Venturex ‘one of my top picks at Diggers’, says Blue Ocean analyst

10th August 2018
Resources Rising Stars

Highly-rated Blue Ocean Equities analyst Steuart McIntyre has rated copper-zinc developer Venturex Resources (ASX: VXR) as one of his top stock picks from this year’s Diggers & Dealers Mining Forum in Kalgoorlie – based on a meeting with new MD Ajanth Saverimutto at his booth.

McIntyre, who was one of the first analysts to pick recent share market success stories like Pilbara Minerals (ASX: PLS) and Dacian Gold (ASX: DCN), says Venturex caught his eye on day one of the forum.

With a market cap of ~$50 million, Venturex is developing the Sulphur Springs copper deposit in WA’s Pilbara and is on the cusp of completing an eagerly awaited feasibility study.

“I had a good look at this company ~18 months ago, but decided not to pursue it because for me, their study was lacking metallurgical testwork and they didn’t seem to have a clear plan,” McIntyre wrote to his institutional clients.

“But there has been a material change in circumstance at VXR recently,” he continued.

“Northern Star (NST) has taken a 19% stake in the company and recently put in a new CEO, an operator hand-picked by Bill Beament and Stu Tonkin by the name of AJ Saverimutto.

“I met AJ today and like him...I get the feeling he is a “doer” and the NST guys would not have recommended him for the role unless they thought he was very capable (a very strong endorsement in my view).

“In addition to that, VXR released the results of the detailed metallurgical testwork today...confirming better results than the figures assumed in the last study... and effectively doing the work that I thought was missing last time I looked at this company.”

“With this back story, in my view, Venturex is probably my top new pic from today at Diggers.”

On Monday, Venturex reported “outstanding” metallurgical recoveries and concentrate grades from recent metallurgical testwork for Sulphur Springs, with transitional copper concentrate recoveries of up to 91.7% and concentrate grades up to 26.8% and fresh copper recoveries of up to 95.3% and concentrate grades of up to 26.4%.

Venturex is set to deliver the definitive feasibility study on Sulphur Springs by the end of September.

The company’s booth at Diggers attracted plenty of interest, which was reflected in strong buying during the week.


Image via Small Caps


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