Our Initial Entry
5 Day VWAP
Our Current Returns
Jan 01 2021
Our Current Returns
We invested in Latin Resources (ASX: LRS) in November 2020 and continue to maintain a large holding.
We invested as we liked the potential in LRS’s halloysite project.
Latin Resources is exploring a halloysite-kaolin project in WA, but is also currently working on lithium projects and ongoing exploration activities in South America.
Halloysite globally is in short supply, and since China recently closed a number of environmentally damaging mines, the market has opened up.
LRS is currently capped at $97M and is now sitting on what could become the single-largest undeveloped Kaolin-Halloysite deposit in Australia.
LRS has released its Maiden JORC Resource (MRE).
A global Inferred Mineral Resource of 207 million tonnes of kaolinised granite has been estimated at Noombenberry, comprising two separate domains:
- 123 million tonnes of bright white kaolin-bearing material; and
- 84 million tonnes of kaolin/halloysite-bearing material.
Why we are attracted us to LRS:
✅ Maiden JORC Resource. LRS has been working toward its MRE for the last six months and has now released it, following receipt of its highly positive test-work results from the Noombenberry Halloysite-Kaolin Project.
✅ Comparison to Andromeda. On initial read, LRS' 207mt maiden JORC resource looks to be better than $475M capped Andromeda’s 210mt resource. LRS has drilled only the first of 5 of its projects - its land holding is 7 times the size of Andromeda.
✅ Debt free. LRS is operating in a debt free capacity after building a strong cash position last year. It has $4M in the bank as at March 31.
✅ Lithium project. Maintains a diversified position and continues its significant exploration at its South American lithium projects.
LRS is one of the busiest stocks in our portfolio and consistently solid results have led LRS to become one of our better performers.
We would expect that as LRS continues to expand resource estimate, its share price could be in for a re-rate.
Our Past Commentary on Latin Resources
|Type||Date||Share Price $||Title|
|05-Jun-2021||$ 0.057||So What Happened this Week?|
So What Happened this Week?
Jun 5, 2021
This week we took an in-depth look at our latest investment BPM Minerals (ASX: BPM), our 2019 Pick of the Year Elixir Energy (ASX: EXR) and Vonex Ltd (ASX: VN8) which went into a trading halt 2 hours after we launched our article...