Weekly Reports | 10:00 AM
This week's In Brief outlines positive catalysts starting to emerge across biotech, resources and transport facing companies.
- Imugene hopes to build momentum with off-the-shelf CAR-T therapy
- Elementos moves closer to Oropesa tin project approval
- Kelsian Group’s FY27 earnings growth increasingly underpinned
By Danielle Ecuyer
This week’s In Brief opens with two quotes, the first comes from Citi's energy desk:
"Tropical Storm Isaias is set to become hurricane strength by Thursday morning, breaking the unusual calm of this year’s hurricane season, and could threaten US offshore oil and gas platforms and USGC refineries.
"All in all, while we see ongoing near-term geopolitical escalation risks, especially before the Israeli elections, our base case remains for de-escalation before year-end, bringing prices lower."
The second quote is from UBS:
"In a high inflation/investment led world, we stick with 'Capex over Consumer'. Mining and Industrials stocks remain best placed to capture the tailwinds from this thematic.
"Demand drivers through the space remain strong, and with many of the stocks in this space net beneficiaries of the many apparent capacity constraints being seen through economies, we believe their period of outperformance can continue to ride the cycle."
Imugene awaits more patient trials
Imugene ((IMU)) --market cap $23m-- has transitioned from a wide-ranging pipeline immuno-oncology company to a one-product cancer therapy company.
As explained by Research-as-a-Service (RaaS), Imugene operates a “typical biotech development model”.
The analyst points out management aims to develop its lead therapy, azer-cel, an allogeneic ‘off-the-shelf’ CD19 CAR-T therapy for blood cancers, through clinical trials to generate proof-of-concept data.
Instead of taking each individual patient’s own T-cells, modifying them and manufacturing a bespoke treatment, as is the case with existing CAR-T therapies, azer-cel is designed to use donor cells that can be manufactured in advance and supplied off the shelf.
As positive data emerges, management is anticipated to either license out azer-cel to a large pharmaceutical company or position the biotech as a takeover target.
The centre of focus is on Cohort 3, which combines azer-cel with BTKi treatment, which refers to established therapies across several B-cell malignancies and is noted as the standard of care for many blood cancers.
The aim of the study is to establish whether combining azer-cel with ongoing BTKi therapy can improve outcomes in patients where the disease has advanced.
Cohort 3 started in late May when the first patient was dosed, and now Imugene is aiming for around 20 patients in the cohort trial.
Notably, the response in the first seven evaluable patients was a 71% overall response rate, including three Complete Responses, two Partial Responses, one Stable Disease and one Progressive Disease.
Digging a little deeper, the analyst details the Phase 1b study is composed of three cohorts, with patient recruitment across ten US sites and five Australian sites.
Across the three cohorts, thus far, there is a 75% combined overall response rate.
Cohort 2 has achieved an 81% overall response rate across 26 CAR-T-naïve patients.
RaaS highlights Cohorts 2 and 3 could produce faster pathways to market, emphasising that if the positive efficacy profile is maintained as patient numbers increase in Cohort 3, substantial incremental value could be generated.
The analyst sees the growing data set as more patients are added to Cohort 3 as potentially delivering an important pathway to commercialisation for azer-cel.
The probability-weighted net present value for Imugene is lowered to 16c from 24c per share, with modelling changes but predominantly dilution from a higher share count.
RaaS does not offer a target price or rating.
Mining and environmental approvals pending for Elementos
Shaw and Partners focuses in on Elementos ((ELT)), which is seeking to develop a Spanish mine-to-metal supply chain at Oropesa, which is in the Andalucian Government’s Project Accelerator Unit.
The project received ‘Overriding Public Interest’ status in June 2026, which is the public interest basis for its water application under the EU Water Framework Directive.
Approval for 8.1km of access road was achieved in August, and now management is progressing two primary approvals, the Unified Environmental Authorisation and the Mining Licence.
Shaw points out both are issued by the Andalusian regional government, with the Minister of Mining telling local media in May that Oropesa would most likely receive its permits by the end of 2026 or early 2027.
Notably, Oropesa is located close to the Iberian Pyrite Belt, where projects totalling over EUR2.2bn to mine copper, zinc, lead, iron, gold and tin are in train.
The projects are expected to be a major boost to the Andalusian region, where unemployment rates are almost 15% versus the national average of 9.9%.
At the definitive feasibility study, capex was -EUR149m, with Shaw expecting construction to start in FY28, last for 20 months and generate 250 jobs.
Extraction of tin is forecast from FY29. The broker reiterates its Buy rating ahead of the pending and expected environmental and mining approvals.
The target price is lifted to 70c from 65c due to a model roll-forward.
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