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The shipment was arranged under the umbrella of BP8’s Sales Cooperation Agreement with PT. Kebula Raya Bestari, which will see the latter handle logistics and supply arrangements for the product.

MSC plans to use the product – to be delivered as 60 metric tonnes of Indonesian seaweed biomass – to make carrageenan, an additive used to thicken and stabilise food products.

BP8’s managing director, Matthew Leonard, said achieving the first shipment indicated the partnership with PT. Kebula Raya Bestari was on the right track.

“We are pleased to announce our first shipment under the Sales Cooperation Agreement with Kebula, which demonstrates the practical progress of our strategic partnership,” BP8’s boss explained in a market release today.

“Kebula’s role in managing logistics is enabling BP8 to efficiently connect Indonesian seaweed supply with international customers like MSC.”

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Mr Leonard added: “We look forward to building on this initial transaction as we continue to expand our supply network.”

BP8 rose 25% after the news and is now trading around 0.2cps.

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Estrella has entered a Master Agreement with PT Raka Energi Mandiri, which will offer the latter exclusive marketing and offtake rights for the purchaser.

Sales targets for the partnership have been set at up to 500 million dry metric tonnes of limestone over five years from the first shipment, with Estrella Murak Rai Timor Lda (ESR 70%, MRT 30%) to earn the proceeds.

Successful facilitation of sales over this period will entitle REM to unlisted share options exercisable at five cents each.

Additionally, Estrella will – subject to shareholder approval – offer REM one unlisted share option exercisable at the same price for every tonne of limestone ordered and paid for, totalling up to 500 million unlisted share options exercisable at 0.5 cents each in the event REM achieves the sales target.

The agreement also opens the door to negotiation between the two companies for an offtake agreement to more fully document the terms upon which REM will have the exclusive right to purchase limestone.

Any deals on that front would also include the agreed annual sale price.

“This is a truly transformational moment for Estrella and a major step forward in building a long-term commercial pathway from limestone production from our Timor Leste projects, alongside our existing manganese exploration,” Estrella’s managing director, Chris Daws, said on the new deal.

“Partnering with a well-connected local group like REM gives us a strong advantage in accessing the Southeast Asian market.”

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“We anticipate this market to be advantageous for a number of years, given the substantial rise of nickel mining in Indonesia and limestone’s ability to improve the environmental impact of refining, primarily as an acid neutralisation agent.”

ESR shares have been trading at 3.8 cents.

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The placement involves a commitment from a private investor based in Australia, and the issue of around 17.9 million new fully-paid ordinary Recce shares, to be priced at 28 cents each for a total of $5 million.

The company also launched an entitlement offer of one new share for every six fully paid ordinary shares held by eligible Recce shareholders.

That price will be the same as the placement; the goal there is to raise $10.8M.

Recce plans to use the Placement funds to drive completion of one of its Phase III topical clinical tests, while funds from the Entitlement offer will go towards the progression of other development programs.

The former relates to the Phase III DFI Registrational Topical Clinical Trial in Indonesia – which is expected to bring in revenue in 2026.

Also related is the Phase III Acute Bacterial Skin and Skin Structure Infections Registrational Topical Clinical Trial in Australia, which is commencing soon.

“We’re delighted to receive further support from an existing Australian-based shareholder and are pleased to launch an entitlement offer to all shareholders to acquire new shares at the same price,” CEO James Graham said.

The funding, he added, now gives Recce an important injection to build future plans.

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He continued: “Proceeds from the capital raising will be used to support a Registrational Phase III clinical trial for Diabetic Foot Infections in Indonesia and a Registrational Phase III for ABSSSI across Australia, following a recently announced Phase II ABSSSI clinical study achieving all endpoints.”

Mid-arvo, Recce was trading at 29.5cps after a 9.23% drop.

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The Indonesian project is being progressed through a strategic partnership with Cratus.

The two parties have now formed an infrastructure joint venture (IJV) to focus on the development of transport and infrastructure solutions for the project.

Medium-term objectives for the pair include the acquisition of flat-bottomed vessels for coal transport via the Barito River to an intermediary coal stockpile at Buntock or the Taboneo Anchorage and the upgrading of site infrastructure and coal loading facilities at Cokal’s current jetties.

Two self-propelled coal vessels with onboard cranes (to load cargoes before the completion of upgrades to the Krajan Jetty) have already been obtained.

A shipyard has been appointed to facilitate the refitting required to meet the needs of the IJV and to ensure the vessels are ready for Indonesian classification. For the latter, Cratus’ strong connections to the BKI (Indonesian Classification Society) will be helpful.

An anticipated 18 custom-built self-propelled vessels will also be brought online to meet the exact specifications and requirements of the IJV. in particular, to meet that end, Cokal is seeking wider vessels with reduced draft. Each of these will take around three months to construct; the partners are hoping that using the custom-built approach will attract financing from shipyards.

Six weeks of work are expected for completion on the Krajan Jetty to accommodate the new vessels.

Cokal has been trading at 6 cents.

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Two achievements have made this possible: The first being Recce’s gaining of approval from the Indonesian Drug and Food Regulatory Authority – Badan POM – for the Registrational Phase 3 clinical trial.

Alongside this, Recce’s human ethics committee has approved commencement of patient dosing, and the alignment of both means the trial is on-track to begin this quarter.

While extending its global therapeutic footprint is an important priority for any pharmaceutical company, one might ask why Recce has decided to launch a trial in Indonesia in particular.

In fact, the upward trend of diabetes in the country has been acknowledged as a serious health issue since the 1980s, and today it has one of the world’s largest patient populations for the condition.

Data from the International Diabetes Federation (IDF) has shown that, in 2021, 10.6% (or around 19 and a half million people) were affected by diabetes mellitus – the group of conditions associated with high blood glucose – in Indonesia. By 2030, this was predicted to grow to 11.3% of the population (accounting for more than 23 million people).

Crucially, the same data set indicated that in 2021, 73.7% of people with diabetes were undiagnosed.

People living with diabetes are faced with a number of associated health problems, including foot infections, urinary tract infections, and surgical site infections.

The former in particular can have serious consequences when left untreated: Diabetic foot infections (DFIs) remain the most common cause of nontraumatic foot amputations among people living with diabetes – 15% of patients experience this.

The infections are mostly found at the bottom of the foot, within its soft tissue, and they are often caused by more than one pathogen – with between 50% and 80% of these wounds being polymicrobial. The pathogens often responsible for DFI infections include S. aureus, Enterococcus, P. aeruginosa, and E. coli.

Taken together, the seriousness of diabetes growth within Indonesia – plus the large percentage of people who experience foot amputations as a result of DFIs – makes Recce’s Registrational Phase 3 trial for its topical gel to treat the latter a timely study.

In fact, it is one of the largest DFI studies in the world, and the first of its kind within Indonesia.

This was acknowledged by the chairman of Indonesia’s Drug and Food Regulatory Authority – also known as Badan POM – who said:

“The approval of Recce Pharmaceuticals’ Phase 3 clinical trial is an important step in advancing treatment options for DFIs in Indonesia. Badan POM is committed to supporting the timely development of innovative therapies to address this critical health challenge. This collaboration aligns with Indonesia’s mission to advance healthcare solutions for our population, and we look forward to seeing the impact of this trial for patients in need of new, effective anti-infective treatments.”

While contributing to Indonesia’s healthcare landscape through the introduction of a novel treatment for infectious diseases is a key goal of this trial, it also aligns with Recce’s goal of pushing its topic gel through to commercialisation.

Recce’s chief executive officer James Graham said being able to move forward with the Phase 3 trial was an important milestone for the company.

“The approval from the Indonesian National Drug and Food Authority to initiate this pivotal Phase 3 trial in Recce’s clinical development is a significant achievement, bringing Recce closer to commercialisation and profitability,” he said.

“We also acknowledge the support of Investment NSW, Austrade, and the Australian Embassy team in Jakarta who played an important role in helping with the approval process.

“We look forward to evaluating R327G in our first Phase 3 trial.”

As an anti-infective, the company’s R327 candidate is being assessed in various forms to check its efficacy in treating various bacterial wounds, burns, and skin infections.

During a preclinical study on rats, it revealed notable antibacterial activity against Methicillin-resistant Staphylococcus aureus (MRSA), difficult-to-treat bacteria that causes staph infections.

In the form of a topical spray, R327 is also the subject of an ongoing Phase I/II study in patients with infected burn wounds, and has demonstrated impressive data so far, including the return of healthy skin growth, reduced swelling and infection, and signs of tissue penetration to the underlying infection.

Building on the success of this trial, Recce commenced a Phase I/II proof-of-concept study at the South West Sydney Limb Preservation and Wound Research Unit to evaluate the safety and efficacy of R327 in patients with mild skin and soft tissue diabetic foot infections (DFIs).

Thus, Recce’s new trial initiative in Indonesia aims to build on a solid history of assessment for this treatment.

Recce has been trading at 47 cents.

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The contract – which lasts for three years – will support Cokal’s production ramp-up at BBM – which has a JORC mineral resource estimate of 266.6 million tonnes – as Stanley is set to deploy up to 100 units of 8×4 spec 42-tonne payload trucks take coal from the project’s Pit 3 to the Batu Tuhup Jetty.

The program will kick off on October 14, with 20 trucks to begin hauling from that date, with additional trucks added in-line with the scheduled ramp-up.

Running alongside this is another infrastructure development: the commissioning of a semi-permanent steel bridge on the Mohing River crossing to better enable the Stanley trucks to make their journey, particularly during rainy seasons.

Construction of this bridge has already begun, was an anticipated completion by December 2024, with the current wood bridge remaining operational for haulage until then.

Cokal shares have moved slightly down on the news, and at 15:00 AEST, they were trading at 7.6 cents – a fall of 1.30% since the market opened.

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Recce is developing its flagship patented next-gen anti-infective, R327, with clinical results so far across Diabetic Foot Infection (DFI) and Acute Bacterial Skin and Skin Structure Infection (ABSSI); and, Urosepsis/Urinary Tract Infection (UTI) trials, pointing towards a potential commercial value proposition.

At the time of writing – 1.30PM in afternoon trades on Tuesday 1 October 2024 – Recce’s one-year returns are up over +16%.

We’ve seen a number of other biotech companies hit the bourse in recent history with investor interest in the sector.

Some stocks in particular – demonstrate solid performance YTD.

LTR Pharma (ASX:LTP), developing a nasal spray Viagra competitor, has posted gains of +444% YTD; while Cleo Diagnostics (ASX:COV), developing a blood test for early detection of ovarian cancer, is up +128% YTD.

Recce Pharma, for its part, has been on the bourse for closer to a decade now, after a 20c IPO raise and opening at about 40cps back in January 2016.

It’s been trading at 51cps and hit an all-time high of $1.45 back in late August of 2020 ­– the first year of COVID.

Outside of that anomalous period, however ­– let’s just define that as January 1 this year onwards ­– Recce shares hit a record high of 69cps back in April. That was around the same time the company received safety committee approval for fast-transfusion dosages in UTI patients of 4,000mg of R327 via intravenous (IV) administration.

Such volatility isn’t unusual for biotech companies and its history of price action reflects a textbook case for the sector. There’s exposure to unexpected market trends and consequent sentiment, and, a market forever somewhat risk-off if clinical results don’t meet expectations.

Biotech companies are also notoriously long-term value propositions, especially if they’re in the early days of getting through regulatory approvals – and perhaps by being publicly listed they’re forever star-crossed.

Shareholder and investment communities are typically defined by some level of impatience when progress is perceived to be tracking slowly for any company, but this is especially true for biotech ­– where a well-liked stock can easily become a pariah overnight.

But Recce Pharmaceuticals has pivoted, now, towards one market where it may see a good deal of momentum pick up – and it’s been gearing up for a busy end to 2024.

A large part of that hinges on a relatively freshly minted relationship which Recce has, which is underlined by a Memorandum of Understanding (MOU) with regional healthcare entity Etana Biotechnologies Indonesia.

Etana and Recce’s relationship doesn’t exist in a vacuum: It has the attention of Indonesia’s government.

In February of 2024, the Chairman of Indonesia’s National Research and Innovation – in an acronym, BRIN – Mr Laksana Tri Handoko, highlighted the Indonesian Government’s growing interest in innovation when it comes to biomedicine, which aligns with its larger overhead goal to tackle the health challenge of antimicrobial resistance (AMR).

“We need to build a national capability, especially after the lesson of the recent pandemic,” he said.

“This collaboration is a continuation of the close relationship we have with Australia, which I see will grow moving forward. We want to build our expertise together and I look forward to the work to start with us.”

It wasn’t just BRIN – Indonesia’s Health Minister, Mr Budi Sadikin, also pointed to greater cohesion between Indonesia’s and Australia’s biomed private sectors and public agencies.

“The global health challenge of antimicrobial resistance is a pressing issue on the world stage,” he said, also in February.

“Indonesia welcomes collaborative initiatives and supports efforts to combat antimicrobial resistance, including the development of innovative therapeutics for infectious diseases.”

Alongside Etana, Recce ultimately wants to launch a Phase III diabetic foot infection clinical trial of R327 in Indonesia.

If successful, this would be Recce’s first Phase III clinical trial marking a significant company milestone.

 Indonesia is a country boasting a massive population centre in South East Asia and part of  the Valeriepieris circle. Otherwise known as the Yuxi Circle, it’s a relatively small area of Earth’s surface that contains half the human population.

Indonesia, for its part, has a population of some 275.5 million – making it the fourth most populous country in the world.

When it comes to sepsis and diabetes:

“This bilateral collaboration between Recce and Etana, signifies the Australian and Indonesian Governments’ shared commitment to advancing public health, fostering innovation and addressing the global challenge of AMR in the Asia Pacific region,” Recce Pharma CEO James Graham said in February.

“By combining our expertise and resources, we can make significant strides towards a healthier and more resilient future for both our nations and the global community.”

RCE last traded at 51cps.

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Disclaimer: The Market Online & HotCopper had a commercial relationship with Recce at the time this was written.

At 15:16 AEST, Cokal shares were trading at 8.9 cents, a rise of 9.88% since the market opened.

Although a 2014 feasibility study for the BBM project had highlighted the importance of an underground operation from Pit 1, this was not expected to take off anytime in the near future.

However, Cokal’s subsidiary PT Bumi Barito Mineral has recently signed a binding agreement with mining contractor PT Cipta Bersama Indonesia (CBI) to develop this type of mine, with plans to produce PCI within 18 months.

CBI will take on responsibility for both underground mine development and operations, also paying all mine development costs, and all ongoing operating costs up to the point of product delivery to BBM ROM stockpile.

From there, Cokal would transport it to Batu Tuhup jetty and then to market, and would additionally be responsible for sales and marketing of the coal product.

The sale of this would produce revenue shared by both companies, with BBM to take 40% and CBI 60%.

Cokal CEO Karan Bangur said the agreement was another step in BBM’s development and ramp-up plans.

“Prior to the Agreement with CBI, BBM did not anticipate any underground mine development for at least another decade,” he said.

“This Agreement brings that production forward and is entirely in addition to the current targets of coal production from the open pit operations at BBM.

“This will add additional cashflow and enhanced value to Cokal.

“In addition, the additional coal volumes will utilise and enhance the value of the extensivecoal transport logistics chain that Cokal has developed and is expanding.”

The deal (or ‘Term Sheet’) – signed between Cokal’s 60% owned subsidiary PT Bumi Barito Mineral and the major Indonesian player – will bring on contractor and vendor management services to facilitate operation expansion and increased production from the mine, which is located in the Central Kalimantan Province.

Cokal is expecting lower production costs per tonne as a result, capitalising on Petrosea’s status in the Indonesian mining sector to select and optimise terms of agreements with relevant contractors; in addition, payment terms for mine service providers – including those involved in fuel and blasting – are set to be extended by an additional 120 days.

To underscore the relationship, Petrosea will also be appointed lead mining contractor at BBM from 2025.

Chairman Domenic Martino said the plan to grow Cokal into a ‘fully-fledged, high volume metallurgical coal production company’ was developed around three pillars.

“Number one: provide capital, technical knowhow and resources to ramp up production to high value levels,” he said.

“Number two: provide capital, technical knowhow and resources to further develop and refine logistics to a sustainable, high volume transportation route to market for our high value product; and

“Number three: develop logistics, specifically the barging component, with new flat bottom self-propelled barges foreshadowed in the original feasibility study to be able to operate in high and low river level environments.”

Mr Martino said that inking the deal with Petrosea meant that the first target had been achieved, and the second was in progress through an infrastructure development agreement with Petrindo (Petrosea’s sister company) announced earlier in the year.

The market seemed pleased with the news, and at 12:57 AEDT, Cokal shares were trading at 9.6 cents, a rise of 12.94% since the market opened.