Azzet reports on three stocks with price-moving updates today.
Mayne Pharma tumbles after denying knowledge of plant closure
Shares in Mayne Pharma (ASX: MYX) were trading around 13.1% lower by 1:40 pm AEST (3:40 am GMT) after the ASX 300 pharma stock told the market that it allegedly had no knowledge of market information materially impacting recent corporate activity.
It’s unclear whether the market sold the stock off for the denial or for simply being ignorant of vital information that was clearly its business to know.
Either way, investors were unhappy.
What exactly Mayne Pharma denied all knowledge of was dialogue between the South Australian government, its acquirer, U.S.-based Cosette Pharmaceuticals and the Foreign Investment Review Board (FIRB).
This denial follows revelations last week that the state government had asked the FIRB to block the American company’s $672 million takeover over fears that Salisbury, a major Adelaide manufacturing plant, would be closed.
Mayne Pharma argued that any media suggestions that it advised FIRB of the possible closure in July, citing the company’s deteriorating financial position, which could force it to take steps to arrest any decline, were incorrect.
To refresh your memory, Cosette had agreed to buy Mayne Pharma at a price of $7.40 per share, which represented a 36.8% premium to where the stock traded prior to the offer.
However, back in June, Cosette took its offer to buy Mayne Pharma off the table after concluding there had been a “material adverse change” in the company’s financial performance since it made its offer in February.
This is a claim that Mayne Pharma has categorically denied.
Meanwhile, within an unambiguous statement this morning, Mayne Pharma told the market it did not advise FIRB of this, has no intention to close the Salisbury site, and has had no direct communications with FIRB or the South Australian government regarding the scheme transaction.
Unsurprisingly, the company is now considering whether to communicate with FIRB directly in relation to these matters, given that there is now no reasonable basis for Cosette continuing to withhold its consent.
“Given this recent publication of speculation on the status of the FIRB approval, Mayne Pharma wishes to ensure that FIRB and all of its consult partners have all information necessary to make an informed decision in relation to the Scheme,” management said today.
“Mayne Pharma will continue to keep shareholders informed of any material developments in relation to the FIRB approval condition and the Scheme more generally.”
Mayne Pharma’s market cap is $374 million; the share price is up 2.4% in one year and down 10% in the last week.
Consensus is Strong Buy.
Olympio Metals rallies on Bousquet Project update
Shares in Olympio Metals (ASX: OLY) were up around 8.7% after the small-cap miner told the market of the potential for a large-scale gold deposit at the Bousquet Project in Canada, after extensive mineralised structures were mapped over 3km east-west and 1.5km north-south.
To date, drilling has gold mineralisation at Paquin, Amadee and Decoeur prospects, with all drill holes completed and assayed across three prospects having intersected gold mineralisation.
Further assay results are now expected over the next two months.
What clearly excited the market today was the potential rapid emergence of the Bousquet Project, and the success of the initial drilling has encouraged Olympio to expand the drill program to target multiple highly prospective structural targets.
Located on the Cadillac Break in Quebec - a regional structure associated with world-class gold mines - the Bousquet Project is situated within 15km of multi-million ounce working gold mines (Agnico Eagle’s La Ronde - 15.8Moz Auii and Iamgold’s Westwood - 2.4Moz Auiii), which is expected to provide a pathway to future production.
Commenting on today’s update, managing director Sean Delaney told the market that historical very low frequency (VLF) surveys have mapped multiple mineralised structures that extend well beyond the known prospects yet remain largely untested, offering substantial scope for new discoveries.
Delaney notes the Cadillac Break within Bousquet is largely unexplored, particularly to the north, where the company has yet to begin exploration along a 10km strike of the Cadillac Break.
“Even more exciting is that we have only just scratched the surface. To the north of the Cadillac Break lies a further 10km of untested strike, directly along trend from world-class deposits,” said Delaney.
“Our team is preparing to systematically drill several of these high-priority structural targets in the coming months and we’re looking forward to delivering strong news flow as assay results from this drill program are received.”
Meanwhile, the Normar Nord prospect - associated with a porphyry intrusive immediately north of the Cadillac Break - remains a priority target for further exploration.
It’s understood that Olympio has an option to acquire up to 80% of the Bousquet Project located on the Cadillac-Lake Larder Fault Zone in Québec, Canada.
The Company’s consolidated cash at hand was $0.7 million as at 30 June 2025, including $0.4 million from the disposal of shares in Gorilla Gold Mines Ltd.
The Company has no debt.
Back in July, the miner received firm commitments to raise $1.5 million via the issue of 15,000,000 New Ordinary Shares at $0.10 per share, which represented a 13% discount to the last traded price of $0.115.
Olympio Metals has a market cap $10 million; the share price is up 212% in one year and down 9% in the last month.
While the stock’s 200-day moving average is trending upwards and highlights long-term investor interest in the stock, the 5-day moving average is below the 20-day moving average.
Consensus does not cover this stock.
Droneshield rallies on pending inclusion within the ASX200
Shares in Droneshield (ASX: DRO) were up over 5.3% after revelations that the high-flying defence stock will join the S&P/ASX 200 from 22 September.
Droneshield’s inclusion on the ASX200 adds numerous indices the stock is currently on, including the Mirae Asset Global X Defence Tech Index, the Global X Defence Tech ETF and the MSCI Global Small-Cap Asia Pacific Australia Index.
While no entity is technically required to buy ASX200 stocks, Droneshield will, by default, come on the radar of index-managed funds and exchange-traded funds (ETFs) that must purchase these stocks to replicate the performance of the index.
Then there are active fund managers that also need to buy these stocks to benchmark their performance against the ASX 200.
Droneshield’s inclusion on the ASX200 should be welcomed by shareholders who have witnessed the stock’s share price pull back (to $3.13) since peaking at around $4.22 mid-August this year.
However, despite this fall, the stock’s share price is still up over 300% since trading at $0.86 in early April this year.
Spurred by the doubling down on defence since Russia invaded Ukraine, Droneshield’s counter-drone technology is now regarded as an effective countermeasure by governments the world over.
While DroneShield has already secured contracts with numerous governments and defence groups, the recent commitment to increasing defence budgets both here in Australia and in Europe particularly entrenches the company’s position within a sector with significant growth potential.
In light of this untapped upside, brokers suspect recent dips present buying opportunities, with the ASX200 inclusion adding an extra kicker to future buying.
While Bell Potter was disappointed that the company didn't win the Land156 government contract, the broker reminds investors that this is just a small slice of a huge sales pipeline.
The broker currently has a buy rating, and its $3.70 price target implies potential upside of 22% for investors over the next 12 months.
Within the recently ended wild and wacky reporting season, Droneshield’s share price sank 11% after posting first half FY25 results, which saw revenue grow by 210% to $72.3 million, while net profit after tax increased $6.9 million to $2.1 million.
Droneshield has a market cap of $2.7 billion; the share price is up 137% in one year and up 309% year to date.
While the stock’s 200-day moving average is trending higher, there is significant evidence that the long-term bullish trend is near an end. Specifically, recent price action has been weak and the 5-day moving average is below both the 20 and 50-day moving averages.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
