Consolidated Zinc 'in production before the end of the year' with under US$5M Capex Wed, 18 Jul 2018 03:56:00 +0100 Consolidated Zinc Ltd (ASX:CZL) chief executive Bradley Marwood speaks to Proactive Investors about the company's Plomasas Project in Mexico, a historical mine with a large-scale, high-grade legacy.

"We've had a new discovery where we have found a parallel structure in the limestones, which is called the Tres Amigos [Resource]... We have found three separate structures, one of which we have defined for 400 metres vertically, and the two parallel structures sitting underneath it are yet to be well-defined. So we've got continuity along strike of 600 metres, but we have surface expression over seven kilometres," says Marwood.

Existing infrastructure from historic mining operations gives the company good access to the orebody, and a processing plant that will be refurbished.

The project will be developed in three phases, with the Stage 1 development happening this year. Marwood says, "we're anticipating that we'll be in production before the end of the year... we're currently looking at less than US$5 million to bring the mine into production."

Angela Pankhurst will join the board as non-executive director effective August 1st.

]]> Azumah Resources appoints two new directors to board Tue, 17 Jul 2018 23:02:00 +0100 Mandalay Resources making headway as Australian mine shows continued promise Tue, 17 Jul 2018 18:40:00 +0100 Primary Cobalt shares gain as it appoints geologist Clarke as director Tue, 17 Jul 2018 18:06:00 +0100 Energy Fuels responds to paper about impact of proposed US uranium import quotas Tue, 17 Jul 2018 17:17:00 +0100 Bonterra Resources continues to expand exciting Gladiator deposit in Quebec Tue, 17 Jul 2018 17:02:00 +0100 Tsodilo Resources has high value diamonds at a project with one of the best addresses on the planet Tue, 17 Jul 2018 15:38:00 +0100 Bacanora Lithium looks to Sonora construction phase after equity sales Tue, 17 Jul 2018 12:39:00 +0100 Orsu Metals well set to prove up to 2.5mln ounces of gold at Sergeevskoe and PEA due by the end of the year Tue, 17 Jul 2018 11:36:00 +0100 Rio Tinto’s strong iron ore production offset by more cost warnings Tue, 17 Jul 2018 09:32:00 +0100 VSA Capital Market Movers - Independent Oil & Gas (LON:IOG) Tue, 17 Jul 2018 09:23:00 +0100 Independent Oil & Gas (LON:IOG)

Independent Oil & Gas (LON:IOG) has provided an update on the integrity of the Thames Pipeline which demonstrates that further testwork and analysis of the existing data has demonstrated that the condition of the pipeline is “excellent”. Testwork on the cut section by Oilfield Testing Services demonstrated less than expected internal corrosion which shows the pipeline can be considered virtually new.

As a result, of these encouraging results IOG has updated its integrity confirmation plan. It will run a 24 hour hydrotest required under the Pipeline Code in July and August on the section of the pipeline most likely to have suffered from degradation since decommissioning in 2015 i.e. between the Bacton terminal to 1km offshore. However, further intelligent pigging is not now expected to be required until shortly ahead of first gas when the entire export route will be tested, including extensions.

The Thames Pipeline is a critical part of IOG’s project providing a 100% owned export route for its Southern North Sea gas project. These results confirm our view that the pipeline will save the company hundreds of millions in development capital overall, significantly enhancing the economics of the project. Furthermore, at peak production we anticipate c180mmcfd indicating a minimum 120mmcfd spare capacity on which IOG could benefit from exporting third party gas for additional tariff revenue which would further strengthen returns.

There will consequently be some expected cost savings in relation to the updated plan although Field Development Plan approval has now been pushed back to the end of September. With the project approaching FDP and following significant positive announcements regarding the pipeline and resource expansion the shares have rallied 87% since our initiation in March 2018. Although historically sharp rallies in the shares have eased back, with FDP now approaching we believe that further positive progress towards first gas is likely to result in stronger support for the stock.


We reiterate our Buy recommendation and target price of 96p.

]]> Greatland Gold to begin new exploration programme at Black Hills licence Tue, 17 Jul 2018 09:12:00 +0100 Xtract Resources encouraged by gold production trend at Manica in Mozambique Tue, 17 Jul 2018 08:38:00 +0100 Dividend plan underlines confidence at Anglo Asian Mining Tue, 17 Jul 2018 08:28:00 +0100 Anglo Asian Mining shares jump as it delivers 22% boost to production from Gedabek Tue, 17 Jul 2018 08:15:00 +0100 Galliford Try shares gain as the housebuilder expects a strong performance for the year Tue, 17 Jul 2018 07:38:00 +0100 Fura Gems to hold largest Ruby land package in Mozambique after merger Tue, 17 Jul 2018 07:19:00 +0100 Dev Shetty, president and CEO of Fura Gems Inc  (TSXV: FURA) (OTC: FUGMF), introduces the company to Proactive Investors and outlines their recent Mozambique acquisition.

Shetty says they're acquiring nine ruby assets in Mozambique from ASX listed Mustang Resources Ltd and Regius Resources Group Ltd for A$15mln.

He adds that upon completion of the deal Fura will hold the largest ruby land package in Mozambique - 1,104 square kilometres.

]]> Landore Resources hits visible gold between the two deposits at BAM Tue, 17 Jul 2018 06:51:00 +0100 Stavely Minerals confirms further high-grade gold results from the Ravenswood Project Tue, 17 Jul 2018 06:46:00 +0100 Hexagon Resources achieves positive lithium battery test results Tue, 17 Jul 2018 05:25:00 +0100 Investigator Resources extends Cartarpo target zone to 800 metres long Tue, 17 Jul 2018 05:24:00 +0100 Myanmar Metals confirms drilling and feasibility study focus at Bawdwin project Tue, 17 Jul 2018 05:22:00 +0100 Rift Valley Resources' upcoming drilling program aimed at growing magnet metals resource Tue, 17 Jul 2018 04:26:00 +0100 Cassini Resources in a sweet spot as it focuses on nickel-copper with OZ Minerals Tue, 17 Jul 2018 03:50:00 +0100 Aeris Resources identifies 28 anomalies at Torrens Copper-Gold Project Tue, 17 Jul 2018 03:32:00 +0100 Cardinal Resources strikes more high-grade gold at Ndongo in Ghana Tue, 17 Jul 2018 03:29:00 +0100 PolarX intersects visible copper and gold 100 metres below high-grade inferred resource Tue, 17 Jul 2018 02:30:00 +0100 Piedmont Lithium tests produce consistent high-grade concentrate from US lithium project Tue, 17 Jul 2018 02:28:00 +0100 Merlin Diamonds recovers 32 pink diamonds, mining to ramp up Tue, 17 Jul 2018 02:22:00 +0100 Anson Resources test work shows grades of lithium and boron rising higher Tue, 17 Jul 2018 01:50:00 +0100 Cassini Resources assay results confirm nickel sulphide mineralisation at Yappsu drilling site Tue, 17 Jul 2018 01:37:00 +0100 Precious metal exploration company Cassini Resources Ltd (ASX:CZI) executive director Richard Bevan says the business has had its most significant nickel sulphide intercept to date at the Yappsu Prospect.

"The assay results at Yappsu are actually quite material... the significance is really around the grade and tenor of the mineralisation"

The result is better than any previous results at the site and it gives the company more options with the project as it moves towards the production phase.

Cassini's current focus is still squarely on the pre-feasibilty study at the Nebo-Babel Deposit but the exploration activities have been to identify additional high grade ore in the immediate area.

]]> Walkabout Resources continues to progress Lindi Graphite Project in Tanzania Tue, 17 Jul 2018 01:20:00 +0100 Mustang Resources to merge ruby assets with Canadian-listed Fura Gems Tue, 17 Jul 2018 00:48:00 +0100 Legend Mining extends successful exploration methods to southern portion of Fraser Range project Mon, 16 Jul 2018 23:42:00 +0100 Cape Lambert Resources engineering study supports low-cost cobalt operation Mon, 16 Jul 2018 22:00:00 +0100 Gold Resource Corp unveils encouraging latest drill results from Mina Gold property Mon, 16 Jul 2018 19:00:00 +0100 Fireweed Zinc CEO says drillbits are turnings at Macmillan Pass zinc project in Canada Mon, 16 Jul 2018 18:30:00 +0100 Fireweed Zinc Ltd (CVE:FWZ) CEO Brandon Macdonald tells Proactive Investors the Yukon-based junior has started turning the drillbits at its Macmillan Pass zinc-lead-silver project.

All three drills have now started step out holes south of the Tom West Zone targeting high-grade mineralization in an effort to expand mineral resources.

]]> Orsu Metals impressed with Sergeevskoe gold project assays, which extend mineralization Mon, 16 Jul 2018 17:34:00 +0100 BlueBird Battery Metals days away from exploration program at Batt cobalt, copper project in Yukon Mon, 16 Jul 2018 17:03:00 +0100 VR Resources hones in on copper-silver veins at Junction project in Nevada Mon, 16 Jul 2018 16:56:00 +0100 VR Resources Ltd (CVE:VRR) CEO Michael Gunning tells Proactive Investors that the junior explorer has outlined three targets along the six kilometer trend of surface copper-silver-gold-veins at its Junction property in Nevada ahead of possible drilling this fall.

Gunning says the firm will look more closely at the sub-surface of the veins. Field work is expected to start later this month to further refine targets.

]]> American Lithium stepping up development at Fish Lake Valley lithium project, Nevada Mon, 16 Jul 2018 15:53:00 +0100 Primary Cobalt and Exco Mining release grab sample results from Spanish project; shares boosted Mon, 16 Jul 2018 15:49:00 +0100 Bacanora Lithium agrees strategic investments totalling US$90mln, launches US$100mln proposed placing to fund Sonora project Mon, 16 Jul 2018 12:57:00 +0100 Xtract reports increase in quarterly gold production at Manica project in Mozambique Mon, 16 Jul 2018 12:03:00 +0100 NQ Minerals opens Hellyer Gold Mines to high-powered delegation ahead of production restart Mon, 16 Jul 2018 12:02:00 +0100 Tsodilo Resources encouraged by initial results of diamond valuation Mon, 16 Jul 2018 11:36:00 +0100 Dr Mike de Wit, president and chief operating officer at Tsodilo Resources Ltd (CVE:TSD), discusses with Proactive Investors  'encouraging' findings from an independent valuation of two parcels totalling 224 diamonds from their BK16 kimberlite in Botswana

The average value of these parcels, which had a cumulative weight of 34.35 carats, was shown to be US$197.68 per carat.

The two parcels hail from the BK16 kimberlite large diameter drilling (LDD) samples.

]]> Bushveld Minerals 'still greatly undervalued' - CEO Fortune Mojapelo Mon, 16 Jul 2018 11:01:00 +0100 Fortune Mojapelo, chief executive of Bushveld Minerals Ltd (LON:BMN), caught up with Proactive's Andrew Scott while in London to update on developments across the business.

This month Bushveld Minerals Ltd’s (LON:BMN) partnership with South African electricity utility Eskom received its first vanadium battery.

US firm UniEnergy Technologies built the unit, which will run on a mixed-acid vanadium electrolyte

Meanwhile Bushveld Vanadium's recently completed the second phase of a three-phase expansion programme at the Vametco Mine which has seen production increase to 3,750 mtV.

Mojapelo says they're also ready to push on with the development of their Imaloto coal power project in Madagascar in the second half of the year.

]]> Inland Homes reports jump in annual revenues despite slowdown in housing market Mon, 16 Jul 2018 07:38:00 +0100 Savannah Resources ups as it hits more high grade lithium at Mina do Barroso Mon, 16 Jul 2018 07:36:00 +0100 Symbol Mining executes marketing and funding agreement with Noble for Nigerian project Mon, 16 Jul 2018 07:35:00 +0100 MOD Resources increases T3 indicated copper resource by 13%, drill testing additional potential extensions Mon, 16 Jul 2018 07:20:00 +0100 Metal Tiger boosts indicated resource at T3, reserves could now exceed PFS model Mon, 16 Jul 2018 07:16:00 +0100 Alba Mineral Resources set to take a further 41% stake in Clogau gold mine Mon, 16 Jul 2018 07:08:00 +0100 Sativa Investments inks IP deal with Canada's Veritas Pharma Mon, 16 Jul 2018 06:59:00 +0100 Europa Metals contracts drill rig for Toral zinc project Mon, 16 Jul 2018 06:58:00 +0100 Artemis Resources receives first approval for upgrade to Radio Hill gold processing plant capacity Mon, 16 Jul 2018 06:48:00 +0100 Erris Resources hits further high zinc grades at Abbeytown Mon, 16 Jul 2018 06:44:00 +0100 Cassini Resources confirms broad nickel sulphide mineralisation at Yappsu Mon, 16 Jul 2018 04:45:00 +0100 Orion Minerals continues to progress drilling at Prieska Zinc-Copper Project Mon, 16 Jul 2018 04:27:00 +0100 Battery Minerals Ltd ups Elephant graphite deposit by 14% at Mozambican Montepuez project Mon, 16 Jul 2018 04:15:00 +0100 Golden Rim Resources discovers significant gold mineralisation at Burkina Faso project Mon, 16 Jul 2018 03:29:00 +0100 PNX Metals reveals high-grade lithium and lead-silver-gold in rock chips at Kilfoyle Mon, 16 Jul 2018 02:42:00 +0100 Argonaut Resources identifies iron oxide copper-gold targets at Torrens project Mon, 16 Jul 2018 02:22:00 +0100 West Wits Mining adds 428,000 ounces to South African gold bounty Mon, 16 Jul 2018 02:06:00 +0100 Pantoro on track to achieve gold production rate of up to 100,000 ounces per year Mon, 16 Jul 2018 01:56:00 +0100 Mustang Resources enters trading halt pending asset merger Mon, 16 Jul 2018 01:19:00 +0100 Core Exploration sees strong financials and short payback period for Finniss Lithium Project Mon, 16 Jul 2018 01:00:00 +0100 Core Exploration Ltd (ASX:CXO) managing director Stephen Biggins speaks with Proactive Investors about the key Finniss Lithium Project.

"Core is developing one of the Australia's highest grade lithium deposits...we've got a project that will deliver high profits, good margins, high NPV"says Mr Biggins.

The company has completed its pre-feasibility study on the deposit and sees an operating profit of around 60% with a payback period of 12 months. Core Exploration has already established an offtake agreement with Chinese lithium producer Yahua, which will also provide a pre-payment facility to help develop the project.

Lithium demand worldwide is going from strength to strength with the rise of electric vehicles and China's tighter environmental controls being key drivers.

]]> King River Copper offers shareholders bonus options as a ‘reward’ for support Sun, 15 Jul 2018 23:08:00 +0100 Resolute Mining completes investments in gold juniors Sun, 15 Jul 2018 22:25:00 +0100 White Rock Minerals advancing Red Mountain Project at pace following Sandfire deal Sun, 15 Jul 2018 21:50:00 +0100 White Rock Minerals Ltd (ASX:WRM) managing director and chief executive Matt Gill speaks to Proactive Investors about the explorer and developer's two projects; the Mt Carrington Project in north New South Wales, Australia, and the Red Mountain Project in Alaska, USA.

The flagship Red Mountain Project is the focus of development efforts, which are continuing at pace following a newly-established strategic partnership with Sandfire Resources (ASX:SFR). "As we speak we've got over 20 people on the ground doing geochemistry, geophysics and drilling," says Gill.

]]> Cobalt group BlueBird Battery excited about Broken Hill acquisition, which increases its Australia portfolio Sat, 14 Jul 2018 09:24:00 +0100 Barsele Minerals grants incentive stock options Fri, 13 Jul 2018 21:22:00 +0100 MGX Minerals set for new lithium joint venture in the Great Basin in Nevada. Fri, 13 Jul 2018 17:20:00 +0100 Ashanti Gold discovers new gold zone at Kossanto East project Fri, 13 Jul 2018 15:42:00 +0100 Excelsior Mining believes appeal against Gunnison permit wil not succeed Fri, 13 Jul 2018 14:37:00 +0100 Tertiary Minerals reviews advice from Swedish authorities on Storuman fluorspar project Fri, 13 Jul 2018 14:13:00 +0100 President Trump’s bluster and thunder has a deeper purpose behind it in regard to NATO, Russia and China Fri, 13 Jul 2018 11:53:00 +0100 Barratt Developments upgraded by Shore Capital on valuation grounds Fri, 13 Jul 2018 09:54:00 +0100 AfriTin planning for annual revenues of US$60mln from Namibian mine Fri, 13 Jul 2018 09:14:00 +0100 Cadence Minerals says Auroch to kick off “aggressive” maiden drill programme at Arden and Bonaventura Fri, 13 Jul 2018 08:43:00 +0100 Antofagasta's Mineral Centinela sells electricity transmission lines for US$117mln Fri, 13 Jul 2018 07:37:00 +0100 AfriTin starts scale up programme at Uis mine Fri, 13 Jul 2018 07:19:00 +0100 Dacian raises $40 million in oversubscribed placement Fri, 13 Jul 2018 07:12:00 +0100 Lionsgold appoints corporate lawyer Michael Corcoran as its interim chairman with immediate effect Fri, 13 Jul 2018 07:11:00 +0100 Alderan Resources mobilises second drill rig at Accrington prospect Fri, 13 Jul 2018 07:10:00 +0100 W Resources says initial assays results from São Martinho project in Portugal has shown thick gold intersections Fri, 13 Jul 2018 06:29:00 +0100 Alchemy Resources commences drilling at West Lynn nickel-cobalt project Fri, 13 Jul 2018 04:49:00 +0100 Resolute Mining secures US$100 million revolving loan facility from Investec Fri, 13 Jul 2018 04:05:00 +0100 Boss Resources enhances gold resource at West African prospects Fri, 13 Jul 2018 02:47:00 +0100 Cape Lambert Resources attracts more funds for cobalt-copper project Fri, 13 Jul 2018 02:31:00 +0100 St George Mining has drill bit spinning at new Mt Alexander massive sulphide nickel-copper targets Fri, 13 Jul 2018 01:36:00 +0100 Anson Resources receives lease approval for pilot plant area Fri, 13 Jul 2018 00:31:00 +0100 Castillo Copper aims to add to Cangai copper bounty with phase II drilling Thu, 12 Jul 2018 23:21:00 +0100 Resolute Mining receives environmental permit for Bibiani recommissioning Thu, 12 Jul 2018 23:20:00 +0100 Klondex Mines shares tick higher as shareholders approve Hecla transaction Thu, 12 Jul 2018 18:41:00 +0100 Golden Arrow Resources shares boosted after US$10mln SSR Mining credit line Thu, 12 Jul 2018 18:29:00 +0100 Tsodilo Resources hails initial results of diamond valuation for BK16 project, which shows promising stones Thu, 12 Jul 2018 18:27:00 +0100 Magmatic Resources' projects put them 'in a very strong position as a junior explorer' Thu, 12 Jul 2018 16:56:00 +0100 Magmatic Resources Ltd (ASX:MAG) managing director David Richardson speaks to Proactive Investors about the exploration company and its portfolio of assets in New South Wales and Western Australia.

"The biggest value we can add to shareholders is a discovery… We've got 6 projects, 12 tenements, about 50 targets; some at early stage, some at advanced. So our challenge, and our goal really, short-term is to drive and find a discovery, and define a resource in our near-surface potential for open-pit gold projects. And, in terms of providing a big opportunity in the future, [our goal] is to joint venture our major copper porphyry projects with some major companies, and we've already been very successful,” says Richardson.

]]> 92 Resources welcomes Darren Smith to board of advisors Thu, 12 Jul 2018 15:21:00 +0100 MGX Minerals and partner Highbury Energy start researching gasification of petcoke Thu, 12 Jul 2018 12:48:00 +0100 KEFI stands ready to develop Tulu Kapi as Ethiopia's first modern gold mine Thu, 12 Jul 2018 12:08:00 +0100 Rio Tinto to raise US$3.5bn from sale of its production stake in the world's second-biggest copper mine Thu, 12 Jul 2018 11:51:00 +0100 Arc Minerals ups stake in Zamsort, kicks off new drilling programme Thu, 12 Jul 2018 10:36:00 +0100 Nick von Schirnding, executive chairman of Arc Minerals Limited (LON:ARCM), caught up with Proactive's Andrew Scott following their investor evening in London.

''We had a very successful formal launch of our partnership with our Zamsort entity and the Minister of Mines for Zambia was there, we were very honoured by that ... the High Commissioner for Zambia in the UK was there a very good turnout from the Zambian government and from investors''.

Arc's this week commenced drilling at the Zamsort Copper Cobalt project in Zambia, while also upping its stake in the project by 5%.

]]> Kincora Copper’s deep value opportunity attracts new cornerstone investor Thu, 12 Jul 2018 10:19:00 +0100 Caledonia Mining sees year-on-year production at Blanket creep up in first half Thu, 12 Jul 2018 09:53:00 +0100 Travis Perkins downgraded by UBS as analysts question investment pay out potential Thu, 12 Jul 2018 09:49:00 +0100 Uranium outlook decidedly mixed, says Liberum, favours Yellow Cake Thu, 12 Jul 2018 09:38:00 +0100 Sirius Minerals tipped for near 50% upside as project financing deal nears Thu, 12 Jul 2018 09:27:00 +0100 Pan African headed in right direction after challenging year Thu, 12 Jul 2018 08:43:00 +0100 Estrella Resources gets green light for further drilling at Scotia East cobalt-nickel project Thu, 12 Jul 2018 07:53:00 +0100 Danakali Limited to begin trading on London's Main Market later this month Thu, 12 Jul 2018 07:06:00 +0100 Seamus Cornelius, executive chairman of Danakali Limited (LON:DNK, ASX:DNK), discusses with Proactive's Andrew Scott their intention to begin trading on the London Stock Exchange Main Market around July 24th.

Cornelius says their strategy is to become a leading Sulphate of Potash (SOP) producer through the development of their Colluli Potash Project in Eritrea.

]]> Strategic Minerals expects it will continue to fund expansion with internal money Thu, 12 Jul 2018 06:51:00 +0100 Troy Resources’ drill results confirm growth potential of Karouni gold project in Guyana Thu, 12 Jul 2018 06:39:00 +0100 Golden Rim Resources extends gold mineralisation at Kouri project in Burkina Faso Thu, 12 Jul 2018 06:32:00 +0100 Technology Metals Australia leveraged to growth of vanadium flow battery markets Wed, 11 Jul 2018 23:59:00 +0100 Technology Metals Australia (ASX:TMT) executive director Ian Prentice discusses with Proactive Investors, key developments in the vanadium market, and progress with the company's flagship Gabanintha Vanadium Project in Western Australia.

Prentice recently completed a China road trip where he met with "all the major players in the Chinese vanadium industry... We can see a fantastic opportunity in this marketplace. The vanadium market is screaming out for new supplies."

At Gabanintha, definitive feasibility study (DFS) planning is well underway, with a target start date of August 1st. The company last week announced the acquisition of a neighbouring tenement, which Prentice says, "it just gives us a bit more flexibility around our operations, a bit more optionality on where we can place our infrastructure. It's a really key location next  door to the area where our main open pit's going to be. It adds a lot of value to the longer term life of the operation."

]]> Salt Lake Potash targeting first production from its salt lakes next year Wed, 11 Jul 2018 14:18:00 +0100 Salt Lake Potash Limited's (LON:SO4, ASX:SO4) Jo Battershill tells Proactive's Andrew Scott they're a new entrant into the Sulfate of Potash (SOP) market.

''We have a series of lakes in Western Australia whereby we envisage extracting brines from the salt lakes, pumping it into evaporation ponds and then letting the sun basically enrich the salts before we harvest them and convert them into SOP''.

''We think SOP is a very well structured and tight market we think there's a lot of upside to see new demand requirements and growth of supply''.

]]> Australian Vanadium preparing to release PFS on Gabanintha project 'imminently' Tue, 10 Jul 2018 23:50:00 +0100 Australian Vanadium Ltd (ASX:AVL) managing director Vincent Algar provides Proactive Investors with updates on pre-feasibility study (PFS) works at the company's flagship Gabanintha Vanadium Project in Western Australia, which include a revised JORC resource estimate just announced.

In addition to improving the grade of vanadium in the Measured and Indicated Resources, the emerging producer has put out a Maiden Resource for nickel, copper and cobalt, which it discovered it can extract from tailings.

Algar also shares his assessment of the future of the vanadium markets.

]]> BlueBird Battery Metals increases Australia portfolio with cobalt project Tue, 10 Jul 2018 18:43:00 +0100 BlueBird Battery Metals Inc (CVE:BATT, OTCMKTS:BBBMF) President Alf Stewart tells Proactive Investors the cobalt miner is expanding its Australian portfolio with the acquisition of a 726-square-kilometer property called Broken Hill.

Stewart says BlueBird has inked a binding letter of intent to acquire 75% of the rights, title and interest in the licences from Impact Minerals Ltd (ASX:IPT).

The Broken Hill project in New South Wales is the same area that launched global mining giant BHP Billiton (LON:BLT)

]]> Goldstone Resources welcomes support in Ghana for redevelopment of goldmines Tue, 10 Jul 2018 12:12:00 +0100 Emma Priestley, chief executive of Goldstone Resources Ltd (LON:GRL), tells Proactive Investors there's significant interest in the development of mining opportunities in Ghana.

Priestley's comments come as Goldstone's neighbouring Obuasi Mine received environmental permits.

She also updates on latest developments at their Akrokeri-Homase Gold Project.

]]> Oklo Resources adding to and advancing portfolio of West Mali gold projects Tue, 10 Jul 2018 09:00:00 +0100 Oklo Resources Ltd (ASX:OKU) managing director and chief executive Simon Taylor speaks to Proactive Investors about the team and strategy propelling the Mali-focused gold explorer. "Big landholding, fantastic jurisdiction, really good team to implement the projects, and I think the other key part of our story is our backers - we've got a fantastic share register," summarises Taylor.

At the flagship Dandoko Project in West Mali, a 50,000 metre drill program centred on five anomalies at the Seko prospect is coming to a close. A number of results have already been released showing high-grade oxide and primary gold intersections, with more drilling and test work results due to be announced in the coming weeks and months.

The company is leveraged to the prolific greenstone belts of Western Mali, with four other projects in the same region as Dandoko, including the recently-acquired Kouroufing and Kandiole Sud assets. Early exploration work is underway at Kouroufing, and results from that will add to the news flows expected over the coming months as field work stops for the rainy season.

]]> VSA Capital Market Movers - Shefa Yamim (LON:SEFA) Tue, 10 Jul 2018 07:38:00 +0100 Shefa Yamim (LON:SEFA)


Shefa Yamim (LON:SEFA) has announced results from the first of five bulk samples from Zone 2 in the Kishon Mid Reach. The initial sample (BS-1230) consisted of 568.9t of largely basal gravels yielding a Gem Box grade of 242.59cpht; this covers all nine types of gemstone included in the Gem Box target mineral assemblage. This compares favourably to the overall grade of 154cpht in Zone 1 (6,384t). However, we highlight the variable grade distribution typically associated with alluvial type deposits and this applies to both the overall grade and that of the constituent types of gemstones.

Overall, 1,381ct of gemstones were discovered in BS-1230 and this was dominated by spinel (57%), followed by garnet (18%), ilmenite (15%), sapphire (5%) and Carmel Sapphire (3%). As with Zone 1, based on the updated data, spinel continued to have a dominant presence and in this bulk sample also produced the largest single gemstone at 6.20ct whilst a 3.61ct garnet was also found. The size distribution data indicates that 4.6% of the findings were above 1.2ct, with a further 5.2% between 0.66-1.19ct. We believe the continuing presence of Carmel Sapphire and sapphire is encouraging and look forward to the remaining results from Zone 2.

We reiterate our Speculative Buy recommendation. 

]]> Barsele Minerals reports exciting drill results from Barsele Gold Project in Sweden Mon, 09 Jul 2018 19:52:00 +0100 Barsele Minerals Corp (CVE:BME) CEO Gary Cope tells Proactive Investors the mining company reported further encouraging results from exploration at its gold/volcanogenic massive sulphide project in Sweden.

Cope says joint venture partner Agnico Eagle Mines Ltd (TSE:AEM) is a very respected senior minor, and is doing a great job with the project. Cope compares the relationship with that of MAG Silver's (TSX:MAG, NYSEMKT:MAG) and Fresnillo's (LSE:FRES).

]]> Leading Edge Materials updates progress at Woxna graphite mine in Sweden Mon, 09 Jul 2018 18:12:00 +0100 Leading Edge Materials Corp (CVE:LEM, OTCQB:LEMIF) CEO Blair Way tells Proactive Investors the company has quite a few initiatives underway to bolster its Woxna graphite mine in Sweden.

Way says the company will complete an internal trade-off study for installation of a battery graphite demonstration plant at the Woxna site designed to produce substantial volumes of commercial anode materials. Way says study recommendations are expected mid Q3 2018.

]]> Mandalay Resources delivers consistent, high-grade drill results from Costerfield project in Australia Mon, 09 Jul 2018 16:24:00 +0100 Mandalay Resources Corp (TSE:MND) CEO Dominic Duffy tells Proactive Investors the metals miner has very exciting drill results from the Youle vein at its Costerfield project in Australia.

Duffy says for the remainder of the year the company will be following up on the results, with a 37 drill hole program planned out.

Duffy also updated investors on exploration at its Björkdal mine in Sweden.

]]> Anglo Pacific encouraged as new Kestrel owner reportedly set to expand production Mon, 09 Jul 2018 14:55:00 +0100 Julian Treger, chief executive of Anglo Pacific Group plc (LON:APF), discusses with Proactive reports that the new owner of the Kestrel operation is studying a doubling of production from the mine.

It comes as the Group 's stock had its “buy” rating reissued by analysts at house broker Peel Hunt.

]]> Bluerock Diamonds 'looking forward to more steady and predictable' second half Mon, 09 Jul 2018 10:02:00 +0100 Adam Waugh, chief executive of Bluerock Diamonds Plc (LON:BRD), discusses with Proactive's Andrew Scott the miner's second quarter and first half update.

Production in the first half of the year was up 81% year-on-year at 73,028 tonnes, with production for the second half expected to be between 150,000-175,000 tonnes assuming no halts in production.

]]> Impact Minerals active on five projects over next six months Sun, 08 Jul 2018 23:59:00 +0100 Impact Minerals Ltd (ASX:IPT) managing director Dr. Mike Jones speaks to Proactive Investors about various drill programs, and also provides updates on the company's project portfolio as a whole, following some asset sales and acquisitions.

A step-out drilling program is underway at the Silica Hill prospect of the gold-silver-base metal Commonwealth Project in NSW. The Clermont gold project in Queensland is officially coming off the back burner in the coming days, with five targets due to be drilled. In the coming months, drilling will also recommence at the gold and nickel Mulga Tank Project in Western Australia.

The project generation company recently sold its least advanced Pilbara conglomerate-hosted gold project to Pacton Gold Inc (CVE:PAC), garnering shares in the Canadian exploration company in the process. It has also picked up an 18-month option on a historical conglomerate-hosted project in Queensland, with plans to commence survey and sampling work in the next quarter.

Jones is a geologist specialised in conglomerate-hosted gold, having completed his PhD studying this style of mineralisation.

]]> Copper strength in doubt as trade war fears take centre stage in markets Fri, 06 Jul 2018 10:04:00 +0100 Fertoz 'on track to be largest seller of organic inputs in North America' Fri, 06 Jul 2018 08:00:00 +0100 Fertoz (ASX:FTZ) executive chairman Pat Avery speaks to Proactive Investors about the integrated organic fertiliser producer's end to end operations, and also about organic standards and markets as a whole.

The company mines phosphate at a number of projects in Canada and the USA, and processes it into a range of organic fertilisers sold in North America and Australia. Its phosphate rock has been certified by the Canadian Organic Standards (COS) and the USDA National Organic Program.

"We really went back to basics. We wanted to find where good phosphate was, we wanted to make sure it was close to a marketplace... we also looked at agrinomics... so we mine, crush, screen, but then we put it in a form that's most predominantly used by growers, either powder or granulated. All of that process is tracked... to keep our standards intact," says Avery.

According to Avery, organic crops bring in approximately double the margin of traditional crops, thus organic inputs represent a premium product to farmers. Fertoz projects sales of 100,000 tonnes in 2020.

Avery says "it's a very attractive field... Our goal is to help the organic distributors and dealers, and the organic growers, receive a great margin for yield increases and for the product. And for Fertoz, we're going to bring that margin return in value back to our shareholders."

]]> Bulls, Bears & Brokers: Alto Capital's Tony Locantro on new financial year strategy 2/2 Fri, 06 Jul 2018 02:00:00 +0100 In Part Two of a two-part special, Alto Capital's Tony Locantro speaks to Proactive Investors' Danielle Doporto about the end of financial year (EOFY) fallout on stock markets, and his fresh financial year strategy, with a particular focus on junior mining stocks.

“I think the key is quality. I always look for the quality juniors that have the good geologists, have the good ground, and basically have resources that underpin the valuation. Now a lot of these quality stocks don’t get much airplay at all, and you’ve got to sift through hundreds and hundreds of mining companies... a lot of those quality junior have become what I consider to be stupid cheap,” says Locantro.

To hear Tony's Tips regarding promising junior mining stocks, watch our video interview.

]]> Cabral Gold reports promising drill results from Cuiu Cuiu project Thu, 05 Jul 2018 19:36:00 +0100 Cabral Gold Inc (CVE:CBR) CEO Alan Carter tells Proactive Investors about the drill results from its Cuiu Cuiu project.

The project is located in Brazil's Tapajos region, which was the site of the world’s largest ever gold rush between the mid-1970s and mid-1990s.

]]> Savannah Resources raises £11.5mln to advance Mina do Barroso Lithium Project Thu, 05 Jul 2018 13:54:00 +0100 David Archer, chief executive of Savannah Resources Plc (LON:SAV), discusses with Proactive's Andrew Scott their £11.5mln fundraise.

Archer says they've also received a letter of intent from the company's major shareholder Al Marjan Limited for a further £1mln.

He says the funds will predominantly be used to support the next stage of development for their Mina do Barroso Lithium Project in northern Portugal, providing funding to decision to mine.

]]> Collaborate Corporation set to launch Australia's first subscription product for cars Thu, 05 Jul 2018 09:50:00 +0100 Collaborate Corporation Ltd (ASX:CL8) chief executive Chris Noone speaks to Proactive Investors about the emerging industry known as the collaborative, or peer-to-peer, or sharing economy. The company operates peer-to-peer marketplaces underpinned by a proprietary PeerPass verification platform. Its businesses include DriveMyCar, MyCaravan and Mobilise.

"We've got a dual focus on working with strategic partners and also marketing directly to consumers, both on the supply and the demand side. So we leverage both of those great opportunities that we have, but what we look to do is do it cost-effectively... so we get lowest cost per acquisition and the highest number of users," says Noone.

]]> 'Investors need to keep us on their watchlists over next few months' - Bryah Resources Thu, 05 Jul 2018 08:59:00 +0100 Bryah Resources Ltd (ASX:BYH) managing director Neil Marston provides Proactive Investors with updates on its flagship Bryah Basin Project, and Gabanintha Project, both located in Western Australia.

In the Bryah Basin, rock chip samples have turned up two new manganese prospects, namely Black Caviar and Devils Hill. "It's an excellent time to be looking at developing our manganese assets, and we've certainly been advancing the work we're doing... with all the sampling work we're doing at the moment we're actually finding there's more manganese around the more we look, so we're very encouraged with the early work we've done and we're planning to drill a few of these areas in the coming weeks" says Marston.

Following airborne Versatile Time-Domain Electromagnetic (VTEM) and Moving Loop Electromagnetic (MLEM) geophysical surveys, and conductor plate modelling, a drill program is being finalised for two copper and gold anomalies known as Jupiter and Mars. The Western Australia State Government has committed to co-fund that drilling to the tune of $150,000.

The explorer aims to do some follow-up drilling at Gabanintha in September at Tumblegum South high-grade gold prospect and potentially other prospect areas.

]]> Erris Resources hits multiple zones of high-grade mineralisation at Abbeytown Thu, 05 Jul 2018 07:40:00 +0100 Merlin Marr-Johnson, chief executive of Erris Resources plc (LON:ERIS), discusses with Proactive Investors the results from exploration drilling at the Abbeytown metals deposit in County Sligo, Ireland.

Specifically, one hole encountered high grade zinc, lead and silver mineralisation.

Highlight grades included up to 10.85% combined zinc and lead across a 4 metres interval, whilst the best silver grade was measured at 54.4 grammes per tonne across 3.5 metres.

]]> Shefa Yamim LTD significantly boosts recovery from Kishon Mid-Reach Zone 1 Wed, 04 Jul 2018 18:08:00 +0100 Shefa Yamim LTD's (LON:SEFA) Vered Toledo updates Proactive Investors on their bulk sample programme at the Kishon Mid-Reach Zone 1 in Israel.

Toledo says they've boosted the number of carats recovered from the campaign.

The recovery from 6,384 tonnes of ore sampled in Zone 1 now stands at approximately 9,778.15 carats.

Nine gemstone-bearing minerals have been identified in all, following the recovery of 3,952.91carats of spinels.

]]> Vast Resources reports record sales at key mines in second quarter Wed, 04 Jul 2018 15:11:00 +0100 Andrew Prelea, chief executive of Vast Resources PLC (LON:VAST), chats Proactive’s Andrew Scott through their Q2 production and operations update.

Vast saw record sales at both the Pickstone–Peerless gold mine in Zimbabwe and at the Manaila in Romania in the period.

Gold production at the 25%-owned Pickstone mine rose 10% to 6,969 ounces with sales up 3% at 6,754oz. Grades were 2.48 g/t (2.78 g/t).

Manaila, 100%-owned by Vast, saw copper concentrate production rising by 136% to 911 dry tonnes in the three months to June, with grades rising.

]]> Greatland Gold pushing on with further drilling at Havieron after more positive results Wed, 04 Jul 2018 09:13:00 +0100 Greatland Gold plc (LON:GGP) CEO Gervaise Heddle spoke briefly to Proactive's Andrew Scott after announcing a new drilling campaign at their Havieron license.

The move follows “encouraging” results from the final three holes of their recent drilling programme.

Heddle says results from the final three holes have demonstrated the potential for Havieron to represent a very large mineralised system.

]]> VSA Capital Market Movers - Shefa Yamim (LON:SEFA) Tue, 03 Jul 2018 08:52:00 +0100 Shefa Yamim (LON:SEFA) has announced that it has updated its target mineral assemblage of gemstones to better reflect the make-up of its Kishon Mid Reach Deposit. Previously the gemstone focus was on Diamond, Moissanite, Corundum and Hibonite (DMCH) although now spinel is being added along with garnet and ilmenite to this target group which will be renamed the “Gem Box”. This has been retroactively applied to Zone 1 and will be applied to the bulk sampling for Zone 2. The overall grade from Zone 1 bulk sampling has therefore increased from 45cpht to 154cpht.

In Zone 1 a total of 2,177ct of garnets were recovered and subsequent polishing and cutting has demonstrated gemstone quality of the garnets having previously been conservatively classified as industrial quality. The overall garnet grade for Zone 1 was 34.09cpht.

Spinel is now considered the most abundant mineral within the Gem Box suite with a total Zone 1 recovery of 3,953ct (69.91cpht). The largest of which was 6.2ct and SEFA have indicated that much of the recovered spinel is of gem quality. Spinel data and stones have been stored through the bulk sampling process since it is a kimberlitic indicator mineral although given its potential as a gemstone is now being included in the gem box suite.

We reiterate our Speculative Buy recommendation.

]]> Nexus Minerals wrapping drill programs at two eastern goldfields projects this week Tue, 03 Jul 2018 08:46:00 +0100 Nexus Minerals Ltd (ASX:NXM) managing director Andy Tudor speaks to Proactive Investors about the gold explorer's activities across its highly prospective tenement package in the eastern goldfields of Western Australia.

The flagship Pinnacles Gold Project is held in joint venture with Saracen Mineral Holdings Limited (ASX:SAR), and Nexus Minerals recently acquired the Wallbrook Gold Project from them as well. Saracen recently became a 6% shareholder in Nexus. Current efforts are focused on developing these two project sites.

Ahead of schedule, a 6,000 metre aircore drill program is almost complete at Pinnacles, to follow up on promising results from a 4,000 metre aircore drill program earlier this year. At Wallbrook, a 4,000 metre RC drill program is happening now, following a raft of survey works. It's the biggest quarter of drilling Nexus Minerals has ever had, according to Tudor.

]]> Peninsula Mines has 'done the hard work,' expects more progress on many fronts soon Tue, 03 Jul 2018 07:59:00 +0100 Managing director of Peninsula Mines Ltd. (ASX:PSM) Jon Dugdale updates Proactive Investors on progress at the company's base metals project, and on both the mining and processing ends of its graphite operations. The explorer, developer and aspiring producer holds a large diversified portfolio of projects in South Korea. 

Both the Ilweol and Python prospects at the Ubeong Zinc-Lead-Copper Project have been producing high-grade drilling results, with an announcement out today that the strike length at Ilweol has been doubled.

On the graphite front, Peninsula Mines is resource drilling whilst simultaneously conducting metallurgical tests on the processing of spherical graphite for lithium-ion battery anodes. There has been ongoing drilling and sampling work at the Eunha Project, with drilling planned to commence soon at the Gapyeong Project. Offtake discussions are well underway.

]]> Resolute Mining's Syama Gold Mine DFS Update shows substantially reduced costs Tue, 03 Jul 2018 00:00:00 +0100 Resolute Mining Ltd (ASX:RSG) managing director and chief executive John Welborn talks Proactive Investors through the multinational gold producer’s definitive feasibility study (DFS) update on the flagship Syama Gold Mine in Mali.

The update includes a reserve upgrade, and demonstrates a material reduction in the all-in sustaining costs across the whole life of the mine, which has been extended by four years.

"We've been doing a lot of work primarily on implementing automation as part of our underground mine, improving our power infrastructure at Syama, and continuing our processing journey to get higher recoveries from the ore. And all of that's come through in a really exciting announcement today," says Welborn.

Sandvik has been appointed to manage the automation process at Syama.

]]> Plastics Capital 'at an exciting stage' with growth plan now delivering results Mon, 02 Jul 2018 14:28:00 +0100 Capital Network analyst Ed Stacey talks through Plastics Capital Plc’s (LON:PLA) results for the year to the end of March 2018.

''The most important headline metric, in our view, is the organic (like-for-like) revenue growth of 13.0%, which reflects a strategy shift undertaken last year to focus more on top-line growth.''

Important – Please read this information:  This video has been commissioned by Plastics Capital and prepared and issued by Capital Network for publication globally. All information used in the publication of this video has been compiled from publicly available sources that are believed to be reliable, however, we do not guarantee the accuracy of this video. Opinions contained in this video represent those of the research department of Capital Network at the time of publication. The securities described in the video may not be eligible for sale in all jurisdictions or to certain categories of investors. Capital Network does not offer or provide personalised advice. We publish information about companies in which we believe our viewers may be interested in and this information reflects our opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Capital Network’s solicitation to effect, or attempt to effect, any transaction in a security. This document is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this video. This video is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this video. Capital Network has a restrictive policy relating to personal dealing. Capital Network does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this video. However, the respective directors, officers, employees and contractors of Capital Network may have a position in any or related securities mentioned in this video. Capital Network or its affiliates may perform services or solicit business from any of the companies mentioned in this video. The value of securities mentioned in this video can fall as well as rise and could be subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this video. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this video contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. The content of this video is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this video is not a “personalised service”. It should not be relied upon in making an investment decision. To the maximum extent permitted by law, Capital Network, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this video and do not guarantee the returns on investments in the products discussed in this publication.

]]> Plastics Capital enjoys 'staggering' growth in its films division Mon, 02 Jul 2018 10:26:00 +0100 Faisal Rahmatallah, chairman of Plastics Capital Plc (LON:PLA), tells Proactive Investors the financial year just ended was an outstanding year for organic growth'.

The year to the end of March 2018 was a particularly strong one for the films division, which saw a 27% year-on-year increase in like-for-like sales and a 26% increase in underlying earnings (Ebitda).

]]> Galena Mining's Abra Project has 'one of the highest-grade concentrates in the world' Mon, 02 Jul 2018 08:55:00 +0100 Chief executive of Galena Mining Ltd (ASX:G1A) Ed Turner talks to Proactive Investors about the scoping study recently completed on the company's flagship Abra Base Metals Project in Western Australia. Even based on long-term metal price estimates well below today's market spot prices, the project represents an NPV of almost $400 million, with an IRR of 61%.

"We're getting 95-96% recovery, which is very good, and the [lead] concentrate grades are probably going to average about 75%, but we're even getting some better results than that. So that's one of the highest-grade concentrates in the world, and does make it very attractive to the smelters. Our high-grade resource, which we announced earlier in the year is about 11 million tonnes at 10% lead, within a much larger 36 million tonnes at 7.3% lead, so we have a lot of different production scenarios we can look at there," says Turner.

Pre-feasibility works are well-advanced, with the Abra project PFS due to be completed in September. Mine design engineering studies, as well as infill drilling to convert inferred resources to indicated status, are happening now. Production from Abra is slated for late 2020 or early 2021.

Meanwhile, diamond drilling at regional copper and other base metals prospects is expected to produce assay results that confirm Galena Mining has doubled the footprint of known mineralisation there.

]]> Gold still on the slide, but could turn at any moment if trade war boils over Fri, 29 Jun 2018 11:13:00 +0100 New Age Exploration drilling to demonstrate 'Redmoor is a truly world-class deposit' Fri, 29 Jun 2018 03:41:00 +0100 New Age Exploration Limited (ASX:NAE) managing director Gary Fietz provides Proactive Investors with updates on the company's recent capital raising, drilling at the flagship Redmoor Tin-Tungsten Project, and talks over the Lochinvar Coking Coal Project.

The Redmoor project is being handled by Cornwall Resources Limited, which is co-owned by NAE with JV partner Strategic Minerals Plc (LON:SML). Priority Drilling Limited is carrying out the 4,000 meter, 7-hole drill program that is underway there. Fietz explains, "we're pretty confident about the continuation of resource down to where we're drilling. And there definitely is a trend of the grade increasing with depth, so we're hoping that we're going to get some high grades in this area as well. So the drilling program's all about 1) adding tonnes - we're trying to convert as much of that four to six million tonne exploration target to resource as we can - and 2) increasing the grade of the resource."

Speaking about efforts to create value for shareholders from the Lochinvar Coking Coal Project, Feitz says "it's a relatively early stage project still, with an inferred resource and a scoping study. But the project has an NPV of some US$400 million, which is very significant, and unfortunately I don't think any of that's reflected in NAE's share price."

]]> Ashanti Gold CEO reports 'high-grade, very big interval' drill results from Mali gold project Thu, 28 Jun 2018 17:30:00 +0100 Ashanti Gold Corp (TSXV:AGZ) CEO Tim McCutcheon tells Proactive Investors the gold-focused exploration and development company reported 'high-grade, very big interval' assay results close to the surface from its Kossanto East Project in Mali.

McCutcheon says these drill results bolster his initial remarks that Kossanto East has what it takes to move forward.


Contact Christine Corrado at
Follow her on Twitter: @ChristiCorrado

]]> New mine plan delivering increased production for Cradle Arc Plc Thu, 28 Jun 2018 14:53:00 +0100 Kevin van Wouw, Chief executive of Cradle Arc Plc (LON:CRA), discusses with Proactive's Andrew Scott the company's operations update and production guidance for 2018.

Van Wouw's expecting to achieve project-level operational cash flow break-even at the Mowana copper project this month.

Cash generation is expected to improve throughout the second half of this year, with the mine expected to produce at least 5,700 tonnes of contained copper during the period.

]]> Vast Resources' Andrew Prelea discusses this week's £1.25mln raise Thu, 28 Jun 2018 12:24:00 +0100 Andrew Prelea, chief executive of Vast Resources PLC (LON:VAST), talks through the timing and intention behind this week's £1.25mln fundraise.

Vast issued 238.1mln new shares at a price of 5.25p each – not far below Tuesday’s closing price of 5.4p.

''We only made the decision to do the placing at 6pm on Tuesday night ... and we only went ahead with it with one particular institution and only a very small amount of shares were released''.

''The idea that this was orchestrated or preemptive as far as the placing's concerned is absolute nonsense'', Prelea adds.

''If you look at the share price, it was only a 5% discount to the closing price on the 26th and it was actually above the share price of the opening on the 27th''.

]]> Updated resource at Akyanga a 'game-changer' for Arc Minerals Limited Thu, 28 Jun 2018 10:53:00 +0100 Nick von Schirnding, executive chairman of Arc Minerals Limited (LON:ARCM), discusses with Proactive their updated 3mln ounce gold mineral resource at the Akyanga Deposit in the eastern part of the Democratic Republic of Congo.

He says a near-term exploration target of a further 200,000 to 600,000 ounces of gold in the Akyanga east area has been set, together with further exploration targets along the 55km gold belt within its 133km² mining licence.

]]> Altech Chemicals deploying 'disruptive technology' that slashes HPA production costs Thu, 28 Jun 2018 09:39:00 +0100 Altech Chemicals Ltd (ASX:ATC) (FRA:A3Y) managing director Iggy Tan updates Proactive Investors on the company's project development, and educates on High Purity Alumina (HPA) applications and markets.

Currently worth about US$40,000 per tonne, HPA is in high demand as it is a critical feedstock for the production of synthetic sapphire, which in turn is used in the creation of LED lights, screens from watches to windows, and batteries.

"We're going to build a 4,500 tonne per annum plant, but the growth in [demand] is so strong that we expect there will be 20 times our plant in growth by 2025... we are the only project in the world today that's at funding stage... we have a totally different process, we're disruptive, and we find that our cost of production is nearly a third of the conventional cost," says Tan.

The company is mining kaolin as a feedstock in Western Australia, and will be processing it into HPA at a facility which is contracted to be built in Malaysia under a turnkey agreement. Financing and underwriting has been secured, and a ten year offtake agreement is already in place with Mitsubishi.

]]> W Resources 'very much on schedule, on budget' with construction at La Parrilla Thu, 28 Jun 2018 08:04:00 +0100 W Resources PLC (LON:WRES) chairman Michael Masterman provides Proactive Investors an update on development works at the tungsten, copper and gold exploration and development company's flagship La Parrilla tungsten project in Spain.

In a $25 million endeavor, W Resources is building a processing plant on site, consisting of a crusher, a jig & mil, and concentrator. Concrete and civil works are now complete for the crusher. Crusher equipment has been fabricated in a plant, and is being delivered and erected on site in time with structural steel works. A contract has been awarded for the fabrication of the jig & mill and the concentrator. Earthworks to support the jig & mill are nearing completion. Engineering work for the installation of the concentrator is now complete, with steelworks engineering underway, and civil works and concrete foundations set to follow.

Production from La Parrilla is expected to commence in Q1 2019.

]]> Connemara Mining sees potential after mineralised zone discovered at Mine River Wed, 27 Jun 2018 12:58:00 +0100 Patrick Cullen, chief executive of Connemara Mining Company PLC (LON:CON), discusses with Proactive Investors a new mineralised zone which has been identified at Tombreen on their wholly-owned Mine River gold project in Ireland.

Cullen also adds further detail to what he describes as encouraging results from their first new hole at the Stonepark Zinc Project.

]]> Galantas Gold hits main Kearney vein at Omagh gold mine Wed, 27 Jun 2018 11:46:00 +0100 Roland Phelps, chief executive of Galantas Gold Corporation (LON:GAL), spoke to Proactive Investors following the announcement they've now reached the main gold vein in development works underground at their Omagh gold mine in Northern Ireland.

The main tunnel that Galantas has dug descends at a slope with a gradient of 1-in-7 from near the base of the former open pit.

]]> NeoLithium hits highest grade ever during latest drilling at 3Q project Wed, 27 Jun 2018 10:47:00 +0100 Neo Lithium Corp (TSXV:NLC) CEO Waldo Perez caught up with Proactive Investors following the completion of the 2017-2018 3Q Project drilling season.

Perez says a total of 4,345 metres of diamond drilling and 2,056 metres of rotary drilling was carried out - an increase of 50% in drilled metres compared to the previous season.

]]> Accelerate Resources working on 'some of the most prospective geology in the world' Wed, 27 Jun 2018 00:37:00 +0100 Accelerate Resources (ASX:AX8) executive director Andrew Haythorpe updates Proactive Investors on the progress of three diamond holes being drilled in the Thomas Creek cobalt-copper-gold prospect at the company's flagship Mount Read Project in Western Tasmania.

"That'll give us the information and the basis to then have a deeper look in terms of doing a down-hole EM probe and survey. And in the meantime the drill rig will go to the north to the Henrietta [cobalt-nickel-copper] prospect, which we've got some ground crews on now," says Haythorpe. There is a second target to the north of Mount Read with a working name of Young Henry that will also be drilled in due course.

]]> Anson Resources has busy year of exploration ahead, with key news in coming months Tue, 26 Jun 2018 22:47:00 +0100 Anson Resources Ltd (ASX:ASN) managing director Bruce Richardson speaks to Proactive Investors about advancements at the battery minerals-focused explorer's three projects.

In Western Australia the company has two exploration projects, searching for graphite and cobalt, whilst its flagship Paradox Lithium Project is located in Utah in the US. In addition to lithium, sampling results have also turned up bromine, iodine, magnesium and boron. Richardson also explains the the company's process to extract lithium minerals.

Anson Resources has MOUs in place with some Chinese companies regarding potential lithium offtake arrangements, and they will be receiving samples for testing in August or September.

]]> Global Energy Metals acquires 100% of Millennium cobalt property from Hammer Metals Tue, 26 Jun 2018 17:10:00 +0100 Global Energy Metals Corp (CVE:GEMC) CEO Mitchell Smith tells Proactive Investors the company has acquired 100% of the Millennium cobalt property and the neighboring Mt. Isa cobalt projects after striking a deal with partner Hammer Metals.

Smith says full ownership gives the company a leg up in terms of having a superior asset in an excellent jurisdiction.


Contact Christine Corrado at
Follow her on Twitter: @ChristiCorrado

]]> Amarillo Gold’s turnaround with a new management team Tue, 26 Jun 2018 16:13:00 +0100 Amarillo Gold Corporation (TSXV:AGC.V) CFO Hemdat Sawh talks to Proactive about the company’s new management team, new chief exploration geologist and developments at its Mara Rosa mine in Brazil.

The company recently launched an oversubscribed private placement — raising $5.2 milllion, $2.2 million more than planned.

]]> Arrowstar Resources on capital raising, acquisitions and the evolution of the company Tue, 26 Jun 2018 16:06:00 +0100 Arrowstar Resources Ltd (TSXV:AWS) CEO Phillip Thomas talks to Proactive about the company’s evolution from a mining outfit to a cleantech recycler with the purchase of Recycle Fuel Technologies.

The company is launching a zero-emission tire recycling plant in Germany to turn tires into carbon black, gas, bunker oil and steel.

]]> Rockfire Resources' David Price discusses positive Double Event drill results Tue, 26 Jun 2018 13:38:00 +0100 David Price, chief executive of Rockfire Resources Plc (LON:ROCK), caught up with Proactive's Andrew Scott after announcing positive drill results at their Double Event prospect in the Australian state of Queensland.

Price says recent drilling's intersected gold in 13 out of 14 holes over a 400m strike length.

He says the next phase of exploration at Double Event will involve geophysics to accurately target high-temperature and high-grade "feeder zones" at depth.

]]> Greatland Gold hails 'excellent' result from first drill hole at Havieron Tue, 26 Jun 2018 09:23:00 +0100 Greatland Gold plc's (LON:GGP) Gervaise Heddle and Callum Baxter spoke to Proactive's Andrew Scott after announcing the result from their  first drill hole, HAD001, at the Havieron licence in Western Australia.

Assay results from the hole have established the presence of high-grade gold with a peak of 137.69g/t or 4.4 ounces per tonne of gold.

Heddle and Baxter also talk through the discovery of gold nuggets from their maiden exploration campaign at Black Hills as well as the start of drilling at Ernest Giles.

]]> PNX Metals drilling prospects near Hayes Creek Project as DFS continues Tue, 26 Jun 2018 08:02:00 +0100 PNX Metals Ltd (ASX:PNX) managing director and CEO James Fox speaks to Proactive Investors about the multi-commodity exploration and development company's Northern Territory operations. The company is focused on the development of its flagship Hayes Creek zinc-gold-silver project, and exploration at a number of neighbouring sites. 

Fox says, "everything that we do in the Northern Territory - with our exploration strategy, with the project development strategy - is all tied into the same thing. We're looking to enhance and expand our resource base, improve the very good economics of the project, and make it bigger, better, stronger, fitter, faster."

A drilling program is underway at the Fountain Head prospect, with first assay results due in a matter of weeks. A maiden drilling program is also set for the Kilfoyle prospect later this year, which will be 50% funded by the state government. In the meantime, funding and development works at Hayes Creek are ongoing, as PNX Metals continues its Definitive Feasibility Study (DFS) there.

]]> Return Energy CEO talks light oil resources, horizontal drilling and equity raising Tue, 26 Jun 2018 05:28:00 +0100 Return Energy Inc. (TSXV:RTN) CEO and president Ken Tompson talks to Proactive about sweet, light oil resources confirmed at its Charlie Lake facility in Rycroft, Alberta and the potential for up to 22 horizontal drilling locations at Charlie Lake.

He said the company is evaluating partnership and equity-raising opportunities, and discussed the company’s position in relation to larger peers.

]]> AfriTin Mining reports 'excellent recoveries' from test work at Uis tin mine in Namibia Mon, 25 Jun 2018 14:54:00 +0100 AfriTin Mining Limited (LON:ATM) chief executive Anthony Viljoen caught up with Proactive's Andrew to discuss what he's described as ‘excellent recoveries’ from Dense Medium Separation (DMS) test work at their flagship Uis tin mine in Namibia.

With construction now underway at the site Viljoen says he remains confident they'll achieve production of first tin concentrate in Q4 this year.

]]> Outlook for tungsten developers 'promising' amid tightening supply Mon, 25 Jun 2018 11:55:00 +0100 Mark Seddon, tungsten market expert and senior manager consulting services at Argus Media is joined in the Proactive studio by Apollo Minerals' (ASX:AON) Hugo Schumann.

Seddon talks through the main uses for the metal as well as the outlook for European developers and producers.

''The supply side is dominated by China accounting for around 85% of supply so there are issues around security of supply''.

Meanwhile Schumann updates on developments with their Couflens project following the announcement they've received approval from the French government to acquire the remaining 20% interest in the asset.

]]> Alkane Resources says 'demand must come' for rare earths as EV revolution continues Mon, 25 Jun 2018 08:11:00 +0100 Alkane Resources Ltd (ASX:ALK) managing director Nic Earner speaks to Proactive Investors about the junior exploration and mining company's multi-commodity portfolio of NSW projects; which includes the cash-generating Tomingley Gold Mine, the construction-ready Dubbo Project, and regional exploration.

A recent review of the Dubbo Project forecast pre-tax net present value (NPV) at between $909 million and $1.297 billion, depending on the development route. The company is looking for offtake agreements and finance partners now to kick start production. Earner says, "we have secured the land on which it's based so that's wholly-owned by us... we have approvals to build this mine, environmental, state and federal; we have the engineering completed... we've been running the pilot plant at ANSTO, the Australian Nuclear Science and Technology Organisation, for over a decade... then we turned that into a set of financials."

The open-cut life of the Tomingley Gold Mine will conclude in the coming months, and so an underground project manager has been brought on board to assess the potential for an underground mining operation, with a final investment decision due at the end of this calendar year.

]]> Petropavlovsk PLC CEO defends board and outlines strategy ahead of AGM Mon, 25 Jun 2018 08:10:00 +0100 Roman Deniskin, chief executive at Petropavlovsk PLC (LON:POG),  spoke to Proactive Investors ahead of the company's AGM.

A resolution seeking to remove the current board has been brought by two shareholders, which control just over 9 per cent of the company.

]]> Asiamet increases ownership at Beutong copper-gold project to 80% Mon, 25 Jun 2018 07:44:00 +0100 Peter Bird, chief executive of Asiamet Resources Ltd (LON:ARS), tells Proactive the company's increased its ownership at the Beutong project in Indonesia to 80% from 40%.

Beutong is a large high-quality copper, gold, silver, molybdenum deposit located in Nagan Raya Regency in the Indonesian region of Aceh. 

It comprises the Beutong East Porphyry (BEP), Beutong West Porphyry (BWP) and the Beutong Skarn (BSK) deposits.

]]> New prospects give Eon NRG potential to 'quadruple the size of the company overnight' Mon, 25 Jun 2018 02:05:00 +0100 Eon NRG Ltd (ASX:E2E) managing director John Whisler speaks to Proactive Investors about the energy company's portfolio of projects, spanning oil and gas and battery minerals, with an emphasis on a recently-identified high-return prospect opportunity in the Powder River Basin of Wyoming, USA.

Speaking about the expected impact on the company's production profile, Whisler says, "we're going to drill six wells; four of those with a probability of success, will actually be 300-400 barrels a day. So that will put us well over 1,000 barrels of oil a day, [whereas] we're currently only about 500 of BOE per day. So, we'll actually double in size overnight, but the real upside of it is, we can replicate it. For every four successful wells,  we can drill three to four offset wells or infill development wells on each one of those prospects. So we can easily quadruple the size of the company overnight."

]]> Technology Metals Australia persuing upside at Gabanintha beyond $1b+ PFS Mon, 25 Jun 2018 00:33:00 +0100 Technology Metals Australia (ASX:TMT) executive director Ian Prentice speaks to Proactive Investors about the company's milestone achievement of releasing a pre-feasibly study (PFS) 18 months after listing on the ASX. The company's flagship Gabanintha Vanadium Project in Western Australia has been developed at pace, with a "globally significant large resource" announced in March, which the freshly-released PFS assesses as having a net present value (NPV) of $1.27 billion, based on a 13-year mine life and discount rate of 10%.

"A lot of engineering and a lot of detailed metallurgical work has gone into the study, and it's delivered a very technically-strong, financially-robust project... the study was only based on about 21 million tonnes of our overall 120 million tonne resource," says Prentice. The project also looks to be of a premium grade with relatively low costs of production.

]]> Emmerson Resources adds to gold mine portfolio at Tennant Creek Mineral Field Sun, 24 Jun 2018 21:30:00 +0100 Emmerson Resources Ltd (ASX:ERM) managing director Rob Bills speaks to Proactive Investors about the latest  news from the Tennant Creek Mineral Field, in Australia's Northern Territory. The explorer and producer holds a lot of land in the area, with a number or projects at various stages of development, from early-stage surveying work through to gold bar production.

Bills describes RC drilling results from the Mauretania and West Gibbet prospects as showing, "thick, high-grade intercepts of gold, copper, and also we're seeing some bismuth and cobalt. Fantastic results, some of the best we've seen, certainly the best at West Gibbet." 

"Excitingly, the drilling has shown that there's a lot of gold quite close to the surface, so it's amenable to open pit mining, which is obviously quite economic... we've also intersected a new zone of mineralisation - ten meters at about 7.6 grams per tonne gold - a bit deeper down, a totally new zone we didn't know was there before. So it opens up that potential of having some shallow high-grade [mining] up higher, and then potentially opportunity for an underground development," explains Bills.

Additionally, an airborne geophysical survey of the Northern Corridor at Tennant Creek has been completed, with results due to shore up targets for another drilling campaign next quarter.

]]> Transition Metals CEO on why the company is undervalued Fri, 22 Jun 2018 17:39:00 +0100 Transition Metals Corporation (TSXV:XTM) president & CEO Scott McLean speaks to Proactive about its model for acquiring and maintaining a stake in ongoing projects to maximize exposure to discovery.

He said the company is involved in 38 projects across a number of different commodities, and the value of those assets is worth more than the current market cap of Transition.

]]> Trade war heats up, gold cools off, but the long-term attractions look better than ever Fri, 22 Jun 2018 12:42:00 +0100 Group Eleven Resources CEO calls drill-hole results at Ireland's Stonepark project 'spectacular' Thu, 21 Jun 2018 18:53:00 +0100 Group Eleven Resources Corp (CVE:ZNG) CEO Bart Jaworski tells Proactive Investors the zinc exploration company reported spectacular results from a drill hole at the Stonepark zinc-lead project in Ireland, showing a high-grade zone of zinc-lead mineralisation.

Jaworski says the results also show the resource is open to the east, to Glencore's (LON:GLEN) neighboring Pallas Green deposit.

]]> Goldstone Resources has been through a turnaround over the past 18 months Thu, 21 Jun 2018 11:27:00 +0100 Emma Priestley tells Proactive that Goldstone Resources Ltd (LON:GRL), the Ghana-focused gold explorer, has been through a turnaround over the past twelve months.

“I have brought in two new shareholders so the company is a completely different beast to what it was twelve months ago,” said CEO Priestly.

She also said that Goldstone has identified an 8km gold-in-soil anomaly at its Akrokeri-Homase gold project. 

]]> Erris Resources commences drilling at Abbeytown zinc project in Ireland Thu, 21 Jun 2018 10:14:00 +0100 Merlin Marr-Johnson, chief executive of Erris Resources plc (LON:ERIS) tells Proactive it has started drilling program at its Abbeytown zinc project in Sligo County in Ireland in early May.

Drilling intended to test for the potential extension of zinc-lead-silver-copper mineralisation south of Abbeytown

“We should be getting results back in a few weeks,” said Merlin Marr-Johnson. 

]]> Horizonte Minerals says completing aero survey for power line to Araguaia is ‘another big milestone’ Thu, 21 Jun 2018 08:58:00 +0100 Jeremy Martin, CEO of Horizonte Minerals Plc (LON:HZM, TSE:HZM) tells Proactive that detailed survey of the power line route to Araguaia project has been completed and contracts awarded to leading Brazilian consultants.

“All of the subsidiary building blocks - the power, the water - are all coming into places as we move towards the completion of the fees and full permitting of the project,” said Jeremy Martin.


]]> Wishbone Gold Plc looking to expand operations further across Africa Thu, 21 Jun 2018 06:50:00 +0100 Richard Poulden, chief executive of  Wishbone Gold PLC (LON:WSBN), discusses with Proactive's Andrew Scott the company's 2017 results which saw sales in the year to December rise US$8.2mln - up from US$4.2mln in the previous year.

Administrative costs, excluding interest, were reduced to US$801,691 from US$937,070 in the previous year, despite higher levels of activity.

]]> Legend Mining aircore results see Fraser Range 'shaping up as the best post code' Wed, 20 Jun 2018 23:20:00 +0100 Legend Mining Limited (ASX:LEG) managing director Mark Wilson speaks to Proactive Investors about fresh exploration results from the nickel-copper and gold Rockford Project in the Fraser Range of Western Australia. The company is exploring for a Nova-Bollinger style deposit some 120 kilometers northeast, within their 2,792 square kilometer landholding. 

Aircore drilling results from numerous holes in four areas adds to evidence that Legend is working within a highly prospective area.
Wilson says, "yesterday's announcement in particular adds a dimension and a scale which we've been alluding to, we've been expecting, but we didn't know we had. It was revealed yesterday that we now have a third intrusive area." 

"This drilling is about understanding the geochemistry and the geology of the area. The next step once we've completed this aircore drilling is to do the geophysics, which tends to look deeper into the fresh rock to develop targets for the RC and diamond drilling," explains Wilson. Results from a comprehensive geophysical review that is underway will be announced in around a month, and then a deeper drilling program will be finalised.

]]> Pacton Gold acquires Bellary Dome gold project in northwestern Australia Wed, 20 Jun 2018 19:36:00 +0100 Pacton Gold Inc (CVE:PAC) Director Alf Stewart says the company is poised to acquire the Bellary Dome project in the famous Pilbara mining region of Australia, sending shares higher.

It has struck a binding letter of intent (LOI) to acquire the project from Marindi Metals Inc, the group revealed on Wednesday. Stewart says the Pacton team will visit the site in late July, and carry out verification sampling, and determine exploration strategy. 

]]> Cabral Gold CEO says there's no doubt project will continue to grow after new discoveries at Cuiú Cuiú Wed, 20 Jun 2018 18:10:00 +0100 Cabral Gold Inc (CVE:CBR) CEO Alan Carter tells Proactive Investers there's no doubt in his mind the company's Cuiú Cuiú project will continue to grow.

Cabral Gold released encouraging initial sampling results from two new discoveries: Jerimum North and Jerimum East.

Additionally, the company released further results of surface rock sampling at the Morro da Lua and Jerimum Cima targets at its Cuiu Cuiu project in Para state, Brazil. Cabral Gold also unveiled its new resource estimate for the property, which Carter says provides good platform to advance the project. 


]]> Lead-zinc story is 'amazing' currently and Toral stacks up very well says Europa Metals Wed, 20 Jun 2018 14:22:00 +0100 Europa Metals Ltd's (LON:EUZ) Laurence Read and Myles Campion explain deals for zinc assets currently bode very well for its Toral project in Spain.

"This will be a deliverable project with scale, the right grades and right licences.

"It can be a real mine over a long period of time."

]]> Leigh Creek represents 'the next stage' for Strategic Minerals Plc Wed, 20 Jun 2018 11:30:00 +0100 Strategic Minerals Plc's (LON:SML) Alan Broome and Jeff Harrison caught up with Proactive Investors following the company's AGM and investor evening in London.

Broome discusses the latest at Leigh Creek and the planned work programme in the coming months as they target getting back into  production in the middle of next year.

Harrison talks through what's happening at Redmoor with a new round of drilling set to get underway tomorrow.

]]> VSA Capital Market Movers - Wynnstay Group: H1 2018 Results Wed, 20 Jun 2018 08:21:00 +0100 Wynnstay Group: H1 2018 Results

Wynnstay Group (LON:WYN), a UK manufacturer and supplier of agricultural inputs, has announced results for the six-month period ended 30 April 2018 (H1 2018).

  • Revenue: £218.5m, +10.3% YoY (H1 2017: £198.1m)
  • Adjusted Group PBT: £4.9m, +15.5% YoY (H1 2017: £4.3m)
  • Net debt of £6.9m at 30 April 2018 (30 April 2017: £8.3m).
  • Interim dividend: 4.41p, +5.0% YoY (H1 2017: 4.2p).
  • Agriculture Division: Revenues £160.1m, +9.9% YoY; operating profit £2.1m, +33.1% YoY (H1 2017: £145.8m, £1.5m).
  • Specialist Retail Division: Revenue £58.3m, +11.4% YoY; operating profit £3.1m, +6.2% YoY (H1 2017: £52.3m, £2.9m).

VSA Comment

WYN’s trading statement on 20 March confirmed that it had begun the year in an encouraging manner with increased demand for most of its products (feed, fertiliser, grain volumes, seeds, retail products). Although the onset of spring farm activities was delayed by weather, arable product volumes have now recovered to normal levels, with particularly strong demand reported in April and May.

In the fertiliser sector, although margin pressure remains, yesterday’s Q3 trading update from Origin Enterprises (LON:OGN), which reported higher like-for-like volumes in its Q3 (WYN’s Q2) as well as an expectation that volumes would continue to be favourable in Q4 (WYN’s Q3) may finally indicate the start of an improving market in this area.

Grain trading has continued to be a difficult place to make money as grain prices have shown little volatility and margins have therefore been hard to achieve. However since March, we have seen a bit more volatility enter the market with the benchmark UK feed price breaking out of its range and moving above £155/t earlier this month.

In animal feed, DEFRA data has continued to show good UK market demand. WYN has also reported the positive impact of the prolonged winter and subsequent wet weather, which has limited grass growth and led to increased animal feed demand as on-farm fodder stocks have depleted.

In retail, as previously announced on 30 April, WYN bought eight stores from the administration of Countrywide Farmers to expand significantly its retail presence into the South West of the UK. It also acquired two others stores during the period (in mid-Wales and Cornwall) to bring its total retail network to 60 stores.


These results are not surprising given the March trading update, the bullish trading update from NWF Group (LON:NWF) last week and well-publicised improvement in the underlying UK agriculture market. Despite these factors, WYN has been the only stock in the sector not to experience a significant share price increase. We think this is unjustified and is perhaps a hangover from the issues experienced with Just for Pets last year.

WYN looks well on track to meet or even exceed current consensus (revenue of £407.6m, +4.3% YoY, and an adjusted PBT of £8.2m, +2.5% YoY).

]]> Sir Roderic Lyne puts forward case for change of leadership at Petropavlovsk PLC Wed, 20 Jun 2018 06:25:00 +0100 Sir Roderic Lyne, a former board member at Petropavlovsk PLC (LON:POG) and who has now been put forward as the proposed chairman of the company as part of an effort to oust the existing management spoke to Proactive's Andrew Scott ahead of Petropavlovsk's AGM.

A resolution seeking to remove the current board has been brought by two shareholders, which control just over 9 per cent of the company.

Their motion is supported by Petropavlovsk’s 22 per cent shareholder Kenes Rakishev.

]]> Valor Resources to mobilize diamond drill rig to Berenguela Project in Peru Tue, 19 Jun 2018 14:30:00 +0100 Valor Resources Ltd (ASX:VAL) Executive Chairman Mark Sumner tells Proactive Investors the exploration company will have its first diamond drill rig at its Berenguela Copper Silver Project in Peru on or before June 30. 

Sumner says this is significant because Valor completed 9,100 meters of RC drilling last year, expanding resources at Berenguela by more than 80%, and the time is ripe to begin the 2018 drill program. The goal now is to test high grade extensions on the eastern and northern border of the deposit, which Sumner believes will result in a significant extension of the resource.

]]> Bannerman Resources' managing director shares expert insights on uranium market Tue, 19 Jun 2018 06:54:00 +0100 Bannerman Resources Ltd (ASX:BMN; NSX:BMN) managing director Brandon Munro speaks to Proactive Investors about the company's Etango Uranium Project in Namibia, and also provides insights on the wider uranium market.

The company completed a Definitive Feasibility Study (DFS) on the Etango Project in 2012, which it is currently in the process of updating. Several de-risking and optimisation initiatives have been completed in the meantime.

"It will be a top-10 producing mine in the world once it's up and running, and its also very simple. Technically it's very simple, it's an open pit, low stripping ratio project, it enjoys all of the efficiencies of being a very large bulk mining operation. And we're quite unique in that we can process our ores through a low cost heap leaching operation.... arguably we're the most developed project in the world that isn't already in construction,” says Munro.

Earlier this month, Bannerman Resources raised $8 million in a heavily oversubscribed placement at 4.6 cents. Munro explains, "in undertaking the raise we really had two objectives. One was to try and improve the quality of our register, try and ascertain if there was institutional interest out there, and if so try and build our register with that, and we certainly achieved that and we're extremely happy with how that went. But secondly, with $8 million, because of all the advanced study work that we've done over the years on our project, what that means is we're now fully funded all the way to an investment decision."

Speaking about the global uranium market in general, Munro says, “it’s a very interesting position that we’re in in the market. Yes, the spot price has ticked up a little, but I would still describe it as being in a situation of inertia. The spot price certainly hasn’t responded to the market fundamentals that we’re seeing unfolding… We’re moving from surplus into deficit, and that inflection point in itself is very insignificant for a commodity, but when you start to look at what’s coming literally around the corner, developments that are happening in days and weeks at the moment, you start to realise that not only are we inflecting from surplus to deficit, we’re moving into a very deep deficit over the next few years… From a prospective producer who is very well advanced, who has an excellent technical basis to their project, that optionality is boosted enormously by the volatility that we would expect from this pricing inertia.”

]]> Intermin Resources will 'drill, grow, and move into that million ounce category' this year Tue, 19 Jun 2018 03:52:00 +0100 Intermin Resources Ltd (ASX:IRC) managing director Jon Price speaks to Proactive Investors about the Australia-focused company's progress as it works to "enter the realms of mid-tier gold production."

The company recently embarked upon one of its largest-ever drilling programs, focused on the Teal Gold Project and others in the wider Kalgoorlie neighbourhood. “The gold mine itself has been completed and that’s put $10 million of cash in the bank. That’s enabled us to self-fund our own growth and now we’re drilling heavily with 20,000 metres completed. We’ll have a lot of news coming out in the next month or so on those results and resource upgrades. But we’re also drilling outside of Teal on the Zuleika Sheer; two key projects for us is the Anthill Gold Project and the Blister Dam Gold Project. We see the opportunity there for them to be a million ounces each in size, but we have to let the drilling do the talking, and that’s what we’re about this year is drill, grow, and move into that million-ounce category,” says Price.

In addition to a number of wholly-owned gold projects, Intermin Resources holds a portfolio of joint venture projects prospective for other commodities. In particular, the large-scale Richmond Vanadium Project, partnered with AXF Resources, is progressing rapidly. Price comments, "there is a lot of excitement in the vanadium space. I think, as we've said a number of times, people probably need to wake up and smell the vanadium. The lithium has topped out, it's a great battery metal, but I think there's an emerging battery coming called the Vanadium Redox Flow Battery. It has the ability to, I think, revolutionise the electricity industry... it really is about grid scale.”

Price concludes, "the focus this year is resource growth, the focus next year is reserve growth through to a half million ounce target, and then we can look at a mill and becoming a producer in our own right.”

]]> Aura Energy sees above expectation resource upgrade at Tiris project Mon, 18 Jun 2018 14:01:00 +0100 Aura Energy Limited's (LON:AURA) Peter Reeve tells Proactive that the firm is aiming to complete a definitive feasibility study for its Tiris Uranium project in Mauritania by the end of 2018.

He adds that the project has seen a resource upgrade to 17mln pounds of Uranium from an initial expectation of 7mln pounds.

]]> Erris Resources "particularly excited" about Brannberg project Mon, 18 Jun 2018 09:41:00 +0100 Erris Resources plc's (LON:ERIS) Merlin Marr-Johnson tells Proactive that it is "particularly excited" about its Brannberg project, part of a joint venture in Sweden with Centerra Gold.

He adds that the project has shown good gold mineralisation is historic drill holes, with the company planning to start a drilling programme there in July.

]]> Parkway Minerals looking to partner at Dandaragan Trough as it develops Lake Barlee Mon, 18 Jun 2018 08:49:00 +0100 Parkway Minerals NL (ASX:PWN) managing director Patrick McManus speaks with Proactive Investors about the company's two fertiliser projects in Western Australia, and its proprietary K-Max® potassium extraction process.

Aircore drilling is underway at the large-scale Lake Barlee Potash project. At the more advanced Dandaragan Trough Project, the company's patented K-Max® potassium extraction process is set to add value to the large greensand deposits there, according to scoping studies. Parkway Minerals is looking to take on a partner to develop that project, beginning with the Dinner Hill resource, as it focuses on developing Lake Barlee.

The K-Max® process could potentially be licensed to extract a number of elements from micaceous minerals.

Additionally, Parkway Minerals recently increased its stake in Davenport Resources (ASX:DAV) from 26% to 34%. Davenport Resources through its 100% owned subsidiary, East Exploration Gmbh, is exploring for potash in the highly prospective South Harz region of central Germany. "There's a lot more work to be done on that project, but it's really turning up some very strong positive resources," says McManus.

]]> FAR Ltd turns to The Gambia as SNE oilfield approaches commercialisation milestone Mon, 18 Jun 2018 05:50:00 +0100 FAR Ltd (ASX:FAR) managing director Cath Norman speaks to Proactive Investors about the oil and gas exploration company’s exciting advancements off the west coast of Africa.

The company’s efforts are currently focused on The Gambia, and in particular on the Samo prospect. “Drilling an 800 million barrel prospect is large by any company standards... when you consider that at the moment we have a net 140 million barrels to our name in Senegal, and our market cap’s $500 million, it’s wonderful to think about what our market capitalisation could be after we’ve drilled this Gambian well and have access to maybe another 300 million barrels to FAR’s name. And we’ll have the results of that well by mid to late November at the latest, if we spud on October 1,” says Norman.

FAR Ltd’s Senegalese operations are much more advanced, approaching a key milestone on the path to commercialisation. Norman explains, “we’ve got past the three principal hurdles of size, deliverability, and connectivity; so we understand everything about the oilfield now enough to progress to development. We are in a position today where we’ll be submitting the discoveries evaluation report to the government in about two weeks, which is a statement of commerciality, which I know a lot of our shareholders will be very pleased to see. And with that we’ll be progressively releasing some information about the final size for the development, and also the economics. The field will be developed in a phased development approach... we’ll be looking to get approval of our development plan by the end of this year, we’ll take the final investment decision in mid-2019, and then we’ve got an ambition to have first oil in about 2022.”

]]> Walkabout Resources strategically diversifying with 'Triple Trifecta' approach Mon, 18 Jun 2018 05:04:00 +0100 Walkabout Resources Ltd (ASX:WKT) non executive director Andrew Cunningham speaks with Proactive Investors about the energy minerals developer's progress across its portfolio of projects.

Cunningham explains the company's battery metals-focused strategic approach, known as the 'triple trifecta' saying, "it's three commodities, three countries, and in three stages of development... we've got the graphite in Tanzania,  the cobalt in Northern Ireland, and now the lithium in Namibia.""

There's quite a bit going on at the moment, but we've certainly got enough money to keep us ticking over, and also to progress these projects in Tanzania and also elsewhere quite rapidly," says Cunningham.

]]> Lithium Australia's proprietary SiLeach® process is a 'silver bullet' for lithium extraction Mon, 18 Jun 2018 04:04:00 +0100 Adrian Griffin, managing director of Lithium Australia NL (ASX:LIT), speaks to Proactive Investors about the integrated battery metal producer’s proprietary SiLeach® lithium processing technology.

Last week the company applied for two global patents relating to the production and recovery of lithium phosphate and lithium sulphate from lithium-bearing silicates.The enhancements will reduce capital and operating costs and improve product quality.

"For us it is the silver bullet because potentially it reduces capital costs and operating costs, so that's quite significant. It also helps us produce a lithium chemical with a much higher purity; we can take the lithium through to carbonate or hydroxide, or as the phosphate as the case may be. And that step - removing the lithium as a phosphate - is not only a step that takes the lithium out of solution at lower concentrations, but also helps us to purify that solution as we do that process," explains Griffin.

]]> Enertopia expects lithium brine results by end of June Fri, 15 Jun 2018 14:00:00 +0100 Enertopia Corp (CSE:TOP, OTCQB:ENRT) CEO Robert McAllister provided investors with the latest update on its lithium brine testing and work at the Clayton Valley project in Nevada.

McAllister says the lithium sector is the fastest-growing resource sector of size, and he says demand will be anywhere from double to triple for lithium carbonate and lithium hydroxide for electric vehicles and off-grid storage.

]]> £5.5mln fundraise sees KEFI Minerals fully funded for Tulu Kapi construction Fri, 15 Jun 2018 11:27:00 +0100 Harry Adams, executive chairman of KEFI Minerals plc (LON:KEFI), tells Proactive's Andrew Scott they've raised £5.5mln through a placing and subscription to pay the costs of closing the financing deals at the project level for the construction of their Tulu Kapi Gold Project in Ethiopia.

Earlier this week KEFI raised US$30mln from the sale of a stake in its local Ethiopian subsidiary, to complete the funding requirements for the construction of the mine.

]]> Gold price shrugs off latest interest rate rise from the Fed, at least for now Fri, 15 Jun 2018 10:52:00 +0100 Predictive Discovery 'looking for a big field season' after West Africa rainy season Fri, 15 Jun 2018 08:09:00 +0100 Predictive Discovery Ltd. (ASX:PDI) managing director Paul Roberts speaks to Proactive Investors about the gold project generator's progress across its portfolio of projects and exploration licenses in Burkina Faso, Côte d’Ivoire, and Mali. The company is additionally doing some preliminary project generation work on other neighbouring nations in West Africa.

After the rainy season, Predictive Discovery will be drilling at various promising prospects in Côte d’Ivoire with JV partner Toro Gold Ltd, and in Burkina Faso the company will drill along strike from the Bira prospect with JV partner Progress Minerals International.

Roberts says there is "certainly a real possibility as we run into 2019 that we could be looking towards expanding any one of those projects into a pre-resource state."

]]> Triangle Energy's Cliff Head Asset Life Extension program advancing Fri, 15 Jun 2018 05:14:00 +0100 Triangle Energy (Global) Ltd (ASX:TEG) managing director and CEO Rob Towner speaks to Proactive Investors about the oil and gas exploration and production company’s advancements developing the Perth Basin, off the coast of Western Australia.

The company has been remodelling its Cliff Head reservoir for the past three months, with completion of the static modelling stage expected within the coming month. Towner says, “the last 18 months of restructuring the project and business was very much focused on getting the cost of production down. When we purchased into the project, we were running operating or lifting costs at about US$45 a barrel, we’ve now got that down to US$27 a barrel, so these last three months of increased oil prices at above $60 even [means] we are making a good operating margin. So give us six months and we can start to reflect that in the bottom line.”

The onshore Arrowsmith Stabilisation Plant has also been getting plenty of care and attention. It’s regarded by Triangle as a key asset for both the company and the State, with excess production capacity which potentially lends itself to other historic projects and new discoveries, such as the Xanadu joint venture.

]]> 'Big year' expected for Bonterra Resources, with exploration well funded through 2018 Thu, 14 Jun 2018 14:27:00 +0100 Bonterra Resources Inc (CVE:BTR) VP of Operations Peter Ball tells Proactive Investors the gold exploration company is very pleased with drill results from the winter drill campaign of the Gladiator gold project in Quebec's Abitibi gold belt.

The company is well funded to continue exploration, Ball noting that it has $33mln to $35mln in the bank, which will carry operations through 2018.

]]> Stratex makes move into Cameroon with two gold exploration projects Thu, 14 Jun 2018 12:45:00 +0100 Stratex International plc (LON:STI) chief executive Tim Livesey caught up with Proactive's Andrew Scott to discuss their conditional option agreement with Bureau d'Etudes et d'Investigations Géologico-minières, Géotechniques et Géophysiques SARL (BEIG3), a well-established Cameroonian company with strong in-country technical and logistic support, for two early-stage gold exploration projects, Bibemi and Wapouzé, in north Cameroon.

Under the terms of the option agreement, Stratex can earn-up to a 90% interest in the two projects projects.

]]> Pembridge Resources signs US$30mln prepaid off-take financing for Minto mine Thu, 14 Jun 2018 12:27:00 +0100 David Linsley, chief executive of Pembridge Resources PLC (LON:PERE), tells Proactive they've signed definitive heads of terms with a leading global Japanese trading house to receive US$30mln in prepayment financing through an offtake agreement for 125,000 tonnes of copper concentrate to be produced by the company’s Minto mine.

The offtake agreement allows Pembridge to sell concentrate from Minto at the mine gate - eliminating the historically large working capital requirements when the site is unable to transport concentrate owing to seasonal weather conditions.

]]> Eurasia Mining receives approval of Monchetundra mine permit application Thu, 14 Jun 2018 11:39:00 +0100 Christian Schaffalitzky, executive chairman of Eurasia Mining plc (LON:EUA) tells Proactive they've received approval of the Monchetundra mine permit application by two key Russian federal agencies: the Federal Securities Board (FSB) and Ministry of Defence (MOD).

Schaffalitzky adds the mine permit application for the 2mln ounce PGM project has now progressed to ministerial level.

He says the application process remains on track for a successful grant by late summer.

]]> NTM Gold increases Resource by 94%, pivots to exploration with 3-tiered approach Thu, 14 Jun 2018 09:48:00 +0100 NTM Gold Ltd (ASX:NTM) managing director Andrew Muir speaks to Proactive Investors as news breaks that the company has grown the resource at its Redcliffe Gold Project in Western Australia by 94%, through several rounds of RC and diamond drilling.

The company's operations moving forwards will continue to focus on exploration and further growing the resource base.

Muir says, "we've just come up with over half a million ounces in resources and we see a fair bit of upside beyond that... we have quite a few development options... we're now going to switch into an exploration phase. We've got a lot of targets that we need to follow up, we're taking a three-tiered approach to it: we're going to follow up on some previous drill hits that have yet to be followed up; we'll also look at targeting some extensions to the existing resource base, particularly at depth and the higher grades; and the third tier will be targeting some conceptual targets that we've identified from our geology, which is highly prospective."

]]> Barra Resources' dual commodity focus will deliver consistent developments this year Thu, 14 Jun 2018 08:58:00 +0100 Barra Resources (ASX:BAR) managing director Sean Gregory speaks to Proactive Investors about the Australia-focused exploration and development company's dual commodity focus, spanning gold and battery metals.

Gregory explains, "on one side we’ve got our historical gold assets, dating right back to 1885, really solid gold assets that deserve some decent expenditure on exploration to uncover their potential. On the other side we’ve got the Mt Thirsty project, which is in the cobalt-nickel space and heavily exposed to the electric vehicle segment. Many investors, if they were to list their top commodities, you would find cobalt, nickel and gold would score very highly on that list, so we’re very fortunate to have that exposure."

Barra Resources has just kicked off a pre-feasibility study at its flagship Mt Thirsty Cobalt-Nickel Project in Western Australia, in partnership with Conico Limited (ASX:CNJ).

"It’s a real genuine cobalt project with some nickel credits. Many other mines around the world are actually nickel projects with cobalt credits. So Mt Thirsty is very, very heavily exposed to the uplift that we're presently seeing in the cobalt prices, which is driven by the fundamental supply and demand factors, which we don’t see changing," says Gregory.

]]> Scoping study highlights 'outstanding appeal' for Savannah Resources' Lithium project Thu, 14 Jun 2018 07:46:00 +0100 David Archer, chief executive of Savannah Resources Plc (LON:SAV), discusses with Proactive's Andrew Scott the results of the scoping study on their Mina do Barroso lithium project in Portugal.

Archer says the cost of building the mine will be around US$109mln.

That would be recouped in under two years with production of 175,000 tonnes of spodumene concentrate, a source ore for lithium.

]]> Danakali announces new Executive Chairman and CCO as Colluli project advances Thu, 14 Jun 2018 00:15:00 +0100 Danakali Ltd (ASX:DNK) outgoing chief executive Danny Goeman speaks to Proactive Investors about the binding offtake agreement for up to 100% of module I sulphate of potash (SOP) production from the Colluli Potash Project in Eritrea, East Africa.

"We've been on this journey for nearly two years now, and ultimately what we wanted to achieve is basically what transpired this week... with a very credible offtake party, which is EuroChem... this particular offtake deal will assist greatly in progressing the funding discussions with the various partners that have expressed an interest in the project thus far," says Goeman.

Danakali announced today that previous non-executive chairman, Seamus Cornelius, has been appointed as executive chairman, and that Niels Wage will join as chief commercial officer (CCO); as Goeman moves on from the company having led it to this milestone.

]]> VSA Capital Market Movers - Columbus Energy Resources (LN:CERP) Tue, 12 Jun 2018 10:04:00 +0100 Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (LON:CERP) has announced full year results for the year ending December 2017. The new team, which took charge in May 2017, has recapitalised the company, which ended the year with a cash position of £4m, and began an ambitious operational overhaul seeking to realise the significant value potential of the underlying assets whilst instilling capital discipline.

Revenues were up 5% YoY, to £4.8m while the loss from operations widened to £4.3m from £4m, largely due to the costs associated with closing the Spanish assets. Due to a lower impact from impairments, the net loss narrowed from £11.9m to £5m YoY.

These results, however, largely reflect the last of the old regime and the turnaround being enacted is yet to show through fully. Operational improvements began to take effect from August and so the full year numbers reflect little of the positive working practices and low cost enhancements which took production from 365bopd in July 2017 to a peak of 562bopd by the end of the year.

Group production averaged 368bopd, down 21% YoY, primarily as a result of the reduced contribution from the Spanish assets which have been shuttered. This was modestly lower than our estimate based on management guidance of 399bopd for the full year and was largely due to the challenges of coarse sand impacting on pumps. CERP has now applied new techniques to alleviate this. Group revenues were, however, up 5% YoY at £4.8m driven by a recovery in oil prices and the increased production contribution from Goudron in the latter part of the year. We highlight that revenues from Trinidad increased 24% YoY to £4.5m while Spanish revenues declined 68% YoY to £0.3m and these have been discontinued for 2018.

Cost of sales were modestly higher, up 8% YoY to £3.6m reflecting CERP’s largely fixed operating cost base, however, as a result of a stronger top line CERP generated a small gross profit of £78k versus a loss of £148k in the prior year. The closure of the Spanish operations did, however, increase SG&A costs by around £700k and following the successful agreements in Q1 2018 in relation to the La Cora concession these can be considered a one off. Excluding Spain, CERP reduced SG&A by 11.5% YoY. However, as a consequence the loss from operations widened YoY to £4.2m from £4m.

Finance charges increased to £824k from a negligible net amount YoY owing to the use of the Lind facility which the new team successfully renegotiated during 2017 raising the conversion price to 4.5p. CERP reduced its outstanding debt through the year from £1.87m to £1.21m despite Lind exercising its right to lend a further US$0.75m during the year. The debtposition at the end of March was approximately £0.69m demonstrating continued further progress in this regard. Indeed, having raised £4.1m in October, CERP has considerably strengthened its balance sheet and is well placed to carry out its operational turnaround at Goudron as well as initial exploration on the South West Peninsula, now due in H1 2019.

Post year end, CERP completed a renegotiation of the license ownership in relation to the SWP which paves the way for the much anticipated exploration programme necessary to unlock the significant value potential we believe exists. In addition, the company announced the potential Icacos acquisition which we believe is attractive for both CERP and Touchstone (TXP CN) since its completion better aligns the interests of the relevant parties with their core strategies and will enable CERP to take advantage of potential synergies between Bonasse and Icacos.

Although the financial data for 2017 shows little of the initial benefits from production and operational enhancements managements’ impact on capital discipline is clearly demonstrated in these results. The improvements in production of around 50% during H2 have resulted from minimal capital spending of just £1.38m. Although this was significantly higher than the prior year (£310k), this lack of investment owed to the company’s constrained financial position and we believe that capital spending of £8m in 2015 and £10m in 2014 are more reflective of the prior management’s approach. We believe that this is the key takeaway from these results and is the most clear indication of the change of direction for the company.  

The full year 2017 results represent only a small part of the early impact that the new management team has had, in our view. We believe that the financial benefits of the operational turnaround will be more fully reflected in the coming periods and much of the first 12 months for the new team has been about building a robust platform on which to build; resolving legacy issues at the SWP with regard to the BOLT transaction and in Spain now mean that the company is well placed to fully reflect the financial turnaround at Goudron in 2018 and begin exploration on the SWP.


We reiterate our Buy recommendation and 26p target price.

]]> Russian aggression is a neat distraction from the West’s real problem: the fraying at the edges of the liberal economic order Fri, 08 Jun 2018 10:46:00 +0100 VSA Capital Market Movers - Independent Oil & Gas (LON:IOG) Tue, 05 Jun 2018 09:39:00 +0100 Independent Oil & Gas (IOG LN)#


Independent Oil & Gas (IOG LN) has announced a significant operational update demonstrating initial positive results from the pigging programme undertaken to determine the integrity of the Thames Pipeline. The pipeline is a crucial part of the Southern North Sea gas hub strategy which enables IOG to save hundreds of millions in development capital and maximise the returns from extraction of gas. Therefore, initial confirmation indicating the pipeline is in “extremely good condition” is a major positive step towards the Final Investment Decision (FID) due in H2 2018 and further confirmation of the viability of IOG’s development strategy.

Three 12m sections of the pipeline were cut out 60km offshore and retrieved to surface which showed little signs of degradation or corrosion. This is slightly further out than where the Southwark field will be tied back in to the pipeline. Subsequent pressure testing by elevating water pressure in the pipeline for 24 hours yielded positive results further confirming the integrity of the pipeline and over a greater extent than the short sections cut-outs.

Due to a malfunction with the pigging device insufficient data was collected during the 60km run to clean and assess roundness and thickness in the pipeline. Although the other tests provide a clear indication of the pipeline’s integrity, IOG will run this latter stage of the pigging programme again as it is important to fully complete the surveys to provide contractors and investors with full confidence. We expect this to be completed within the coming weeks. This does potentially delay the remainder of the process ahead of FID which may now be delayed by a short period beyond the planned August 2018 target.

In addition to the intelligent pigging programme, IOG has also been conducting offshore survey programmes via its contractor Fugro MV Galaxy. The programmes, which included geophysical surveys, shallow seismic of the four platform and five drill sites as well as other environmental and geotechnical surveys, have provided important additional data required ahead of FID.

The announcement today provides strong confirmation of the progress IOG is making in its development programme. The Thames Pipeline is a fundamental part of the development and one of the major factors in determining the significant upside potential we believe exists. Confirmation of its integrity is therefore a major positive step for IOG. 

We reiterate our Buy recommendation and 96p target price.

]]> VSA Capital Market Movers - Egdon Resources Mon, 04 Jun 2018 08:40:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced that it has increased its interest in PEDL 180 and PEDL 182 by 5% in each. The licenses contain Wressle and Broughton North respectively and the positions have been acquired from Celtique Energie Petroleum for a deferred cash consideration of £0.417m payable on first oil. Union Jack Oil (LON:UJO) and Humber Oil & Gas will each also acquire 12.50% in the same license areas on the same terms under separate deals from Celtique Energie.

This structure is attractive, in our view, given there is no immediate cash payment and the transaction is effectively contingent on successful planning application. EDR intends to submit a new planning application for the Wressle development following additional boreholes drilled on site. The information from these boreholes should provide information to directly address the matters highlighted in the prior application.

Following the announcement, our valuation is adjusted accordingly to reflect the higher interest. Although Wressle’s near term cash flow potential is of significant benefit to EDR, it forms only a small part of the valuation (1p/share) and the additional 5% interest takes our target price only modestly higher to 52p/share.

Therefore, despite a strong recent rally in the share price, we believe that with major catalysts coming up in the next few months for both EDR’s conventional and unconventional portfolio that there is significant further upside potential.

We reiterate our Buy recommendation and adjust our target price up to 52p.

]]> Gold miners won’t mind a stronger dollar if it means costs go down Fri, 01 Jun 2018 11:50:00 +0100 VSA Capital Market Movers - redT energy (LON:RED) - Post FY 2017 Results - Imminent Gen3 Launch Wed, 30 May 2018 10:07:00 +0100 On 17 May redT energy (LON:RED) reported FY 2017 results in-line with our expectations, recording revenues of €11.8m and an adjusted LBITDA of €6.7m. As in previous years, more than 90% of group revenues were delivered through its legacy Camco business, which has now been substantially divested.

FY 2017 Orders to Contribute to FY 2018 Results

The modest redT energy storage divisional revenues consisted of grant funding (€0.4m) and the release of 2016 licence fees (€0.5m). Although the company secured 43 tank unit sales during the year, financial contribution from these will be included in its FY 2018 results, when systems become operational at customer sites. RED reported €2.1m in deferred income on its year-end balance sheet in respect of these orders.

2018: Focus on Pipeline Conversion; Gen3 Launch

At the end of 2017 RED reported 330 tank units in the Final Stage of Customer Selection (40 of which were Gen3 orders), representing a total order value of €18.3m. Its broader Active Customer Pipeline increased more than 50% during the period and stood at €357m by the end of the year.

At the end of Q1 2018 RED announced an additional 155 Gen3 tank units were in the Final Stage of Customer Selection, meaning that the company had 485 units in the Final Stage of Customer Selection (Gen2 & Gen3) at that point, with potential combined revenues of more than €25m. We view the formal launch of RED’s Gen3 product in H2 2018 as an extremely important milestone for the company, representing the first time RED will be selling its commoditised product to generate a gross margin.

Recommendation and Target Price


We have made some changes to our forecasts (see page six) and rolled our DCF valuation on one year. We maintain our BUY recommendation and a 10-year DCF-derived target price of 22p. 

]]> Gold holds its own in the face of weaker equities, but long-term bulls will still be hoping for worse news than that Fri, 25 May 2018 10:44:00 +0100 VSA Capital Market Movers - Independent Oil & Gas#: 30th UK Licensing Round Awards Thu, 24 May 2018 09:37:00 +0100 Harvey Expanded, Broader Structure Captured

Independent Oil and Gas (IOG LN) has received four additional blocks in the 30th round of UK Licensing in the North Sea, with the shares up 8% on the news meaning the stock is up 38% YTD. The blocks could, in our view, strengthen the development of the Southern North Sea gas hub IOG is developing.

The first of these blocks (48/24a) completes IOG’s licensing of the Harvey structure increasing its attributable prospective resource from 90BCF to 114BCF on a best estimates basis. Although we had expected IOG to expand the license to the whole structure it was not included in our prior valuation which is adjusted up as a consequence.

Additional Goddard and Abbeydale Blocks

As well as the extension to Harvey, IOG received blocks in two additional areas. The first known as Goddard (48/11c & 48/12b) is now the single largest discovery within IOG’s portfolio with a management estimate of contingent resources at 1C/2C/3C, 45/189/396 BCF. Five wells were drilled between 1985 and 2019 proving the resource and IOG has committed to reprocessing 3D seismic and drilling one well within 3 years of license award.  The Abbeydale block 53/1b, to the West of Camelot Central South, contains a dormant gas discovery and management estimates contingent resources at 1C/2C/3C 5/11/24BCF. With only outdated existing seismic data, we expect a new 3D programme to expand on this estimate and demonstrate the broader potential.

Recommendation and Target Price

The additional blocks materially enhance IOG’s portfolio and we have revised our valuation to reflect the added total gas resources from 393BCF to 617BCF. In all cases the blocks could reasonably be tied back to the Thames Pipeline, in our view, further strengthening the gas hub strategy.

The intelligent pigging programme continues with results due soon. Confirmation of the Thames Pipeline’s expected good condition will be a major step towards the Final Investment Decision in August 2018. With a supportive backdrop of gas pricing and concerns over UK energy security we believe IOG is well placed to execute its strategy and realise the significant upside potential.

We reiterate our BUY recommendation although increase our target price by 33% to 96p.

]]> Gold bulls under pressure, with the only good news on the horizon likely to be bad news Fri, 18 May 2018 12:47:00 +0100 VSA Capital Market Movers - Egdon Resources Fri, 18 May 2018 10:20:00 +0100 Egdon Resources (LON:EDR)

Yesterday the UK Government provided a Written Ministerial Statement on the UK shale gas industry. Despite backing from the Government in its election manifesto, progress has been slow in terms of project development although. However, with a number of key milestones coming up this summer this intervention is a timely and positive step, in our view.

The statement which reiterates the Government’s support for shale gas development and its national importance given rising UK energy imports must now be considered by planning committees when making decisions on applications. In addition the Government will publish revised planning practice guidance on shale development this summer and will launch two consultations; one to consider allowing wells to be drilled under permit rather than a full application and one to consider including shale production projects in the Nationally Significant Infrastructure Projects regime.

Given the complexity and technical nature of oil and gas permitting, the statement also indicates further support for Local Authorities to help them better understand the issues surrounding the development process.

Although the UK Government has previously indicated its support for shale gas development we believe this more direct approach is likely to be more effective and bodes well ahead of a key summer of testing by Cuadrilla, Egdon (LON:EDR) and IGas (LON:IGAS). As one of two companies listed in the UK offering exposure to shale gas development we believe that EDR offers attractive exposure to the industry. Currently trading at around 9p the shares reflect little of the upside potential and have been deeply discounted largely as a result of permitting risk, however, this announcement strongly indicates that the Government intends to support applications.

]]> US disregard for allies over Iran decision will have China wringing its hands in glee Fri, 11 May 2018 10:52:00 +0100 VSA Capital Market Movers - NuLegacy (TSX-V:NUG) (OTCMKTS:NULGF) Wed, 09 May 2018 09:02:00 +0100 NuLegacy ((TSX-V:NUG) (OTCMKTS:NULGF)#

NuLegacy (TSX-V:NUG) has announced that its new drilling programme has commenced with two rigs now on site. The programme is expected to cover 15,000ft (c4.6km) over 12 holes. The drilling is being targeted based on a reappraisal of the existing data and NUG are primarily targeting new and higher grade zones of gold mineralisation in the 2km area between Avocado and Serena deposits.

NUG is now targeting the juncture of the Wenban 5 limestone horizons (a known host for Carlin style mineralisation) and low angle thrust faults which act as the conduits for gold bearing fluids during formation. Previous drilling has shown that these thrust faults cut across the limestone horizons and that mineralisation may be present in both features. The reinterpretation of the existing data indicates that it is where these features meet that NUG now expect higher grade mineralisation to occur.

As we have previously highlighted NUG has adapted its approach to avoid the caving issues which affected drilling at Avocado last summer. This means first using reverse circulation drilling to get through the gravel overburden before casing the hole and following up with core drilling. The initial programme will consist of five drill holes with two in Avocado and three stepping out from Serena and the North Iceberg zones; this will then inform the latter part of the programme.

In addition to drilling, NUG will also undertake a gradient array IP geophysical survey at VIO; a volcanic hosted epithermal gold silver mineralisation. This will be carried out in late May and the technique was successfully used in the exploration of Mule Canyon; an analogous regional deposit to VIO.

NUG has budgeted C$5m for drilling and field exploration in 2018 and the announcement of the start of drilling marks the start of a key period of newsflow for the company with the potential for significant near term share price catalysts. We remain confident in the potential for NUG’s deposits and believe that the company has learnt a significant amount from last year’s exploration and the information is being used to best effect to inform this year’s programme.

We reiterate our Speculative Buy recommendation.

]]> This week’s Mining Capital event showcased a sector that’s beginning to enjoy rude health Fri, 04 May 2018 13:18:00 +0100 Rising Treasury yields send a cold wind through markets, but miners remain a hot spot Fri, 27 Apr 2018 10:48:00 +0100 VSA Capital Market Movers - Independent Oil & Gas (LON:IOG) Tue, 17 Apr 2018 08:01:00 +0100 Company Name (Ticker)#


Independent Oil & Gas (IOG LN) has announced that it has now completed the acquisition of the Thames Pipeline. The pipeline provides a ready built, secure and wholly owned export route for gas from the Blythe and Vulcan Satellite hubs, saving IOG significant development capital and enhancing the economics of the Southern North Sea gas project. In addition, IOG has announced that it intends to acquire the onshore reception facilities at the Perenco Bacton Terminal where the Thames Pipeline ends. A period of exclusivity has been agreed until the end of September 2018. 

IOG is now the operator of the 100% owned Thames Pipeline which at peak production is expected to carry 180mmcfd; although since this would not fully utilise the pipeline’s capacity (300mmcfd in total) IOG is considering opportunities for additional third party gas.

Currently IOG is conducting an intelligent pigging programme to confirm the state of the pipeline. However, since the pipeline was decommissioned in 2015 with an estimated 25-40 years of life remaining we expect it to be in good condition with any necessary remedial work likely to be limited in nature. Results are expected in early May. We also note a potential modification to the pipeline which is currently being considered. This could reduce the time and cost of the pigging programme by using a new tie in point for the Southwark platform which is in the Vulcan Satellites hub.

This announcement reflects a key milestone for IOG and the company continues to make strong progress towards the Final Investment Decision due in August 2018.

We reiterate our Buy recommendation and 72p price target. 

]]> VSA Capital Market Movers - Columbus Energy Resources (LON:CERP) Mon, 16 Apr 2018 07:50:00 +0100 Columbus Energy Resources (LON:CERP)


Columbus Energy Resources (CERP LN) has announced that it has agreed in principle to purchase the remaining 50% of the Icacos Field from its JV partner Touchstone Exploration (TXP LN/CN) via their respective subsidiaries; Leni Trinidad Limited (LTL) and Primera Oil & Gas Limited. LTL will subsequently become the 100% owner of the Icacos field and the operator. The Icacos Field is located at the far end of the South West Pensinsula and we believe that the transaction will enable both CERP and TXP to focus more fully on their respective strategies. 

The transaction remains subject to regulatory approval and a definitive sale and purchase agreement, however, CERP is confident that the deal will be finalised during Q2 2018. Our estimates remain unchanged whilst the transaction is finalised.

Gross production on the field was consistently around 22bopd during 2017 having peaked at 34bopd in 2011. The Field consists of six wells with three on production although new work programme activities and workovers have been limited recently. The transaction is valued at US$500,000 and will mean operatorship transfers from TXP to CERP along with the 50% share of production. This will be paid over time until 1 January 2021 with Primera receiving net revenue it would have received had it retained its interest. In the event of increased production, Primera will also receive, 25% of any net revenue above the current baseline; until 1 January 2021.

The terms of the transaction are attractive in our view enabling CERP to use existing cash resources to fund operational activities at Icacos rather than being used for upfront payment. With TXP’s current strategy focussed on infill drilling on its developed acreage and CERP heavily focussed on development of the SWP we believe that CERP is better placed to oversee Icacos Field development.

We reiterate our Buy recommendation and 26p target price.  

]]> Why gold remains the safe haven asset of choice in times of geopolitical uncertainty Fri, 13 Apr 2018 15:28:00 +0100 Global trade patterns could be irrevocably altered if the trade war escalates much further Fri, 06 Apr 2018 11:15:00 +0100 VSA Capital Market Movers - Egdon Resources (LON:EDR), Independent Oil & Gas (LON:IOG) Tue, 03 Apr 2018 10:16:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced a further farm out of 5% on the PEDL253 property which includes the Biscathorpe Prospect in Lincolnshire. The transaction is on the same terms as the previously announced farm outs and Humber Oil and Gas Limited (Private) will acquire 5% of EDR’s interest by paying the pro rata cost of the Biscathorpe-2 well cost plus an additional £50k (£10k per percentage point). Humber will also acquire 5% from Montrose Industries Limited (Private). The transaction is subject to approval from the Oil and Gas Authority and EDR will retain a 35.8% in the license once completed.

We reiterate our Buy recommendation and 48.5p target price.

Independent Oil & Gas (LON:IOG)

Independent Oil & Gas (IOG LN) announced full year results which showed a loss of £2.75m compared to a loss of £21.4m in 2016. Excluding impairments on oil and gas properties the operating loss was broadly in line YoY at £798k in 2017 versus £525k in the prior period. Finance expenses increased from £899k in 2016 to £1.8m in 2017. IOG reported a year end cash position of £145k, however, we note that in February 2018 the company announced the provision of a new convertible loan of £10m by London Oil & Gas (LOG) which we believe will mean that IOG has sufficient liquidity until Final Investment Decision for the Southern North Sea gas project which is due in August 2018.

IOG has made significant progress in 2017 towards the development of its Southern North Sea gas project. During the year IOG announced significant upgrades to its Reserves at the Vulcan Satellites, Blythe and Elgood along with a CPR confirming the potential at Harvey. The company subsequently committed to an appraisal well at Harvey which could provide further upside to the strong project economics of the core hub. The hub strategy is made possible by the acquisition of the Thames Pipeline which was agreed in April 2017. It provides a secure export route for gas produced from IOG’s licenses whilst saving the company significant development capital.

This year will centre around the Final Investment Decision which is expected in August 2018. Key milestones will include demonstrating the viability of the Thames Pipeline following an intelligent pigging programme and delivering an appropriate capital structure to finance construction. We expect this to incorporate debt and equity as well as gas offtake and contractor finance. Given the achievements of 2017 we believe that IOG is well placed for an important year ahead.

We reiterate our Buy recommendation and 72p target price.

To read our recent report on IOG, please click here.

]]> What is the White House really up to? Trade war threats recede, as tariff exemptions multiply Sun, 01 Apr 2018 07:00:00 +0100 Trade war ahoy? Fed raises rates, gold stays firm, markets dive Fri, 23 Mar 2018 11:50:00 +0000 VSA Capital Market Movers - Wynnstay Group: 2018 AGM Statement Tue, 20 Mar 2018 10:17:00 +0000 Wynnstay Group: 2018 AGM Statement

Wynnstay Group (WYN LN), a UK manufacturer and supplier of agricultural inputs, has announced a trading update for its H1 2018 period, which runs from November 2017 to April 2018, ahead of its AGM this morning.

  • Trading for the first four months of FY 2018 described as encouraging with increased demand for most products
  • Feed demand ahead YoY; increasing fertiliser sales; improving grain volumes but margins remain under pressure; seed demand encouraging; higher LFL sales YoY in its agricultural stores

VSA Comment

In animal feed, total UK ruminant feed production across the first two months of WYN’s H1 increased 9% YoY. Although data is not yet available for subsequent months, we believe demand has remained strong, with the recent abnormal cold weather also having benefited this operation in the last few weeks, particularly with regards to sheep feed.

As a reminder, in 2013 the listed feed suppliers all received an economic boost (and a resulting increase in share price) as colder temperatures extended into March, with peer NWF Group (NWF LN) the most financially leveraged to this trend. However, it is worth noting that performance in 2013 was also positively impacted by a very wet summer 2012, which reduced on-farm silage volumes and quality (summer 2017 was wetter than average but not significantly so). So far this year, only NWF and ForFarmers (FFARM NA), the largest feed supplier in the UK, have shown any positive share price reaction.

In arable, and as we wrote at the end of January, with early estimates for the 2018 UK wheat harvest suggesting it will be 2-3% smaller than last year, we are expecting a slightly lower YoY performance for WYN’s seed business and a similar YoY performance for its fertiliser operations. WYN’s fertiliser business will also be boosted this year by its expansion into the Scottish fertiliser sector through its acquisition of a blending facility at Montrose last November.

As highlighted by WYN in its FY 2017 results, having experienced a reduction in early, out-of-season orders at the end of FY 2017, stronger fertiliser demand is now starting to come through and will increase further as farmers begin to buy in the spot market for the spring usage period.

In January, we also stated that we expected WYN’s grain trading volumes would increase this year as volumes from the slightly bigger 2017 harvest continued to be traded and farmers began to clear on-farm stocks in light of higher grain prices ahead of the upcoming 2018 harvest. WYN has confirmed this trend this morning, although margins remain under pressure.

We also suggested that WYN’s specialist retail operations would benefit from a much improved sentiment in the underlying UK agriculture market this year, as highlighted by recent announcements from peers. This is also confirmed by WYN today with improved LFL sales reported for the first four months of FY 2018.
WYN looks set for an improved FY 2018, given the improved underlying market conditions and the decisive action taken last year with regards to the closure of its Just for Pets business.

Consensus for FY 2018 is currently revenue of £405.5m, +3.8% YoY, and an adjusted PBT of £8.2m, +2.5% YoY.


]]> VSA Capital Market Movers - Egdon Resources (EDR LN)# Tue, 20 Mar 2018 10:02:00 +0000 Egdon Resources (EDR LN)#

Egdon Resources (EDR LN) has announced that it has reached a Heads of Terms agreement in respect of a farm out of interests in PEDL 253 to Union Jack Oil (UJO) and Humber Oil and Gas (Private). PEDL 253 in Lincolnshire contains the Biscathorpe project.

The terms which were previously announced as a Definitive Farm Out Agreement are unchanged with UJO and Humber to each acquire 6% of EDR’s interest in PEDL 253 by paying their share of a Biscathorpe 2 well cost plus an additional £10k per percentage point interest acquired. UJO and Humber will also acquire 4% each of Montrose Industries Limited interest in PEDL253 under the same terms. This equates to a farm in with a 1.36 times promote at the estimated well cost. The agreement remains subject to approval from the Oil and Gas Authority and EDR will then retain a 40.8% interest with a 29.31% share of the currently estimated well cost.

The mean gross prospective resources at Biscathorpe are estimated at 14mmboe. The planned well is down-dip of the crestal Biscathorpe-1 well drilled by BP in 1987 which encountered oil shows from a 1.2m thick sandstone and EDR expects the reservoir sands to thicken down-dip following reprocessing of seismic data.

We reiterate our Buy recommendation and 48.5p target price

]]> VSA Capital Market Movers - redT Secures Tidal Energy Project Order Tue, 20 Mar 2018 09:55:00 +0000 redT Secures Tidal Energy Project Order

redT energy (RED LN)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has signed a partnership to be primary energy storage provider for an unnamed large-scale tidal generation project in the UK.

  • 0.6MW, 3MWh flow machine system (five hours of storage) selected by the project consortium, subject to finance and formal contract awards
  • Project expected to be delivered in 2019

VSA Comment


An encouraging large project order from RED (assuming finance and formal contract awards are secured), with its flow machine solution favoured over alternative battery solutions, given the heavy cycling, non-degrading nature of its technology. It is also positive to see RED securing an order in a sector other than solar plus storage, where the majority of its UK orders to date have been won.

This order forms part of RED’s ‘large project’ strategy for 2019 and will be fulfilled with its margin-generating Gen3 machines (to be launched in H2 2018). This order will require 40 tank unit modules - our current forecasts are for more than 1,000 tank unit modules sold to customers in 2019.

The project owner is unnamed but some of the most prominent UK tidal projects are being developed by Atlantis Resources (ARL LN), which designed, built and delivered the first phase of the flagship MeyGen tidal energy project in Scotland. ARL is currently merging with certain assets of SIMEC Energy (part of the GFG Alliance), owner of an interest in Tidal Lagoon plc, which is also developing a number of tidal projects in the UK, predominately in Wales, and internationally.

We currently have a BUY recommendation on RED with a 10-year DCF-derived target price of 22p. 

]]> VSA Capital Market Movers - Columbus Energy Resources (CERP LN)# Mon, 19 Mar 2018 09:32:00 +0000 Columbus Energy Resources (CERP LN)#


Columbus Energy Resources (CERP LN) has announced a significant update in relation to the South West Peninsula (SWP) and the successful completion of the restructuring of the Beach Oilfield (BOLT) transaction. This will enable CERP to begin a fully funded exploration programme including well reactivation in Q2 2018 on the Bonasse field as well as analysis of 3D seismic on the SWP. This is expected to be followed by 2-3 appraisal wells drilled in H1 2019, subject to results. Although the operational turnaround at Goudron is a critical part of the strategy and drives near term cashflow generation, it is the exploration potential at the SWP which provides the key catalysts for a major rerating of the stock; this announcement is therefore a significant milestone for CERP in realising its longer term strategy.

Previously CERP help a 25% equity interest in BOLT via a local subsidiary and was due to acquire the remaining 75% for cash payments totalling US$184k and the adoption of a US$1.1m loan held by BOLT. The new terms which are significantly more attractive, in our view, are as follows. CERP will make a cash payment of US$450k to BOLT as well as a US$80k payment to Petrotrin to complete the purchase of a 27.5% interest in the Bonasse field. CERP will give up its 25% equity stake in BOLT and BOLT will retain the US$1.1m loan. CERP acquires access to oil and gas rights on the SWP.

CERP will pay deferred fees of US$500k to BOLT upon development of any other field than Bonasse within the lease and a royalty of 3% on net production from a development of the SWP license (excluding Bonasse). The royalty is payable on net production in excess of 10mmboe per annum and capped at US$1.25mpa.

In addition to the BOLT transaction, CERP has signed a lease agreement with Singh’s (Cedros) Estates Limited to provide CERP with guaranteed access to 100% of the SWP for oil and gas operations until January 2019 and from February 2019 a lease which provides CERP the same rights for a further 27 years. From February 2019 CERP will pay Cedros US$70kpa (escalated in line with the WTI oil price) as well as a royalty of up to 12.5% capped at US$2m for years 1-2, at 10% for years 3-8 and reverting to 12.5% thereafter. Drilling bonuses of US$15k will be paid upon spud of each of the first three wells.

The above is fully funded from existing cash resources.

The attraction of the SWP for exploration is that it has been relatively underexplored in comparison to the broader region. CERP’s existing interpretation of the multiple prospects indicates 20-400mn barrels in place. Furthermore, since the targets can be drilled from onshore costs are expected to be modest at between US$2-4m per well.

Currently CERP already has a small amount of production from the shallow Icacos oilfield while the Bonasse oilfield is currently producing c10bopd of 23 degree API gravity oil. CERP expect to be able to reactivate as many as ten wells. Other historic drilling at Bonasse included 16 wells dilled to depths of up to 2,500ft. The only deep onshore well was drilled to a measured depth of 12,301ft found oil shows in the Lower Cruse and Lengua formations at a true vertical depth of 10,180ft. This well did not reach the Herrera Sandstone formation which leaves further undiscovered potential. SWP contributes 10p of our 26p target price despite its early stage which should highlight to investors the significant underlying potential.

The region is highly prospective due to its close proximity to the East Venezuelan Basin with which SWP shares its geology and on trend structures, offshore from SWP, have yielded discoveries in excess of 200mmbbls. We also note the recent announcement by BHP Billiton (BLT LN) which underpins the exploration potential in Trinidad. BLT has committed to testing three gas plays off Trinidad this year with a longer term objective of making oil discoveries.

This latest announcement CERP has confirmed the company’s ability to begin to realise its longer term ambitions in defining the exploration potential of the region via low cost onshore drilling. The announcement from BLT and the other interest from majors in the region underpins that exploration potential, in our view, although we highlight that their exploration is offshore. With the shares having eased back recently as the WTI oil price has pulled back from above US$65/bbl we believe that CERP’s current valuation provides a compelling entry point for investment exposure to Trinidad’s exploration upside.

We reiterate our Buy recommendation and 26p target price. 

]]> VSA Capital Market Movers - redT energy: Gen3 due H2 2018 Mon, 19 Mar 2018 08:56:00 +0000 redT energy: Gen3 due H2 2018

redT energy (RED LN)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has announced that its margin-generating third generation flow machine will be available for delivery to customers in H2 2018.

VSA Comment


Having now completed its initial stack design and engaged its manufacturing partner, RED has confirmed that first deliveries of its Gen3 system will occur in H2 2018 (narrowing its previous guidance of ‘2018’).

RED has also confirmed that it expects the first pre-orders of its Gen3 system to be concluded shortly. We also imagine that some of the previous Gen2 orders will now be converted into Gen3 deliveries (as we saw with Gen1 orders when Gen2 was launched).

The company has announced that it has 195 units (€11m order value) of Gen3 pre-orders in the Final Stage of Customer Selection. This is new interest in its Gen3 product and is in addition to the Final Stage of Customer Selection pipeline announced on 5 February, which had 330 units with an order value of €18.3m.

As a reminder, Gen3 machines are expected to provide a margin of 15-25%, including various services associated with each sale, compared to 0-5% for the Gen2 systems (including services).

Aside from further sales announcements, investors have been looking for certainty as to when the first Gen3 machines will be available for customers, given its potential significant positive financial impact on the business. This announcement, alongside the Gen3 specific pre-order pipeline, should provide comfort in this regard.

We currently have a BUY recommendation on RED with a 10-year DCF-derived target price of 22p.



]]> Russian actions shine a light on the political weakness of Britain, but not much else Fri, 16 Mar 2018 09:23:00 +0000 Never mind the trade war, economists should instead be asking: who are these tariffs really for? Fri, 09 Mar 2018 10:10:00 +0000 Are Donald Trump’s steel and aluminium tariffs the opening salvo in a new trade war? Fri, 02 Mar 2018 12:40:00 +0000 Inflation will increasingly be a factor in pricing commodities and mining equities Sun, 25 Feb 2018 14:41:00 +0000 Changing of the Guard in South Africa: former miners’ leader Ramaphosa takes charge Fri, 16 Feb 2018 13:25:00 +0000 Volatility presents trading opportunities in individual metals, as global growth continues Fri, 09 Feb 2018 13:29:00 +0000 Rate rises are coming, but global economic strength will allow metals to weather the downward pressure on the dollar Fri, 02 Feb 2018 13:22:00 +0000 Trump and the dollar: why so weak? Fri, 26 Jan 2018 12:33:00 +0000 Chinese economy still underpinning global growth, but watch for red flags Fri, 12 Jan 2018 12:19:00 +0000 Mining and commodities set off into 2018 at a heady pace Fri, 05 Jan 2018 12:38:00 +0000 VSA Market Movers - Goldplat Mon, 11 Dec 2017 09:06:00 +0000 Goldplat - LON:GDP
Goldplat   has provided an update in relation to its arbitration with Rand Refinery as well as general corporate activity, both of which indicate positive progress. An agreement on an arbitration process has been determined and dates for the proceedings have been set for June 2018.

Aside from the arbitration, GDP’s operational progress continues to be robust with key development projects running in line with expectations. The elution plant construction in Ghana is on track for before the end of December 2017 as previously indicated while positive progress continues to be made regarding the treatment of artisanal tailings. The Ghanaian Ministry of Mines is actively working with GDP on this project. At Kilimapesa the target for 5.8koz has been reiterated and at this level of production we continue to expect a return to profitability at the asset.

In South Africa, GDP has built a strategic stockpile in excess of a year’s planned production for the carbon in leach circuit. Work is now being carried out to optimise recoveries and therefore profitability. This is further evidence of GDP’s proactive approach towards providing longer term clarity in terms of sourcing material in addition to the dedicated sourcing teams now operating in Africa and South America.

We reiterate our Buy recommendation and 17p target price.

]]> VSA Capital Market Movers - Novo Lítio Thu, 07 Dec 2017 08:41:00 +0000 Novo Lítio (ASX:NLI)
Novo Lítio provided an update on the legal proceedings yesterday. NLI had been progressing through an expedited procedure to protect the 7th December mining license application cut-off date. However, the court in Braga has determined that this is no longer necessary since the vendors Lusorecursos (LR) have submitted an application which protects that date. The court has therefore determined NLI’s rights over the asset may now be determined via the main legal case which will take longer. NLI in response have submitted their own comprehensive mining plan and license application in the event that LR’s application is rejected due to a lack of technical or financial capability.

NLI have indicated that they will provide further updates in the coming weeks.

We reiterate our Speculative Buy recommendation and A$0.2/sh. target price.

]]> VSA Capital Market Movers - Egdon Resources Mon, 04 Dec 2017 08:36:00 +0000 Egdon Resources (LON:EDR)
Egdon Resources has announced that it has acquired a 100% interest in offshore License P2304 from Arenite Petroleum and Eruope Oil & Gas (EOG LN) which runs until December 2018. Located offshore from North Yorkshire, the license area is immediately South of EDR’s P1929 License which contains the Resolution gas discovery. The consideration is a nominal fee primarily covering licensing costs etc although EDR have agreed future staged payments in relation to the completion of successful milestones.

Resolution is mapped by EDR as extending southwards into the new license block and the new block also contains a gas discovery confirmed by historical wells, drilled by Total (FP FP) and Conoco, which tested at rates up to 34mmcfd and 1,280 barrels per day of condensate. At both Resolution and this new discovery there is further prospectivity for deeper gas in the Carboniferous sandstones underlying the proven Zechstein sequences.

EDR has previously indicated that it intends to carry out seismic surveys across the Resolution discovery in order to better target future drilling. The discovery is a significant asset within EDR’s portfolio and we believe that this additional license block will enable EDR to fully exploit the potential of this attractive asset, in our view.

We reiterate our Buy recommendation and 48.8p target price.

]]> London’s busiest mining week comes to an end, with optimism but no euphoria Fri, 01 Dec 2017 12:42:00 +0000 London’s three biggest mining events are lining up back-to-back next week Fri, 24 Nov 2017 13:19:00 +0000 VSA Capital Market Movers - Millennial Lithium Fri, 24 Nov 2017 08:49:00 +0000 Millennial Lithium (CVE:ML) has announced that the company has successfully closed the second tranche of its recent C$30m strategic investment by Golden Concord Group (GCL). The second tranche involved the issue of 5.7mn shares to bring a total of 12mn shares issued for the transaction at C$2.5/sh.

There is an agreed lock up period of six months on the shares and GCL have exercised their right to appoint a board member and Mr Man Chung (Charles) Yeung will act as a non-executive director with immediate effect. He has over 20 years of experience in accounting, auditing and financial management. He is responsible for the financial control and reporting, corporate finance, and tax and risk management of GCL-Poly Energy Holdings Limited (“GCL-Poly”) and its subsidiaries.  He is a member of the Nomination Committee, Corporate Governance Committee and Strategy and Investment Committee of GCL-Poly. Mr. Yeung has been a Certified Practicing Accountant in Australia since 1996 and an Associate of the Hong Kong Institute of Certified Public Accountants since 1996.  Mr. Yeung holds a Bachelor of Business degree with a major in accounting from Edith Cowan University in Perth Australia.

We reiterate our Speculative Buy recommendation.

]]> VSA Capital Market Movers - Edgon Resources Tue, 21 Nov 2017 08:32:00 +0000 Egdon Resources (LON:EDR) has provided an update in relation to the Holmwood prospect where EDR has an 18.4% interest. It was previously announced that Surrey County Council Planning and Regulatory Committee had opted to defer its decision on Condition 19 (the Traffic Management Scheme), requesting further information. However, the license operator, Europa Oil and Gas (LON:EOG), now considers that it is in a position to submit an appeal and resubmit the Construction Traffic Management Plan which meets the requirements of Condition 19. In addition to the resubmission, EOG intend to carry out additional consultations with local Parish Councils and the residents of Coldharbour Lane.

In line with company guidance we continue to expect EOG and EDR to commence drilling at Holmwood in H1 2018 following successful approval of the resubmission.

We reiterate our Buy recommendation and 48.8p target price.

]]> The short-term gold price will be set by the Fed, further out it’s up to Western Civilisation itself Fri, 17 Nov 2017 16:13:00 +0000 VSA Capital Market Movers - Millennial Lithium Mon, 13 Nov 2017 08:27:00 +0000 Millennial Lithium (CVE:ML)
Millennial Lithium has announced a strategic investment by Million Surge Holdings, a wholly owned subsidiary of Golden Concord Group Ltd, one of China’s largest service providers in clean energy.

Million Surge will acquire 12m shares via two tranches for an aggregate amount of C$30m at C$2.50/sh. The initial tranche totals 6.3m shares representing 9.9% of the issued share capital while the remaining 5.7m shares will be issued upon completion of the TSX clearance process for new insiders. The total holding of Million Surge is expected to represent approximately 17% of the issued and outstanding common shares. GCL has a right to nominate a representative to the BoD whilst it holds 15% or more of the outstanding share capital of ML.

The proceeds will be used to advance the development of ML’s lithium brine projects in Argentina.

We reiterate our Speculative Buy recommendation.

]]> Strong global economic activity should help investors ride out fluctuating asset valuations Fri, 10 Nov 2017 13:33:00 +0000 VSA Capital Market Movers - Independent Oil & Gas Fri, 10 Nov 2017 09:11:00 +0000 Independent Oil & Gas (LON:IOG)
Independent Oil & Gas has announced an update in relation to the Harvey license area. Following the release of an upgraded resource for the field IOG has now provided an updated valuation estimate. The best estimate for the resource was 114BCF although with c21% of the resource off license, the volume attributable to IOG is currently 90BCF. We note, however, that the company is looking to license the entire resource.

With this significant resource alongside the Thames Pipeline strategy which materially reduces the infrastructure capital requirements the economics appear attractive, in our view. Based on the best estimate resource and using a 10% discount rate for the entire structure the NPV comes to £159m with an EMV of £79m whilst on IOG’s license area the NPV is £126m with an EMV of £63m assuming 50% CoS in each case. The CPR assumes dry hole costs of £8.5m for the planned well. This is, in our view, has the potential to be the most attractive prospect within IOG’s portfolio. IOG is progressing plans to drill as soon as possible although has made a firm commitment to drill within two years.

We reiterate our Buy recommendation.

]]> VSA Capital Market Movers - Novo Lítio Tue, 07 Nov 2017 08:36:00 +0000 Novo Lítio (ASX:NLI) has announced that it has completed the acquisition of a significant land package in Northern Portugal from Medgold Resources (MED CN) as per the previously announced conditions. The land package is highly complementary to the Sepeda project with multiple known tin-bearing pegmatite outcrops as well as multiple historic workings. NLI paid EUR167.5k for the tenement package.

Crucially, the tenements already have licenses granted and therefore it is not possible, as in the case of other unlicensed sites in Portugal, for other parties to put in additional license applications whilst the grant process is ongoing. Given the prospectivity of the region for lithium and the ongoing strong market fundamentals, ungranted licenses typically have multiple applications and the auction style process which follows can take some time to be resolved. It is therefore of great advantage to NLI to already have the licenses on this new tenement package. Consequently, NLI’s team is already identifying exploration targets via soil sampling and mapping.

With regard to the Sepeda court process, the company are still awaiting a date for the hearing although continue to expect this to be in November 2017.

We reiterate our Speculative Buy recommendation and A$0.2/sh. target price.

]]> VSA Capital Market Movers - Egdon Resources Mon, 06 Nov 2017 08:27:00 +0000 Egdon Resources (LON:EDR) has announced that it has sold a 20% interest in the recently acquired Fiskerton Airfield, for a cash consideration of £137k, to Union Jack Oil (UJO LN). In addition, UJO will fully fund the re-processing of 3D seismic data at a gross cost of £35k. The effective date of the transaction is November 3 2017 and completion of the acquisition is subject to approval of the OGA.

Given EDR acquired the asset for US$750k, the sale of the 20% for an implied valuation of US$1.09m, the sale represents an early and profitable realisation of value for EDR whilst minimising the cost of upside evaluation. This will be used to determine the benefit of infill drilling which is being considered beyond the current planned workovers.

We reiterate our Buy recommendation and 35.5p target price.

]]> Chinese and US economies underpin global growth, as power continues to shift east Fri, 03 Nov 2017 15:11:00 +0000 VSA Capital Market Movers - Independent Oil & Gas Thu, 02 Nov 2017 08:29:00 +0000 Independent Oil & Gas (LON:IOG)
Independent Oil & Gas has announced a revised CPR on the Harvey license. The Harvey license lies between the Blythe and Vulcan Satellite Hubs; it is intended, pending appraisal, that gas from the Harvey field is exported via the Thames Pipeline as with the other sites.

The CPR demonstrates unrisked prospective gas resources for Harvey of 114 BCF in line with management estimates. The range for resources is 45-286BCF and most likely 90BCF on the license owned 100% by IOG. IOG have committed to drilling an appraisal well which will test the up dip potential of the structure and this will be carried out by December 20th 2019, subject to acceptance and a license extension by OGA. Given the proximity of the field to the Thames pipeline we believe that this will have a significant positive impact on the economics of Harvey and further strengthens the rationale of the hub strategy particularly given that even at the most likely level of gas resources, this would be IOG’s largest field.

We reiterate our Buy recommendation.

]]> VSA Capital Market Movers - Independent Oil & Gas Tue, 31 Oct 2017 09:27:00 +0000 Independent Oil & Gas (LON:IOG)

Independent Oil & Gas has announced that it has submitted the Field Development Plan (FDP) for the Vulcan Satellites Hub to the UK Oil & Gas Authority (OGA). IOG recently published a CPR indicating a significant upgrade and expansion of 2P reserves on the Hub.

The project is underpinned by the acquisition of the Thames Pipeline that enables IOG to tie back the gas fields into the pipeline and save significant capital expenditure thereby enhancing the project economics as demonstrated by the recent CPR. Furthermore, IOG has reduced the upfront funding requirement via agreements with various major contractors such as Schlumberger, Heerema and ODE as part of their service contracts. These commitments from major service contractors further demonstrates confidence in the project as well as enhancing IOG’s ability to fund the development and retain its 100% ownership.

We reiterate our Buy recommendation.

]]> VSA Capital Market Movers - Egdon Resources Mon, 30 Oct 2017 08:33:00 +0000 Egdon Resources (LON:EDR)

Egdon Resources  has completed the previously announced transaction of the Fiskerton Airfield oil field in Lincolnshire (License EXL-294). The announcement of the transaction was made in July 2017 and following a cash payment of $750k EDR has obtained a 100% interest from Cirque Energy.

The acquisition is effective from Jan 1 2017 and field sales averaged 15.7bopd in H2 FY 2017, below the current run rate due to a maintenance shut-in during January 2017. Current production is between 17-19bopd from one of the two production wells and as previously indicated EDR intends to increase production to 30-40bopd  via modest capital spending.

To date around 400kbbls of oil have been produced from an estimated STOIIP of 2.2mmbbls and we believe that the addition of high quality oil production (32.5⁰ API) is an attractive addition to the portfolio.

The asset has already been incorporated into our target valuation, however, is not fully reflected shares currently. We therefore, reiterate our Buy recommendation and 35.5p target price.

EDR is due to announced full year results tomorrow, 31st October.

]]> Where are we in the mining investment cycle? Fri, 27 Oct 2017 10:04:00 +0100 This is a question on which small fortunes, and some big ones too, will turn. Certainly, the commentators and analysts have a clear enough idea – Investec, borrowing from an idea originally put together by the Lion Selection Trust, reckons we are between 5 o’clock and 6 o’clock.

On the standard modulation of the clock, bust happens at 12 o’clock, with all the aftershocks running in succession though the following hours up to 6 o’clock when the first signs of boom begin to re-emerge.

According to Investec we are currently at between 6 o’clock and 7 o’clock with boom times already well underway.

If this doesn’t exactly feel like a mining boom, that’s perhaps because the last one was so exceptional. The Chinese aren’t going to come out of nowhere to emerge as the world’s second largest economy this time round, and although there is still an element of monetary easing occurring around the world, it’s no longer on anything like the scale that drove gold to close to US$2,000 nearly five years ago.

But still, no less an illustrious a figure than Trevor Steel from Baker Steel Resources Trust Limited (LON:BRST) has been using a graphic illustration of the Investec/Lion Selection clock in presentations around the City recently, and he’s a man who knows a thing or two about gauging markets.

Steel was one of the founders of the famous BlackRock mining fund, now one of the powerhouses of London resources finance, and went on to establish several Baker Steel funds that survived the bear market intact and which are now pushing hard for a higher profile.

The net asset value of the Baker Steel Resources Trust, the most generalist of the funds, has narrowed markedly over the past couple of years, a sure enough sign in itself that interest is returning to the sector.

But Steel himself is acting on the gradual turning of the dial – the trust is now deploying the last of its remaining cash into a major investment in a new Australian coking coal listing called Gateway. This will mean that once again the Baker Steel Resources Trust is fully invested, a sign of faith that the boom will continue, at least for a while.

Because, as the doomsayers say, it’s always later than you think. If it seems like the boom in London has hardly even got going yet, it has at least been more visibly on the move elsewhere for a little while. Hence, exploration companies like Eastmain Resources Inc. (TSE:ER) in Canada and Artemis Resources in Australia have been delivering successful exploration results all year.

And in London we are finally seeing signs of life too: Greatland Gold plc (LON:GGP) has been getting in on the act, Altus Strategies PLC (LON:ALS) has finally got its early stage exploration portfolio listed on Aim, and within the past month we’ve seen Cora Gold make it onto the market too.

But beware. According to the Investec dial the rise in exploration activity is likely to take us well past 7 o’clock on the dial, and according to the original Lion Selection way of thinking, and according to Investec too, the time to start selling is at 8 o’clock.

Sure, you can ride your luck between 8 o’clock and midnight, as debt levels start to rise again, shares are increasingly used as currency in takeover bids, and new, larger flotations start to happen as the smart money increasingly heads for the exits.

At midnight, according to Investec, the onset of the crash phase of the cycle is marked by a tendency on the part of governments to start raising taxes. It will come as no surprise to anyone that governments are among the worst of the market operators when it comes to maximising gains from economic cycles.

In fact, according to the mining investment clock, it’s governments that kill off the last vestiges of a collapsing boom, and lead once again to the crash phase of the cycle. But we are a little way away from that yet.

]]> VSA Capital Market Movers - NuLegacy Wed, 25 Oct 2017 07:30:00 +0100 NuLegacy (CVE:NUG)

NuLegacy (CVE:NUG) has announced that it has commissioned Mine Development Associates of Nevada to prepare a NI 43-101 compliant resource inventory for the Iceberg gold deposit at Red Hill. The resource inventory will be constrained to approximately 35% of the 3km strike length. This is the area in which there is sufficiently high drill density to determine a resource and an announcement is expected in Q1 2018. Holes from up to year end 2017 will be used which includes those from the current programme.

NUG’s stated aim continues to be to determine a multi-million ounce resource on the property.  However, as this resource inventory only covers a portion of the known mineralisation it will likely serve as a base case in our view. Having a defined resource will better enable NUG’s budgeting for determining the remainder of the resource.

We believe that the resource calculation will demonstrate the progress made to date and the significant oxidised mineralisation that has been discovered. From here there is attractive optionality to expand the resource either via infill drilling of the known deposits or by further exploration of the two new zones drilled for the first time in 2017. Meanwhile the prospect of discovering high grade mineralisation remains the most exciting potential catalyst for the stock.

We reiterate our Speculative Buy recommendation.

]]> VSA Capital Market Movers - Goldplat Tue, 24 Oct 2017 07:15:00 +0100 Goldplat (LON:GDP)
Goldplat (LON:GDP) has announced robust Q1 FY 2018 numbers with production up 12% YoY to 10.2koz which is on track for our full year target of 45.8koz. Gold sold increased 95% YoY to 13koz, however, this was primarily a result of timing of sales in Q1 FY 2017 as well as some delayed sales from Q4 FY 2017.

Increased production in South Africa and at Kilimapesa offset reduced production at the Ghanaian operations. In South Africa, production of 7.6koz was up 40% YoY with a strong focus on sourcing material for the more profitable CIL circuits. GDP has now built a stockpile of this material to last 12 months.

At Ghana, production of 1.2koz was down 61% YoY although gold sold was up 93% YoY to 2.6koz with sales and production continuing to be more volatile at this operation. We expect greater stability going forward, however, as a result of the efforts to expand sourcing from South America which is now delivering regular shipments of by-product material. Furthermore, negotiations, regarding an artisanal tailings clean-up programme, with the Government are ongoing. A mobile gold concentrator pilot plant has been constructed as part of this whilst the 3 tonne elution column is on track for commissioning in December 2017.

The Kilimapesa ramp up continues with production of 1.4koz, up 132% YoY. This was notwithstanding some disruption in the period due to employees taking time off to vote in the Kenyan national elections which has resulted in some ongoing general business uncertainty due to the contested result. The target production run rate for Plant 2 is now being regularly achieved and we expect operational performance to continue to improve in the coming quarters.

The results demonstrate continued robust operational performance and the company is on track to meet our estimates for further production and earnings growth in FY 2018.

We reiterate our Buy recommendation and target price of 17p.

]]> Russia, Brexit and Catalonia Fri, 20 Oct 2017 10:50:00 +0100 VSA Capital Market Movers - Egdon Resources Plc Thu, 19 Oct 2017 08:09:00 +0100 Egdon Resources (LON:EDR)#

Egdon Resources (LON:EDR) has provided an update on PEDL143, the Holmwood prospect, following a meeting of the Surrey County Council Planning and Regulatory Committee yesterday. EDR holds an 18.4% interest in the prospect.

The results of the meeting were the approval of a security fence for the drill site. However, the Committee elected to defer a decision on traffic management following requests for further information. As a result, EDR has indicated that drilling of the conventional oil exploration well is now likely to take place in H1 2018.

We reiterate our Buy recommendation and 35.5p target price.

]]> VSA Capital Market Movers - Independent Oil & Gas PLC, Sula Iron and Gold PLC, Goldplat plc Wed, 18 Oct 2017 08:35:00 +0100 Independent Oil & Gas (LON:IOG)#

Independent Oil & Gas (IOG LN) has announced that it has signed an LOI with Offshore Design Engineering for multiple contractor roles in the development of the Blythe and Vulcan Satellites project beginning with technical and operational support in preparation for the final investment decision.

ODE will provide technical and operational support both before and after the FID and will act as the operations and maintenance service provider. Pre-FID costs will be fully deferred while pre first gas costs will be 50% deferred until first gas. The Thames Pipeline will also be included in ODE’s remit along with an onshore operational base in Great Yarmouth.

The announcement demonstrates further support from external contractors underpinning confidence in the project. Furthermore, the terms of the LOI with significant deferrals reduce the upfront funding requirement strengthening IOG’s ability to advance the project as a 100% operator.

We reiterate our Buy recommendation.


Sula Iron & Gold (LON:SULA)#

Sula Iron & Gold (LON:SULA) has provided a corporate update. Structural interpretation work following the recent drilling programme and soil sampling is ongoing. The results of this analysis will aid in identifying the most appropriate next steps for development and management is of the opinion that finding a JV or farm in partner may be the most advantageous way of developing the Ferensola project.

The board have also indicated that it intends to expand SULA’s asset base and is considering opportunities in this regard.

We reiterate our Speculative Buy recommendation and 1.2p target price.


Goldplat (LON:GDP)#

We note the purchase of share’s by CEO, Gerard Kisbey Green.

We reiterate our Buy recommendation and target price of 17p.

]]> VSA Capital Market Movers - Columbus Energy Resources PLC, Polymetal International Mon, 16 Oct 2017 08:14:00 +0100 Columbus Energy Resources (LON:CERP)#

Columbus Energy Resources (CERP LN) has provided an update on the recently announced Open Offer. The Open Offer for up to 20.1mn shares at 5p per share is being made to qualifying shareholders as of close of business 13 October 2017. Qualifying shareholders are existing shareholders as of the record date and are entitled to 1 open offer share for every 31 existing ordinary shares.

Qualifying shareholders are also eligible to apply for additional open offer shares through an excess application facility for which full details are available in the circular which will be on the company’s website today.

The last date for application for qualifying shareholders is 11am on 1 November.


Polymetal (LON:POLY)#

Polymetal (POLY LN) has announced strong Q3 2017 production results. Gold equivalent production of 470koz was up 26% YoY meaning that in the first 9mo17 POLY has produced 1.03mnoz GE, up 15% YoY. This strong operational performance was achieved via the full ramp up at Svetloye as well as record production at Albazino (89koz, up 24% YoY) and Varvara and a strong performance at Mayskoye (81koz, up 70% YoY). As a result of higher prices and production group revenue was up 17% YoY to US$546mn, which also benefitted from delayed sales from prior periods and POLY has indicated that this timing gap is due to be closed during Q4 2017.

POLY appears comfortably on track to meet its guidance of 1.4mnoz GE production in 2017 and has maintained cost guidance also at US$600-650/oz and AISC of US$775-825/oz. Given that the ramp up has been driven by the low cost heap leach operation at Svetloye this is likely to benefit group margins particularly as grades at the project were up 27% YoY to 4.8g/t.


]]> Is big money finally ready to flow towards West African gold juniors? Fri, 13 Oct 2017 12:19:00 +0100 VSA Capital Market Movers - Goldplat plc, Millennial Lithium Fri, 13 Oct 2017 08:05:00 +0100 Goldplat (LON:GDP)#

Ashanti Gold Corp (AGZ CN), the joint venture partner and operator of the Anumso gold project in Ghana of Goldplat (GDP LN) reports significant gold soil anomalies encountered in a completed program. In aggregate up to 400m wide and with an underlying host rock of conglomerate, the anomalies show a significant number of samples with grades at or above 30ppb (.03ppm) gold; deemed highly anomalous among explorationists who work the W Africa gold belts. At least 24 samples gave results at or above 0.1ppm gold.

Mineralized rock grab samples grading 1gAu/t or better were submitted for metallurgical recovery of gold. Oxidized samples were crushed, ground, and bottle rolled for cyanide leach recovery and showed excellent results of greater than 85% gold recovery in 48 hours across all types of samples in the batch.

No comment was made of what comes next on the project but these results certainly put a fire in the field geologist’s mind we believe to get ready for drilling. GDP will retain no less than 25% interest in this ground in the JV.

We retain our BUY rating and 17p price target.

Millennial Lithium (CVE:ML)#

Millennial Lithium (ML CN) has opted to pay off the debt early incurred in the acquisition of the initial core license ground at Pastos Grandes with a portion of the funds raised in the past few weeks. This ground had been set up with a payment schedule upon the announcement of its acquisition on 19 July, 2016. Due to highly successful drilling results to date on the ground, ML has consummated a full and final 100% ownership of this first 1,219 hectares with the transfer of deeds completed 5 October, 2017.

In other news, drilling results from the ‘Cruz’ property have proved disappointing. ML has notified the original vendor of the ground that it is terminating its further interest. ML was to have received US$1m in the next option payment from the JV partner by 1 October, 2017.

Though the drilling results from ‘Cruz’ have been disappointing, the early exit from ground which is not prime preserves capital for better opportunities in the ML property portfolio.

We retain our SPEC BUY recommendation.

]]> VSA Capital Market Movers - NuLegacy Gold Corp, Independent Oil & Gas PLC Thu, 12 Oct 2017 08:34:00 +0100 Independent Oil & Gas (LON:IOG)#

Independent Oil & Gas (LON:IOG) has announced the results of its recent CPR on the Vulcan Satellites, Blythe and Elgood assets. The key finding of the report is a significant increase in gas reserves from 34 BCF to 303BCF on a 2P basis with the uplift coming primarily from the Vulcan Satellites which now have 2P reserves of 248 BCF. At Blythe 2P reserves were unchanged at 33 BCF while at Elgood reserves increased to 22 BCF.

The increase in reserves has enabled IOG to demonstrate the economic viability of the project following 3D seismic analysis, well design and placement as well as hydraulic stimulation on the Vulcan Satellite. Consequently, IOG has received production forecasts for each field with peak production from 2P reserves indicated at 200 MMcfd. Initial capital for the whole field is projected at £466mn while the pre-tax NPV using a conservative 10% discount is £453m.  

We do expect a further increase to resources at Harvey with a CPR due. The gas hub strategy using the Thames pipeline should enable IOG to scale the project at relatively limited capital expense. We therefore view this CPR as a robust base and additional exploration success is likely to further enhance the economics.

We reiterate our Buy recommendation

Multi-Million Ounce Potential

NuLegacy (CVE:NUG) holds the largest independently owned land package within the Cortez gold trend in Nevada. During 2017 the company has significantly expanded the footprint of mineralisation amongst Carlin Type Gold Deposits (CTGDs) within the license area, building on the existing exploration target* of 90-110mnt at between 0.9-1.1g/t Au. New zones, Serena and the Western Slope drilled for the first time in 2017 yielded intercepts of 85.4m at 0.64g/t including 50.3m at 1.00g/t Au from 133m.

NUG has identified a significant cluster of oxidised gold deposits; however, it has yet to identify the high grade zones of mineralisation typically associated with the centre of CTGDs. We believe that identifying these zones offers significant upside potential for investors, however, we stress that this is not a binary investment case reliant on this type of discovery. The region’s strong infrastructure, the shallow depth of the mineralisation and potential for low cost heap leaching indicate to us that the deposits determined to date are sufficiently attractive to warrant further development.  

Support From the Region’s Experts

Barrick (NYSE:ABX) has discovered some of the world’s leading gold deposits in the immediate vicinity of NUG’s license area, including Cortez Hills (15mnoz+), Pipeline (21mnoz+) and Goldrush (10mnoz+). ABX opted to take equity in NUG and now holds approximately 10.9% of the shares. There is a strong relationship between the two companies and three former ABX executives hold directorships at NUG. Also, NUG’s Chief Geoscience Officer and Co-Founder, Roger Steininger, is credited with discovering the Pipeline deposit and is one of the region’s foremost geologists. The senior management team and Board of Directors in place at NUG significantly strengthen the investment case, in our view.


We believe that the large footprint of oxidised gold mineralisation that NUG has established to date across multiple deposits forms an attractive base for future exploration. With C$11m in cash, backing from ABX and a strong senior management team we believe that NUG is well placed to further the development of these attractive assets. We expect strong newsflow over the balance of 2017 as a 14 hole (c.4.9km) programme has just begun.

We initiate coverage with a Speculative Buy recommendation.

]]> VSA Capital Market Movers - Gulfsands Petroleum plc, Novo Litio Ltd Wed, 11 Oct 2017 07:30:00 +0100 Novo Lítio (ASX:NLI)

Novo Lítio (ASX:NLI) has provided an update on the Sepeda project. Although NLI has opted to progress legal proceedings through the Courts of Portugal via an expedited process, the vendors of the project (Lusorecursos) have threatened violence towards NLI staff on site as part of their attempts to frustrate NLI’s acquisition of the license and license applications. NLI maintains that it has a binding agreement to acquire 100% of the granted license and license applications from Lusorecursos and anticipates that injunction proceedings will commence in November 2017 in time for a Mining License application to be made.

We highlight, however, that NLI has received support from the Baldios of Carvalhais demonstrating that it maintains strong local support and relationships with key Portuguese stakeholders. The Baldios are the administrators of the communal land on which Sepeda is located with whom NLI have exclusive access and land rights for the site. They have intervened to provide support via the local gendarmerie when Lusorecursos have entered the site.

In addition, NLI have brought the actions of Lusorecursos to the attention of the Director General of the Portuguese mines Department and now await a response. Although this represents a frustrating setback for NLI this course of action is unlikely to favour Lusorecursos in the legal process and we await further updates from NLI.

We reiterate our Speculative Buy recommendation and target price of A$0.2/sh.

Gulfsands Petroleum (LON:GPX)

We note that Gulfsands Petroleum (LON:GPX) has announced that it has secured a reset of its PUT-14 Licence terms in Putumayo, Colombia. This means that Phase 0 which focuses on stakeholder and community consultation will restart giving GPX the necessary time to carry out this process and will have a full three year period to then carry out the Phase 1 exploration. The PUT-14 license will now run until at least mid-2021 thereby providing a more attractive timescale for potential partners for a seismic and drilling programme.

The minimum work programme is unchanged along with the other commercial terms and GPX as part of Phase 1 will need to complete 98km2 of 2D seismic and drill one exploration well. The announcement is a positive step which will enable GPX to better demonstrate the potential of its asset base in what is, in our view, an attractive region for exploration.

]]> VSA Capital Market Movers - Sula Iron and Gold PLC, Columbus Energy Resources PLC Mon, 09 Oct 2017 07:49:00 +0100 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced the departure of Howard Baker as Non-Executive Technical Director. In place, John Gould, who is a geologist and Partner at Madini (SULA’s technical advisors) will fulfil this role alongside and experienced South African based geologist who has significant experience of Archean greenstone gold deposits. The pair will continue the ongoing structural interpretation work at Ferensola.

We reiterate our Speculative Buy recommendation and target price of 1.2p


Columbus Energy Resources (LON:CERP) has announced a fundraising of up to £4.1m. The placing is structured in three parts; £3m via Schroders Investment Management for 60m shares at 5p, a £0.1m subscription from the senior management team (Leo Koot; Executive Chairman, Gordon Stein; CFO, Stewart Ahmed; MD for Trinidad and Michael Douglas; NED) at 5p as well as an open offer available to existing shareholders. The open offer is proposed as a 1 for 31 offer of up to c.20m shares at 5p with the timing to be announced in due course. Schroders’ holding of 60m will represent a 9.65% interest in CERP’s enlarged share capital. The price of 5p represents a discount of 16.7% to the prior close and a premium of 14.4% to the one month VWAP.

The investment by Schroders’ represents, in our view, an endorsement of CERP’s turnaround strategy which we believe can unlock significant unrealised value potential at the Goudron field and South West Peninsula. The funds will be utilised to accelerate the execution of this turnaround strategy as well as for targeting potential new opportunities.

Our estimates our Under Review following this announcement.

]]> VSA Capital Market Movers - Millennial Lithium Wed, 04 Oct 2017 07:24:00 +0100 Millennial Lithium (CVE:ML)

Millennial Lithium (CVE:ML) has announced an update to its activities across its portfolio. At Pastos Grandes, ML has four drill rigs currently operating and for which results will be used in the anticipated Q4 2017 resource update. Two holes have been drilled with brine analytic results outstanding while four holes are currently being drilled. Also in relation to the Pastos Grandes project, the company has engaged SGS-Lakefield to conduct advanced processing studies which will include on site evaporation test work across 16 trial ponds as well as purity trial test work to create plant grade Li-rich brine (1-2%) from 600 litres of sample brine. In addition, Ausenco has been engaged to conduct ML’s baseline environmental studies.

In relation to the Cruz property to which Southern Lithium (SNL CN) is earning in a two hole drilling programme has been completed. The holes reached depths of 476m and 500m and results from brine analytics are now outstanding.

The announcement follows the closure of the recent financing for which gross proceeds of C$11.5m were raised at a price of C$1.25/sh.

We reiterate our Speculative Buy recommendation.

]]> VSA Capital Market Movers - Independent Oil & Gas PLC, REDT Energy Tue, 03 Oct 2017 07:26:00 +0100 Independent Oil & Gas (LON:IOG)#

Independent Oil & Gas (LON:IOG) has announced that it has signed an LOI with Heerema Fabrication Group for the front end engineering and design as well as the engineering, procurement and installation of up to four Normally Unmanned Installation platforms (NUIs).

The NUIs will be installed on the SNS project with costs front end costs fully deferred and procurement and installation costs 50% deferred until first gas. The final investment decision on the SNS project is due to be made by the end of Q1 2018 and a full contract following on from this LOI is now expected to be signed before year end.

We reiterate our Buy recommendation.


redT Announces 1MWh Order in Australia

redT energy (LON:RED)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has announced its entry into the Australian storage sector with the commercial sale of a 300kW-1MWh hybrid vanadium flow machine/lithium-ion battery system to Monash University in Melbourne.

• System will consist of 900kWh of flow machines (12 x 75kWh tank unit modules) and a 120kW lithium-ion battery

• To be housed at the University’s Biomedical Learning and Teaching building, be coupled with on-site solar PV and integrated into the ‘Monash Microgrid’

VSA Comment

The recent high profile announcement by Elon Musk’s Tesla (TSLA US) to construct the world’s largest lithium-ion battery project in South Australia (129MWh) has highlighted the significant potential for energy storage in the Australian market.

RED has previously announced its intention to enter this market in H2 2017. It has now delivered on this promise. The company believes that the country’s energy storage market will require investment of between A$20bn and A$30bn up until 2030. The extremely high cost of electricity in Australia means that the payback period of a RED flow machine could be as little as 1-2 years (assuming energy trading is implemented).

This system sale will build on the hybrid system work currently being carried out by RED in partnership with the University of Newcastle (UK) as part of a three-year programme announced in September 2016. The basic premise of such a system is that the lithium-ion battery component provides high power, when required, over a short duration (c20% of a customer’s overall requirements) with the vanadium flow machine providing the long duration output due to its much higher energy storage capability and lack of degradation (c80% of a customer’s overall requirements).

Pairing with lithium-ion battery technology should also make flow machine sales slightly easier, as customers are familiar with the more established lithium storage technology (despite its well-understood shortfalls). 

Although no order value was quoted in the RNS, we estimate that this sale will be worth cUS$1m (cA$1.3m) to RED. Aside from being its first sale in Australia, this will provide an extremely high-profile marketing site for the stimulation of potential further orders in a country which will require significant investment in energy storage capacity for many years to come. 

We maintain our BUY recommendation and target price of 22p.

]]> Technology and information are rendering today’s political structures increasingly obsolete Fri, 29 Sep 2017 13:02:00 +0100 VSA Capital Market Movers - Independent Oil & Gas PLC, Obtala Ltd Fri, 29 Sep 2017 07:17:00 +0100 Independent Oil & Gas (LON:IOG) has announced interim results for H1 2017. In the period the company made a net loss of £1.4m versus a loss of £1m on year earlier; as despite a reduction in administrative expenses of 20% YoY to £750k finance expanses were higher at £663k.

During the period IOG made significant progress, advancing the development of its core assets. The Thames pipeline acquisition is a key milestone in development of the Southern North Sea (SNS) gas hub and will save around £100m in costs whilst opening up these assets via a fully owned export route. IOG will now undertake an assessment programme to understand any necessary repair work ahead of dewatering. In addition, 3D seismic work was carried out on the Harvey asset demonstrating significant potential. IOG received an extension on the Harvey license in March 2017.

Post period end, the company made previously announced changes to the senior management team and board. In July IOG was awarded Licence P2343 by the OGA strengthening the position at the Vulcan Satellites where positive seismic and hydraulic stimulation studies were completed in June 2017. Furthermore, an LOI was signed with Schlumberger providing a framework for the two companies to work towards the Final Investment Decision on the SNS project.

In the remainder of 2017 we expect a CPR to be commissioned which will cover the entire SNS project which will support funding negotiations for project advancement. Negotiations with creditors relating to the Skipper Well are ongoing in order to determine whether liabilities due at the end of 2017 will be repaid, rescheduled or converted to equity in part.

We reiterate our Buy recommendation.

Obtala Limited#: Q3 Update

African forestry and agriculture business Obtala Limited (LON:OBT)# has announced a Q3 operational update.

• Forestry: 15,000m3 of logs harvested across Mozambique and Gabon in the quarter; 4,500m3 of export grade timber produced, with a proportion of logs stockpiled for future processing; 100m3 per day sawmill in Mozambique remains on track to be completed at the end of 2017; rapidly scaling of timber production in Gabon, increasing from 900m3 in July to 1,500m3 in August; remains in discussions for a US$25m trade finance facility to significantly scale timber trading business

• Agriculture: First significant Melon harvest processed through upgraded packhouse with product exported through Mombasa, Kenya

VSA Comment

Once again OBT has had an extremely busy operational quarter. However, unlike previous quarters, Q3 2017 marks the first period where OBT has also delivered significant revenues, following its acquisition of WoodBois on 30 June and the harvest of cash crops in Tanzania.

Our FY 2017 forecast for OBT’s log harvest across Mozambique and Gabon is c24,000m3, with c10,700m3 of timber produced. Given the levels achieved in Q3, the company is currently trading in-line with our expectations. Prices are reported in the range of US$400-900/m3, dependent on species and grade. Again, this is in-line with our expectations, with our FY 2017 average selling price forecast at US$400/m3 in Gabon and US$850/m3 in Mozambique.

Although its expansion plans are ambitious, OBT appears to be successfully executing its strategy in-line with our aggressive expectations.

We maintain our BUY recommendation and target price of 36p.

]]> VSA Capital Market Movers - Obtala Ltd Thu, 28 Sep 2017 08:15:00 +0100 Obtala Limited#: H1 2017 Results

African forestry and agriculture business Obtala Limited (LON:OBT)# has released its interim results for the six months to 30 June 2017 (H1 2017).

• Revenue: US$0.2m (H1 2016: US$0.4m); VSA FY 2017 forecast US$13.7m

• Operating loss: US$3.8m (H1 2016: US$2.5m); VSA FY 2017 forecast US$2.0m

• Net assets: US$152.5m (H1 2016: US$120.2m)

• Cash and cash equivalents as of 30 June 2017: US$1.9m (31 December 2016: US$3.4m)

VSA Comment

Having carried out its transformational acquisition of WoodBois International at the end of the period, H1 2017 looks set to be the last period of minimal financial performance for the company, given WoodBois generated US$9.2m in revenues in H1 and OBT has near-term plans to rapidly scale up the trading side of this business through additional trade finance facilities.

The biological assets of WoodBois have been assessed by the same valuer used on its existing concessions and a value of US$53m has been provided. This provides a significant non-cash ‘gain from bargain purchase’ contribution to OBT’s P&L for the H1 period and adds to the already significant biological assets on its balance sheet, which now total US$228m.

OBT has also announced this morning that it will be creating individual Board of Directors’ for each of its forestry (Argento) and Agriculture (Montara) divisions. This additional separation of the business should make it easier for the company to attract new investors and partners into the specific areas of the OBT business that are most relevant in each case. It will also assist in the potential sale or IPO of its agriculture division if such an opportunity arises in the future.

The company has also announced the appointment of Martin Collins as Deputy Chairman of the OBT board as well as Chairman and CEO of the agriculture business, replacing COO Warren Deats, who has resigned from the company.  

We maintain our BUY recommendation and target price of 36p.

Zambeef: Crop Damage Not as Bad as Feared

Following its announcement on 6 September, African agribusiness Zambeef (ZAM LN) has announced that crop damage to its winter wheat crop from the Septoria fungal disease has not been as bad as originally feared. It now expects crop yields to be c10% lower than original expectations, rather than a fall of 20%. The company therefore now expects to report a small profit for the year to 30 September 2017.

NWF Group: In-Line AGM Statement

Ahead of its AGM later today, UK agricultural input business NWF Group (NWF LN) has announced trading in its first quarter (June-August, traditionally its quietest period) has been ahead of last year and in-line with expectations.

Summer feed volumes are reported as robust with margins in-line with expectations. DEFRA data shows that the overall UK ruminant feed market increased by a significant 12% YoY over June and July (no data yet available for August). However, it must be remembered that these months are the quietest in terms of feed demand, so YoY changes can be quite volatile.

Its food division is also in-line with expectations with three new customers adding an additional 4,000 pallets at its Wardle site, leaving 4000 pallets of spare capacity left to fill (of c100,000 total capacity).

Its fuel division has experienced increased commercial business, with lower margin road diesel the main contributor to this growth.

]]> VSA Capital Market Movers - Novo Litio Ltd, REDT Energy Wed, 27 Sep 2017 07:21:00 +0100 redT energy#: H1 2017 Results

redT energy (LON:RED)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has announced its interim results for the six months ended 30 June 2017.

• Revenue: €4.5m, flat YoY (H1 2016: €4.5m), VSA FY estimate is €12.2m

• EBITDA: loss of €3.2m (H1 2016: loss of €2.2m), VSA FY estimate is a loss of €7.2m

• Net Cash as of 30 June 2017: €13.2m (31 December 2016: €2.8m)

VSA Comment

RED’s H1 results are pretty academic as the company was busy significantly scaling up its workforce (+100% YoY) during this period, following the December fundraise (administration expenses increased to €5.2m from €3.6m in H1 2016). As revealed in its operations update in mid-July, RED sold just six tank unit modules in H1. However, EBITDA remained in-line with our expectations due to strong performance from its legacy carbon business.

More importantly to us is the fact that commercial sales are now beginning, evidenced by the recent announcement of a 12 tank unit order (as part of a 300 unit pipeline) for certain distributors and a 14 tank unit order (as part of a 150+ unit pipeline) for a Botswana-based client, both announced in the last month.

Of these, we would highlight the Botswana order as most notable given RED’s flow machines are replacing failing lithium-ion and lead-acid products at each of the 14 sites. This is a key marketing angle for the company and we are hopeful that additional potential customers in the sector will also begin to appreciate the advantages of flow machines over more traditional forms of storage in the coming months/years.

In its July trading update, RED revealed that it had €15.9m of potential orders in the final stage of customer selection (up from €6.5m when it released its FY 2016 results in April) and an active customer pipeline of €314m (vs. €246m in April). It also outlined plans to enter the Australian market in H2.

It has delivered on the later goal through its announced distributor agreements and has increased its pipeline even further since this announcement with €16.5m (205 units) now in the final stages of customer selection and an active customer pipeline of €323m.

We maintain our BUY recommendation and target price of 22p.


Novo Lítio (ASX:NLI)#

Novo Lítio (NLI AU) has announced strong drill results from the Sepeda project in Northern Portugal as well as progress regarding drill permitting for its Swedish lithium prospect, Spodumenberget.

At Sepeda Phase 4 drilling results included 80.3m at 1.36% Li2O and 80.45m at 1.3% Li2O. Both these results relate to infill drilling and confirm the continuity of the mineralisation, providing further support for NLI’s geological model. A resource update is due in Q4 2017, subject to tenure issues, and we believe that these results confirm our view that an increase in confidence from Inferred will be possible.

Furthermore, one of the key finding of the PEA was that in order to support the second stage of processing, i.e. a lithium carbonate conversion plant, a larger resource would be necessary. We are confident that this will be achievable and the latest drilling results confirm this with 68.06m at 1.26% Li2O as part of the extensional drilling, down plunge. This high grade mineralised zone remains open at depth.

In addition to the strong results at Sepeda, NLI has announced that its permitting process is now under way to drill at Spodumenberget in Sweden. Surface sampling earlier this year produced encouraging results and NLI has been able to identify appropriate drill targets as a result. 4 drill holes will test the area which has known pegmatite outcrops over a strike of 340m by 100m partially masked by glacial cover. Drilling is expected to commence in late 2017 once approval is received.

We reiterate our Speculative Buy recommendation and target price of A$0.2/sh.

]]> VSA Capital Market Movers - Eco Atlantic Oil & Gas Ltd, Sula Iron and Gold PLC Tue, 26 Sep 2017 07:33:00 +0100 Sula Iron & Gold (LON:SULA)#

Sula Iron & Gold (SULA LN) has announced further results from its 5,185m Phase 3 drilling campaign including high grade intercepts at the new TZ4 target as well as at Sanama Hill. These are the final results from this programme.

The results at TZ4 included 1.2m at 19.3g/t Au from a depth of 287m which follows on from the earlier result of 5.2g/t Au from hole FDD021 around 600m away. We note, however, that SULA has stated that the structural orientation of these holes is different which indicates multiple controls and that as at Sanama Hill the structural geology is complex. This is something that management is putting significant effort into understanding and will help with future drill targeting and understanding the potential of the mineralisation discovered to date.

Additional drill results were from Sanama Hill and also included encouraging high grades such as 8.6g/t Au over 2m from 134m deep as well as 7.5g/t Au in near surface oxide ore from 31m deep. The drilling campaign has provided robust results including high grade intercepts such as these although now the focus at Sanama Hill will be on low cost analysis of the data with a particular focus on structural geology.

Soil sampling across 8 of 19 identified targets has demonstrated multiple zones with anomalous gold values. One of these includes a new gold target to the northeast of Sanama Hill yielding anomalous gold grades, underpinning the company’s view that there is further potential for gold targets beyond those that have been tested to date.

We reiterate our Speculative Buy recommendation and 1.2p target price.


Eco (Atlantic) Oil & Gas (LON:ECO)#

Eco (Atlantic) Oil & Gas (ECO)# has announced it has entered into an option agreement on its interest in the Orinduik Block, offshore Guyana, with Total (FP FP). The option allows FP to acquire a 25% working interest (WI) in the block from ECO, of which it currently holds a 40% WI, Tullow Oil (TLW) is the operator and holds the remaining 60% WI.

FP will make an immediate payment of US$1m to ECO for the option and will make a further cash payment of US$12.5m upon exercise of the option. The Orinduik Block is located up dip and just a few kilometers from Exxon’s (XOM US) recent Liza and Payara discoveries confirming, by XOM estimates, between 2.25-2.75Bbbls of recoverable oil. ECO has reviewed 2D seismic data across the block and leads have been identified which TLW estimates contain prospective resources of 900mmboe. This 3D seismic programme is now the next stage of the exploration programme over the block and is being completed on time as per ECO’s guidance.

The option is entirely exercisable at FP’s right and must be done so within 120 days of completion of processing the 3D seismic survey, which has been underway for three weeks now. Should the 3D seismic survey back up or improve the initial resource estimates from the 2D data then we believe it would be highly likely that FP would exercise this option. Should this be the case then ECO will be left with a 15% WI on the Orinduik Block.

Each partner on the block will pay its pro-rata WI from the date of exercise of the option and ECO estimate exploration wells offshore Guyana on the Orinduik block will cost cUS$35m. ECO’s participating interest on a well would then be cUS$5.25m per well, therefore, the successful completion of this option would provide funding to meet ECO’s commitments on two wells and re-cooperate its contribution to the 3D seismic survey.

Following the success of the XOM at Liza, offshore exploration in Guyana has been high on the priority list for many of the majors as they seek to gain exposure to a basin with world class prospectivity but has been de-risked somewhat by XOM. We see this announcement as confirmation of this and as extremely encouraging news for ECO that will likely help move the licence further along the value chain.

We re-iterate our BUY recommendation and 25p TP.

]]> VSA Capital Market Movers - REDT Energy, Independent Oil & Gas PLC Mon, 25 Sep 2017 07:16:00 +0100 redT Secures 14 Unit Order in SSA

redT energy (LON:RED)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has announced the sale of 14 units in sub-Saharan Africa.

• 14 5kW-40kWh machines sold to a Botswana-based customer for deployment in the country’s critical communications infrastructure sector

• Machines will be hooked up to solar power installations, storing power generated during the day for use in the evening, effectively ‘firming-up’ solar power

VSA Comment

Following on from last week’s announcement of an initial 12 unit order (as part of a 300 unit pipeline), RED has delivered a further sales announcement in a key market. The units will be delivered next year and are expected to generate cUS$850k in revenues for FY 2018 (unit sales + add-on services). We also understand that this single customer has a significant pipeline of additional projects that could eventually require more than 150 RED units.     

This multiple-unit sale into the African market highlights RED’s strong networks in the region, which originally stemmed from its legacy carbon project development business.

Aside from the monetary benefit, this deal also explicitly highlights the advantage of flow machines over lithium-ion and lead-acid solutions, which RED notes that in many cases have already failed on these specific project sites.

It also shows that its business model of deploying seed units in certain key markets (two Gen1 machines are deployed in Africa) is beginning to pay off.

We are hopeful that, once operational, the Olde House installation in Cornwall should have a similar stimulating effect for the UK market and lead to significant orders for RED’s bigger and more lucrative units.

We maintain our BUY recommendation and target price of 22p.


Independent Oil & Gas (LON:IOG)#

Independent Oil and Gas (IOG LN) has announced that it has signed an LOI and Consultancy Master Services Agreement with Schlumberger in relation to development of two of its North Sea gas hubs; Blythe and Vulcan Satellites. This provides a framework for a joint team to complete field development plans in the period prior to the final investment decision.

We reiterate our Buy recommendation.

]]> Fed turns hawkish, gold outlook still favourable Fri, 22 Sep 2017 10:42:00 +0100 VSA Morning Agri Comment - M.P. Evans Group PLC Mon, 18 Sep 2017 07:32:00 +0100 MP Evans: H1 2017 Results

MP Evans (LON:MPE), the Indonesian palm oil producer, has announced interim results for the period ended 30 June 2017.

• Revenue: US$57.5m, +89.4% YoY (H1 2016: US$30.4m)

• Adjusted Operating profit: US$15.9m (H1 2016: US$3.4m)

• Fresh fruit bunches (FFB) processed (own, majority-owned estates): 213,800t, +25.5% YoY (H1 2016: 170,300t)

• Crude palm oil (CPO) produced: 70,500t, +55.6% YoY (H1 2016: 45,300t)

• Interim dividend: Increased to 5.0p (H1 2016: 2.25p)

VSA Comment

As expected, MPE continues to increase its cropping levels as its young estates develop into maturity and, more specifically for H1, production levels in the sector recover from the 2015/16 El Niño. Stronger CPO prices (+10% YoY) and a c15% YoY fall in its cost of production (US$380/t) also contributed to a much improved financial performance, with its adjusted operating profit increasing by more than 4.5x.

In terms of the outlook for pricing, palm oil prices have increased c10% over the last month, touching six month highs in Malaysia, as expectations of a relatively muted peak production cycle have been played out in the market. The latest data from South East Asia suggests that for July and August at least, these expectations have not yet been realised to the extent that some were forecasting.

However, we are likely to see strong near-term export demand with the approach of the Mid-Autumn Festival in China (4 October) and the Hindu festival of Diwali (19 October). Although this is likely to be supportive to CPO pricing in the near-term, production will likely be strong in September and October, which may lead to weaker pricing as we move towards the end of the year. Last week’s upgrade to the US soybean crop by the USDA is also a bearish indication for vegetable oil pricing (soybean oil premium over Malaysian CPO is currently around its historic average at cUS$110/t). 

Having completed c99% of its £5m share buy-back programme, last Friday MPE announced that it would be extending the programme by a further £2.5m. Extrapolating from the rate of share purchases so far, this extra allocation should last through to at least mid-January. Given the low liquidity in the stock (the buy-back has accounted for c20% of all traded volume since the scheme began), we believe this programme is an important factor in maintaining the share price at the current levels.

Having perhaps made a slower start on its post-KLK bid strategy than we had originally expected, MPE has now impressively disposed of its Agro Muko joint venture (and paid a special dividend of 10p per share as a result), acquired a new majority-owned 10,000ha newly planted plantation in Kalimantan, extended its share buy-back scheme and now more than doubled its interim dividend.

With MPE anticipating that its crop levels will double between 2016 and 2020 (as they did between 2010 and 2016), it is clear that the company is set for significant levels of growth in the coming years, which is precisely the reason it remains such an attractive acquisition target.

]]> VSA Capital Market Movers - REDT Energy Mon, 18 Sep 2017 07:19:00 +0100 redT Signs Partnership Sales Agreements

redT energy (LON:RED)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has signed partnership agreements with a number of distributors in Central & Eastern Europe, South East Asia and the Pacific region. It has also announced two new senior hires.

• Combined, the distributors have made an initial commitment of 12 units as part of a qualified pipeline of more than 300 units

• Bengt Stahlschmidt has been announced as Global Business Development Lead, alongside Adam Whitehead who has joined as Research Principle. Both join from flow battery peer Gildemeister, which has recently entered the administration process in Germany

VSA Comment

RED has secured its first commercial orders from a group of specialist energy sector distributors with longstanding experience selling flow machines from Gildemeister and others into the global market. The fact that RED has now been selected to deploy its machines through these channels highlights the company’s move towards becoming the flow machine manufacturer of choice in the market.

The apparent demise of key flow competitor Gildemeister has given RED access to its key people, the first two being Bengt and Adam as detailed above, as well as its future pipeline, with the Austrian company having done much to promote the benefits of flow machines in the global energy storage sector.

Although RED’s commercial sales have started slower than we had anticipated, this announcement is clearly good news for the company and we hope a sign of things to come as the company looks to move from generating a limited number of individual sales, to becoming the low cost mass market producer of flow machines for the global energy storage sector.

We maintain our BUY recommendation and target price of 22p.

]]> The 19th Chinese Party Congress is coming, and will have an interesting effect on markets Fri, 15 Sep 2017 11:15:00 +0100 VSA Capital Market Movers - Columbus Energy Resources PLC Independent Oil & Gas PLC Wed, 13 Sep 2017 08:06:00 +0100 Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (LON:CERP) has announced interim results for H1 2017 which with operational changes enacted in late H1 2017 are likely to mark a turning point in the company’s development. CERP has set out the strategy to restore profitability at the core operations which will provide stable cash flow for unlocking CERP’s exploration potential.

Group oil sales of 108k barrels of oil were down 32% YoY as production in Spain ended in January 2017. While in Trinidad production was disrupted by Tropical Storm Bret alongside declines in well pressure in the Goudron field. However, higher average oil prices and favourable timing of sales more than offset the decline in production and revenue of £2.5m was up 28% YoY. The operating loss of £1.88m was in line YoY, as although CERP has made significant progress and reduced SGA by 16% YoY to £1.4m, cost of sales were higher as a result of one offs relating to Spain while a positive non cash gain in H1 2016 benefitted earnings in the prior period. We note, however, a 33% YoY reduction in operating costs at Trinidad to £700k. The net loss of £1.96m was therefore broadly in line YoY.

However, we believe that H1 2017 is likely to mark a turning point for CERP. With the new management team in place from May 2017, CERP has indicated the early success of its low cost initiatives to restore profitability and positive cash flow at its core operations. In line with previous experience the performance of the first two wells drilled as part of the Mayaro infill programme (GY-682, GY-683) resulted in strong initial production of 55bopd and 65bopd, however, this declined to 8bopd and 18bopd respectively within a few months as pressure declined. Consequently and with 160 historic wells of which around 90 are shut in, management has decided to utilise the existing wells and address the issue of declining pressure via well stimulation rather than continue with the Mayaro sand infill programme.

Yesterday, CERP announced that it had received a CEC enabling the first programme of the waterflood pilot injection to commence. This is planned to increase production from 30bopd to over 150bopd on a stable and consistent basis at a cost of just US$300k compared to US$500k for each Mayaro well. On a larger scale the potential is therefore likely to be significant and by utilising water injection and other well stimulation techniques such as smart pumping systems CERP is targeting over 550bopd by year end. Early injectivity tests have resulted in tenfold increases in production rates so far.

CERP’s cash position at the end of H1 2017 was £1.7m and on Monday CERP announced an additional US$750k in Lind funding due in Q4 2017. CERP have guided that the turnaround strategy based on well stimulation and the waterflood injection programme will be achievable using existing cash resources and are targeting positive cash flow generation by Q4 2017.

While restoring profitability at the core Goudron operations in the near term is in itself highly positive we highlight the announcement that based on the existing cash resources and the projected cash flow from Goudron, CERP intend to bring forward development of the significant exploration potential at the South West Peninsula (SWP). CERP intend to drill SWP in mid-2018 using existing cash resources. This is subject to completion of permit approval and completion of commercial negotiations which have begun following the acquisition of the BOLT license and production of 200 barrels of oil sold to Petrotrin in May 2017. SWP represents CERP’s transformational growth opportunity and the ability to develop the asset internally is a significant positive step, in our view.

We reiterate our Buy recommendation and target price of 25p/sh.

Independent Oil & Gas (LON:IOG)

Independent Oil & Gas (LON:IOG) has announced changes to management as James Chance, previously IOG’s Commercial Director, has been appointed Chief Financial Officer with immediate effect. James has not been appointed to IOG’s Board of Directors. Hywel John, has stepped down from CFO and resigned as a Director with immediate effect to pursue other interests. The IOG project team has been strengthened by the addition of Ian Pollard as HS&E Manager and Jonathan Walker as Engineering Manager.

We reiterate our Buy recommendation.

]]> VSA Capital Market Movers - Columbus Energy Resources PLC Tue, 12 Sep 2017 07:28:00 +0100 Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (LON:CERP) has announced that it has received a Certificate of Environmental Compliance (CEC) for the Goudron field Waterflood programme from the Environmental Management Authority of Trinidad. The approval will enable CERP to commence work on the Goudron Field Water Injection Pilot Programme which is intended to increase reservoir pressure consequently sweeping oil towards production wells resulting in an increase in production rates. The forecast increase is from the current 30BOPD to in excess of 150BOPD which will require an injection of 450 barrels of water per day.

CERP intend to commence the programme immediately and crucially, as the new management team have reviewed the project they have concluded that the first of the four pilot programmes can be completed from internal cash. Costs committed to date for the first programme for pumps, filters, tanks and pipework etc, total just US$300k. These have been tested during well injectivity trials and the system is expected to be running with continuous water injection within the next few weeks. Ongoing operating costs will be minimised by the fact that the source of injection water is already produced water from the Goudron field.

The data on recovery and incremental production rates will be key to determining the extent of the waterflood expansion, with a decision now expected in 18 months’ time. Proposals for the next three programmes will be submitted shortly and will target two areas in the shallow Goudron Mayaro well and the GY-670 well. 

The application was submitted in late June and has been approved far quicker than expected bringing project commissioning forward by around a year. This reflects three key positives for CERP going forward which underpin our positive view on the stock. Firstly, as with the improved Lind facility terms it demonstrates the new management’s proactive approach to restoring profitability at the core CERP operations. Secondly it demonstrates that despite the changes in senior management, strong relationships with the Trinidad authorities have been maintained. Thirdly, it highlights the attractiveness of Trinidad as an operational jurisdiction.

We reiterate our Buy recommendation and 22p target price.

]]> VSA Capital Market Movers - Goldplat plc Mon, 11 Sep 2017 09:13:00 +0100 Goldplat (LON:GDP)

Goldplat (LON:GDP) has announced an update to the ongoing dispute over a contract with Rand Refinery. With no resolution having yet been achieved GDP has now decided to issue an application to the High Court of South Africa for recovery of the fees owed by Rand Refinery.

It is not clear at this point how long resolution might take, however, the impact on our outlook for GDP remains unchanged. From an operational perspective we highlight GDP’s efforts to reduce its exposure to Rand Refinery by increasing internal elution capacity and using alternative refiners. Consequently our earnings estimates are unchanged and reflect the strong operational performance achieved in FY 2017.

We reiterate our Buy recommendation and 12.2p target price.


]]> VSA Capital Market Movers - Columbus Energy Resources PLC Mon, 11 Sep 2017 07:26:00 +0100 Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (LON:CERP) has announced a favourable revision to the terms on its lending facility with Lind Partners. Following the agreement announced in December 2016 for a US$8.9m convertible loan facility of which US$1.825m (T1) has been drawn down, CERP has negotiated an increase in the conversion price, an increase in the facility and an improvement in payment terms.

• T1 conversion price increased by 50% to 4.5p/sh.

• Issue of 17.9mn shares to Lind, held in escrow for at least six months from 23rd September.

• The next monthly repayment of T1 will be paid in shares (2.3m) at a price of 3p/sh.

• Lind intends to exercise its right to increase the size of the facility by US$750k (T2) with funds available to CERP in Q4 2017. T2 will be repaid at a monthly rate of US$38.7k in cash or shares as determined by CERP.

• Lind will be eligible for 7.6mn share options on provision of T2 exercisable at a price of 50% above the preceding 20 day average to the award date for up to 40 months.

The additional funds will aid in furthering the new management’s turnaround strategy. This includes field optimisation, well stimulation and the water injection pilot programme for which an application has been submitted. CERP expect to be cash flow positive during Q4 2017 as a result of these initiatives and we believe this can be achieved from the expanded cash resources given their low cost nature.

Furthermore, we believe that Lind’s decision to improve the terms of the facility, which has weighed upon the shares in recent months, reflects positively on the new management and their strategy, underpinning our positive outlook.

We reiterate our Buy recommendation and 22p target price.

CERP will announce interim results on 13 September and hold an AGM and investor presentation on 14 September at the company's solicitors, Kerman and Co LLP, who are located at 200 Strand, London WC2R 1DJ

]]> Gold mining in Tanzania gets riskier, and more attractive too Fri, 08 Sep 2017 12:58:00 +0100 VSA Capital Market Movers - Eco Atlantic Oil & Gas Ltd Wed, 06 Sep 2017 07:41:00 +0100 Eco Atlantic (LON:ECO)

Eco Atlantic (LON:ECO) has announced that along with its operating partner Tullow Oil (TLW LN) it has completed a 2,500km2 3D seismic survey on the Orinduik block in Guyana. The block is owned 60% by TLW and 40% by ECO and the test was completed by Schlumberger on schedule with stable seas and no weather disruptions. Orinduik is a few kilometres up dip from ExxonMobil’s (XOM US) Liza and Payara discoveries which XOM estimates contain between 2.25-2.75bnboe.

The 3D survey had originally been conceived as a 1,000km2 study, however, owing to the positive results of 2D survey data and down dip discoveries ECO and TLW opted to increase the scope of the study. On the enlarged study TLW agreed to carry ECO’s cost of the share to 1,000km2 (capped at US$1.25m) with the balance of the programme funded pro-rata. ECO and TLW will now begin interpreting the data with results to be released in due course.

We reiterate our Buy recommendation and target price of 25p

]]> Trump will use North Korea to palliate long-standing domestic tensions in the US Mon, 04 Sep 2017 08:20:00 +0100 VSA Capital Market Movers - Millennial Lithium Wed, 30 Aug 2017 07:23:00 +0100 Millennial Lithium (CVE:ML)

Millennial Lithium (ML) has announced a placement of up to C$5m at a price of C$1.25/sh per unit. Each unit will consist of one common share and one warrant. Each warrant will be exercisable into one common share at C$1.50 for a period of 24 months post the offering. The offering is expected to close on September 26 2017.

Following the recent announcement of strong drill results and the acquisition of additional ground adjacent to the flagship project the funding will be used to advance the ongoing work programme.

We reiterate our SPEC BUY recommendation.

]]> Gold punches through US$1,300 as reality of North Korean missile attack is brought home Tue, 29 Aug 2017 16:45:00 +0100 VSA Morning Agri Comment Tue, 29 Aug 2017 07:47:00 +0100 MPE Acquires New 10,000ha Block

Indonesian palm oil producer MP Evans (LON:MPE) has acquired a privately-held Singapore-based company whose local subsidiary holds 95% of a 10,000ha oil palm project in East Kalimantan.

• Of the 10,000ha land block, 8,240ha are company-owned estates with 1,300ha contained in a smallholder scheme and the balance being infrastructure and conservation areas

• Of the 8,240ha owned by the company, 7,400ha are planted with young oil palms (non-producing), 440ha are mature oil palms (producing) with a further 400ha in the process of being planted

• Total consideration is US$108m, with US$88m cash consideration and US$20m of assumed debt

• Significant growth is expected in the coming years as the trees mature along the yield curve. MPE expects the project to produce 270,000t+ of FFB per annum within ten years

• MPE plans to build a mill in due course as well as register the land with the Roundtable on Sustainable Palm Oil (RSPO), in line with its existing estates and mills

VSA Comment

Following the sale of the group’s 36.84% stake in Agro Muko in January, investors have been eagerly awaiting the deployment of the received funds into another palm oil project. Although it has taken longer than many expected, the transaction appears to be a good one, more than replacing the share of planted land lost through the Agro Muko disposal (7,200ha) for a price in-line with other recent transactions in the sector (cUS$13,100 per planted hectare).

However, it will take much longer for this project to replace the financial contribution lost as a result of the disposal of Agro Muko, given the early stage nature of the estate. The new project has just c5% of its palms currently producing, compared with Agro Muko that had c90% of mature oil palms. The new project made an operating loss of US$0.4m in 2016 compared to Agro Muko which contributed a share of profits to MPE of US$7.1m and gross dividends of US$3.7m in 2016.

With its ongoing share buy-back coming to an end (now 96% complete), the pressure was on for MPE to deploy its excess cash into an attractive transaction with strong growth prospects to support its share price. It appears to us that this deal fits the criteria. However, the end of the hands-off period for Kuala Lumpur Kepong (KLK LN) is now only four months away. We still expect it to return for a second try at acquiring MPE once this restricted period expires.

]]> VSA Capital Market Movers - Polymetal International Tue, 29 Aug 2017 07:13:00 +0100 Polymetal (LON:POLY)

Polymetal (LON:POLY) has announced weak results despite increased revenues. The reversal of the USD, despite its positive impact in the dollar gold price was more than offset by the impact of the stronger RUB on costs. Revenue was up 15% YoY to US$683m, as gold sold increased 19% YoY to 380koz offset in part by a 5% YoY decline in silver sales to 12.4moz.

EBITDA of US$257m was down 12% YoY as cash costs increased 28% YoY to US$656/oz. Meanwhile, AISC increased 20% YoY to US$906/oz. This is expected to moderate somewhat in H2 with POLY maintaining its guidance for a full year average of US$600-650/oz and US$775-825/oz for total cash costs and AISC respectively. However, we do not expect the dollar to weakness to reverse in H2 indicating that the RUB is likely to remain strong.

Net earnings of US$120m were down 27% YoY as a result of higher cost pressures. Despite this, POLY announced a dividend of US$0.14/sh. equivalent to 50% of net earnings and a 56% increase YoY.

]]> Trump’s threat to shut down the government is no bluff Fri, 25 Aug 2017 11:24:00 +0100 One commentator from one of London’s smaller financial trading institutions used the word “bluff” several times in a note this week analysing the likelihood or not of Donald Trump following through on his threat to shut down the government if funding for his Mexican wall is withheld.

The mechanism for Mr Trump to follow through on his threat is already there: the US has once again hit its “debt ceiling” and has been resorting to what’s known by Washington insiders - and increasingly now by the outsiders that Mr Trump has been bringing in – as “extraordinary measures.”

WATCH: 'Trump to deliver a golden opportunity' says Alastair Ford

But in order for the sprawling edifice of US government to be able to afford to continue to fulfil its manifold functions, this debt ceiling needs to be raised again, and soon: by 29th September, according to the US Treasury Department.

It requires the agreement of the legislative and the executive branches of government, and if Mr Trump wants to make extending the debt ceiling about the wall, he can do.

Is he bluffing?

Maybe, but not for the reasons the far-removed commentator in London gives. Mr Trump doesn’t want to be seen as responsible for failure, runs the simplistic analysis, and certainly not for a failure so huge as the creditworthiness of the US government.

But think again about what Mr Trump has said he stands for, and about what he does. He is no friend of big government. Not at all. Even if he hadn’t been elected on a platform which if it had any coherence at all was about rolling back the state, his own personal circumstances are unlikely to make him well disposed to the technocrats about whose roles he may or may not be bluffing.

The other side of the same coin is the failure itself. If the debt ceiling is not raised and the US government does cease to function effectively it may or may not be the fault of Donald Trump, but who in their right minds thinks he’s going to allow that narrative to dominate?

Not even the Democrats, who must be taking a good, long hard look now at a President using as a bargaining chip a policy he was clear enough about in his manifesto and his campaigning, and which he legitimately won an election on.

To make things worse, though, Republican party in-fighting has seized on the debt ceiling as a bargaining chip to forward other measures. Trump has taken down leading Republicans before, and there is little doubt he’s capable of doing it again, but each time he does it the stakes get a little higher.

In the Presidential primaries, all that was at stake was the global credibility of the Grand Old Party. Now, what’s at stake is the functionality of the US government itself. Small wonder that some in the security industry are beginning to get nervous about what may be next - the nuclear button?

Recent rhetoric

Given some of the recent rhetoric about North Korea, the fears are at least understandable in the form in which they are aired in the media. But hard to know what this President is really thinking.

So, to return to before the beginning, is it likely that there will be a US government shutdown some time in the fourth quarter? It’s not likely, but it’s possible. Mr Trump is grappling with issues as complex and as varied as the US has faced at any time since the end of the Cold War, and not the least of which is the diminishing influence of the US itself at a global level, and the predominant culture within the US at the national level.

Mr Trump says he has the answers to these questions. But if he can’t get enough people to agree with these answers, it may just be that he prefers conflict to resolution in order to keep pushing on with his own agenda.

So, although the wall on the Mexican border may not be the most pressing of all the issues on his agenda, if Mr Trump chooses to use it as the touchstone to set off the next round of his assault on government, then there’s not much anyone can do about it.

Gold has now ticked up to US$1,290. The price is being set by US domestic developments, and little else. For now at least, sell gold at your peril.


]]> VSA Capital Market Movers - Millennial Lithium Fri, 25 Aug 2017 07:42:00 +0100 Millennial Lithium (CVE:ML)

Millennial Lithium (ML) has reported that it has been awarded 2,492 hectares of claims from The Salta Provincial Energy and Mining Company (REMSA). This acreage is in the Pastos Grandes basin where drilling is currently underway to define a compliant JORC lithium resource. The land position at Pastos Grandes now totals 8,664 hectares.

ML will move on to this acreage to begin drilling in the coming days once an environmental plan is submitted for approval.  ML paid US$3,000 per hectare for this acreage and considers it of strategic and critical importance to the ultimate scale of lithium resources on this project. With approval of the environmental plan, ML begins an intensive Stage 1 program of preparation for pilot lithium production at commercial scale upon which it is obligated to spend at least US$15.54m.

In addition, ML’s partner on its Pocitos basin Cruz property reported on 23 August that fluid density measurements on the first drill hole are consistent with brine and in agreement with prior historic drill hole information elsewhere in the Pocitos basin. Drilling is ongoing.

The two announcements are highly positive and important to the progress and expansion of ML’s lithium activities and total resource in Salta Province of Argentina. The REMSA deal effectively doubles the ground ML controls on Pastos Grandes. We believe this to be the heart of the best lithium brines. With two projects currently drilling, we expect strong newsflow in the coming weeks.

We reiterate our Speculative Buy recommendation.


]]> VSA Capital Market Movers - Eco Atlantic Oil & Gas Ltd Fri, 25 Aug 2017 07:17:00 +0100 Eco Atlantic (LON:ECO)

Eco Atlantic Oil & Gas (LON:ECO) has announced FY Q1 2017 results. The net loss increased from C$667k to C$2,122k as a result of increased operating expenses. This was partially offset by a modest increase in interest income. ECO finished the quarter with cash of C$4.9m.

Operationally, ECO is nearing completion of a c.2,550km2 3D seismic survey on the 1,800km2 Orinduik Block offshore Guyana along with its operating partner Tullow Oil (TLW LN). Completion of the survey will be roughly two years ahead of schedule. The targets are a few kilometres up dip of Exxon Mobil’s (XOM US) recent discoveries which are estimated to contain between 2.25-2.75mmboe.

We reiterate our Buy recommendation and 25p target price.