Archer boards the magnesia train
Archer Exploration (ASX:AXE) has signaled that it’s moving into the magnesia space lock and stock by hiring one of the finest magnesia minds in the country.
It told its shareholders this morning that it had hired Paul Rix as a non-executive director, pointing to his decades of experience in the magnesium game as the chief reason for the hire.
Rix has more than 30 years in the marketing of industrial minerals, including a 10 year stint at Queensland Magnesia as its general manager of marketing.
He was responsible for finding key industrial end-users for the company’s magnesia, discovering sales contacts in six continents or more than 30 countries.
Crucially, he also has experience in marketing graphite, AXE’s chief play.
AXE has increasingly focused on its magnesite deposits at Leigh Creek in South Australia as a result of Alinta closing coal operations in the area.
Last year Alinta confirmed it was moving away from its operations in the area, leaving vital infrastructure behind.
Since that time, AXE has been in talks with the South Australian government about possibly using some of this infrastructure.
“Development of this valuable resource has previously been restricted by both the lack of infrastructure and the inability to access existing Leigh Creek coalfield infrastructure,” AXE managing director Greg English previously said.
“However, Alinta’s decision to close the Leigh Creek coalfield from next week means that its railway line and associated infrastructure is potentially available to Archer.”
The hiring of Rix is another sign that far from a fleet of fancy from AXE, it is increasingly eyeing its magnesia project as a real option to offset its graphite play to the south.
Archer Exploration has a string of resources projects based on the Eyre Peninsula in South Australia.
Known predominantly as a graphite play, it has other projects on its plate including gold, magnesia, and copper.
AXE currently has its foot on a resource of 8.55 million tonnes @ 9% graphite content for 770,800 tonnes of contained graphite – the biggest resource in Australia.
Campoona is thought to be the most advanced graphite play for AXE, with plans for a 10,000 tonne per year processing centre at Sugarloaf on the cards.
The plan is to mine for 14 years, but this doesn’t include any exploration upside.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.