially lethal E. coli over the last three months?

Many travellers cannot find an approved preventive medication to treat their symptoms.

Immuron is conducting a phase 2 clinical study to combat traveler’s diarrhea. The study involves exposing 60 healthy volunteers to a strain of E. coli to evaluate the effectiveness of hyperimmune cow colostrum in minimising the risk and managing symptoms of the condition.

So far, the evidence has proven promising, which will be welcome news for the minds, mouths, and bottoms of the growing number of adventurers caught in some of the most remote places on Earth with their pants down.

“Don’t stress. We have built-in stringent safety protocols into this clinical study, which we are confident will confirm the effectiveness of hyperimmune cow antibodies against certain infections in humans,” Immuron chief executive Steven Lydeamore assures me.

Immuron aims to add to the data from its booming trade in over-the-counter products with facts about the efficacy of its novel treatment that could lead to its approval as a drug by the Food and Drug Administration.

There are some real nasties out there. How bad can things get for people without access to treatments?

Around 20 per cent of people experience severe symptoms requiring them to rest in bed, while 10 per cent of cases last for more than one week. Traveler’s diarrhea can be especially dangerous to young children, the elderly, and those with weakened immune systems, as it can seriously threaten their health and well-being.

Why is dehydration such a big concern in these types of situations?

Dehydration, with or without an electrolyte imbalance, is a common complication, particularly among children.

Do many people fail to consider the financial impact?

People rarely consider this, but it’s an important consideration that must be addressed. It can disrupt business trips and vacations, and the financial loss and economic burden can be significant.

It’s astounding to learn that TD is the leading cause of disability among international travelers’ to developing countries - What are the available treatment options now?

Before travelling, research and consult with a travel medicine expert or primary care physician. Drink bottled water, avoid ice, and eat hot food to prevent traveler’s diarrhea. Antibiotics and overthe-counter medications can treat symptoms.

Why have these illnesses become so prevalent nowadays? Has the world become more germ-infested, or are people more exposed?

I suspect it has become more common due to increased travel to developing countries and antimicrobial resistance. International travel contributes to the global spread of antimicrobial resistance. Travelers’ diarrhea exacerbates the risk of acquiring multidrug-resistant organisms and can lead to persistent gastrointestinal disturbance post-travel.

How does one become involved in this critically important field of science?

I was initially involved in mining but caught the bug and moved to biotechnology. I am passionate about the sector and Australia’s enormous contribution. That led me initially to F.H. Faulding & Co. Limited, managing finances and supporting business growth in Adelaide. Purpose-driven innovation is possible, which has made me so committed to seeing out my career in this industry.

Bringing a drug to market is a long process - What have you learned along the way?

People are a biotech company’s most valuable asset. This rings true in life, but teamwork is essential for success in this field. It is impossible to do everything alone, so delegating tasks is crucial. Even if you believe you are the only one with the necessary skills and experience, you should still focus on developing your team. Not only is it the right thing to do, but it also leads to better engagement. All employees should have access to development opportunities.

A New Level of Discomfort

Tammy Whelan’s TikTok account shares a harrowing retelling of her experience with a gastrointestinal illness while on holiday in Bali. Her story serves as a candid warning to other travellers to avoid a similar situation. Tammy was confined to a distance of less than four meters from her toilet to prevent gushes of vomit and poo painting the floor of her dingy hotel room during her nightmarish 24-hour ordeal.

But a recent Delta passenger’s poo-ridden experience mid-air has taken the problem to new heights. Footage showed a messy trail of diarrhea left by the struggling jetsetter that forced the US airliner back to Atlanta two hours into its flight to Spain.

WIDGIE PUT A NICKEL ON NOTICE

Widgie Nickel got a fair bit of interest at Diggers after displaying a core sample from drilling at its 132N deposit, and the assay’s return has validated the attention with a 9.14m @ 10.44% Ni, 0.75% Cu, 0.13% Co, 1.93g/t 3PGE strike from 330 metres. It confirmed a massive sulphide hit and built on last week’s high-grade intercepts at the Widgie South Deposit, one of a collection of its Mt Edwards deposits holding 168,080 tonnes of contained nickel. The results are marked to feed into feasibility studies and Widgie’s vision of substantial mining operations backed by a standalone concentrator in the heart of Kambalda.

COOPER CRACKS SOLOMON

At Cooper Metals’ King Solomon 1 prospect, more sulphide strikes have been found during diamond drilling. All four holes successfully intersected visual sulphides, confirming a solid breccia mineralised zone in the central plunging shoot of the copper-gold prospect. Cooper is now shifting its focus towards exploring the rest of the pipeline of new and expanded Mt Isa East copper-gold targets. Queensland’s Northwest Minerals Province is incredibly productive, with plenty of potential for discoveries. Companies like Cooper believe that many commercial deposits are still waiting to be found in the region.

FLYNN’S BONANZA AT TRAFALGAR

After Phase 1 drilling returned a top 12.3m @ 16.8g/t Au intercept at its Tasmanian Golden Ridge Project, Flynn Gold has been further spurred onto a large-scale intrusive-related system with a shallow bonanza grade interval of 169.8g/t Au from within a 4.0m @ 23.7g/t Au from 23.0m strike at the Trafalgar Prospect. It continues to grow the scale of a deposit beyond 400 metres in strike length and remaining open in all directions. There has been no drilling so far down dip or along strike east, a fact soon to change as Flynn prepares its highly anticipated follow-up.

BASIN REVEALS BUMPY URANIUM

As uranium prices move past decade-highs, a 3D inversion of historical datasets have backed up Basin Energy’s exploration model for unconformity-style uranium at their North Millenium Project in Canada’s Athabasca Basin and verified a five-kilometre structural target corridor known to be the conduit for mineralisation at a nearby world-class deposit. This discovery provides an exciting opportunity for future exploration efforts. The Athabasca Basin is a renowned area and Basin Energy is committed to building exploration across its assets, hoping to become the preferred ASX-lister for high-grade discoveries.

NEW KINGDOM OF COMMODITIES A

AUS$2.6 billion deal with Vale SA marked Saudi Arabia’s first significant entry into the mining space. It was a momentous foray away from oil for the Saudis, securing a significant slice of Canadian, Brazilian, and Indonesian assets focused on copper, nickel, and other critical energy transition minerals. And there will be more to come, with the Kingdom’s Ministry of Industry and Mineral Resources reportedly aiming to increase private investments in mining to US$45.6 billion by 2030.

Qatar was already a major Glencore backer, but in a recent interview, mining magnate Robert Friedland said that in terms of capital, everything had changed. “Now, probably, the largest supply of capital to the mining industry will come from the Middle East,” he said.

The Vale deal is expected to be the first specific test of Canada’s curbs on foreign investment. Still, unlike China, long-standing as a dominant funder, Middle Eastern investors are expected to be passive partners – and, while scrutinised, hardly carry the same geopolitical concerns.

“The American government has an ‘ABC’ policy: Anything but China,” Friedland has noted.

Over the past years, Chinese counterparts have repeatedly outbid major mining companies with a state-mandated drive to secure raw materials. Still, their struggling economy and a Middle East region flush from high oil prices could replace those high bids at the auction table.

Chinese cash is estimated to comprise a ridiculous

30 per cent of global investment but is laden with debt. The mining superpower might require a slowdown to rebalance its economy.

The US needs to catch up to China regarding critical minerals and is increasing its international reach to secure resources from friendly jurisdictions.

A considerable portion of Chinese investment has been sent to secure metals in Africa, a continent now the subject of talks between the United States and Saudi Arabia to buy assets worth US$15 billion and provide US companies with production rights.

It opens the path for miners to develop a relationship with Saudi Arabia to mine its resources as companies and governments seek new jurisdictions to secure critical metals.

Barrick Gold, the world’s second-largest producer of precious metals, already operates a copper mine in Saudi Arabia and intends to deepen its relationship with the Kingdom. A massive global need for copper has riskier jurisdictions in the spotlight. Barrick plans to invest US$7 billion to revive a Pakistani Reko Riq copper project believed to contain one of the world’s largest untouched copper-gold reserves. As the stakes for untapped copper heats up, this reserve known to exist beneath the insurgent-prone province on the border of Afghanistan is on the table.

Saudi Arabia may seem an unpalatable choice for some investors. But there is no denying it is a stable jurisdiction with significant untapped resources, estimated by the Ministry of Industry and Mineral Resources to be worth over US$1.3 trillion – slightly more than an aged Christiano Ronaldo.

The 600-thousand-kilometre Arabian Shield in the western part of the Kingdom is known to hold vast deposits of gold, silver, copper, zinc, chromium, manganese, tungsten, lead, tin, aluminium, and iron.

And there is undoubtedly a history of profit in the Kingdom, which essentially bought the game of golf.

The Mahd Al Dhahab area, the Cradle of Gold, is so venerable that it may have even been mentioned in The Book of Genesis and once stood as the source of King Solomon’s wealth. But the wealthiest of us no longer wear crowns, and there are riches more splendid than gold.

The Majors have made their intent on copper and nickel clear. Western miners are ponying up the enormous figures that could be made through downtrodden economic conditions. BHP and Rio Tinto have completed multi-billion copper and nickel deals. Glencore is backing a billion-dollar deal to buy Brazilian copper and nickel mines while trying to buy Teck Resources. Meanwhile, FMG’s Andrew Forrest has said he will invest whatever it takes to become a global nickel power.

The big miners have also been steadily encroaching on a lithium exploration sector filled with juniors.

While it has lost some of its lustre, a downturn in the price of white gold has resulted at the beginning of what some commodity analysts see as the beginnings of a sweep of mergers and acquisitions not seen since the resource boom of the 2000s.

Gina Rinehart’s late swoop to block a $6.6 billion Albemarle

takeover of Liontown Resources showed her intent on the sector. At the same time, companies like Rio and Albermarle have continued sniffing around junior exploration plays.

China has also grabbed its share. The Communist regime has purchased 10 of the 20 available lithium mines for $12.3 billion since 2018. Still, Western companies have remained hesitant to stump up hefty sums for existing producers who are digging their heels in on lofty evaluations and the future promise of soaring demand.

The cheapest way to find lithium might now be with the drill and the junior end of exploration. While lithium, copper, and nickel have all suffered through recent price downturns, the actions of international mining companies and global powers continue to prove that the money and intent are there for an immense groundswell of demand.

A STRAINED MARKET AND RESTRICTIONS ON CHINESE BACKERS HAVE SAUDI ARABIA AND THE MIDDLE EAST POISED TO BECOME ONE OF THE MOST IMPORTANT SOURCES OF CAPITAL AS THEY MOVE ON SECURING SUPPLIES OF CRITICAL MINERALS.

Mansoor’s Radar The Comet Journey

Lithium is looking for the next underdog with suitable geology and run. Investors are speaking to brokers, brokers have feelers out with geologists on the ground, and geologists are looking through government data and doing spatial assessments. All are waiting and want to make a call on the next opportunity. Australians, especially those whose day job is mining, know Moranbah, Mt Isa, the Pilbara, and Roxby Downs. For Canadian-focused TSXV-listed lithium investors, it’s Rouyn-Noranda, Route 81, Val-d’Or, Fermont, Labrador, etc., where lithium stories get discussed. In short, Quebeckers know their backyard better than Australians, and that’s where the Comet Lithium story starts.

GLIMMER OF MULTIPLE OPPORTUNITIES:

Comet Lithium (TSXV: CLIC) and its Liberty deposit are exciting. It is nestled between Winsome Resources’ (ASX: WR1) Jamar outcrop on the left-hand side, Osisko (TSXV:OM) and Loyal Lithium (ASX: LLI) Trieste formation on the right and onto South Azimuth Exploration’s (TSXV: AZM) land package. There are many good things here: location, Cosmology, and neurology. Like all grassroots greenfield exploration, Comet completed the Airborne Magnetic Survey and utilised a property-scale LiDAR survey to understand the Liberty land’s topography better.

Comet improved its understanding of the ground through field exploration, where the crew journeyed 536 kilometres across the property or more than 90% of the ground. The exploration program included 205 rock samples now at the lab.

MarketOpen believes the second phase was completed and part of the field exploration program, where the field crew completed soil surveys to identify drill targets.

The regional geophysics analysis suggests there is a

possibility a significant east-west trending fault corridor/shear feature exists that extends from the Adina Lithium project to the east, passing through Liberty. This corridor/shear feature could control potential spodumene mineralisation. That’s where the first drill holes potentially need to go. Comet’s works and lithium exposure program comes with a second project, Troilus East. Troilus East is an unexplored jewel, with the lithium potential combined with its already-known gold-copper presence. The company is exploring multiple options to unlock the total potential value through a better mapping understanding of granitic dykes and pegmatite veins. Its geologists believe that initial prospecting was oriented toward gold copper and did not consider pegmatites as prospective targets

The Lizard King

It looks gloomy in the small-cap space right now, but an excellent material Friday lift gave some cause for miners to smile. The juniors fall harder but bounce back faster. I think of Rocky Balboa as I furnish my losses to Apollo Creed. That is the level of my stupidity.

Speaking of losses, the ASX has cracked down on the small-cap-focused 10-Bagger club, or at least that was claimed in a Discord. I still haven’t quite figured out what that is, and I am happy never to learn.

I’ll stick to HotCopper. I know it can be a murky pond to swim in at times, but it is one where this lizard feels excellent hanging out with like-minded mates. I like to read ageing computer-illiterate pumpers bicker away with their counterpart dumpers. It reminds me of the good old days of the internet before the iPhone let children join in.

The Euros got a recent win over Apple, forcing them to change their charger to good old USB-C. I still miss my nigh-indestructible Nokia, but not so much the garbled text and pinging from a per-character phone plan. A Melbourne potato cake manufacturer was bought out by a US-French fry giant, apparently backing the market to grow fat as more Australians go to the pub over restaurants.

This reptile loves a good countery! But the fact that a bit of half-frozen squid or a slapdash party costs the same as a place with a real chef and proper service from attractive Italian people is starting to wear thin.

Wearing thin has not traditionally been a problem in the US, where a volcano might hold the largest lithium resource on Earth. But given its location, who cares? Wake me up when they can get it to development, and we all have flying cars and robot maids.

But they still have oil stateside, now selling for a hefty sum after the Saudi cuts. Suitable for the energy boys but not so much for the rest of us, I still remember the glee of filling the wagon with 90c petrol on the rare occasion I had somewhere to be during COVID.

Not that I have many places to be these days either, but it’s nice to feel wanted, and some demand for these ramblings can come up alongside a few more commodities next week.

COMPELLING

CONTENT SHARED AROUND THE WORLD