Next Investors logo grey

Growth Portfolio: Talisman Mining Ltd (ASX: TLM)


Published 15-DEC-2016 00:00 A.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

Overview: Talisman Mining Ltd ("Talisman", "the Company") is an Australian minerals company with operations in WA. Its most advanced asset is a 30% interest in the Springfield JV, covering 198km 2 immediately to the east of Sandfire Resources NL’s DeGrussa Copper-Gold Mine in the northern Murchison Goldfields. Indicated and Inferred resources totalling 1.05Million tonnes (Mt) grading 9.4% Cu and 1.6g/t Au have been delineated at the Monti deposit. Talisman also holds the 290km 2 Sinclair Nickel Project, near Agnew, which incorporates the historic Sinclair Mine and infrastructure.

Catalysts: A feasibility study incorporating the Monti deposit is due for completion in Q1 2017 and is expected to form the basis of a development decision. Its proximity to the Degrussa Mine has the potential to drive M&A. Two years after acquiring the Sinclair Project in late 2014, Talisman has commenced exploration drilling with the aim to delineate new resources close to existing infrastructure.

Hurdles: There is no guarantee existing resources at Monti can be economically mined, or extended through additional exploration. Talisman is reliant on external capital and there is no guarantee it will be able to deliver its share of development capex at the Springfield JV. Talisman’s minority shareholding in the Springfield JV may impair its ability to optimise development planning and scheduling. Certified resources aren’t delineated at the Sinclair Project and there is no guarantee exploration will be successful.

Investment View: Talisman offers speculative exposure to the copper and nickel mining industries. We are attracted to the profile of its board, management, and shareholders. Technical studies at Monti have the potential to drive near-term interest towards the stock, whilst the Sinclair Project underpins a longer-term value play. Originally discovered by Talisman’s "ex Jubilee" team in 2005, Sinclair hosts infrastructure with a $120million replacement value and potential for additional resource delineation. With exploration and feasibility activities progressing concurrently, we initiate coverage with a ‘speculative buy’ recommendation.


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.