ASX Shares 10 bagger

RAC - some important things about the below announcement

• an FDA IND is all about the approval for running trials in the US
  • Adult MRD trial is the one RACE will use to seek fast-track approval ( there are over 40 historic trials, plus recently completed Israel trial puts RAC in a unique position )
    • this trial is a key value catalyst for RAC due to potential for fast approval
  • Paediatric AML could result in a Priority Review Voucher valued at > USD $100M
• FTO inhibitor means that the drug can potentially work well across multiple cancer types as a low-dose inhibitor
  • the hottest cancer drugs and the ones with the biggest revenues are inhibitors

https://www.asx.com.au/asxpdf/20200918/pdf/44mrk9rh5b3jv2.pdf

 

TLG up 50% in the last week.

 

Did you get on it @Codie ?

 

only a small amount didn’t have the the funds I’d like too going in as it’s all in RAC haha

 

At least you backed yourself and got something in there. Could always cash out and top up on more RAC with the profit!

 

Any idea why the big drop in NVX. I know they have listed on a NA exchange but is something else going on?

Cheers

 

Tesla had battery day the other day. A lot of hype ... and there was no mention of NVX.
Elon M wants to use more silicon components to the batteries.
Overnight prior to battery day, the stock doubled I think. By the time Elon started speaking, Sydney has woken up. And the stock did not double on our side of the universe.

Overall, the technology for NXV is still there. People have forgotten about the deal with Panasonic.

Disclosure: I hold.

 

Trinity beat me too it. A lot of speculation pushed it high around battery day, and when no direct collaboration was announced everyone sold out. I think NVX still has a huge future and technology DPMG (NVX has it) was talked about by Elon, not to mention the deal with Panasonic and Sanyo. I think other car manufacturers will likely line up and look at NVX, either way it will have its uses without tesla. They don't need each other

Disclosure, i didn't think tesla would announce anything and sold out of NVX to make $15k. Guess where I put it, RAC ha

 

Thanks for info and sorry for being lazy that was quite easy to find when I looked a bit harder. Suppose it could be an opportunity to buy in for those of us who missed it first time around.

 

On this theme, the other one worth looking at is Vulcan Energey (ASX:VUL). Zero carbon lithium in Berlin. Like NVX, dont think Tesla hype, think Germany + ESG + EV

Disclosure: I hold (not enough)

 

I really want to say thank you to @wombat777 for mentioning ADN here couple of times and giving his detailed analysis on it. I bought it back in January and it was sitting quietly for 7 months but now exploded like volcano. The only regret is allocating a very small portion of my portfolio to it, but that's what I do with every speculative stock that I decide to tap in.

 

According to their website, they initially found copper ore in 1859 ..... in a wombat burrow!!!

Inside knowledge?

 

I dig deep for research

 

And you really do travel back in time!

 

[

Lol. Yes.

RAC -1980s ( 1980s trials)
NVA - 1980s drilling in Alaska by Cominco ( see yellow sheet below )
ADN - 1970s haha (see map below)

 

Posted by me elsewhere on NVA

It’s significantly undervalued compared to much smaller peers on resource for a start. It’s the only large scale potential in the group.

So a 2 x rerate is needed to achieve fair value of 25c.

Then a big resource upgrade is expected imminently.

Let’s say they double the resource to 5 Moz.

That’s a 2 x rerate ....

Combine the two calculations and we get a 4 x rerate.

So 12c becomes 25c ( fair value ) becomes 50c after resource upgrade.

(yes - this is my analysis/chart - spruced it up with a photo from NVA’s annual report)



Next ( before the end of the year ) they are drilling other ground that could easily push the resource to the 7 Moz to 10 Moz range.

At fair value that’s $0.69 to $0.99.

Thing to understand is they are drilling bulk-mineralised rock. Nearly every metre of some holes assays for gold ... best was a 540m from surface !!!

https://www.asx.com.au/asxpdf/20200623/pdf/44jw0k703tgjvz.pdf

Bulk mineralised rock can be processed very cheaply by heap leach. Low processing costs and economics that blow most high grade gold projects out of the water!

That means nearly every tonne of rock along that hole would be processed for gold. That week it ranked top drill hit for gram-metres.

 

Thanks Wombat, I took a decent position on NVA today

Given it may take around 5 years to achieve production, where do you see potential value or is this too far away to calculate? Your valuations could come to fruition sooner rather than later if we get some good results from other ground.

 

Macro factors are at play and this is driving the bull market in gold. COVID has lead to massive economic stimulus which has inflationary effects. This will further drive the gold bull market so you really should read up on the drivers for it. Gold pushing well into USD $2,500 to $3,000 per ounce is not unrealistic and could move much more over the longer term. Previous gold bull markets drove significant rerates in gold explorer/developers. This basically means that explorer/developer companies trading at AUD $200 per ounce now could easily trade in the $300 to $400 per ounce band, even when they are 5 years from production. DEG is an extreme trading at around $700 per ounce (overvalued and running on hype).

Bull market aside, if gold stays around USD $2000 (which it should get back to soon) I can see NVA in production at $1.00 to $2.00 for an asset that size. I'm expecting it to push past 5 Moz by the end of the year, can confirm that with the resource update due this month.



Gold Bull markets also drives M&A activity by gold majors so a big asset like Estelle would be very tasty once a feasibility study is completed.

 

Anyone here keen on cannabis stocks? I was reading this article: Cannabis stocks guide: Here’s everything you need to know - Stockhead

Though to bring up here in case anyone is keen or interested. If so, which ones do you think would be good for the long run?

 

I don’t know the stocks, but re: the product itself, it is amazing. I have a friend who has Parkinson’s, who was in a bad state, given up driving and sold his car. It’s not an exaggeration to say CBD has transformed his life. He is back driving, and feeling great!