MoneyTalks is Stockhead\u2019s regular drill down into what stocks investors are looking at right now. We\u2019ll tap our extensive list of experts to hear what\u2019s hot, their top picks, and what they\u2019re looking out for.<\/p>\n
Today we hear from Alto Capital investment manager Tony Locantro.\u00a0<\/p>\n
\u00a0<\/p>\n
\u201cThe key theme to come through was that 2023 has been an abysmal year for any \u2018quality\u2019 emerging small cap stocks outside of the lithium sector,\u201d Locantro said.\u00a0<\/span><\/p>\n \u201cHowever as per the usual the current malaise equals a major opportunity where the future war stories are created.\u201d<\/p>\n And where does he see those opportunities? In gold and silver juniors and several biotech players.<\/p>\n \u201cI\u2019m a combination of gold and silver juniors and some individual biotech stories just to mix it up a bit,\u201d Locantro said.<\/p>\n \u201cThe reason why gold, silver juniors appeal is because the gold price in US dollars is over $2000.\u00a0<\/span><\/p>\n \u201cSilver\u2019s tipped for a big future and a lot of the gold and silver juniors are capped at multiples in the ground that are just unsustainably low.\u00a0<\/span><\/p>\n \u201cThe enterprise value for some of them is $10-20 when historically they\u2019ve traded at $40-60 per resource ounce in the ground.\u00a0<\/span><\/p>\n \u201cThey\u2019re cheap and I think majors and mid-caps can go in and buy ounces rather than drilling them out \u2013 and I think we\u2019ll see a wave of M&A and that should see some more mid tier companies created.\u00a0<\/span><\/p>\n \u201cI also think that speculators are probably starting to tire of lithium acquisitions in hot areas, the share price reactions are tapering off a bit, and they just need a dose of gold and silver fever \u2013 and there\u2019s no bubble like a gold bubble.\u201d<\/p>\n \u00a0<\/p>\n Maronan\u2019s flagship project of the same name is one of Australia\u2019s largest, highest-grade, undeveloped silver resources, about 90km north of the giant Cannington silver-lead-zinc mine in northwest Queensland.<\/p>\n Last week the explorer flagged hits of up to 17.1% lead and 112g\/t silver which could add significant tonnage to the project\u2019s silver-lead and copper-gold resource.<\/p>\n Locantro said that not only is the company reporting outstanding lead and silver results, they also have a copper gold component, are finding thick widths have led and silver close to surface and they\u2019re going to be looking towards mining studies next year.\u00a0<\/span><\/p>\n \u201cBased on the lead silver copper gold resource, it\u2019s getting towards 400 million ounces silver equivalent or a 4 million ounce gold resource all for around $30 million,\u201d he said.<\/p>\n \u201cThe company hasn\u2019t got a profile, but it\u2019s looking good and in the event of a silver run, it will be shown to be one of the most undervalued opportunities and hopefully it gets a rerating.\u201d<\/p>\n \u00a0<\/p>\n The company owns the large (1.84Moz at about 0.6g\/t) but low grade Apollo Hill gold project near Leonora in WA\u2019s Goldfields.<\/p>\n However, there are high grade zones at Apollo Hill, with Saturn having run the numbers on a heap leach operation, a processing method only sparingly employed in the WA gold space these days.<\/p>\n \u201cIt\u2019s 1.84 million ounces, it\u2019s low grade, but it\u2019s potentially a heap leach operation,\u201d Locantro said.<\/p>\n \u201cThey are working towards further economic studies and hopefully getting into production.<\/p>\n \u201cInitial economic studies show a robust project and the area has substantial exploration potential.\u00a0<\/span><\/p>\n \u201cIt\u2019s a bit of a different story being heap leach, so hopefully, they can grow the company without getting taken over too early.\u201d\u00a0<\/span><\/p>\n \u00a0<\/p>\n The WA goldie has the 946,000 oz Sandstone project near Mt Magnet and Leinster, where the plan is to expand the tenement footprint to support future mining operations.\u00a0<\/span><\/p>\n \u201c[There\u2019s] outstanding exploration potential,\u201d Locantro said.<\/p>\n \u201cThey have some infrastructure at Sandstone and the region hosts several million ounces that should eventually see some production.\u00a0<\/span><\/p>\n \u201cI like management, Brad Valiukas was previously at Northern Star Resources (ASX:NST)<\/strong><\/a> with Bill Beament and helped with the Pogo project in Alaska.\u00a0<\/span><\/p>\n \u201cThe stocks, is trading not far off an all-time low and it struggled under selling pressure, so that looks great, medium to longer term.\u201d\u00a0<\/span><\/p>\n \u00a0<\/p>\n \ufeff<\/span><\/span>\u00a0<\/p>\n \u201cOn the biotech front, one of my preferred stocks is AdAlta (ASX:1AD)<\/strong><\/a> ,\u201d Locantro said.<\/p>\n \u201cThey have a IPF-AD214 \u2013 which is an i-body technology platform looking to treat idiopathic pulmonary fibrosis.\u00a0<\/span><\/p>\n \u201cThey\u2019re working their way through a phase one extended trial and working towards partnerships as well.\u00a0<\/span><\/p>\n \u201cThey bought out some interesting news last week on the i-body and potentially a world first with malaria.\u00a0<\/span><\/p>\n \u201cThey also have CAR-T cell therapy cancer alliance with Carina biotech, which is unlisted but backed by Andrew Forrest investment vehicles.\u201c<\/p>\n Chimeric Therapeutics (ASX:CHM)<\/strong><\/a> is another pick, with the company also involved in CAR-T cancer therapy.<\/p>\n Last month they announced positive pre-clinical data for CHM 1301, which showed in ovarian cancer cell killing was increased up to ~260% as compared to first generation CHM 0201 cells, while in pancreatic cancer, cell killing was increased up to 300% as compared to first generation CHM 0201 cells.<\/p>\n Locantro noted they\u2019ve shown promising clinical results in glioblastoma which has extended the life of patients as well.<\/p>\n The final biotech pick is medical imaging company Radiopharm Theranostics (ASX:RAD)<\/strong><\/a> who\u2019re developing diagnostic and therapeutic radiopharmaceutical products spanning peptides, small molecules and monoclonal antibodies for use in cancer.<\/p>\n The company will have four trials underway in 2024 in pancreatic cancer, brain metastasis, non-small cell lung cancer and breast and gastric cancer.<\/p>\n The company has great management too, Locantro says, with CEO and MD Riccardo Canevari previously chief commercial officer at Swiss pharmaceutical giant Novartis.<\/p>\n \u201cAnd Diamond Research just put out another report with a 7 cent valuation on the stock,\u201d he said.<\/p>\n \u00a0<\/p>\n \ufeff<\/span><\/span>\u00a0<\/p>\n \u00a0<\/p>\n The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead.<\/p>\n Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.<\/p>\n <\/span><\/p>\n The post Money Talks: Keep an eye on these tasty precious metal and biotech plays in 2024<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"TONY\u2019S PRECIOUS PICKS<\/h2>\n
Maronan Metals (ASX:MMA)<\/strong><\/a><\/h2>\n
Saturn Metals (ASX:STN)<\/strong><\/a><\/h2>\n
Aurumin (ASX:AUN)<\/strong><\/a><\/h2>\n
MAA, STN and AUN share prices today:<\/h2>\n\n
BIOTECH BONUS PICKS<\/h2>\n
1AD, CHM and RAD share prices today:<\/h2>\n\n