The Rox Resources Limited (ASX: RXL) share price is soaring today after the small-cap ASX miner reported more high gold grades at Youanmi.

At the time of writing, Rox Resources shares have jumped 17.74% to 7.3 cents after rallying as much as 29.03% in morning trade.

Rox Resources is an emerging Australian minerals exploration company, with advanced gold and nickel projects in Australia.

The company owns a 70% interest in the Youanmi Gold Mine, and wholly-owns the Mt Fisher Gold Project, Fisher East Nickel Project and Colluabbie Nickel Project, all located in Western Australia.

Why is the Rox Resources share price spiking?

This morning, Rox Resources reported further high-grade gold results from the drilling program underway at the Grace prospect at Youanmi.

Rox stated that shallow infill drilling has returned more high gold grades, including:

• 4 metres at 88.81 grams per tonne (g/t) gold from 27 metres, including:
  • 2 metres at 176.03 g/t gold from 28 metres;
• 11 metres at 18.75 g/t gold from 8 metres, including:
  • 3 metres at 61.27 g/t gold from 10 metres; and
• 9 metres at 9.28 g/t gold from 9 metres, including:
  • 2 metres at 33.53 g/t gold from 11 metres.

These results relate to reverse circulation drilling designed to tighten drill spacing on the shallow high-grade part of the emerging Grace prospect to facilitate resource estimation.

Commenting on the results, managing director Alex Passmore said:

“These strong infill results are extremely encouraging and endorse our interpretation for Grace. The results, along with outstanding RC assays, will be complemented by upcoming diamond drilling to facilitate a maiden resource estimate, which we are aiming to have completed later this year.”

Recent developments

Today’s announcement follows another promising ASX release last week which saw the Rox Resources share price more than double.

The release also related to the drilling program being undertaken at the Grace prospect, with the deepest drilling completed to date returning impressive gold grades. This included 25 metres at 34.79 g/t gold from 143 metres, including 6 metres at 140.7 g/t gold from 150 metres.

With a share price of 7.3 cents at the time of writing, Rox Resource’s market capitalisation currently stands at around $145 million. With today’s rise, the Rox Resources share price has now rocketed 192% since the beginning of last week.

More reading

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• Western Areas share price blasts 14% on successful drilling results
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• Leading brokers name 3 ASX 200 shares to sell today

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Western Areas Ltd (ASX: WSA) share price has jumped by 14.94% to $2.66 per share at the time of writing. This significant jump comes on the back of the miner reporting successful drilling results from its Sahara prospect within the Western Gawler project in South Australia. 

What did Western Areas report?

The company discovered over 200 metres (down-hole length) of nickel and copper-bearing sulphides at the Sahara prospect within the Western Gawler Project. This was the first diamond hole completed by the company on the lluka farm-in and joint venture ground. 

Western Areas managing director Mr Dan Lougher said:

This is an excellent result from our first drill hole at the Sahara prospect, intercepting broad widths of nickel and copper bearing mineralisation. We keenly await the assay results, but it is already clear from what we have seen in the drill core, that we have a significant exploration result that merits immediate follow up work.

Importantly, we originally targeted this area due to its geological similarities to the Nova-Bollinger and Nebo-Babel nickel/copper deposits and this result adds to our belief that this area could host similar mineral accumulations. A lot more work is required to determine the extent of this mineralisation and we are in the process of updating our exploration plans to focus on this area.

According to the company, the drilling site was selected following an extensive campaign of target generation and assessment in 2019. The diamond drilling project commenced at Sahara on 10 June.

Western Areas reports that it is highly encouraged by these results, commenting that they vindicate its “long-held belief that the Fowler Domain has the potential to host significant magmatic nickel and copper sulphide accumulations.”

The Sahara prospect lies within 10km of the Trans Australian railway.

How has the Western Areas share price performed recently?

The Western Areas share price is up 60% from its 52-week low of $1.62, however, it is down by 11%, year to date. It reached a 52-week high of $3.48 in October 2019. Since 2015, the Western Areas share price is down by 22%. 

At its current share price, Western Areas trades on a fully franked trailing dividend yield of 1.3%. 

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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking to diversify your portfolio with international shares, then you might want to take a look at the three shares listed below.

Jacob Mitchell, the Chief Investment Officer at Antipodes Global Investment Company Ltd (ASX: APL), has been running the rule over the Chinese share market and has found a few gems which he believes are undervalued.

Yum China

The first share that Antipodes rates highly is Yum China. It is the largest operator of quick service restaurants in China, with a number of popular brands including KFC and Pizza Hut.

Mr Mitchell believes the company offers a compelling opportunity for investors, particularly given its long runway for growth.

He explained: “Chain restaurant penetration in China is only 5% versus the US at 65%, so there is a long runway for growth and a major opportunity to take market share. With a sustainable growth rate approaching 10%, we believe the company is cheap on a normalised P/E of about 22x.”

Another reason to like Yum China is its lead over the competition. This is in respect to its delivery network and its digital footprint.

The chief investment officer commented: “… it has built a big digital distribution platform, with 180 million digital users. It is also receiving about 30-40% of all online orders through its own app, which is a significant lead versus other online players.”

Alibaba

The second share which Antipodes believes is undervalued is ecommerce giant Alibaba.

The fund manager notes that Alibaba is 14x the size of the largest offline player and hugely dominant across all retail. This is very different to the U.S. market where Amazon’s retail business is only half the size of Walmart.

Despite Alibaba’s size, Antipodes sees plenty of opportunities to grow in this post-COVID-19 world.

Mr Mitchell explained: “Organised channels for fresh grocery sales are hugely under-developed in China compared to those in the US, where established super/hypermarkets account for more than 90% of sales.”

“In China, wet markets – the Asian equivalent of farmers markets – still account for more than 70% of fresh grocery. Given the COVID-19 outbreak likely originated in a wet market, China will now permanently modernise its fresh food supply chain. Alibaba is deploying multiple strategies to attack this opportunity,” he added.

Alibaba is currently priced on a CY21 price to earnings ratio of 20x, which Antipodes believes is an attractive multiple relative to its forward growth profile. Especially when compared to other large retail and internet platform peers globally.

Ping An

A final Chinese share which Antipodes believes is undervalued is Ping An Insurance. It is a life insurance powerhouse and the leader in digital distribution.

Mitchell notes: “Life insurance in the largely underpenetrated market is the safety net for Ping An, which is an innovator of protection products. It also has industry leading tech and the fact it holds data on +750m Chinese residents leads to competitive advantages – including the effective cross-selling of insurance products.”

And despite the company growing its earnings at 20% per annum, with a return on capital employed of 30%, its shares are changing hands at just 10x earnings today. Another positive is that the company holds an investment portfolio worth 15% of its market capitalisation.

How can you invest in these shares?

If you don’t have direct access to the Chinese market, don’t worry.

Antipodes has an exchange traded fund (ETF) which give you exposure to a wide range of quality global businesses, including the three listed above. That ETF is the Antipodes Global Shares ETF (ASX: AGX1).

More reading

• Why the AMP share price is up 9% today
• Is a Fortescue Metals mega-merger on the cards?
• Leading brokers name 3 ASX 200 shares to sell today
• ASX shares in danger? Why the gold price is creeping towards all-time highs
• Renewed US-China trade war puts these ASX 200 stocks in the firing line

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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