Poli tops up on Pacifico Minerals
Published 25-SEP-2019 12:33 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Pacifico Minerals Ltd (ASX:PMY) provided an investor update on Wednesday indicating that its large, near surface, flat lying Sorby Hills lead-silver-zinc project in Western Australia was progressing well.
With lead and silver prices performing strongly and the company making good progress from an operational perspective, Pacifico’s shares have more than doubled since July.
Aigle Royal Superannuation Pty Ltd, as trustee for the A.Poli Superannuation Fund, has been a beneficiary of this rerating, having initially purchased nearly 90 million shares in November last year.
As a strong endorsement in the company’s future, well-known entrepreneur Tony Poli has been topping up his holding.
Poli purchased stock on market in April at a 40% discount to the current price, and earlier this month he participated in a placement as he added another 50 million shares to his holding.
These are now trading at a 25% premium to the placement price.
Follow the smart money
Poli’s faith in the company is a good sign based on his proven record in establishing and developing major mining projects.
Poli featured strongly in the WA Rich List in 2018 with thewest.com.au estimating his wealth at $485 million.
He is best known for his role as co-founder of Perth-based iron ore and coal group Aquila Resources, a company that he netted approximately $400 million from following the sale of the group to Baosteel and Aurizon.
However, it was more the timing of the deal than the deal itself which made headlines.
With the iron ore price upwards of US$100 per tonne, Poli copped his share of criticism at the time for accepting the takeover offer. Yet shortly after the board signed off on the deal, iron ore crashed below US$100 per tonne, and was trading below US$50 per tonne within a matter of months.
Having recently increased his stake in Pacifico it would appear that Poli is a believer in the Sorby Hills project itself and the prospects of its key commodities.
With access to outstanding infrastructure and a joint venture with China’s largest lead smelting and silver producer (Henan Yuguang - 25% contributing interest) in place, the company’s prospects appear bright.
The PFS demonstrated the project’s compelling economics, including modest capital expenditure and fast payback.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
