mark2017's Stocks to Watch

Neometals

Neometals declares dividend for shareholders
Share
09:40 25 May 2018
Shareholders on the register as at June 1 will be entitled to the dividend.
files titled dividends
This is the third dividend payment made in the past three years
Neometals Ltd (ASX:NMT) has declared a 1 cent per share unfranked dividend for its shareholders.

The company is able to continue paying a dividend due to its 13.8% ownership in the Mt Marion lithium operations near Kalgoorlie, Western Australia.


Mt Marion has been in production since April 2017 and sales of lithium concentrate are generating consistent cash flow for the company.

Consistent future cash flows expected

Neometals’ managing director Chris Reed said: “Neometals’ strategy of holding a globally significant mineral portfolio, de‐risking through project partnering and increasing margins via expanding output and quality of production is working well for us.

“Mt Marion is one of the world’s largest lithium producing assets and it gives us invaluable exposure to the entire lithium supply chain with a concentrate source that has been validated by converters and battery end users.

“We look forward to applying the same principles as we continue the development our lithium hydroxide, battery recycling and titanium initiatives.”

READ: Neometals viewed as substantially undervalued as it moves to near-term profitability

Earlier this month, Neometals collected a 53-tonne bulk sample from its Barramble Titanium Vanadium Project in Western Australia to ship to China

The sample was from the high-grade part of the deposit which has potential to be the main feed source for a potential direct shipping ore (DSO) operation.

Prospective buyers from China will next perform metallurgical test work on the bulk sample when it arrives in China.

Additional test work will also commence at an Australian laboratory to confirm Chinese results

Neometals Ltd declares dividend for shareholders
 

GALAXY AGREES TO SELL NORTHERN TENEMENT PACKAGE AT SAL DE VIDA FOR US$280 MILLION TO POSCO Highlights • Non-binding agreement executed with POSCO to sell a package of tenements in the northern basin of the Salar del Hombre Muerto • Galaxy retains 100% ownership of all tenements in the southern basin • Cash consideration of US$280 million for approximately 1.58 million tonnes lithium carbonate equivalent (“LCE”) of JORC compliant measured & indicated resources and 2.54 million tonnes of LCE of JORC compliant total resources • Sal de Vida Project now contains approximately 4.09 million tonnes LCE of JORC compliant measured & indicated resource and 100% of the previously announced reserves of 1.14 million tonnes LCE • Funds available to Galaxy to progress Sal de Vida Project development in Catamarca Province


https://www.asx.com.au/asxpdf/20180529/pdf/43vcfjdh9jd6rd.pdf
 

Attachments

  • idp education.gif
    idp education.gif
    25 KB · Views: 105
Paragon Care

Paragon Care has a new asset in its sights
Share
11:30 06 Jun 2018
Paragon has been acquiring businesses in the healthcare sector.
Paragon Care has a new asset in its sights
The company's shares are in pre-open
Paragon Care Ltd (ASX:pGC) is back on the acquisition trail, with the ASX granting the company a trading halt this morning pending its next bolt on.

Earlier in the year Paragon outlined nine acquisition opportunities in the healthcare sector during the company's $69.8 million capital raising.


Seven of these have been completed so far.

Paragon is also set for a busy June quarter, as historically over a third of the year’s business has normally been transacted during this period.

The company is a provider of medical equipment, devices and consumables for the Australian and New Zealand healthcare market.

The halt will remain in place until the opening of trade on Friday 8 June 2018, or earlier if an announcement is made to the market.



Share
 
Neometals


Neometals Ltd looking to move downstream towards lithium chemical production

Share*

10:01 07 Jun 2018

Chris Reed, chief executive of*Neometals Ltd*(ASX:NMT), discusses with Proactive's Andrew Scott their decision to enter into an option agreement to sub-lease a 40-hectare site in Kalgoorlie for a proposed lithium hydroxide refinery.

With a lithium hydroxide plant, Neometals aims to take lithium concentrate feed from its nearby 13.8% owned Mt Marion lithium operations and convert it to the higher value lithium hydroxide product.



*http://www.proactiveinvestors.co.uk...towards-lithium-chemical-production-9493.html
 
Paragon Care, 4% up



Should you buy Paragon Care Ltd. (ASX:pGC) after its acquisition spree?

Tommaso Autorino | June 8, 2018 |
More on:

PGC



Shares in
Paragon Care Ltd
(ASX: PGC) rose 3% to $0.84c on Friday morning’s trade, after the company announced the acquisition of New Zealand-based healthcare business
REM Systems for a net enterprise value of NZ$54 million (about $50 million).

The details of the transaction

Paragon will settle 80% of the purchase in cash and the rest through the issuance of 12.7 million shares at the 30-day volume-weighted average price of $0.76c. In addition, the deal includes earn-out provision of 4.5 times FY20 and FY21 incremental EBITDA from the acquisition. REM’s vendors and executive management will stay with the business throughout the earn-out period.

REM has a forecast FY18 revenue base of NZ$68 million and EBITDA of NZ$7 million.

Funding for the transaction derives partly from Paragon’s recent $70 million capital raising and partly from an increased debt facility with
National Australia Bank
(ASX: NAB). Paragon’s net debt to EBITDA ratio is expected to be between 2x and 2.5x following the acquisition.

Strategic rationale

Paragon’s Chairman, Shane Tanner, described REM as a “near perfect strategic fit”.

Through a series of acquisitions of suppliers of the healthcare sector – seven in the last four months –Paragon has grown to become an integrated healthcare equipment and services provider for acute, aged and primary care in Australia and New Zealand.

The acquisition of REM is particularly significant given the size of the target – in comparison with Paragon’s market capitalisation of $230 million – and the fact that REM itself is a diversified medical distribution company supplying 4,000 customers including acute care hospitals, day surgeries, medical practices and veterinary clinics throughout New Zealand and Australia, with an articulate structure that resembles Paragon’s.

Despite its strong organic growth – in the range of 6% to 8% per annum over recent years, according to Paragon’s announcement – REM is still a family run business

The acquisition is anticipated to be in excess of 10% EPS accretive in FY19 and beyond.

Foolish takeaway

I’m usually quite wary of growth built on an acquisition spree, but in this case I think the move makes perfect sense, given the homogeneity between Paragon and REM.

Based on the company’s forecast, the stock trades at just 11x FY18 earnings. With this valuation, I think Paragon is a good option to gain exposure to the healthcare sector, which is poised to grow in coming years as the Australian population ages.

But there’s another industry ready to take off.
Click here to claim your free report.


7 of 8 People Are Clueless About This Trillion-Dollar Market

One of our investors has recently returned from a research trip to Silicon Valley... and has a warning for fellow investors:

Because he works for an organization dedicated to spreading great investing ideas, his video report is free today... so you can see it and decide for yourself.

Don't miss your chance

click here to learn about this warning and how you might be able to profit!


Motley Fool contributor
Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Paragon Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a
diverse range of insights makes us better investors. The Motley Fool has a
disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
 
Top