TOP 5 ASX STOCKS TO BUY UNDER 25 CENTS

Horizon Oil Limited (ASX: HZN)

TEAM VEYE | 18 MAY 2022

Horizon Oil Limited (ASX: HZN) on 11 April 2022 announced that after the successful installation, hook-up and commissioning of facilities for the WZ12-8 East Project, had accomplished the first production from the first development well WZ12-8E A2H. The Project is expected to reach an average daily gross production rate of approximately 4,700 barrels of crude oil during 2022, with peak production expected to be approximately 10,000 barrels per day.

(Chart source: TradingView) Technical Chart-Monthly Candlestick Price Chart Pattern

Quarter Highlights:

  • Sales Volume was up by 45% during the quarter to 317,965bbls.
  • Revenue for the quarter increased by 79% to US$31.1 Million at an average realised oil price of US$98/bbl.
  • Production volumes for the quarter reported a drop of 7.6% to 317,784bbls
  • Net operating cash flow for the quarter was US$23.5million
  • Cash reserves were reported at US$32.4million (net cash US$27.5million) on 31 March 2022.

 

(Graphic Source: Company Reports)Key Metrics performance

BLOCK 22/12 (BEIBU GULF), OFFSHORE CHINA

  • Horizon Beibu Gulf fields witnessed strong production above the budget with gross oil production for the quarter averaging 9,006 bopd and production for the 2022 financial year to date averaging 9,136 bopd (Horizon net 26.95%: 2,462 bopd).
  • Net sales for the 2022 financial year to date were 613,166 bbls generating revenue of US$52million.
  • Year to Date Cash operating costs for the 2022 financial year averaged US$12.17/bbl produced.
  • Average cash operating costs in the quarter were US$11.09/bbl (produced).

Outlook:

HZN made good progress on the 12-8E project during the quarter, with commencing production in April 2022 and first oil expected by early Q2 CY 2022.

Scorpion Minerals Limited (ASX: SCN)

TEAM VEYE | 24 May 2022

Scorpion Minerals Limited is an Australia-based mineral exploration and resource development company. The Company is focused on the Pharos Project, which is located in the Murchison Province of Western Australia. The Pharos Project consists of approximately 442 square kilometers (km) of granted tenure plus an ELA20 covering approximately 198 sqkm, located northwest of the small mining town of Cue approximately 50 kilometer (km) in the Murchison Mineral Field. The Project holds exploration license E20/953, which covers over 180 sqkm. The project is prospective for gold, iron ore, platinum group elements (PGE)- nickel (Ni)- copper (Cu) and volcanic-hosted massive sulphide (VMS) Cu- zinc (Zn)- silver (Ag) and gold (Au) mineralization.

(Chart source: TradingView) Technical Chart-Monthly Candlestick Price Chart Pattern

On 29 April 2022, SCN announced its Quarterly Activities Report for the period ending 31 March 2022.

On 13 April 2022, SCN placed 62,325,000 shares to raise $3,178,575 utilising 7.1 and 7.1A capacity. The placement was completed at $0.051c, a discount of 23% to the last traded price on 8th April 2022.

In the month of February 2022, SCN completed all due diligence activities associated with the binding Heads of Agreement with eMetals Limited (ASX: EMT) (“eMetals” or “EMT”) to acquire EMT’s interests in tenements E20/885, E20/896, E20/963 and E20/964 (“Tenements”) which cover a combined 904km² in the Murchison Goldfield of Western Australia. As part of the transaction, SCN issued 4,000,000 fully paid ordinary shares to EMT during the quarter.

  • Completed technical review highlights strong lithium potential of Pharos and extends zone of pegmatite intrusion to 50km strike.
  • Pegmatites mapped to date remain untested by drilling.
  • Significant Li, Ta and Sn soil/rock chip anomalies identified adjacent to a granite greenstone contact Multiple base metal and Au targets within Poona Project area for follow-up exploration.

In February 2022, SCN entered into a Deed of Amendment Agreement with Fenix Resources Limited (Fenix) (ASX: FEX) in relation to tenements E20/953 and E20/948 (currently 100% owned by Scorpion) (together with the Pharos Project Tenements).

  • The new agreement signed between Scorpion and Fenix accelerates and expands the previous farm-in and joint venture agreement such that Fenix is deemed to have earned a 100% interest in the Iron Ore rights on the Pharos Project Tenements in exchange for the issue of 4 million ordinary Fenix shares to Scorpion.
  • Four million shares in Fenix were issued during the quarter to Scorpion on completion of the transaction.

Outlook:

The new agreement between Scorpion and Fenix accelerates and provides Scorpion with strategic exposure to a consolidated mid-west iron ore producer and a clear pathway to extracting maximum value from future iron ore exploration and development success at Pharos.

Field Solutions Holdings Limited (ASX: FSG)

TEAM VEYE | 28 Oct 2021

Field Solutions Holdings Limited (ASX: FSG) is an Australia-based telecommunications carrier and technology company. The Company is engaged in develop and deliver communications products and services. It focuses in providing connectivity to rural and regional area in Australia. It serves to local government, businesses and residents. The Company offers various solutions, which is designed for business, government, residential, and business to business customers. Its business solutions include Regional Access Network (RAN), business nbn Enterprise Ethernet and Business Satellite Service. The Company designs solutions for governments, including Field Rural Fabric and Rural Reach. The Company designs solutions for residents, including nbn Home Internet, Rural Reach and Alternative Voice Services Trial (AVST). Its subsidiaries include FSG Assets Pty, Freshtel Pty Ltd and FSG Infrastructure Pty Ltd.

(Chart source: TradingView) Technical Chart- Weekly Candlestick Price Chart Pattern

Financial Highlights (Announced on 19 August 2021) for the period ended on 30 June 2021.FSG witnessed improved performance in FY21 driven by the introduction of the new revenue streams by the addition of managed services and wholesale products and services across its network.

  • Revenue increased by 77% to $18.8M from $10.6M in FY20.FSG witnessed strong revenue growth in its B2B, government and enterprise channels, and was awarded with a six-year wholesale supply deal of $45M with MyRepublic.
  • EBITDA increased by 485% to $2.2M from$0.4M in FY20.
  • Profit /(loss) from ordinary activities before tax attributable to the Owners of Field Solutions Holdings Limited increased by 132% to $461K from loss of $1425k in FY20.
  • NPAT increased by 550% to $2.1 from a loss of $0.5M in FY20.
(Graphic Source: Company Reports) Year on Year Growth in Revenue and NPAT
  • Investment in Capital Assets increased to $3.4m from $1.9m in FY20.
(Graphic Source: Company Reports) Recurring Revenue Growth by Segment
  • FSG witnessed 4thyear of positive cashflow from operations of $2.3M compared to $2.2M in FY20.
  • Basic EPS increased to 0.41cents from (0.11) cents in FY20.

Centrex Limited (ASX: CXM)

TEAM VEYE | 24 MAR 2022

Centrex Limited, formerly Centrex Metals Limited, is an Australia-based company, which is engaged in the discovery and development of mineral resources. The Company’s projects include Ardmore Phosphate Project (Ardmore) and Oxley Potash Project. The Ardmore Phosphate Project is located south of Mount Isa in North West Queensland. The project is linked to the Port of Townsville via an existing rail line. The Oxley Potash Project is located in the Midwest of Western Australia around 125 kilometers southeast of the port of Geraldton. The project is a 32 kilometers long shallow dipping and outcropping potash feldspar rich lava flow. The project is located next to existing roads, rail, power, and gas infrastructure. The products from both of these projects are necessary ingredients for global food production and human nutrition.

(Chart source: TradingView) Technical Chart-Monthly Candlestick Price Chart Pattern

Agriflex being the agriculture resource company of CXM is currently fertilizer focused and has a project developed in Ardmore encompassing a high-grade phosphate rock deposit in Queensland. It is scheduled to produce trial product shipments in mid-2022 before moving into full-scale development in 2024. Agriflex’s Ardmore project will be the only developed phosphate mine in Australia exporting products offshore.

Agriflex on 12 May executed a further agreement for a trial shipment, with Ballance Agri-Nutrients Limited (Ballance) to improve New Zealand’s supply security of phosphate rock. With the signing of this agreement, the Ardmore Project has 90% of its first three years of production allocated to major customers in Australia, New Zealand and Asia.

Financial Highlights:

Reported cash reserves of $3.224 million as of 31st March 2022.

Outlook:

Agriflex is undertaking targeted phosphate rock exploration not only in Queensland but also in the North Territory to expand its phosphate resource base. The company has also progressed to a large-scale potassium nitrate mining technology project in Western Australia and is now seeking a project partner to advance to the next stage.

 

Byron Energy Limited (ASX: BYE)

TEAM VEYE | 14 FEB 2022

Byron Energy Limited (ASX: BYE) is an Australia-based company engaged in oil and gas exploration in the shallow waters and transition zone (offshore Louisiana) in the Gulf of Mexico, the United States. The Company is the operator and working interest holder of several blocks in the Gulf of Mexico prospective for oil and gas. Its blocks are located in the shallow waters of the Outer Continental Shelf of the Gulf of Mexico, offshore Louisiana. The Company’s s portfolio of properties consists of South Marsh Island, which includes Block 71, Block 57, Block 59, Block 60, and Block 70; Eugene Island, which includes Block 62, Block 63, Block 76, and Block 77; Main Pass, which includes Block 293, Block 305, Block 306, and Grand Isle, which include Block 95.

(Chart source: TradingView) Technical Chart- Weekly Candlestick Price Chart Pattern

On 1 February 2022, BYE provided an update on the Company’s funding and commencement of its 2022 drilling activity in early April 2022.

  • Byron has secured the use of the Enterprise Offshore Drilling 264 (EOD264) jack up drilling rig to drill two wells, the SM58 G3 and G5, at the Company’s South Marsh Island 58 G Platform commencing in April 2022.
  • In order to fund the development, BYE will be securing access to short term funding of up to US$11 million through a prepayment of future oil revenue, beginning at any time after April 2022. BYE has also agreed to terms on a 3-year extension of its existing oil offtake agreement with the sole purchaser of Byron’s GOM oil production.
  • The prepayment will be largely secured by the existing forward sale agreement of 400 barrels of oil per day(“bopd”) through to December 2022 plus a small add-on of approximately 300 bopd during the January 2023-April 2023 period. The fee for this prepayment is approximately US$1 per produced barrel during the one year term.
  • The majority of the funding for the upcoming SM58 G3 & G5 drilling program will be sourced via managed free cash flow with the remainder and the completion costs funded through the offtake arrangement with Byron’s oil purchaser and hedge counterparty.
  • Aggregate oil and gas production and sales, net to Byron, was 145,815 bbls of oil and 668,010 mmbtu of gas for the December 2021 quarter compared to 88,563 bbls of oil and 733,757 mmbtu of gas for the September 2021 quarter. Increased oil production was mainly driven by the commencement of production for the SM69 E2 well in late October 2021. The reduction in gas production was driven by lower gas production from the SM58 G1 well.
  • Net sales revenue for the December 2021 quarter was US$ 13.4 million, compared to US$ 8.7 million for the September 2021 quarter. Higher revenue was mainly due to higher oil production volumes, resulting mainly from commencement of oil production from the SM69 E2 well in late October 2021, and higher realised oil and gas prices.
  • Net receipts from production were US$10.1 million for the December 2021 quarter compared to US$7.6 million for the September quarter.

*All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters.

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