Annual Report 2014

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About Latitude

Latitude Consolidated Limited (ASX:LCD) is an Australian Listed Mining and Exploration Company.

The Company holds the Lyndon Station Base Metals Project located in the Canarvon Gascoyne region, and is evaluating options for further exploration.

 

Please refer to the 'Projects' link above for details of this project

Latitude also continues to investigate and evaluate new opportunities available to it to generate value for shareholders.

 

Proactive Investors

Gold down again, but is now the right time to buy?

Gold fell again on Friday as US economic data suggested a rise in interest rates may occur soon.

Out of New York, June futures settled down 0.5% at US$1214 an ounce.

In the Fed’s meeting minutes, released last week, it was suggested that a rate rise was likely should the US economy continue to show signs of improvement.

US jobless data out yesterday confirmed that the economy was indeed doing better, with the number of unemployed lower than expected, indicating healthier labour markets.

Investors were seemingly put off by the announcement as gold touched US$1,212 per ounce in after-hours US trading.

Many analysts and traders have predicted that gold was due a correction after its rampant start to the year.

Joni Teves, an analyst at UBS, said the actions of those who had intended to buy when the dip came would now be tested.

“Many market participants over the past few months have expressed interest to buy a dip in gold,” said Teves.

“This is now the time to see whether those intentions would be or are being translated into action.”

Teves added that hesitation to buy into a declining market was understandable.

“We maintain the view that short-term weakness in gold should be viewed as an opportunity to build strategic positions.”

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Oil hit ‘magic’ US$50 but does it invite more trouble?

The magic number was delivered to traders and investors in the oil market for a brief time on Thursday.

Oil at US$50 a barrel was the half year aim for the more optimistic players in the energy sector.

While welcomed and cherished on the market, a stronger price could also encourage further production and that scared a few players.

On Friday, U.S. crude settled down 0.3% at US$49.33 a barrel.

The fundamentals are still not strong enough on the demand side to get comfortable with a higher price.

A series of outages contributed to this week’s robust price.

Production is still off the market in the aftermath of the Canadian wildfires, geopolitical unrest in Nigeria and Libya has cut supply; refinery labour disputes in France and the economic meltdown happening in Venezuela has the market concerned and temporarily tight.

The psychological marker of US$50 a barrel could encourage shale producers back into the market quickly.

For many smaller US producers, this has been the break even number that might tempt players to restart production.

The fear of this happening and causing unwanted volatility is adding caution to decisions as the global market remains oversupplied at current levels.

Fundamentals on the demand side need to strengthen with a better sense of permanence before we can all rejoice.

Global oil demand is gradually rising and the market is looking forward to the US driving season in June and beyond. American consumption, especially in the summer season traditionally rises and boosts the gasoline and oil market.

Following a season of lower pump prices and rising car demand, many believe there’s no reason to doubt that the highways will be busy in months to come. US gasoline consumption for April was back to 2007 levels.

Crude stockpiles in the US are gradually declining, but the data has often surprised the market to the upside. American production has also been on the decline, the most welcomed signal of all as OPEC supporters see this strategy working.

The Baker Hughes rig count for the US continues to decline, down at 375 last week.

This time last year, the rig count in the US was at a healthy 853 throughout the country.

Global oil demand continues to rise and will do so for the foreseeable future, according to the key sources, but while global supply rises at a faster pace, the basic economics remain out of balance.

Jason Schenker, president of Prestige Economics says he agrees with the head of the International Monetary Fund, Christine Lagarde when she cautions, “weakness in Chinese manufacturing, low commodity prices, and the risk of contagion for financials,” as serious risks to the global economy.

More importantly, Schenker says the real fear is the danger of the US sinking into recession.

“As the economy lurches toward recession, equities are likely to come under significant pressure, and the dollar is likely to fall.”

Schenker says we all need to pay attention to the upcoming proposed rise in interest rates from the Federal Reserve.

This has the power “to push financial institutions to increase reserves to prevent systemic banking system problems and while this would protect the overall financial system, it also traps liquidity.”

By the end of 2016, Schenker predicts an American “recession due to restricted access to credit, a continued recession of investment, and contagion risks from a recession in oil and gas.”

As a sense of strength comes back to the oil price, American prospective producers need to be paying attention to the domestic warning signs.

OPEC has clearly demonstrated it can live with the short-term pain in order to keep market share; a topic no doubt high on the agenda as the ministers prepare for their meeting in Vienna next week.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Austin Exploration Ltd is Friday's ASX Most Traded with 177 million

Friday's ASX Volume Leaders at the close.

Company NameCodeLastChangeVolume
Austin Exploration Ltd AKK $0.010 0% 177,040,870
Xped Ltd XPE $0.094 2.17% 60,431,730
TV2U International Ltd TV2 $0.039 18.18% 31,274,954
Caeneus Minerals Ltd CAD $0.003 0% 28,760,216
Sundance Resources Ltd SDL $0.003 0% 21,997,500
Prospect Resources Ltd PSC $0.016 0% 21,193,113
Fastbrick Robotics Ltd FBR $0.023 9.52% 19,053,485
Fortescue Metals Group Ltd FMG $2.990 1.01% 17,870,267
Telstra Corporation Ltd TLS $5.680 0.35% 17,131,494
Golden Rim Resources Ltd GMR $0.005 25% 15,787,545

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Valmec Ltd wins new oil & gas contracts to lift order book by $11.8M

Valmec Ltd (ASX:VMX) is continuing to build a healthy order book by securing additional contracts through its oil, gas and Infrastructure divisions totalling $11.8 million.

The contracts, which are based in Western Australia and in New South Wales, extend across a number of industries, including oil and gas maintenance services, construction and government infrastructure.

Significantly, Valmec won a $24 million contract in March to service Origin Energy Ltd’s (ASX:ORG) Australian Pacific LNG joint venture in Queensland.

Valmec continues to be engaged by clients on a number of early contractor involvement (ECI) activities and tender opportunities on East Coast gas development projects.

Sales revenue for 1H FY2016 was $26.9 million, an increase of 2% on the previous corresponding period.

Notwithstanding challenging conditions within the resources sector, Valmec’s balance sheet remains resilient with net assets of $15.7 million as on 31 December 2015.

The company’s share price has increased more than 30% during the last one month.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Real Energy Corporation Ltd successfully completes fracture stimulation

Real Energy Corporation Ltd (ASX:RLE) has moved a step closer to unlocking the value from its Cooper Basin acreage after it completed the five-stage fracture stimulation program at its Tamarama-1 well in the Cooper Basin, Queensland.

The program went as per plan and without any environmental or safety incidence. Halliburton (NYSE:HAL) Australia, Real’s main contractor, tested the Toolachee and Patchawarra formations below the 2,300 metres level.

The Cooper Basin is renowned as the country’s prime onshore oil and gas province.

Real will benefit from its 100% ownership of the acreage in this area and the growing demand for natural gas in Australia’s Eastern States.

Real’s Cooper Basin portfolio has an estimated total mean gas of 13.76 trillion cubic feet (TCF) and a maiden 3C (a measure of the quality of contingent gas resources) gas resource of 672 billion cubic feet (BCF). These estimates are based on the area surrounding its two successful wells, namely Queenscliff-1 and Tamarama-1.

The company is well-financed to meet its exploration activities, having cash of $10.15 million as at end of March against a market capitalisation of $26 million.

Shares in Real are currently trading at $0.13, up from $0.07 in mid-February.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

TV2U International Ltd shares rise after $1.94m share placement

TV2U International Ltd’s (ASX:TV2) shares have surged after receiving commitments of $1.94 million through a share placement to institutional, professional and sophisticated investors.

TV2U will issue 64.8 million new shares at $0.03 each and up to 32.4 million options at a nominal issue price, as part of the placement.

TV2U is an entertainment platform that enables businesses, such as telecos, to offer encrypted, streaming content to their customers along with targeted advertising.

The company will have a cash balance of $3.1 million after completing the oversubscribed placement.

The funds from the placement will be used for new hires for the research and development team, which will enable TV2U to pursue a number of short-term opportunities.

The balance will be applied towards working capital requirements.

Additionally, TV2U will offer one-for-four entitlement options to existing shareholders this month, exercisable at $0.04 on or before 30 March 2019.

In May, the company signed an agreement with Australian‐owned independent telecommunications services provider, Om Telecom, that all TV2U to sell its entertainment solution to a large market.

The share price of TV2U has increased more than 150% during the last one month.

The company had completed a $4 million capital raise and relisted on the ASX in February 2016, following the reverse takeover of Galicia Energy Corporation.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

GME Resources Ltd monetizes ore mined from its Devon Gold Mine project

GME Resources Ltd (ASX:GME) is making steady progress on the mining operations at its wholly owned Devon Gold Mine in the north eastern goldfields of Western Australia.

GME finalized the sale of the first batch of ore at the April gold price of $1620.46 as computed by the Department of Mines and Petroleum, Minerals Division.

It is expected to benefit from a bullish trend in gold prices, which has been lucrative for Australian gold producers when priced in the Australian Dollar.

Further, since the processing of the first batch of gold ore in April, GME has mined approximately 70% of the total tonnes (i.e. inclusive of waste and ore). Of this 40%, or 26,300 dry tonnes, have been processed at the Saracens Carosue Dam gold processing plant.

Another 34,600 tonnes of Devon’s high grade gold ore is scheduled to be mined over the next six weeks.

The company executed a $1.5 million short term financing facility agreement with shareholder and ASX listed company Zeta Resources Ltd (ASX:ZER) in the last quarter. The arrangement ensures the availability of adequate working capital for mining operations.

GME has put its metallurgical test program at the NiWest Nickel Laterate Heap Leach Project on hold to concentrate its resources on the development of the Devon Gold project.

Shares in GME last traded at $0.03.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Newfield Resources Ltd raises $8.7M for Sierra Leone diamond project

Newfield Resources Ltd (ASX:NWF) has raised $8.7 million from an underwriting of unlisted options to for development of its Allotropes Diamond Project in Sierra Leone.

Earlier this month Newfield recovered over 2,000 carats of diamonds from the ongoing alluvial trial mining and resource definition program at the Allotropes project.

The company offered these diamonds for sale at the Antwerp, Belgium, diamond tender which commenced May 17, 2016.

The average stone size for this parcel was up 18% from the previous lot, and over 10% of the consignment comprised of stones 2 carats and above.

The stones mined to date could provide the technical basis for estimating Allotrope’s diamond population, as well as its future revenue modeling.

NWF’s milestones achieved at the Sierra Leone project include the completion of a 4,000 line-kilometre airborne magnetic survey, refurbishment of dredging facilities and the commencement of exploration at the Sewa river, and the relocation of a second processing plant to Sumbuya.

As at March 31, 2016, Newfield held cash of $3.3 million.

Shares in Newfield last traded at $0.38.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

BPS Technology Ltd eyes robust growth in B2B barter tool

BPS Technology Ltd (ASX:BPS) has expanded the reach of its Bartercard operations in North America with the sale of three new franchises in Tennessee, California and Georgia.

Bartercard is a B2B digital currency tool that allows business owners to barter or trade their goods and services between one another without the use of cash.

BPS is a profitable company, earning a net profit after tax of $3.5 million in 1H2016, up 7.3% compared to the same period last year.

Significantly, the company earned an EPS of $0.06 in 1H2016 and rewarded investors with a $0.02 dividend.

BPS has a prolific history of declaring dividends, paying out $0.0325 in September 2015 and $0.0225 in March 2015.

The company has a healthy balance sheet with $2.4 million cash and zero bank borrowings as on 31 December 2015.

The new franchises in U.S. are consistent with Bartercard’s stated plans of expanding across the U.S. through the sale of franchises in key strategic areas.

Earlier this month, BPS had entered into an agreement with Alibaba partner SmartTrans Holdings Ltd (ASX:SMA) to sell products in China via Alibaba's wholesale e-commerce platform 1688.com.

The partnership allows Australian merchants to market and sell their products in China and receive payment in Australia via online payments platform SmartTrans.

The share price of BPS has increased by about 21% during the last one month.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.