Stratex exits Turkey as it sells it Altintepe stake to JV partner Mon, 24 Apr 2017 10:37:00 +0100 Metals Exploration makes slow headway at Runruno in The Philippines Mon, 24 Apr 2017 10:36:00 +0100 Thor Mining's Mick Billing talks through 'very significant' Pilot Mountain drill results Mon, 24 Apr 2017 10:25:00 +0100 Mick Billing, executive chairman at Thor Mining PLC (LON:THR) tells Proactive they've reported zinc as well as further tungsten indications from latest drilling at their Pilot Mountain project in Nevada.

At the Garnet target, tungsten mineralisation was sufficient for Thor to start to prepare an initial maiden resource.

At Desert Scheelite, another target, Thor also confirmed a significant extension to the east, with higher grade targets lying deeper.

]]> Metal Tiger and partner MOD Resources hit more “significant intersections” at Botswanan copper project Mon, 24 Apr 2017 10:19:00 +0100 Vast Resources battles through tough weather conditions in first quarter Mon, 24 Apr 2017 09:22:00 +0100 Zak Mir: 'Berkeley Energia shares to add another 25%' Mon, 24 Apr 2017 08:20:00 +0100 Technical analyst Zak Mir is tipping the uranium mine developer Berkeley Energia Ltd (LON:BKY) to add another 25% or so to its share price over the summer months.

“Shares have fallen back from the dizzy heights of January and February at just over 70p to a major support area in the mid-40s,” explains Mir in the latest Proactive Investors Bulletin Board.

“There’s a bullish divergence also in the RSI window where the shares are now oversold under 30.

“Ideally no break back below 40p ahead of a retracement of recent losses back towards the 55p level.”

]]> Anglo American maintains full-year production guidance for all metals, aside from nickel Mon, 24 Apr 2017 08:15:00 +0100 VSA Capital Market Movers - Anglo American Mon, 24 Apr 2017 07:35:00 +0100 Anglo American (LON:AAL) has reported robust production results for Q1 2017 with strong production of bulks and diamonds offset by weakness in base metal production. Iron ore production at Kumba of 10.5mnt was up 17% YoY due to ongoing mine plan improvements whilst at Minas Rio the ramp up continued with a 30% YoY increase in production to 4.3mnt. Meanwhile, met coal production of 5.2mnt was up 28% YoY while thermal coal production was up 6% YoY to 6.5mnt.

De Beers also reported strong operational performance with diamond production of 7.4mnct up 8% YoY, as curtailments were partially relaxed due to improving trading conditions. Meanwhile, copper production of 143kt was down 6% YoY due to weak grades at Los Bronces and a temporary suspension at El Soldado. We note that AAL is the second of the majors to realise weak copper production results in Q1. Nickel production, down 12% to 9.9kt was also impacted by unplanned maintenance. Platinum production was largely unchanged at 572koz.

]]> Hummingbird Resources Mali gold mine on time and on budget Mon, 24 Apr 2017 07:35:00 +0100 Condor Gold sets up US listing on OTC market Mon, 24 Apr 2017 07:32:00 +0100 Galantas mine development on hold in Northern Ireland Mon, 24 Apr 2017 07:05:00 +0100 Berkeley Energia readies for construction at Salamanca Mon, 24 Apr 2017 06:42:00 +0100 Australian Vanadium set to gain from Bryah Resources IPO Mon, 24 Apr 2017 03:30:00 +0100 Navarre Minerals shares rise on drilling high-grade gold Mon, 24 Apr 2017 03:00:00 +0100 Black Rock Mining study confirms graphite mine value Mon, 24 Apr 2017 02:00:00 +0100 White Cliff Minerals boosts high grade Aucu gold deposit Mon, 24 Apr 2017 01:00:00 +0100 Black Rock Mining appoints John de Vries as interim CEO Mon, 24 Apr 2017 00:30:00 +0100 Legend Mining and partner Creasy Group drilling for another Nova Mon, 24 Apr 2017 00:00:00 +0100 Santana Minerals identifies silver, gold zones in Mexico Sun, 23 Apr 2017 23:30:00 +0100 King River Copper targets vanadium titanium market Sun, 23 Apr 2017 23:00:00 +0100 Classic Minerals to update from Forrestania Gold Project Sun, 23 Apr 2017 22:00:00 +0100 Avrupa Minerals closes C$225,000 financing Fri, 21 Apr 2017 14:02:00 +0100 Royal Road Minerals raises C$750k through shares issue Fri, 21 Apr 2017 13:36:00 +0100 'A good quarter on all fronts' - Goldplat's Gerard Kisbey-Green Fri, 21 Apr 2017 13:31:00 +0100 Gerard Kisbey-Green, chief executive of Goldplat plc (LON:GDP) talks through the firm's operations for the three months to the end of March, telling Andrew Scott: ''I'm particularly pleased with progress made on the plant expansion and achievement of targets at Kilimapesa''.

Among other highlights, Kisbey-Green mentions the signing of their first South American agreement with shipment expected in the next quarter.

]]> NQ Minerals makes major move with Hellyer Gold Mine acquisition Fri, 21 Apr 2017 13:06:00 +0100 Goldplat reiterates full-year targets; agrees first contract with South American producer Fri, 21 Apr 2017 12:15:00 +0100 Kibo Mining's Louis Coetzee talks through 'very significant' partnership with Mbeya Cement Fri, 21 Apr 2017 11:59:00 +0100 Kibo Mining PLC (LON:KIBO) chief executive Louis Coetzee runs Proactive through their announcement that they're partnering up with Mbeya Cement Company, a LaFarge subsidiary in Tanzania, as they push ahead with the Mbeya Coal to Power Project (MCPP).

Coetzee says the deal will establish a strategic regional collaboration and reciprocal supply of materials agreement.

]]> Fundamentals returning to the fore in mining, at long last Fri, 21 Apr 2017 11:36:00 +0100 Thor Mining finds more tungsten and some zinc with latest drilling programme at Pilot Mountain in Nevada Fri, 21 Apr 2017 11:12:00 +0100 New Cobre client could prove 'spectacular' for Strategic Minerals, says John Peters Fri, 21 Apr 2017 10:56:00 +0100 John Peters, managing director of Strategic Minerals Plc (LON:SML) talks Proactive's Andrew Scott through the company's quarterly update for the three months to March.

The period saw record local sales at its iron ore tailings plan at Cobre in New Mexico, which is helping to fund exploration programmes for tin and tungsten in Cornwall and cobalt in Australia.

Strategic also recently signed up a new client at Cobre that it anticipates will double sales over the current year.

]]> Metal Tiger placing raises £4.85mln in total, more than expected after extension Fri, 21 Apr 2017 10:51:00 +0100 Fundamentals 'returning to the fore' in mining, says Mining Capital's Alastair Ford Fri, 21 Apr 2017 09:56:00 +0100 Mining Capital's Alastair Ford tells Proactive the FTSE miners have taken a bit of a battering over the past few weeks.

''Rio Tinto’s (LON:RIO) shares are now hovering at just over 3,000p, down from a three year high of 3,691.5p hit in mid-February, BHP Billiton’s shares are down from a January 12-month high of 1,477.5p to a current 1,185p, Glencore’s shares are down from a mid-March 12 month high of 341p to the current 295p, and Anglo American’s (LON:AAL) shares are off from mid-February high of 1,416p to the current 1,114p''

Ford adds that the strength in Sterling following Theresa May’s decision to hold an early election this year has weakened the investment proposition of the FTSE miners even further as they are priced in pounds but book revenues and incur costs primarily in dollars.

]]> VSA Capital Market Movers - Metal Tiger Fri, 21 Apr 2017 07:35:00 +0100 Metal Tiger (LON:MTR)
Metal Tiger  has announced that its private placing with Sprott has closed, raising £4.85m at a placing price of 3p/sh via the issuance of 161.7m shares with an equal number of warrants which have an exercise price of 6p/sh and five year exercise period. The funds will go towards the development of the T3 copper project in Botswana.

We reiterate our Buy recommendation although reduce our target price by 17% to 4p to reflect the dilution.

]]> VSA Capital Market Movers - Goldplat Fri, 21 Apr 2017 07:18:00 +0100 Goldplat (LON:GDP)
Goldplat has announced an operational update for Q3 FY 2017 and reiterated its targets for the full year. Production of 6.7koz in the quarter was down 45% QoQ and 7% YoY, however, this is largely due to a delay in the receipt of processing material in Ghana. Indeed, on a nine month basis, production of 28koz which is up 14% YoY is on track to meet the target of 45koz for group FY 2017 production.

In Ghana 803oz was produced with 5.5koz sold. The discrepancy between gold sold and produced had been expected due to an outstanding license which was received towards the end of Q2 FY 2017. However, this difference was exacerbated by a delay in the receipt of material for processing which negatively impacted production in Q3. Production in Ghana had been expected to be lower in H2 versus H1, however, and with the arrival of the first shipment of material from South America we expect a more normalised production level in the final quarter. Capital projects in Ghana are progressing on target, including the construction of the additional 4t elution column.

The South African operations delivered a robust performance with 5koz produced, up 2% YoY although down 30% QoQ due to a particularly strong prior quarter. Following the recent announcement regarding the legal proceedings with Rand Refinery, GDP has confirmed that it has identified an alternative refinery as well as Aurubis in Germany where shipments can be processed meaning it has largely mitigated the associated operational risk.

At Kilimapesa the ramp up is performing well with quarterly production of 964oz up 70% QoQ and 92% YoY. Stage Two is expected to be completed by the end of April 2017 with the crusher installed by the end of May 2017.

Overall, we remain positive on GDP’s operational performance and our forecasts remain unchanged.

We reiterate our Buy recommendation and 11.2p/sh. target price.

]]> Strategic Minerals very bullish as sales from its iron tailings project in New Mexico hit new record Fri, 21 Apr 2017 07:01:00 +0100 Sayona Mining opens underwritten share purchase plan Fri, 21 Apr 2017 03:30:00 +0100 Lithium Australia NL locks down Queensland tenure Fri, 21 Apr 2017 03:00:00 +0100 Golden Rim Resources shares rise on acquiring the Kouri Gold Project Fri, 21 Apr 2017 02:30:00 +0100 Triton Minerals in an ASX trading halt Fri, 21 Apr 2017 02:00:00 +0100 Impact Minerals prepares for eagerly awaited follow-up drilling Fri, 21 Apr 2017 01:00:00 +0100 Strike Resources reveals jumbo flake graphite within Burke project Fri, 21 Apr 2017 01:00:00 +0100 Ardea Resources to reveal exploration results Fri, 21 Apr 2017 00:30:00 +0100 White Rock Minerals to reveal maiden resource Fri, 21 Apr 2017 00:00:00 +0100 Great Boulder Resources continues busy exploration program Fri, 21 Apr 2017 00:00:00 +0100 Gascoyne Resources receives more positive gold assays from Dalgaranga Thu, 20 Apr 2017 23:00:00 +0100 Tawana Resources NL to reveal offtake agreement Thu, 20 Apr 2017 22:00:00 +0100 Lundin looks at Energy Fuels and Endeavour Silver and says 'buy' Thu, 20 Apr 2017 18:33:00 +0100 Klondex Mines "well positioned" to deliver on 2017 output guidance Thu, 20 Apr 2017 16:55:00 +0100 Ortac Resources soars on possible joint venture partner for Sturec gold mine project in Slovakia Thu, 20 Apr 2017 14:50:00 +0100 IronRidge Resources rises at it seals Ivory Coast gold partnership Thu, 20 Apr 2017 14:29:00 +0100 Mandalay Resources rated 'buy' by Desjardins analyst Thu, 20 Apr 2017 13:40:00 +0100 Stratex International's Marcus Engelbrecht on 'positive' talks with Turkey joint venture partner Thu, 20 Apr 2017 13:37:00 +0100 Marcus Engelbrecht, chief executive of Stratex International plc (LON:STI) tells Proactive's Andrew Scott they've resumed talks with Bahar Madencilik, their joint venture partner at the Altıntepe gold mine in Turkey over their share of revenues from mining operations.

Stratex owns a 45% interest in Altintepe and is due to receive 20% of net cash from operations until capital expenditure has been repaid, at which point it will be due 45%.

However, in February the company reported that such distributions had yet to take place.

Engelbrecht also touched on latest developments at their projects in Senegal and Egypt.

]]> 'Things are going really well', says Sula boss Roger Murphy as first samples are despatched Thu, 20 Apr 2017 13:00:00 +0100 Roger Murphy, chief executive of Sula Iron & Gold PLC (LON: SULA) updates Proactive on progress at their Ferensola project in Sierra Leone.

They've now sent the first batch of borehole samples from the current drilling programme off for assay.

Sula has two drill rigs onsite.

The first rig is drilling additional holes at Sanama Hill, where the target, as defined by SRK Consulting Ltd, is 5-to-7 mln tonnes grading at between 4 grams per tonne and 8 grams between 0.8 mln and 1.5 mln ounces of gold.

The second rig is focusing on Sula's Eastern Target, comprising a 4 km long ridge, which has a very strong Induced Polarisation anomaly, and which Sula believes is indicative of pyrite mineralisation.

]]> MGX Minerals delighted with independent verification of lithium separation process Thu, 20 Apr 2017 12:56:00 +0100 Shanta Gold upbeat as margins improve and production at New Luika mine in Tanzania ticks up Thu, 20 Apr 2017 12:48:00 +0100 Shanta Gold's underground potential comes to the fore Thu, 20 Apr 2017 12:17:00 +0100 Greatland Gold begans pre-drilling exploration campaign Thu, 20 Apr 2017 10:54:00 +0100 Shearwater Group - the former Aurum Mining – reveals reverse takeover of authentication software firm SecurEnvoy Thu, 20 Apr 2017 10:47:00 +0100 Technical analyst Zak Mir tips Caledonia Mining shares to add 50% Thu, 20 Apr 2017 08:35:00 +0100 Technical analyst Zak Mir reckons the Caledonia Mining Corporation (LON:CMCL) share price can add the best part of 50% over the summer months.

“There’s been a decent uptrend here since the beginning of last year when the mining sector turnaround started,” explains Mir in the latest Proactive Investors Bulletin Board segment.

“The top of the channel is up to £1.60 which would be the three to six month target here…and that’s the upside target value while we hold above 90p.”

]]> Rio Tinto cuts full year copper production guidance after first quarter hit by strikes in Chile Thu, 20 Apr 2017 08:00:00 +0100 Mariana Resources chairman says last year was one of 'outstanding achievement' Thu, 20 Apr 2017 07:47:00 +0100 Caledonia Mining on track to hit targets in 2017 as quarterly production at the 49%-owned Blanket mine rose by 18%. Thu, 20 Apr 2017 07:30:00 +0100 Kibo Mining partners with LaFarge for Tanzania coal-to-power Thu, 20 Apr 2017 07:06:00 +0100 Sundance Resources among ASX Most Traded late in the session Thu, 20 Apr 2017 05:00:00 +0100 Argent Minerals attracts sophisticated investors as news flow nears Thu, 20 Apr 2017 03:00:00 +0100 Celsius Resources confirms cobalt-copper mineralisation in Namibia Thu, 20 Apr 2017 02:30:00 +0100 King River Copper secures more cash for exploration Thu, 20 Apr 2017 01:30:00 +0100 St George Mining enters June quarter cashed up Thu, 20 Apr 2017 01:00:00 +0100 Black Mountain Resources wins vermiculite order from North America Thu, 20 Apr 2017 01:00:00 +0100 Boadicea Resources to reveal raising Thu, 20 Apr 2017 00:30:00 +0100 Cassini Resources drilling Nebo and Babel nickel copper deposits Thu, 20 Apr 2017 00:00:00 +0100 White Cliff Minerals to reveal new resource Wed, 19 Apr 2017 23:30:00 +0100 Avrupa Minerals boss gearing up for busy time in Portugal this summer Wed, 19 Apr 2017 23:15:00 +0100 Aspire Mining study results support open cut coal mine Wed, 19 Apr 2017 23:00:00 +0100 NSL Consolidated’s iron ore plant in India secures new order Wed, 19 Apr 2017 22:30:00 +0100 Arizona Silver Exploration looking to breathe life back into La Paz county's Ramsey mine Wed, 19 Apr 2017 16:43:00 +0100 Gold Resource Corp boosts gold production in first quarter Wed, 19 Apr 2017 15:05:00 +0100 Gold Resource Corp still glittering in 2017 after enjoying comeback year Wed, 19 Apr 2017 14:55:00 +0100 Mandalay Resources says debt amendment plan has advantages Wed, 19 Apr 2017 14:53:00 +0100 European Metals keen for rapid development at Cinovec Wed, 19 Apr 2017 12:54:00 +0100 European Metals says Cinovec can be among world's best lithium deposits Wed, 19 Apr 2017 12:41:00 +0100 Avrupa Minerals looking to up its profile among European investors Wed, 19 Apr 2017 11:58:00 +0100 Paul Kuhn, chief executive of Avrupa Minerals Ltd (CVE:ARU) runs Proactive through their two recent fundraises, where they're looking to spend the cash and how they're keen to up their profile among investors in Europe.

Avrupa currently holds eight exploration licenses in three European countries, including five in Portugal, two in Kosovo and one in Germany.

The company's recently pulled in a big hitting partner for its Alvito iron-oxide-copper-gold (IOCG) project in southern Portugal in the shape of Oz Minerals Limited (ASX:OML).

]]> First phase of road work set to begin at mine developer Amur Minerals Corporation’s Kun-Manie project Wed, 19 Apr 2017 09:51:00 +0100 Amur Minerals takes 'major step forward' towards Kun-Manie access road construction Wed, 19 Apr 2017 09:14:00 +0100 Amur Minerals Corporation (LON:AMC) chief executive Robin Young tells Proactive they've received topographic and hydrological information on a four kilometre wide, 320 kilometre long corridor, along its planned access road route.

Once constructed, the road will connect the Company's flagship Kun-Manie project to the Baikal Amur ("BAM") rail line and will be used to transport concentrate and supplies to and from the site.

]]> European Metals' Keith Coughlan 'comforted' by Cinovec pre-feasibility study Wed, 19 Apr 2017 08:04:00 +0100 Keith Coughlan, managing director for European Metals Holdings PLC, speaks with Proactive Investors.

]]> VSA Capital Market Movers - Altyn Wed, 19 Apr 2017 07:33:00 +0100 Altyn (LON:ALTN)
Altyn  has provided an update on Q1 2016 production highlighting the ramp up progress. Ore milled, grades and recoveries have all improved through the first quarter resulting in production of 5.2koz gold compared to 7.3koz in the entire of H2 2016.

The monthly ramp up demonstrates a clear positive progression with ore milled at 17.8mnt followed by 18.1mnt and 28.5mnt in each month through the quarter. Grades and recoveries of 1.79g/t, 2.59g/t and 2.55g/t and 73%, 86%, and 87% respectively demonstrated similar progression.

Through the year we anticipate further improvement in grades as higher grade ore is accessed while the improvement in recoveries is expected to be sustained now that the company is focussed on processing ore solely from the underground mine. Q2 production is expected to benefit from the addition of a load haul dumper for filling underground trucks which was delivered in March. Furthermore, a prospect drilling machine delivered in April will be operational in May 2017. This should enable more accurate definition of mineralisation and reduced dilution.

We believe that the company is on track to achieve its guidance for 2017F of 40-45koz and our estimates remain unchanged.

We reiterate our Buy recommendation and 5p target price.

To read our recent initiation report please click here.
Sula Iron & Gold (LON:SULA)
Sula Iron & Gold has announced that the first batch of samples to be assayed have been dispatched for analysis at the ALS laboratories in Ireland. Currently two rigs are on site with one focusing on the Sanama Hill area where the JORC Exploration Target was previously defined and the second on the significant IP anomaly known as the Eastern Target.

We reiterate our Speculative Buy recommendation and 1.6p target price.

]]> Stratex says talks with Turkish partner over Altintepe cash “highly constructive” Wed, 19 Apr 2017 07:15:00 +0100 Sula dispatches Sierra Leone borehole samples for assay Wed, 19 Apr 2017 06:55:00 +0100 Neometals snaps up another 500,000 shares on-market Wed, 19 Apr 2017 03:00:00 +0100 Segue Resources gets confirmation for share consolidation Wed, 19 Apr 2017 02:30:00 +0100 Primary Gold unveils positive scoping study results for Mount Bundy Gold Wed, 19 Apr 2017 02:00:00 +0100 Vital Metals commences major gold drilling at Kollo Wed, 19 Apr 2017 02:00:00 +0100 Lithium Australia NL granted lithium tenements in Gascoyne Wed, 19 Apr 2017 00:30:00 +0100 ShareRoot shares ride higher on signing Johnson & Johnson Wed, 19 Apr 2017 00:00:00 +0100 Alkane Resources boosts quarterly gold production Wed, 19 Apr 2017 00:00:00 +0100 Rimfire Pacific Mining NL drills out gold and silver at Sorpresa Tue, 18 Apr 2017 23:00:00 +0100 Eastern Goldfields raising over A$25M; moving closer to gold production Tue, 18 Apr 2017 22:30:00 +0100 Tango Mining closes Zard ASM stake deal Tue, 18 Apr 2017 20:27:00 +0100 Arizona Silver Exploration buoyed by silver samples at former Ramsey mine Tue, 18 Apr 2017 19:34:00 +0100 American Lithium reports encouraging sample results from Fish Lake Valley Tue, 18 Apr 2017 15:48:00 +0100 Royal Road Minerals excited by potential copper-gold body at Los Andes Tue, 18 Apr 2017 15:35:00 +0100 Noram Ventures set for the Depository Trust Company's platform Tue, 18 Apr 2017 12:11:00 +0100 Metal Tiger extends closing date for £4.29mln placing Tue, 18 Apr 2017 07:42:00 +0100 VSA Capital Market Movers - LGO Energy Tue, 18 Apr 2017 07:27:00 +0100 LGO Energy (LON:LGO)
LGO Energyhas announced that the second development well of its drilling campaign in the Mayaro Sandstone is now on production. It was drilled to a total depth of 1,250ft and perforated over a 269ft interval of net oil pay before flowing at an initial rate of 80bopd, above company guidance of 45bopd. Once the natural flow period ends the well will be placed on pump at an initial stabilised rate of c65bopd.

LGO has approvals in place for the next three wells in its campaign and is now evaluating the drilling contracts before embarking on the next 3-5 wells in its programme. We maintain our BUY recommendation.
Benchmark Prices
- Brent:   US$55.36/bbl -US$0.53/bbl
- WTI:   US$52.65/bbl -US$0.53/bbl
- Henry Hub:   US$3.16/MMBtu -US$0.06/MMBtu

]]> VSA Capital Market Movers - Metal Tiger Tue, 18 Apr 2017 07:22:00 +0100 Metal Tiger
Metal Tiger (LON:MTR) has announced that the closing date for the previously announced placement of £4.29m with Sprott Private Wealth has been extended from the 17th April to the 20th April. The placement is subject to certain conditions being met ahead of closing.

We reiterate our Buy recommendation and 4.8p/sh. target price.

]]> Ramp-up and optimisation of Capricorn ahead of schedule, says Richland Tue, 18 Apr 2017 07:19:00 +0100 Ironridge builds huge land position in Ivory Coast Tue, 18 Apr 2017 07:07:00 +0100 Anglesey raises new cash for Parys scoping study Tue, 18 Apr 2017 06:30:00 +0100 Stavely Minerals shares rise on intersecting thick zone of gold Tue, 18 Apr 2017 05:00:00 +0100 Sovereign Metals reveals world’s largest saprolite graphite resource Tue, 18 Apr 2017 04:30:00 +0100 Stonewall Resources secures funds to unlock gold treasure chest Tue, 18 Apr 2017 04:00:00 +0100 Predictive Discovery to undertake share consolidation as drill spins for gold Tue, 18 Apr 2017 03:30:00 +0100 Australian Vanadium intersects spodumene at Blesberg Tue, 18 Apr 2017 03:00:00 +0100 Lindian Resources to reveal exploration update Tue, 18 Apr 2017 03:00:00 +0100 Black Rock Mining signs with Japanese battery player Tue, 18 Apr 2017 02:00:00 +0100 Celsius Resources to reveal cobalt results Tue, 18 Apr 2017 01:00:00 +0100 European Lithium assays signal resource expansion Tue, 18 Apr 2017 00:30:00 +0100 Argosy Minerals starts pumping lithium brines Tue, 18 Apr 2017 00:00:00 +0100 Equator Resources is set to pounce Mon, 17 Apr 2017 23:30:00 +0100 Gold rises as Trump focuses attention on global flashpoints Sun, 16 Apr 2017 08:06:00 +0100 W Resources' Michael Masterman hails award of 'critical' Jig and Mill contract at La Parilla Thu, 13 Apr 2017 13:51:00 +0100 Michael Masterman, chairman of W Resources PLC (LON:WRES) talks proactive through the award of a key vendor-financed contract at the company's La Parilla project in southwestern Spain.

The AIM-listed group announced that it has awarded the design and construct contract for the Jig and Mill to German firm allmineral Aufbereitungstechnik GmbH & Co at a contract price of €4.98mln.

W Resources said allmineral is providing vendor finance for just under 50% of the contract price on “very competitive terms.”

]]> Gold on the rise over Trump rhetoric against Syria and North Korea - Mining Capital's Alastair Ford Thu, 13 Apr 2017 12:14:00 +0100 Mining Capital's Alastair Ford talks through the rise of gold on the back of tensions between US President Donald Trump and Syria as well as North Korea.

Ford asks: ''Is he feeling the pressure at home and so looking to divert attention by taking action abroad?''.

''This is the cue for investors to come into gold because they're looking for a bit of safety in this uncertain environment'', Ford says.

''I always like to mention Galantas Gold in particular because they're the only gold miner which is going to be incurring costs in sterling and selling its gold in sterling .... sterling is so weak against the dollar that that has a multiplier effect given that gold is also strong against the dollar''.

]]> VSA Capital Market Movers - Millennial Lithium, Sula Iron and Gold PLC Thu, 13 Apr 2017 07:10:00 +0100 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (SULA LN) has announced that the holdings of Madini Occidental (304.6m shares), a subsidiary of Madini Minerals, have been transferred entirely, including warrants (304.6m warrants) to Galactic Tide. Madini does continue to hold 38.1m shares through a different subsidiary, “Ongeza Mining”. Aside from the initial US$400k cash investment, Madini’s contribution has been technical and capital markets advice which has primarily come from Roger Murphy and Iain Macpherson in their executive roles for SULA. Roger and Iain remain committed to SULA and there is no operational change as a result of the share transfer.

With 304.6m shares Galactic Tide, its interest in Sula is now approximately 13.76%. Galactic is a private investment company incorporated in the Seychelles. This means that despite the transfer, SULA, continues to have a strategic partner as a key shareholder. Indeed, Iain Macpherson holds an indirect shareholding in Galactic meaning his combined direct and indirect interest represents 5.8%. Furthermore, Mike Warren, an experienced mining professional and 100% owner of Equity Drilling, the drill contractor on the current programme, has a non-controlling shareholding in Galactic (meaning a personal indirect interest in SULA of 6.9%).

We reiterate our Spec Buy recommendation and 1.6p target price

Millennial Lithium (CVE:ML)

Millennial Lithium (ML CN) has announced positive results from its recent geophysical survey at its Cauchari East project, as expected. The survey identified high resistivity upper zones and low resistivity lower zones. Low electrical resistivity is likely an indication of brine bearings sediments based on the evidence of technical studies on adjacent properties owned by Lithium Americas (LAC US) and therefore likely represent a continuation of the same brine bearing aquifers.

The results demonstrate continuous block of between 72-105m thick running north south. Towards the southern end of ML’s tenement the thickness increases beyond capability of the measuring equipment whilst there is also indications of further confined low resistivity zones. An application for a permit to drill has been applied for and is expected in Q2 2017.

We reiterate our Speculative Buy recommendation


]]> Noram Ventures' Mark Ireton 'extremely pleased' with phase 1 drilling results Wed, 12 Apr 2017 14:59:00 +0100 Mark Ireton, president and chief executive of Noram Ventures (CVE:NRM) talks through the last batch of drill core sample results from the 46-hole phase 1 drilling program on the Zeus portion of the Clayton Valley lithium project in Nevada.

The Zeus claims are located within 1.25 miles of Albemarle's Silver Peak lithium mine, the only lithium-brine producing mine in North America.

]]> Pan African raising $123mln to fast-track construction of 'very attractive' Elikhulu project Wed, 12 Apr 2017 14:50:00 +0100 Cobus Loots, chief executive of Pan African Resources plc (LON:PAF) runs through the details of the firm's US$123mln raise via an issue of equity and debt to fast-track the build of the Elikhulu Tailings Project in South Africa.

]]> Honduras joint venture 'a huge opportunity' for Wishbone Gold, says CEO Richard Poulden Wed, 12 Apr 2017 11:28:00 +0100 Richard Poulden, chief executive of Wishbone Gold PLC (LON:WSBN) runs Proactive's Andrew Scott through their announcement of a joint venture to tap into gold mining in Honduras.

Subsidiary Wishbone Gold Honduras Ltd has inked the 30 - year deal with SION Honduras, which has an agreement with the Honduran government to expand the mining industry there.

''This is a huge opportunity which the market hasn't really grasped at this point'', Poulden says.

''The idea isn't for us to go into mining here ... it is simply to secure supply of gold at good margins''.

The venture will provide equipment and expertise to small mines in Honduras to enable them to increase production.

In return, the mines will supply Wishbone's trading subsidiary Black Sand FZE with all the output at preferential prices.

]]> Asiamet's BKM project 'developing quite nicely', says analyst Paul Renken Wed, 12 Apr 2017 09:42:00 +0100 Paul Renken, VSA Capital's mining analyst and media commentator gives his view on developments at Asiamet Resources Limited's (LON:ARS) BKM project in Indonesia.

The company's told investors that ongoing resource definition drilling continues to intersect thick intervals of copper mineralisation.

Latest holes, BKM31900-02 and BKM1900-03, were both outside of the current BKM resource envelope suggesting they will contribute new resources.

''It's developing quite nicely ... all of the initial drilling is now being infilled with additional drilling in order to move it into the categories for which the feasibility study can be measured'', Renken says.

''It's definitely hitting the kinds of resources we thought it would ... very nice, very thick, very shallow and easy to treat''.

]]> Chaarat Gold can add another 50%, says Zak Mir Wed, 12 Apr 2017 08:15:00 +0100 Leading technical analyst Zak Mir is tipping the Chaarat Gold Holdings Ltd (LON:CGH) share price to add 50% over the next few months or so.

“There’s been a rising trend channel since the middle of last year with a solid break-out to start 2017,” explains Mir in the latest Proactive Investors Bulletin Board.

“The view here really is while we’re above the floor of the channel around the 15p level the target could be up to 30p over the next three to six months.”

]]> New lithium projects in Mexico are 'a good, exciting opportunity', says Arian Silver's Jim Williams Tue, 11 Apr 2017 11:12:00 +0100 ''Now is the right time for Lithium'', says Arian Silver's Jim Williams following the news they've taken out an option to acquire three lithium exploration projects in Mexico.

The projects cover 1,600 hectares (ha) in Zacatecas State, a region known for its lithium deposits.

''This is a good, exciting opportunity .... the upside for Lithium is there and I think we should maximise that benefit'', Williams says.

]]> Markets 'cynical' on BHP Billiton restructure proposal - Proactive's Jon Hopkins Tue, 11 Apr 2017 10:37:00 +0100 Proactive Investors senior reporter Jon Hopkins talks through activist hedge fund manager Elliott Advisors' push for BHP Billiton plc (LON:BLT)  to consider some 'radical' moves to unlock shareholder value.

]]> VSA Capital Market Movers - Egdon Resources Plc Tue, 11 Apr 2017 07:45:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) reported H1 2017 results with revenues decreasing 51% YoY to £0.51m (H1 2016: £1.05m) owing to the shut-in at Ceres. Despite this, EDR narrowed the loss per share of 0.31p from a loss of 0.90p per share in H1 2016, due to one off charges in H1 2016.

Having successfully completed a £5.06m placing and open offer in November 2016, EDR substantially strengthened its balance sheet. EDR remains debt free with a strong cash position (H1 2017: £6.80m vs. H1 2016: £5.26m.

EDR’s production during the period was c94boepd and therefore broadly in line with the revised production guidance for FY 2017 of c.100-110boepd. The revision was due to Ceres having remained shut-in since the end of the maintenance shut-down in September/October 2016.

A series of acquisitions of additional interests has been made in PEDL068, PEDL201, PEDL306 and PEDL334 and the farm-in agreement on PL161/162 has been extended to December 2018. Post period-end EDR acquired an additional unconventional resource interest in PEDL209, an a revised Opt-in agreement was also secured with Total on PEDL209.

Wressle Development - Appeal and New Planning Application Update

EDR has announced today that it will start the appeal process in respect of North Lincolnshire County Council’s decision to refuse planning consent for development of the Wressle Oil Field. We expect the Planning Inspectorate to validate the submitted appeal documentation within the next 1-2 weeks and will then notify Egdon and the Council of the start date and timetable for the appeal process.

In parallel, EDR intends to submit a new planning application during April for the Wressle development. This new application is expected to include even more detailed information to address the specific points raised by the Council in their refusal. It is also anticipated that the Environmental Permit for Wressle should be issued by the end of April, subject to the outcome of the current consultation process on the draft permit which closes shortly.

We maintain our BUY recommendation and 34p TP.

]]> Bacanora off-take deal 'a good transaction', says CEO Peter Secker Mon, 10 Apr 2017 14:57:00 +0100 Peter Secker, chief executive at Bacanora Minerals Ltd (CVE: BCN)(LON:BCN), runs Proactive through their off-take deal and strategic partnership with Hanwa Co.

The leading Japan-based global trading company and one of the larger traders of battery chemicals in the Asian region has agreed to buy up to 100% of the battery grade lithium carbonate (Li2CO3) produced at Bacanora’s Sonora lithium project in Mexico.

]]> Strategic Minerals' John Peters 'very happy' with new Cobre supply deal Mon, 10 Apr 2017 10:09:00 +0100 John Peters, managing director of Strategic Minerals Plc (LON:SML) talks Proactive through the company's new supply deal.

The contract, with an unnamed private company, is for 400,000 tons of magnetite from the Cobre facility in New Mexico over several years at market prices.

]]> Zak Mir tips Bacanora Minerals shares to hit £1.30 Mon, 10 Apr 2017 08:20:00 +0100 Bacanora Minerals Ltd (LON:BCN) shares are already up more than 10% this morning, but technical analyst Zak Mir reckons they can add another 40% or so more in the coming months.

“Shares are currently around the 92p level which is approaching 2017 resistance,” said Mir in the latest Proactive Investors Bulletin Board segment.

“A weekly close above 95p should be enough to take the shares on a journey as high as 130p over the following three to six months.

“The stop loss on the ‘buy’ argument is back below 80p which is the floor of a rising 2014 trend channel.”

]]> 'Another solid quarter of production for us', says Tharisa PLC boss Mon, 10 Apr 2017 08:04:00 +0100 Phoevos Pouroulis. chief executive of the platinum and chrome miner Tharisa PLC (LON:THS) tells Proactive they've reported another quarter of “steady production”.

Pouroulis adds they remain on track to meet production guidance for the current financial year.

]]> VSA Capital Market Movers - Centamin PLC Mon, 10 Apr 2017 07:29:00 +0100 Centamin (LON:CEY)

Centamin (LON:CEY) has announced soft Q1 2017 production data which was down 20% QoQ and 13% YoY to 109koz. The company has, however, maintained its full year guidance of 540koz. The weakness was primarily due to weak grades at the open pit which were below the reserve grade and the company’s forecast. In 2016 open pit grades averaged 0.95g/t Au whilst in Q1 2017 they averaged 0.58g/t. In addition underground ore grades were also weaker; down from an average of 9.04g/t in 2016 to 7.44g/t in Q1 2017, however, these were ahead of the company’s forecasts for the full year of 7.26g/t.

The weakness in grades is likely to result in higher unit costs for the period although CEY has maintained its full year guidance of US$580/oz and US$790/oz for AISC.

]]> Bushveld Minerals' Vametco acquisition 'an amazing deal', says SP Angel's John Meyer Fri, 07 Apr 2017 13:43:00 +0100 SP Angel analyst John Meyer sums up Bushveld Minerals' Vametco acquisition as an amazing deal.

Bushveld has signed off on its long-awaited and transformational deal to buy Russian firm Evraz's 78.8% stake in Strategic Minerals Corporation.

The latter holds 75% of Vametco Alloys which in turn runs the Vametco vanadium mine and process plant 8km northeast of Bushveld's Brits project.

''The timing was fantastic, they agreed what we think is a bargain price ... and since the deal was agreed the Vanadium price has picked up and from what I see it looks as if Bushveld is essentially using Vametco's own balance sheet to finance the deal through what is quite an innovative debt structure'', Meyer says.

]]> Panmure Gordon's Kieron Hodgson discusses monster diamond finds in Lesotho Fri, 07 Apr 2017 11:50:00 +0100 Kieron Hodgson, commodities and mining analyst at Panmure Gordon, discusses with Proactive Gem Diamonds Limited's (LON:GEMD) recovery of a 114 carat, D colour Type II diamond from their Letšeng mine as well as a recovery by Firestone Diamonds PLC (LON:FDI) of one of their largest rocks to date from their flagship Liqhobong diamond mine.

Hodgson also touched on his recent visit to Gemfields PLC's (LON:GEM) mines in Zambia and Mozambique.

With regards to their operations in Mozambique: ''I've always been a big fan of this asset ... it's like walking on a huge jewellery box'', Hodgson says.

]]> 'We're really excited about the Orora deposit', says UEX Corporation's Roger Lemaitre Fri, 07 Apr 2017 10:55:00 +0100 Roger Lemaitre, president and CEO of UEX Corporation (TSE:UEX) tells Proactive they've unveiled further positive  assays from drilling at its Christie Lake project in Saskatchewan.

The group discovered Ōrora back in January this year. It's a new high-grade unconformity zone  500 metres along strike and to the northeast of the Ken Pen deposit.

]]> Zak Mir: Gem Diamonds could rally if it posts a weekly close above this price Fri, 07 Apr 2017 09:40:00 +0100 Technical analyst Zak Mir says the Gem Diamonds Limited (LON:GEMD) share price needs to post a weekly close above £1 if it wants to rally after its recent “disappointing” run.

“[Shares] have had quite a weak run over the last month or so,” explains Mir in the latest Proactive Investors Bulletin Board.

“There’s a line of support from November 2015 just below 90p and really while we hold above that one would be looking for at least a rebound towards the 100p former support area.

“Really a weekly close above 100p is required to get the stock back in full recovery mode.”

]]> 'We've barely scratched what Unkur can be', says Azarga Metals' Dusty Nicol Thu, 06 Apr 2017 09:44:00 +0100 Dusty Nicol, president and CEO of Azarga Metals Corp (CVE:AZR) updates Proactive on the company's inferred resource estimate at their Russian copper-silver asset Unkur.

The  inferred resource was put at 42mln tonnes at 0.52% copper and 38 grams per tonne (g/t) silver, containing 220,000 tonnes of copper and 52mln ounces of silver.

The next phase of work will focus on targeting potential extensions of this higher grade zone.

]]> VSA Capital Market Movers - LGO Energy PLC Thu, 06 Apr 2017 07:46:00 +0100 LGO Energy (LGO Energy)

LGO Energy (LON:LGO) has announced that its second new development well in the 2017 drilling programme successfully reached a total depth of 1,250ft. Electric log interpretation of the Mayaro Sandstone target interval confirms the presence of oil and will shortly be put into production over a net oil pay of 269ft.

The previous well in this programme, completed in Mid-March was perforated over a 273ft net pay interval producing an initial 55bpd. Three further wells have been approved by the Ministry of Energy and Energy Industries.

Our target place and recommendation remain under review.

]]> VSA Morning Agri Comment Thu, 06 Apr 2017 07:37:00 +0100 VSA Morning Agri Comment, 06/04/17

The 2017 Extel Survey is Now Open!

We hope that you have valued the service we have delivered this year. Please vote for us in the 2017 Extel Survey under the 'UK Small & Mid Caps: Consumer Goods' category. We appreciate your support. Click here to vote


MP Evans: FY 2016 Results

MP Evans (MPE LN), the Indonesian palm oil producer with residual Malaysian property interests, has released its annual results for the period ended 31 December 2016 (FY 2016).

• Revenue: US$83.9m, +15.6% YoY (FY 2015: US$72.5m)

• Profit from continuing operations: US$16.4m, +110% YoY (FY 2015: US$7.8m)

• Own fresh fruit bunches (FFB): 399,300t, -5.8% YoY (FY 2015: 423,900t)

• Smallholder fresh fruit bunches (FFB): 92,400t, -8.2% YoY (FY 2015: 100,700t)

• Outside crop purchases of fresh fruit bunches (FFB): 52,000t, +37.9% YoY (FY 2015: 37,700t)

• Crude palm oil (CPO) produced: 117,300t, +14.8% YoY (FY 2015: 102,200t)

Total dividend: 20p per share, including 5p special dividend (FY 2015: 8.75p).

VSA Comment

Given the torrid time experienced by many palm oil producers during 2016, MPE needs to be commended for its full year results, which certainly supports our view, maintained from the start of last year, that it was the most attractive of the London-listed palm oil producers. 

Crops fell (as expected and mirrored across the whole sector) due to exceptionally dry weather, but it is worth noting that H1 saw a YoY decrease of 9%, whereas for the FY this had reduced to a fall of 6%, which suggests that production is now moving towards a more normal state. This has accelerated into 2017 with its own crops to the end of March standing at 99,900t, +15% YoY.

MPE also had planting success, with a total of 3,600ha planted during the year (2,100ha group, 1,500ha smallholder co-operatives) and an additional 800ha cleared for planting entering 2017.

Away from the numbers, the real story for MPE in 2016 was the attempted acquisition from Kuala Lumpur Kepong (KLK MK) and MPE’s strong rebuttal in the last few months of the year (at a cost of cUS$2m). As we wrote at the time, we believe both the initial bid and the revised bid significantly undervalued the company. In the end, MPE was very successful in its defence, with the revised KLK bid attracting just 13.2% shareholder acceptances However, KLK has since bought c11% in the market and is free to try again in nine months (at the end of December).

As part of its defence strategy, MPE has paid a 5p special dividend, announced an increased dividend policy (minimum 25p total dividend in FY 2017) and commenced a £5m share buy-back scheme (c50% complete). It has also disposed of its JV PT Agro Muko for US$100m and will likely dispose of its other JV PT Kerasaan in due course.

Looking forward, investors are waiting to see MPE deploy its surplus cash (net cash US$75.3m at 31 December 2016), which may include additional land near its existing Kalimantan project (+5000ha to 20,000ha) and a potential new 10,000ha project. In particular, investors should examine the price MPE will be required to pay to acquire these new assets, as prices have been increasing as CPO prices moved upwards last year.

On pricing, the benchmark European CPO price increased almost 40% in 2016 with the Malaysian benchmark increasing almost 25% as the impact of El Niño-induced dryness continued to linger on regional palm oil production. This strength continued through January but prices have been decreasing since.

This has slightly surprised us given that this has occurred during the low production months, as we had expected weaker pricing to start in H2 given that the palm oil market was reacting to facts, not in anticipation of facts, through much of 2016. However, Malaysian CPO production saw its only YoY increase last year in December and this has been followed up with a 13% YoY increase in January and a 21% YoY increase in February. This suggests production is starting to bounce-back strongly and traders are clearly anticipating greater supply over the rest of 2017, despite another likely fall in Malaysian stockpiles for March (data due Monday).

On the demand side, exports have remained lacklustre, +1.2% YoY for the first two months of the year. With Europe the second largest importer of palm oil (behind India) investors should note Tuesday’s vote in the European Parliament in favour of certain resolutions to eliminate palm oil use in biofuels by 2020 and enforce stricter regulations on production and certification. Despite, the measures still needing to be enforced, this has the potential to impact medium-term consumption growth.

The first point is more important (if it ends up being enforced) than the second (the trend is for stricter regulations in any case), with c45% of European palm oil consumption currently used in biofuels (c3 million tonnes), compared with biofuel’s share of global palm oil consumption at 10-15%.

Global consumption of palm oil is growing at about 3% (c4% if you exclude the EU), which is about two million tonnes a year. So, assuming that all of that European palm oil consumption disappears overnight, then this accounts for the removal of about one and a half years of global consumption growth. In reality, this would likely be spread over a number of years, so the impact would likely be more muted but is still a fairly significant factor and may have negative implications for pricing. However, the potential impact could also be offset if Indonesia carries through on its promise to fully roll-out its palm-based biodiesel strategy.

The announcement that US farmers are likely to plant a significantly increased area with soybeans, a rival vegetable oil, in the coming season is also adding to the current negative sentiment in the sector.

MPE has impressively maintained its bid premium since late 2016, despite an immediate drop when the bid lapsed. This has been largely as a result of investors realising that KLK remains in the shadows but MPE’s share buy-back has also helped, accounting for c25% of an average day’s total trading volume. With c50% of the share buy-back now complete, three months into the programme, investors need to consider what happens after this (although the board may look to extend it). Any sensible acquisitions will certainly help and we expect positive cropping updates in 2017, but we suspect KLK’s continuing interest will remain the biggest influence on the share price.

We would remain holders of MPE having been strong buyers through 2016. However, although the share price seems well supported at the current level, we think it is unlikely to see much upside from here, except in the case of a stronger bid from KLK once its bid restriction period ends.

]]> Asiamet 'tooling up' to take BKM project through to development Wed, 05 Apr 2017 14:52:00 +0100 Peter Bird, who's recently taken over as CEO of Asiamet Resources Limited (LON:ARS, CVE:ARS) talks to Proactive about the strengthening of the management team and updates on developments at their main BKM project and also the Beutong project.

''A very strong team in place now, led very capably by Tony [Manini] who will remain heavily involved in it but my role really is to do the heavy lifting in that period and assist the team in satisfying the objective''.

]]> Sale of Uitkomst coal mine 'allows us to focus on our gold business', says Pan African's Cobus Loots Wed, 05 Apr 2017 12:28:00 +0100 Cobus Loots, chief executive at Pan African Resources plc (LON:PAF) runs through the details with Proactive of their decision to sell off their Uitkomst coal mine in South Africa.

Coal of Africa (LON:COAL) is now acquiring PAF's 91% stake for R275mln (£16mln)

]]> New Bovis boss Greg Fitzgerald 'looks like a good move' for the firm, says Proactive's Jon Hopkins Wed, 05 Apr 2017 11:17:00 +0100 Proactive Investors senior reporter Jon Hopkins discusses the naming of new Bovis Homes PLC (LON:BVS) CEO Greg Fitzgerald as well as the rejection of merger talks with Galliford Try plc (LON:GFRD).

]]> South Ayawilca drilling could reveal a 'world class discovery', says Tinka resources' Graham Carman Tue, 04 Apr 2017 15:08:00 +0100 Dr Graham Carman, chief executive of Tinka Resources Ltd (CVE:TK) talks Proactive Investors' Andrew Scott through their the first two holes of this year's 10,000 metre drill program at Ayawilca in Peru.

A17-056 and A17-057 were drilled at South Ayawilca - around 400 metres from the existing zinc mineral resource -  and beat the firm's expectations on the grade and thickness of zinc.

''These grades are pretty spectacular, you don't get those sorts of thicknesses and grades every day in drill holes''.

'We believe this really could be a world class discovery... we're confident the resource is going to grow and grow substantially and hopefully get into that world class scale'', Carman says.

]]> VSA Capital Market Movers - Egdon Resources Plc Tue, 04 Apr 2017 08:00:00 +0100 Egdon Resources (LON;EDR)

Egdon Resources (LON:EDR) has acquired a 12% interest in the unconventional resources exploration rights in UK Onshore licence PEDL209 located in one of its core areas, the Gainsborough Trough, from Stelinmatvic.

• As part of the consideration for the acquisition, EDR has transferred 12% out of its interest in the remaining conventional prospects on the PEDL209 licence to Stelinmatvic

• It has also issued 580,646 ordinary shares (£54k) to Stelinmatvic, representing 0.22% of EDR’s enlarged share capital

EDR has also entered into a new opt-in agreement with Total E&P UK to provide an option for Total to farm-in to unconventional resources exploration in PEDL209 and to earn a 36% interest in the licence by paying EDR’s remaining 36% (together with Total's own 36% interest) of an exploration programme of up to £13.47m, which would include seismic acquisition and the drilling of a well. The option is exercisable until 31 December 2018 and supersedes the previous agreement announced on 30 January 2014.

The acquisition from Stelinmatvic adds a total of 1,898 net acres to EDR’s unconventional resources exploration acreage holdings (949 net acres post-option exercise).

We maintain our BUY recommendation and 34p TP.

]]> VSA Capital Market Movers - Goldplat plc Tue, 04 Apr 2017 07:06:00 +0100 Goldplat (LON:GDP)

Goldplat (LON:GDP) has provided an update on the dispute with Rand Refinery relating to a batch of by-product material treated in 2016. Although the results of the Independent review support GDP’s position, in the company’s view, the Rand Refinery have not accepted the findings of the report. Consequently, GDP will now take the dispute to court. The disputed sum owed to GDP is ZAR13.5m (£640k at time of the original announcement although with the weaker pound this is now valued at around £780k).

Much of GDP’s focus in the past 12 to 18 months has been to reduce its single refiner risk by sending material to Aurubis, a European refinery, as well as the five-fold increase in elution capacity in South Africa. Therefore whilst disappointing we believe that the strong operational turnaround, as well as the recently secured US$2m loan mean that GDP is in a robust operational and working capital position, minimising any potential negative impact. Indeed, we expect no material operational impact and we continue to expect GDP to receive the full amount and a negative resolution remains unlikely, in our view.

We reiterate our Buy recommendation and 12.2p/sh. target price.

]]> Eau Claire drilling 'going as good as expected, if not better', says Eastmain's Claude Lemasson Mon, 03 Apr 2017 15:03:00 +0100 Claude Lemasson, chief executive of Eastmain Resources Inc (TSE:ER) tells Proactive they're now over 92% of the way through drilling on the Eau Claire deposit.

''We will complete the rest of the drilling during April and that totals 55-58,000 metres of drilling'', Lemasson says.

He adds that the encouraging results they've been seeing will be used in its updated resource estimate for the property in the middle of this year.

In all, 118 holes have been reported since the program began in late August, 2016.

]]> Jubilee Platinum 'accelerating investment into projects' says CEO Leon Coetzer Mon, 03 Apr 2017 10:12:00 +0100 Leon Coetzer, chief executive of Jubilee Platinum PLC (LON:JLP) talks to Proactive following the release of their half-year results.

Losses were cut by more than two-thirds to £0.53mln in the period to December as revenues rose to £4.85mln.

Coetzer says Jubilee was transformed over the period by the sale of its Middelburg operations and the acquisition of three platinum surface processing projects.

]]> VSA Capital Market Movers - LGO Energy PLC Mon, 03 Apr 2017 07:41:00 +0100 LGO Energy (LON:LGO)

On Friday LGO Energy (LGO)# announced that it had raised £2.5m by the issue of c113.6m new ordinary shares at an issue price of 2.20p, representing a discount of 12% to the previous day of trading closing price.

This fundraise comprises an institutional placing of £2.2m in conjunction with a fully underwritten retail offer of £0.3m that was announced as fully subscribed this morning.


This fundraise will strengthen LGO’s balance sheet and allow it grow production from its Goudron Field in Trinidad as well as carry out further operations on other licences, as outlined below.

• Continue the drilling of Mayaro Sandstone infill wells in the Goudron Field of Eastern Trinidad

• Close the existing arrangements with Beach Oilfield Limited to acquire a 100% controlling interest and access to their petroleum leases in the SW Peninsula of Trinidad

• Continue the preparations for a waterflood pilot project in the C-sands at Goudron

• Commence an independent resource audit of the SW Peninsula assets leading to the issue of a Competent Persons Report

• Provide corporate overhead and general working capital

We view this as a positive step made by LGO which, not least, is vital for the ramp-up of the infill drilling programme at the Goudron Field.

As a result of this fundraise we reiterate our BUY recommendation but place our target price under review whilst we determine how this raise will influence LGO’s work programme going forward.

]]> KEFI Minerals in 'heavy lifting stage of execution' at Tulu Kapi Fri, 31 Mar 2017 14:36:00 +0100 Harry Adams, KEFI Minerals' (LON:KEFI) chairman, discusses the group's progress at the Tulu Kapi gold mine in Ethiopia.

"We are in the heavy lifting stage of execution," he says.

]]> Zak Mir hails ‘markedly improved’ technicals at Thor Mining as he sets 2.5p target Fri, 31 Mar 2017 09:10:00 +0100 Analyst Zak Mir says the technicals at Thor Mining PLC (LON:THR) have improved “markedly” so far in 2017 and is tipping the share price to almost double in the coming weeks.

“Over the past couple of months, the technicals here have improved quite markedly,” explains Mir in the latest Proactive Investors Bulletin Board.

“We broke through the 200-day moving average in the middle of February [and there was] a ‘golden cross’ buy signal earlier this month.

“Now we’ve got a rising trend channel based around the 1p level and while we’re above that, the best case scenario target over the next couple of months is 2.5p.”

]]> VSA Capital Market Movers - Goldplat plc, Millennial Lithium Fri, 31 Mar 2017 07:48:00 +0100 Goldplat (LON:GDP)

GDP has announced that Ashanti Gold (CVE:AGZ) has exercised its option to earn into the Anumso project in Ghana. In the first 18 months AGZ must spend US$1.5m on the project to earn 51% which included a six month review period. Once this has been spent AGZ must spend a further US$1.5m to earn a further 24% which would result in an effective interest of 67.5%.

Whilst we expected AGZ to exercise the option and begin to advance the Anumso project it is nonetheless a positive outcome and enables GDP to realise value for one of its non-core assets.

We reiterate our Buy recommendation and 12.2p/sh. target price.

Millennial Lithium (CVE:ML)

ML has made its initial option payments to gain 100% control of the Pocitos West Project of 15,857 hectares as first announced 2 February, 2017. The property can be purchased in full for payments totalling US$4.5m over the coming three years in staged payments.

The Pocitos basin is a known lithium bearing basin where ML already has a land position. The basin of 60km length lies west of ML’s flag ship project Pastos Grandes but is orders of magnitude larger in total area than Pastos Grandes. Geophysical evidence suggests the basin is at least 500m deep and tips toward the west and ML’s ground.

This acquisition further cements a growing land position of scope and scale for ML in highly prospective lithium brine basins within the Lithium Triangle.

]]> VSA Capital Market Movers - REDT Energy Fri, 31 Mar 2017 07:34:00 +0100 redT energy# Manufacturing Update

LON:RED | MC: £56.6m | Vanadium Redox Flow Machine Developer

redT energy (RED LN)#, a developer of vanadium redox flow machines for large-scale energy storage applications, has announced that it is delivering a 5kW-20kWh flow battery to its customer, University of Strathclyde.

The machine will be used alongside the grid and connected renewables as part of a joint project between the University and Gaia Wind at a site in Glasgow, Scotland. RED has confirmed that its production schedule remains on track and it is due to ship additional Gen2 machines to Africa shortly.

RED has also noted the announcement last week by its manufacturing partner Jabil (JBL US) that it will be closing its Livingston manufacturing plant. This closure does not impact the RED business model, with mass production always due to take place at other JBL plants around the world under its global manufacturing service agreement, in order to minimise its unit production cost.

We recently initiated research coverage on RED with a BUY recommendation and a target price of 22p.

]]> Expansion approval 'means a lot for our long-term production profile', says Energy Fuels' Moore Thu, 30 Mar 2017 20:42:00 +0100 Curtis Moore, VP of marketing and corporate development at Energy Fuels Inc (TSE:EFR, NYSE:UUUU) tells Proactive they've reached a key milestone - receiving the final licence amendment, and thereby approval, from the US nuclear authorities to expand its Nichols Ranch uranium project in Wyoming.

]]> 'The market for our materials is getting bigger and bigger', says Leading Edge Materials' Blair Way Thu, 30 Mar 2017 19:28:00 +0100 Blair Way, president and CEO of Leading Edge Materials Corp. (CVE:LEM) brings Proactive up to speed on their projects - including recent drilling at their 100%-owned Bergby lithium project in Sweden.

''We're doing around 25 holes, maybe a few more if we're seeing some of the good stuff, but essentially we're well into that program now and we're expecting results in 2-4 weeks''.

]]> 'It's been a very active first quarter for Horizonte Minerals', says CEO Jeremy Martin Thu, 30 Mar 2017 13:24:00 +0100 Jeremy Martin, chief executive of Horizonte Minerals Plc (LON:HZM, TSE:HZM) talks to Proactive about the start of drilling work on their Araguaia nickel project in northern Brazil that will contribute to the compilation of a feasibility study.

]]> Anglo Pacific's Julian Treger looking forward to a 'year of continued organic growth' Thu, 30 Mar 2017 10:45:00 +0100 Julian Treger, chief executive of Anglo Pacific PLC (LON:APF TSE:TPY) runs Proactive through the company's full year results for the year to the end of December 2016.

Treger says much of the increase in royalty income came down to a significant increase in overall saleable tonnes from the Kestrel coal mine, but was also assisted by currency movements.

''Since I joined the company four years ago we've had to battle with lower production and a more difficult mining environment but now we are in a much better position."

]]> Bushveld Minerals shares could see 12p - Zak Mir Thu, 30 Mar 2017 09:05:00 +0100 Bushveld Minerals investors have seen exciting trading and the AIM quoted share marking a ‘stellar’ performance, highlights Tip TV’s Zak Mir.

The technical analyst notes a rising trend, and sees potential for the price to rise to around 12p in the ‘best case scenario’.

]]> VSA Capital Market Movers - Metal Tiger and Sula Iron & Gold Thu, 30 Mar 2017 07:59:00 +0100 Metal Tiger (LON:MTR)#
MTR has announced that following further drilling at the T3 copper project in Botswana MTR and its JV partner MOD Resources (MOD AU) intend to include the additional recently discovered mineralisation into the broader resource. The initial results included an assay of 72.6m at 1.5% copper and 27g/t Ag from 250m depth as well as 13m at 1% cu and 16g/t at 271m depth.

The extent of the zone has now been delineated over a 700m strike length and sufficient drilling has now been completed to expand the existing resource and therefore the scope of the pre-feasibility study. 16 holes have been completed in six weeks and assays are currently underway. This zone of mineralisation is directly below the existing resource and has significant positive implications for the project economics.

We reiterate our Buy recommendation and 4.8p/sh. target price.
Sula Iron & Gold (LON:SULA)#
Sula has announced that it intends to change its name to Sula Gold.

We reiterate our Speculative Buy recommendation and 1.6p/sh. target price.

]]> St George Mining's John Prineas talks 'very important drill program' at Mt Alexander Wed, 29 Mar 2017 22:30:00 +0100 John Prineas, executive chairman for St George Mining, speaks with Proactive Investors.

]]> Faneata 'has great potential to be a money-spinner for us' says Vast Resources chief Wed, 29 Mar 2017 13:06:00 +0100 Vast Resources PLC has announced the maiden JORC-compliant mineral resource estimate for its Faneata tailings storage facility.

Faneata consists of more than 40 years' material from the proximal Baita Plai polymetallic mine in Romania.

CEO Roy Pitchford tells Proactive: ''Subject to the feasibility study ... we believe that [Faneata] has great potential to be a money-spinner for us and possibly we could use that to get into production while we are looking at the underground operations  and getting the mining up to speed''.

]]> VSA Capital Market Movers - Metal Tiger Wed, 29 Mar 2017 08:56:00 +0100 Metal Tiger (LON:MTR)

MTR has announced a placing of £4.29m led by Sprott Private Wealth and other Canadian investors at a price of 3p/sh with the issue of 143m shares. The price represents a premium of 6% to the close prior to the deal’s announcement, subsequently the stock has risen 16% to 3.275p/sh. The placing is still subject to due diligence by Sprott and will close on April 17th.

The funding will primarily be used as part of MTR’s commitment to the T3 Project in Botswana for which it has a 30/70 JV with MOD Resources (MOD AU).

We have adjusted our target price to 4.8p/sh. to reflect the dilution of 15.5% although reiterate our Buy recommendation.


]]> VSA Capital Market Movers - Millennial Lithium Tue, 28 Mar 2017 07:07:00 +0100 Millennial Lithium (CVE:ML)

Millennial Lithium (ML CN) has announced the closure of its placement which raised gross proceeds of C$5.98m at C$1.25/sh via the issuance of 4.75mn shares with a half warrant issued with each share. The price which had been previously announced represents a 5% discount to the previous close and indicates 12% dilution for existing shareholders. Each whole warrant is exercisable for two years with a price of C$1.50/sh.

The fund raise means that ML will now resume drilling at Pastos Grandes where it is targeting a NI 43-101 compliant resource. ML has identified 11 additional drill sites. Additionally ML will carry out 72 hour pumping tests at the sites measuring draw down and brine parameters to determine suitable pumping rates and conditions.

We reiterate our Speculative Buy recommendation.


]]> Premier African's George Roach 'very pleased' with investor response to £2mln raise Mon, 27 Mar 2017 10:55:00 +0100 George Roach, CEO of Premier African Minerals Limited (LON:PREM) talks to Proactive about the company raising £2 mln through an underwritten offer that was made exclusively available through

]]> Greatland Gold 'encouraged by the year ahead' as they eye up multiple targets at Ernest Giles Mon, 27 Mar 2017 09:58:00 +0100 Greatland Gold PLC (LON:GGP) CEO Gervais Heddle and Chief technical director Callum Baxter bring Proactive up to speed on their Bromus and Ernest Giles Projects as well as their recent acquisition of the Havieron project in Western Australia.

''We're well capitalised, we've got exciting projects ... we're advancing exploration at all those projects. We're also looking at a strong pipeline of other external projects ... we're very encouraged about the year ahead'', says Heddle.

]]> VSA Capital Market Movers - Independent Oil & Gas Mon, 27 Mar 2017 07:28:00 +0100 Independent Oil & Gas (LON:IOG)
Independent Oil & Gas  has updated the market on the Harvey and Elgood licences.

Firstly, the Oil and Gas Authority (OGA) has continued licence P2085, which contains the Harvey discovery until 20 December 2017. If successfully appraised, this licence has the potential to be the largest gas discovery in IOG’s portfolio, with an internal P50 estimate of 113BCF. In order to extend the licence further IOG must commit to drill an appraisal well, which it expects to do later in 2017. If this licence can be successfully appraised IOG expects to tie it back to the same pipeline which it has signed an MoU to acquire. This pipeline will also be used to export gas from the Blythe and Vulcan Satellite hubs.

Secondly, technical work submitted by IOG in relation to the Elgood discovery has been accepted by the OGA and will be added to the Blythe Field Development Plan (FDP). This has an internal P50 estimate of 22BCF of recoverable gas.

Benchmark Prices
- Brent:   US$50.80/bbl +US$0.24/bbl
- WTI:   US$47.97/bbl +US$0.27/bbl
- Henry Hub:   US$3.08/MMBtu +US$0.02/MMBtu

Risers and Fallers (Last Close)
Risers Price Movement % Chg
Sirius Petroleum +0.09p +12.1%
Empyrean Energy +0.37p +11.5%
Serica Energy +1.50p +7.1%
Fallers Price Movement % Chg
Premier Oil -2.50p -3.8%
Urals Energy -0.38p -6.3%
Gulfsands Petroleum -0.75p -9.7%

]]> 'We are a solid proposition' says Alecto Minerals PLC as it appoints Capital Drilling at Mowana Fri, 24 Mar 2017 15:03:00 +0000 Mark Jones, chief executive at Alecto Minerals (LON:ALO) talks to Proactive Investors about the progress the group is making at Mowana in Botswana and the appointment of Capital Drilling for the drill and blast contract.

]]> Miners wobble, but Trump dump yet to have serious impact Fri, 24 Mar 2017 14:23:00 +0000 Hot Maden 'continuing to deliver', says Mariana Resources' Glen Parsons Thu, 23 Mar 2017 13:08:00 +0000 Glen Parsons, chief executive of Mariana, said the work on its Hot Maden gold-copper project “continues to deliver” after another set of outstanding drill results.
The data also tell another story, he told Proactive Investors’ Andrew Scott: “The thing you can see is the resource has grown and is growing.”

]]> Shanta Gold's Toby Bradbury talks 'exciting' plans to extend life of Tanzania mine Thu, 23 Mar 2017 12:48:00 +0000 Shanta Gold Limited (LON:SHG) has raised its expectations for gold production growth as it announced a revised mine plan that will extend the life of the New Luika gold mine in Tanzania.

CEO Toby Bradbury tells Proactive the New Luika plant will be extended by four years to maximise its value and mine life.

]]> Metal Tiger shares tipped to retest last summer’s highs Thu, 23 Mar 2017 09:10:00 +0000 Technical analyst Zak Mir is tipping the Metal Tiger PLC (LON:MTR) share price to head towards the 4.5p mark and retest the highs it hit last summer.

“We’ve spent the past few days above the 200-day moving average at 2.64p. [While shares above] above that, I’m looking for a target to retest last summer’s resistance through 4p,” explained Mir in the latest Proactive Investors Bulletin Board segment.

“The technical target here is as high as 4.5p over the next one to two months while we hold above the 200-day line.”

]]> VSA Capital Market Movers - Ferrexpo Wed, 22 Mar 2017 08:41:00 +0000 Ferrexpo (LON:FXPO)

FXPO has delivered strong results in a turnaround year recovering from its local banks issues which resulted in the loss of a significant amount of cash of around US$592m. FXPO’s robust operational performance was, however, unaffected. Production of 11.2mnt was down 4% YoY, however, sales volumes were up 3% YoY to 11.7mnt and prices averaged 5% higher YoY at US$58.3/t. Revenue was therefore up 3% YoY to US$986m.

Cash costs were down 13% YoY to US$28/t and EBITDA increased 20% YoY to US$375m as a result of the improved cost base. Net profit of US$189m was up close to fivefold YoY while with minimal capital investment owing to the completion of ramp up activities net cash flow was also up strongly. Consequently net debt was reduced from US$868m to US$589m YoY and FXPO opted to pay a final dividend of US$0.066/sh., double last years.

]]> Berkeley Energia gets 'very important' sign off for uranium supply deal Tue, 21 Mar 2017 12:10:00 +0000 Berkeley Energia Ltd (LON:BKY) managing director Paul Atherley speaks to Proactive about the company winning support from the EU regulator for the Salamanca Mine in Spain as they signed off the company’s first uranium supply deal.

]]> Rainbow Rare Earths 'making great progress' in bringing Gakara to production Tue, 21 Mar 2017 09:09:00 +0000 Martin Eales, chief executive of Rainbow Rare Earths Limited (LON:RBW) tells Proactive that work has now commenced on the Gakara project in Burundi.

Rainbow listed in London back in January, following a US$8 mln fundraising and immediately set to work.

]]> VSA Capital Market Movers - Independent Oil & Gas PLC Tue, 21 Mar 2017 08:49:00 +0000 Independent Oil & Gas (LON:IOG)

Independent Oil & Gas (IOG) have made the following board changes.

• Andrew Hockey joins the board as Deputy Chief Executive. He has 35 years’ experience in the oil and gas industry most recently with Fairfield Energy and Sound Energy. He also led the early development of Clipper South, a successful SNS producing gas field which is analogous to IOG’s Vulcan satellites development.

• Hywel John joins the board as Chief Financial Officer. He was previously CEO of Bayfield Energy, CFO of Candax Energy and senior executive at Burren Energy.

• The Right Honourable Charles Hendry appointed Non-Executive Director as a nominee of the Company’s major stakeholder, London Oil & Gas Limited, a major investor in IOG. Minister of State for Energy between May 2010 and September 2012.

• David Peattie resigns from the Board, with immediate effect, as a consequence of his appointment as Chief Executive of the Nuclear Decommissioning Authority.

• Mark Routh, IOG’s Chief Executive Officer, is appointed Chairman on an interim basis.

• Peter Young leaves the board and takes up a new role as Head of Business Origination. He has a strong track record in business origination, M&A and Finance.

• Graham Cox joins as SNS Project Manager. Previously he was project manager on the Clipper South Development.

]]> Caledonia Mining's Mark Learmonth delighted with record production Tue, 21 Mar 2017 08:14:00 +0000 Caledonia Mining Corporation's chief financial officer Mark Learmonth speaks to Proactive Investors about the company achieving  record gold production in the fourth quarter,  which was driven by output at its Blanket mine in Zimbabwe.

]]> Cape Lambert investors can look forward to 'dividends and a lack of dilution' says Tony Sage Mon, 20 Mar 2017 21:00:00 +0000 Tony Sage, executive chairman for Cape Lambert Resources, speaks with Proactive Investors.

]]> Goldplat's Gerard Kisbey-Green 'very pleased with flexible new loan facility' Mon, 20 Mar 2017 11:21:00 +0000 Gerard Kisbey-Green, chief executive of the African gold producer Goldplat plc (LON:GDP) talks to Proactive about their new US$2mln loan facility which will be used to restructure their balance sheet and fund plant expansion at the Kilimapesa mine in Kenya.

]]> Mkango shares could hit 6p, but wait for them to close above this number Mon, 20 Mar 2017 09:15:00 +0000 Technical analyst Zak Mir is tipping the Mkango Resources Ltd (LON:MKA) share price to add another 50% so, but thinks investors should wait for a weekly close above 4p before piling in.

“We’ve got a notional rising trend channel here since the summer of last year,” explains Mir in the latest Proactive Investors Bulletin Board.

“The good news is that there’s plenty of support at the floor of the channel towards 3p, not so good is that way we’ve had tough resistance at the 4p level.

“If you’re cautious on the stock you want to see 4p broken, ideally on a weekly close basis, before targeting the top of the channel at 6p plus.”

]]> VSA Capital Market Movers - Goldplat plc Mon, 20 Mar 2017 08:09:00 +0000 Goldplat (LON:GDP)

GDP announced on Friday that it has secured a US$2m loan facility from Scipion Capital. The facility is available for 360 days from first draw down and is repayable monthly while annual interest is set at LIBOR plus 9.5%. We expect the expansion at Kilimapesa and consequent profits to be the primary source of loan repayments.

Since GDP funded the expansion at Kilimapesa through internally generated cash the loan will improve the working capital position of the operating subsidiaries in Ghana and South Africa strengthening the company’s negotiating position as it procures new by product material. This will also be beneficial for GDP’s push into South America since upfront cash typically improves the contracts’ terms. Secondly, we believe that the addition of a modest level of debt positively enhances GDP’s capital structure and have reduced our WACC from 8% to 7.6%.

To read our flashnote on the announcement please click here.

We reiterate our Buy recommendation and increased our target price by 9% to 12.2p/sh.

]]> Yellen's dovish tone leads gold buyers back into market, reckons Ford Fri, 17 Mar 2017 15:15:00 +0000 Mining Capital's Alastair Ford mulls over the behaviour of the gold price recently in the light of the Fed's small US interest rate rise.
Normally, theoretically, it would be expected that a rate rise would mean lower gold prices, but the increase had been very well trailed in the market, notes Ford.
"So I think any selling  was that likely to happen was already in the market," said Ford, adding that Yellen's commentary was slightly more dovish than many commentators had expected.
"This led the gold buyers back into the market somewhat. They were expecting perhaps a slightly more aggressive programme of interest rate rises," he told Proactive's  Andrew Scott.

]]> Janet Yellen is already feeling the force of Trumponomics, and gold is responding Fri, 17 Mar 2017 14:22:00 +0000 'This is the start of a Scottish gold mining industry', says Scotgold's Richard Gray Fri, 17 Mar 2017 12:10:00 +0000 Scotgold Resources Limited (LON:SGZ) chief executive Richard Gray tells Proactive that an update to the bankable feasibility study at their Cononish gold mine has added “significant value” to the project.

The original BFS, completed back in August 2015, suggested a pre-tax net present value of £23mln although that has now been significantly increased to £43mln.

]]> Berkeley Energia's Paul Atherley talks 'very exciting' Zona 7 drilling results at Salamanca Fri, 17 Mar 2017 12:05:00 +0000 Uranium mine developer Berkeley Energia Limited (LON:BKY) has unveiled “outstanding” results from the latest drilling on the Zona 7 portion of its Salamanca Project.

Managing Director Paul Atherley runs Proactive through the latest work they've done on the near-surface deposit which has uncovered a 12-metre section of triuranium octoxide (U3O8) at 1,003 parts per million (ppm), including one-metre at 2,464 parts per million.

]]> VSA Morning Flow Test - Range Resources Ltd, Tullow Oil plc Fri, 17 Mar 2017 09:02:00 +0000 Tullow Oil (LON:TLW)

Tullow Oil (TLW) have announced this morning a fully underwritten rights issue to raise approximately £607m through a 25 for 49 rights issue of c467m new shares at a price of 130p per share.

This represents a discount of c45% and c35% to the current share price and TERP respectively. This will allow TLW to lower its gearing ratio to a level it is more comfortable at, its aim is for less than 2.5x net debt/EBITDAX, which had grown to 5.1x at 31 December 2016. Reducing its level of debt will allow TLW to improve both its operational and financial flexibility which will enable it to grow the company in the next 3 to 5 years.

One of the stated use of proceeds made by TLW this morning is to “drill high impact, potentially high return prospects across Tullow's African and South American portfolio”. Therefore, we view this to be particularly positive for TLW’s partners across its licences, in particular Eco (Atlantic) Oil & Gas (ECO)# which has a 40% working interest in the TLW operated Orinduik Block in Guyana, adjacent to the giant Liza and Payara discoveries made by ExxonMobil (XOM). TLW and ECO are about to conduct a 3D seismic survey over the Orinduik Block, which TLW estimates to contain prospective resources of 900mmboe, to refine the targets and scope out new leads. The fact that TLW have stated it plans to drill in the next 3-5 years across this portfolio is extremely positive and is ahead of our estimates.

ECO is also a partner with TLW in Namibia where TLW is contingently carrying ECO for the costs of one well on the Cooper Block. We, therefore, re-iterate our BUY recommendation and 25p TP on ECO.

Range Resources (LON:RRL)

We also note this morning Range Resources (RRL) positive set of interim results for the six months ended 31 December 2016. Operationally production was unchanged for the period at 495bopd compared to the six months prior. An independent reserves audit showed 2P reserves increased to 24.4mmboe and water injection has been ongoing on two waterflood projects, with production commencing on one of these as a result.

Financially, revenues had increased by 38% YoY to US$3.8m (H2 16: US$2.8m) largely due to higher oil prices. Whilst operating expenses improved 9% YoY to US$40/bbl. RRL also has a strong cash position of US$20.6m (H2 16: US$13m) with no debt repayments due in the next 15 months.

We view this as positive read across for LGO Energy (LGO)#  which following the restructuring of its balance sheet in December 2016 now appears to have turned the corner and preserved its reputation as an operator in Trinidad. It is now refocusing its efforts on the Goudron Field development plan, including its own water injection programme. We maintain our BUY recommendation and 22p TP on LGO.

]]> VSA Capital Market Movers - Metal Tiger, MOD Resources Fri, 17 Mar 2017 08:48:00 +0000 Metal Tiger (LON:MTR)

MTR’s JV partner MOD Resources (ASX:MOD) has announced that it has raised gross proceeds of A$14.6m in a share placement. The funds were raised at a price of A$0.062, a discount of 2.2% to the 15 day VWAP, with 235.42m new ordinary shares issued.

MTR holds a 30% interest at the project level, which is naturally unaffected by the placing. However, MTR additionally holds shares in MOD which at the last announcement were equal to 5.0% of the outstanding share capital. We now estimate that MTR’s holding in MOD shares is equivalent to 4.4%.

The T3 project in Botswana is one of the most attractive developing copper projects globally and we believe that MTR continues to offer investors attractive exposure to its development as well as the robust outlook for copper prices.

We reiterate our Buy recommendation and 5.68p/sh. target price.

]]> Wolf Minerals' Russell Clark hails changes to Drakelands planning permission Thu, 16 Mar 2017 16:03:00 +0000 Russell Clark, executive managing director at Wolf Minerals Ltd (LON:WLFE) tells Proactive they're expecting performance at their Drakelands mine to improve as they drill through into harder granite deeper below the surface.

In the six months to December, the processing plant treated 968,000 tonnes of ore and produced 55,200 metric tonne units (mtu) of tungsten concentrate, with problems with the kiln also affecting output.

]]> Resumption of oxidation hub construction 'vital' for Petropavlovsk Thu, 16 Mar 2017 11:25:00 +0000 Peter Hambro, chairman of Petropavlovsk PLC (LON:POG) speaks to Proactive following the resumption of construction activities on the gold producers pressure oxidation hub at the Pokrovskiy mine in Russia’s Far East.

]]> Thor Mining's Billing hails recent drill findings at Pilot Mountain, Nevada Thu, 16 Mar 2017 11:08:00 +0000 Mick Billing, Thor Mining's (LON:THR) chairman, runs us through recent drill findings from the Pilot Mountain tungsten project in Nevada, USA, where the highlight was a 51 metre intersection.
At the Desert Scheelite portion, where there is an existing resource of around 6.5million tonnes,  Billing noted there was a historical assay of about 17 metres of good copper, good zinc, very good tungsten and a bit of silver.
"We wanted to make sure that wasn't just an isolated pod of mineralisation but there  was some continuity," said Billing, explaining the rationale for  recent holes.
"If you are looking for 17 (metres) and you get 50,  you've got to be happy, and we are.," he explained.

]]> Petropavlovsk has “major” support at 5p, says Zak Mir Thu, 16 Mar 2017 09:10:00 +0000 Leading technical analyst Zak Mir tells the Proactive Investors Bulletin that although Petropavlovsk PLC (LON:POG)shares have fallen this month, there is still major support for them at 5p.

“Recent weeks have not been great for the shares [which] have dipped over the course of March to date, but there is support towards the 5p to 5.5p level and that is major support from the latter part of last year.”

]]> Pickstone-Peerless 'continuing to deliver impressive results' says CEO Roy Pitchford Wed, 15 Mar 2017 11:49:00 +0000 Roy Pitchford, chief executive of Vast Resources PLC (LON:VAST) tells Proactive they're expecting to process the first sulphide ore at a new processing plant at Pickstone-Peerless in Zimbabwe on schedule in the third quarter.

The upgrade will result in a 100% increase in installed primary milling capacity to 40,000 tonnes per month at the gold mine, while grade is predicted to rise from 2 g/t to between 3 g/t and 4 g/t over nine months.

]]> VSA Capital Market Movers - Millennial Lithium, Polymetal International Wed, 15 Mar 2017 08:35:00 +0000 Millennial Lithium (CVE:ML)

ML has announced key changes to its fundraising which is currently underway as well as an update on the Cauchari East project. Following the appointment of Montgomery and Associates, a hydrogeological consultancy, it has been determined that the cost of the next phase of development is likely to be lower due to be reduced drilling costs and necessary drilling frequency.

This will enable any funds raised in the current raise to be used more efficiently; however, ML has announced that at this time it will scale back the planned fundraising from C$8.7m to C$5.65m with a new subscription price of C$1.25 versus the previous C$1.35 which represents a 9% discount to the last close. ML will not be accepting further subscriptions in this raise.

At Cauchari East, ML has begun a ground geophysics programme consisting of a Vertical Electrical Soundings (VES) survey. This will comprise seven profiles of the two blocks and will detect soil layering, the top of the bedrock, groundwater table and salt water intrusions with the last two key for identifying subsurface brines.

We reiterate our Speculative Buy recommendation

Polymetal (LON:POLY)

POLY has announced robust results for 2016 with revenues up 10% YoY to US$1.6bn as gold prices were up 8% YoY. Gold equivalent production of 1.27mnoz was marginally ahead of guidance while gold production of 890koz was up 3% YoY offset by lower silver production which was down 9% YoY to 29.2mnoz.

EBITDA of US$759m was up 15% YoY primarily reflecting the stronger top line as cash costs on a gold equivalent basis were up 6% YoY to US$570/oz, at the upper end of the guidance range. AISC of US$776/oz were also up 6% YoY. The outlook for next year is for a modest increase in production to around 1.4-1.55mnoz gold equivalent although unit costs are expected to rise to US$600-650/oz and US$775-825/oz on an AISC basis.

POLY announced the dividend for 2016 of US$0.42/sh. for the full year which was down 18% YoY.

]]> Lionsgold CEO Cameron Parry hails 'significantly positive and strong' Jonnagiri resource upgrade Tue, 14 Mar 2017 15:46:00 +0000 Lionsgold Limited (LON:LION) has seen a substantial upgrade to the resource quality at its Jonnagiri gold project in India.

The AIM-listed company has a 20.5% stake in Geomysore Services, the company that owns the 30 year mining lease, and a sizeable quantity of the material at the deposit has moved to the more certain indicated category from inferred.

CEO Cameron Parry says early test drilling results from the new South Block at Jonnagiri are particularly encouraging and plans are being made for further drilling on the South Block to establish an additional open pittable gold resource.

]]> Cobre deal could be a 'game-changer' for Strategic Minerals, says John Peters Tue, 14 Mar 2017 12:56:00 +0000 Strategic Minerals PLC (LON:SML) has potentially picked up a substantial new customer for its iron ore tailings business, Cobre, in New Mexico.

Before the contract becomes effective, Galvin Investment Company (GIC) must provide a US$100,000 Letter of Credit from an acceptable bank.

Managing Director John Peters tells Proactive he's treading with some caution until the full contract is signed.

]]> This one trigger could see Antofagasta shares head towards a tenner Tue, 14 Mar 2017 09:15:00 +0000 Technical analyst Zak Mir reckons the Antofagasta PLC (LON:ANTO) share price could head towards  a tenner if it can close above the 50-day moving average.

“There’s plenty of momentum here. Probably all we’re waiting for now from a technical perspective is an end-of-day close back above the 50-day moving average at 798p,” explains Mir.

“[That would] give us a target at the top of the autumn 2016 price channel at £9.80 over the next couple of months.”

]]> VSA Capital Market Movers - Antofagasta Plc, Polymetal International, Sula Iron and Gold PLC Tue, 14 Mar 2017 08:41:00 +0000 Sula Iron and Gold (LON:SULA)

SULA has conditionally placed 128.6m shares priced at 0.4p and raised £0.5m for general working capital purposes and drilling expenses on the Ferensola project and other potential regional programs.

Shares were placed with a select list of targeted existing investors and a strategic long term Asian investor. Trading of the new shares will take place on 17 March. VSA Capital acted as broker on the fundraising. Total shares in issue will amount to 2,214m.

Antofagasta (LON:ANTO)

Year end results for ANTO showed an EBITDA rise of 78.7% to US$1,626m. Operating cashflow rose 70% to US$1,457m. CAPEX fell 24% to US$795m. Earnings per share after exceptional items and discontinued operations fell to just US$0.16/share. A final dividend of US$0.153/share was declared versus none last year.

Forward guidance is for a rise in capex to US$900m but copper output to stay as previously forecast at 685,000 – 720,000t copper metal.

Polymetal (LON:POLY)

POLY has updated JORC reserves and resources after a year of exploration and mine production. Reserves down 5% to 19.8mozs Au EQ. Resources up 29% to 16.5mozs Au Eq due to two project acquisitions and first resources calculated for Levoberzhny and Lichkvaz.

Total resources including reserves rose to 36.4mozs. These results are based on US$1200Au/oz and US$16Ag/oz. Drilling meters of 324km are represented from this past year. POLY is holding an Investor Day tomorrow.

]]> Argosy Minerals taking advantage of lower cost Lithium Brines in Argentina Mon, 13 Mar 2017 12:24:00 +0000 Jervo Zuvela, managing director of Argosy Minerals (ASX:AGY) runs Proactive's Andrew Scott through the company's Rincon lithium joint venture in South America as well as their other assets and plans for 2017

]]> Amur Minerals share price ‘unlikely to drop below 6p’, says Zak Mir Mon, 13 Mar 2017 09:15:00 +0000 Leading technical analyst Zak Mir reckons the Amur Minerals Corporation (LON:AMC) share price is unlikely to drop below 6p and expects it to head towards 10p over the coming weeks.

“It’s interesting from a technical perspective in that we’ve had a rebound last week off the 200-day moving average at 6.28p,” explains Mir in the latest Proactive Investors Bulletin Board.

“That’s a decent technical signal and underlines the idea that there’s a rising trend channel and that it’s unlikely shares will fall much below the 6p.

As for what the future holds, Mir adds: “While we’re above the 200-day moving line we’re looking for at least a partial retest of the former 50-day moving average area at 10.65p over the next one to two months.” 

]]> VSA Capital Market Movers - LGO Energy PLC Mon, 13 Mar 2017 08:38:00 +0000 LGO Energy (LON:LGO)

LGO Energy (LON:LGO) have announced that its first well (GY-682) in its development programme over the Goudron Field has been completed, reaching a total depth of 1,145ft. Electric log interpretation of the Mayaro Sandstone interval confirmed the presence of oil over an estimated net reservoir thickness of 408ft. LGO have now decided to perforate and place on production the 273ft with the best net oil pay within the reservoir.

This is the first well of a planned 45 well programme targeting 2P reserves of 11.8mmbbls. The next well in the programme will be spud shortly with each well planned to cost cUS$500k and come on to production with initial rates of 45bopd.

We re-iterate our BUY recommendation and 22p TP

]]> Trump v Yellen: what next for gold and the US dollar? Fri, 10 Mar 2017 14:04:00 +0000 Kodal Minerals booms, but Zak Mir thinks there’s more to come Fri, 10 Mar 2017 12:35:00 +0000 Shares in Kodal Minerals PLC (LON:KOD) have added almost 50% today (Friday), but technical analyst Zak Mir is tipping the stock to rise even further and test last year’s highs.

“We’ve bounced off the former September resistance at 0.2p and have gapped through the 50-day moving average at 0.32p,” says Mir in the latest Proactive Investors Bulletin Board segment.

“If we close somewhere around here today as an end-of-week close, we’d be looking for the shares to retest the best levels of 2017 to date, above 0.5p.”

]]> Amur Minerals Corp looking to bolster resource at Kun-Manie Fri, 10 Mar 2017 11:31:00 +0000 Robin Young, chief executive of Amur Minerals Corporation PLC (LON:AMC), talks us through its plans to drill two new targets at the Kun-Manie nickel prospect in Russia.
A total of 15,000 metres of in-fill and step out holes are planned, though Amur has enough supplies in place to drill 20,000m.

]]> VSA Capital Market Movers - Egdon Resources Plc Fri, 10 Mar 2017 09:15:00 +0000 Ineos/UK Shale Gas

Ineos announced yesterday it has acquired the entirety of Engie’s (ENGI FP) British shale gas interests spanning over 15 licences, including seven of which Ineos had a previous position in, for an undisclosed sum. This reaffirms Ineos’ position as the largest UK shale gas company which now has access to an area of more than 1.2 million acres.

We view this as a positive deal for the UK shale gas industry as a whole as ENGI’s core focus moves towards power generation and consumer energy as opposed to oil and gas production, whereas Ineos is the key player in UK shale gas, with the deal coming at a time when UK shale is beginning to gather momentum.

We view Egdon Resources (LON:EDR) as an attractive way for investors to gain exposure to UK shale gas and have a BUY recommendation and 34p TP on the stock. EDR has an assessment of its undiscovered mean gas initially in place (GIIP) of 48TCF over 200,190 net acres.

]]> Copper tailings project excites on a number of fronts, says Jubilee Platinum boss Thu, 09 Mar 2017 13:31:00 +0000 Chief executive of Jubilee Platinum (LON:JLP) Leon Coetzer walks us through the rationale behind securing  a surface copper tailings project in Australia.
He said it met a number of the firm's criteria. Fiirstly, that it was a surface project, secondly that it required metallurgical expertise to unlock the copper, that the capital entry level was quite low and that the the timeline between starting investing and earning from the property  was quite short.
"We found this project, which excited us on a number of fronts," he said.

]]> VSA Capital Market Movers - LGO Energy PLC Thu, 09 Mar 2017 10:15:00 +0000 LGO Energy - Turning the Corner

Following the restructuring of its balance sheet in December 2016 and the 20 for 1 share consolidation in early March, LGO Energy (LON:LGO) now appears to have turned the corner and preserved its reputation as an operator in Trinidad. It is now refocusing its efforts on the Goudron Field development plan and looking to capitalise on its acreage position in the South West Peninsula.

Goudron Field Development Underway                                      

Following the completion of its refinancing with Lind Partners in December 2016, LGO was able to repay its senior loan facility with BNP Paribas allowing it to access previously restricted funds in Trinidadian dollars and begin the drilling of infill production wells in the Mayaro Sandstone formation of the Goudron Field, which is estimated to contain 2P reserves of 11.8mmbbls. Despite the challenges it faced LGO maintained production from the Goudron field through 2016, averaging 425bbls/d.

LGO has now mobilised a rig to begin drilling the first two wells of a planned 10 well shallow programme as it begins to ramp up production, with the cash flow from each well contributing to the remainder of the programme.

LGO also plans a full field enhanced oil recovery waterflood development at Goudron targeting over 60mmbbls of independently verified 3C resources. A low cost waterflood pilot programme, using wells already drilled, should be underway later this year.

South West Peninsula Offers Additional Value

Further to its development programme at Goudron, LGO has significant potential to add material upside from exploration in its South West Peninsula leases. Given Trinidad’s history as a prolific petroleum province we view this as a particularly exciting area with reduced geological risk.

Recommendation and Target Price

We initiate coverage on LGO with a BUY recommendation and 22p target price, in line with our risked NAV using 12% WACC and a US$50/bbl flat long-term oil price.

]]> Thor Mining CEO says medium-sized company status achievable Wed, 08 Mar 2017 14:41:00 +0000 Thor Mining PLC's (LON:THR) Mick Billing tells Proactive's Sarah Lowther he can't keep the smile off his face after hitting 51 metres of mineralisation in the second of two holes drilled at the tungsten deposit in Nevada.

The chief executive of the exploration and development company says the objective is "taking a couple of quite tidy projects into production over the next two to three years, and with that we think we can become a medium sized company hopefully relatively quickly."

]]> VSA Capital Market Movers - REDT Energy Wed, 08 Mar 2017 09:26:00 +0000 redT energy (LON:RED) has developed a machine based on vanadium redox flow battery technology for deployment in the commercial and industrial energy storage sector. Unlike the majority of its flow battery peers, RED’s machines have already been deployed in a number of field test environments with first commercial sales occurring at the end of 2016. 

Developing into a Forecasted Multi-Billion Market

Demand for stationary energy storage is set to rapidly increase. Although market estimates and definitions of the market itself vary wildly, most forecasters agree that the sector will be a multi-billion one by 2020. Given its highly reliable, low cost product and strategic cost reduction plan, RED appears well placed to gain significant market share in this sector.

Low Cost Product with Cost Reduction Schedule

We believe RED’s flow battery is currently the lowest cost commercially sold product in the sector. RED currently manufactures its cheapest second generation product at US$496/kWh and it has a specific technology development programme in place (no blue-sky R&D) to drive this below US$300/KWh by the end of 2018.

£14.9m Financing to Accelerate Roll-Out

In December 2016 RED closed a £12.0m placing and £2.9m open offer. The majority of new funds raised (c£8m) will be used to for sales, operations and working capital over the next two years to accelerate pipeline delivery (current pipeline c2,608 units, cUS$263m revenues).

Additional monies (£4m) will be deployed in the development of its third and fourth generation products, with the balance to be used for electrolyte working capital (£2.2m) and fees.

Recommendation and Target Price

We begin coverage on RED with a BUY rating and a target price of 22p.

]]> VSA Capital Market Movers - Metal Tiger Mon, 06 Mar 2017 12:30:00 +0000 Metal Tiger (LON:MTR)

Metal tiger (LON:MTR)# has announced positive assay results, following the discovery of significant mineralisation at greater depth than the T3 resource in Botswana. MTR holds an effective 30% stake in the JV with MOD Resources (ASX:MOD) on this copper project in Botswana.

The hole highlighted in the previous announcement MO 65D which had intercepted 72.6m of mineralisation was determined to have a grade of 1.5% copper and 27g/t silver including 18m at 2.7% copper and 52g/t silver. This mineralisation is therefore of significance and confirms the project potential to 100m below the current T3 resource sequence. Furthermore, infill drilling confirmed T3 resource continuity with 22.2m at 1.6% copper and 26g/t from 163m depth.

We previously indicated that we believed that the initial resource and our analysis of the PEA, which resulted in a mine life of nine years and an NPV of US$170m on a 100% basis, was very much a starting point. With four drill rigs currently on site conducting further infill drilling, the confirmation of strong continuity of mineralisation could enhance the existing resource and the potential mine economics.

We reiterate our buy and 5.68p target price.


]]> '2017 will be a very busy year' says European Metals boss Keith Coughlan Mon, 06 Mar 2017 10:55:00 +0000 Keith Coughlan, managing director of European Metals Holdings Limited (LON:EMH) (ASX:EMH) brings Proactive's Andrew Scott up to speed on the latest at the company's Cinovec project in the Czech Republic.

''We're a month out from finishing our pre-feasibility study ... at that point we’ll be able to show hard numbers. The key things will be the net present value, the capital expenditure and the operating costs.”

]]> 'We've injected a lot of energy and commitment to the company' says Sula's Roger Murphy Fri, 03 Mar 2017 16:01:00 +0000 Roger Murphy, chief executive of Sula Iron & Gold PLC (LON:SULA) talks to Proactive on the back of the release of the company's full year results to the end of September - as well as looks ahead to the  start of drilling at Sanama Hill later this month.

]]> Chinese economic policy begins to mature as US anxiety feeds in on itself Fri, 03 Mar 2017 15:16:00 +0000 Will the latest commodity upswing signal renewed Chinese interest? Fri, 03 Mar 2017 10:28:00 +0000 Mining Capital's Alastair Ford tells Proactive he reckons as the latest commodity cycle begins to head north again, Chinese investors will begin to come into the market again, like last time.
It comes after metals explorer ECR Minerals PLC (LON:ECR) this week revealed Shenyang Xinliaoan Machinery Co has agreed to subscribe for a 29.9% stake in the firm.
"In the last mining boom, a lot of scepticism arose about how easy it was to do business with the Chinese," says Ford, who added perhaps this was a small indication east and west had got to know each other better in the intervening period.

]]> Randgold can push back towards £90, says Zak Mir Fri, 03 Mar 2017 09:45:00 +0000 It may have kicked off lower this morning, but the Randgold Resources Limited (LON:RRS) share price can hit the dizzy heights of £90 again, so says Zak Mir.

“The current situation looking quite encouraging again with a gap through the 200-day moving average at the beginning of February, and consolidation above that [since],” the technical analyst says.

“While we’re above the 50-day moving average and the floor of this rising trend channel from September at £69, the target here is as great as £90 at the October resistance line.”

]]> Can Pan African add 50% to its share price? Fri, 03 Mar 2017 09:35:00 +0000 Zak Mir thinks so. The technical analyst is tipping the Pan African Resources plc (LON:PAF) share price to retest last year’s resistance of 25p over the coming months.

 “We’re back on the front foot in terms of price action. We’re in a rising trend channel which has been in place since the end of 2015, with support just near the 50-day moving average at 15.9p,” Mir explains in the latest Proactive Investors Bulletin Board.

“While we hold that 15p zone which has been in place for the past couple of months we’re looking for shares to retest last year’s resistance in the 25p zone.” 

]]> VSA Capital Market Movers - Sula Iron and Gold PLC Fri, 03 Mar 2017 08:39:00 +0000 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced full year results for the year ended September 2016. The operating loss of £1.8m was in line with the prior year while cash at the end of the period was £100k. Since the period end there have, however, been significant changes to SULA with a new management team put in place along with an injection of a total of approximately £1.8m including the contribution by Madini, SULA’s new strategic partner. Since the period end, the shares have rallied 369%.

In 2016 SULA changed its focus towards the gold mineralisation within its tenements; initially at Sanama Hill. A successful drilling campaign which followed the reinterpretation of historical data confirmed the presence of significant gold mineralisation on which a JORC Exploration Target of 5-7mnt at 4-8g/t which implies 0.8-1.5mnoz had been defined. Subsequently SULA carried out IP surveys and with the receipt of funds, post period end, the data was released which demonstrated 8.5kms of targets with the same geophysical signature as the Sanama Hill deposit.

The drilling programme on which SULA announced that the two drill rigs had arrived on site this week is primarily focused on these geophysical anomalies known as the Eastern Target. SULA now intends to carry out over 2,400m of drilling.

We reiterate our Speculative Buy Recommendation and 1.7p/sh. target price.

]]> Pozzolan test samples 'very encouraging' says Sunrise Resources' Patrick Cheetham Thu, 02 Mar 2017 14:43:00 +0000 Patrick Cheetham, executive chairman of Sunrise Resources Plc (LON:SRES) tells Proactive they're to broaden test work at their pozzolan project in Nevada to include possible perlite production.

Perlite is used as an insulator in paint, plaster, concrete fillers and in soil aeration with its main characteristic that it expands hugely when heated.

]]> 'A big day for Strategic Minerals' with drills poised to hit the ground at Redmoor Thu, 02 Mar 2017 14:16:00 +0000 Peter Wale, director at Strategic Minerals PLC (LON:SML) tells Proactive they're ready to go with their first drilling programme at Redmoor in Cornwall.

Energold Drilling will drill 13 holes in the first phase to be followed by a second phase of 10 additional holes. There is provision for a further six holes subject to additional planning and land owner approvals.

]]> Pilot Mountain tungsten project potentially a 'game changer' for Thor Mining Thu, 02 Mar 2017 11:50:00 +0000 Mick Billing, executive chairman of Thor Mining PLC (LON:THR, ASX:THR), talks to Proactive about their drilling campaign designed to expand the tungsten resource at its Pilot Mountain tungsten project in Nevada.

The Pilot Mountain Project comprises four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope.

]]> CanAlaska Uranium boss sees "huge opportunity" for speculators in current market Thu, 02 Mar 2017 11:31:00 +0000 Peter Dasler, president and chief executive of CanAlaska Uranium (CVE:CVV), talks over the recent busy period for the firm, which has seen a pick-up in the uranium market.
The firm holds interests in around 1.2 million acres -  one of the largest land positions in Canada's Athabasca Basin region.
"We see a demand out there from the buildout of nuclear power plants and we see there's a huge opportunity for speculators in this market," he tells Proactive.

]]> Operations in Romania and Zimbabwe back to normal, says Vast Resources chief Wed, 01 Mar 2017 11:32:00 +0000 Operations are back to normal and "progressing nicely", Roy Pitchford of VAST Resources plc (LON:VAST) told Proactive's Andrew Scott after bad weather in Romania and Zimbabwe.
The chief executive also discussed the latest on the subscription and loan deal struck with Bracknor Fund for US$2mln last October, which has now come to an end after the latter exercised 37.5mn warrants
"This is the end of our dealings with Bracknor. There are no further warrants outstanding to Bracknor,” he said.

]]> VSA Capital Market Movers - Sula Iron and Gold PLC Wed, 01 Mar 2017 08:52:00 +0000 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced that the two diamond drill rigs required for the upcoming programme have now arrived on site at Dalakuru exploration camp. The original target was to drill 2,400m, however, since the contractor Equity Drilling has agreed to take a portion of payment in equity, this has freed up cash to pay for additional drilling beyond the original target. We expect the drilling programme to result in the announcement of a JORC Exploration Target.

We reiterate our Speculative Buy recommendation and target price of 1.7p/sh.

]]> ECR Minerals' partnering up with Chinese investors 'a positive development' says CEO Craig Brown Tue, 28 Feb 2017 15:31:00 +0000 Craig Brown, the chief executive of ECR Minerals PLC (LON:ECR), talks to Proactive following the announcement that Shenyang Xinliaoan Machinery Co has agreed to subscribe for a 29.9% shareholding in the company at a price of 1p per share.

Brown also discussed the wider strategy for ECR Minerals and plans for the company's assets in Australia, Argentina and the Philippines.

]]> Savannah Resources identifies 'very exciting high grade portions' at Matumba Tue, 28 Feb 2017 14:20:00 +0000 David Archer, managing director at Savannah Resources Plc (LON:SAV) tells Proactive they're encouraged by exploration at both of their flagship projects.

At the Matumba mineral sands joint venture in Mozambique, drilling has confirmed a second high grade mineralisation zone at Ravene.

Meanwhile in Oman, electromagnetic surveys have indicated potential extensions at depth to the massive sulphide copper mineralisation at the Lasail and Mahab 4 targets.

]]> Strategic Minerals' John Peters 'extremely encouraged' with Hanns Camp Cobalt readings Tue, 28 Feb 2017 11:21:00 +0000 John Peters, chief executive of Strategic Minerals (LON:SML) tells Proactive they've reported a high cobalt content in re-worked assays at its Hanns Camp licence in Australia.

]]> Harvest Minerals chairman 'really pleased' with significantly upgraded Arapua resource Mon, 27 Feb 2017 12:48:00 +0000 Harvest Minerals Limited (LON:HMI) chairman Brian McMaster runs Proactive through their updated and significantly upgraded resource on the Arapuá Fertilizer Project in Brazil.

The higher-confidence indicated resource rises 37% to a JORC-compliant 1.2mln tonnes at a grade of 4.4% potassium oxide (K2O) and 3.45% phosphorus pentoxide (P2O5).

]]> Mexico producer Endeavour Silver turning the focus to growth Mon, 27 Feb 2017 08:37:00 +0000 Brad Cooke, chief executive of  Endeavour Silver Corp (TSX: EDR, NYSE:EXK) walks Proactive through the Mexico focused metals producer.
Last year the miner produced just shy of 10mln ounces of silver and equivalents and is on track to repeat that this year.
As well as its three high grade producing mines, it has three development projects, two of which are subject to economic studies in the next 30 days so that production decisions can be made so the group can refocus on growth.

]]> President Trump one month in: gold range-bound, Europe still edgy Sun, 26 Feb 2017 09:30:00 +0000 Danakali's MD Paul Donaldson talks to Proactive Investors TV Thu, 23 Feb 2017 23:00:00 +0000 Danakali (ASX:DNK) remains focused on the world-class, tier 1 asset, the Colluli Potash Project in Eritrea.

The company holds a 50% equity interest through a joint venture with the Eritrean National Mining Company.

Colluli is one of the most advanced greenfield sulphate of potash (SOP) developments in the world.

]]> Ferrum Crescent hitting 'very healthy' zinc grades at Toral in Spain Thu, 23 Feb 2017 14:36:00 +0000 Ferrum Crescent Ltd's (LON:FCR) senior project manager Merlin Marr-Johnson updates Proactive on developments at the company's Toral project in Spain.

They’ve reported more good zinc grades from early stage development work and are now looking to move on to a small shallow drilling programme to target mineralised zones within 200 metres of the surface to further prove up the potential.

]]> 'We're really bringing this project along' says Asiamet's Steve Hughes Thu, 23 Feb 2017 10:43:00 +0000 Asiamet Resources Limited's (LON:ARS) vice president of exploration Steve Hughes talks to Proactive about recent analysis that's been carried out on historic data for the area around its BKM copper deposit in Indonesia.

It looked at a three-kilometre radius and assessed three targets - Beruang Kanan West (BKW), Beruang Kanan South (BKS) and the BKZ polymetallic prospects (BKZ).

]]> VSA Capital Market Movers - Millennial Lithium, Glencore and KAZ Minerals Thu, 23 Feb 2017 08:29:00 +0000 Millennial Lithium (CVE:ML)
Millennial Lithium has announced that it intends to complete an equity placing of C$8.7m at a price of C$1.45 per share (6m shares), a discount of 4% to the last close. For each share purchased investors will receive one half common share purchase warrant. This will entitle the holder to purchase one common share a t a price of C$1.9 for a period of 24 months from the closing date.

Proceeds will be used to advance the Pastos Grandes project, in Argentina, particularly drilling and process and evaporation trials engineering as well as working capital. ML indicates that the full placement would enable a PEA to be completed.

Please click here for our recent initiation.

We reiterate our Speculative Buy recommendation.

Glencore (LON:GLEN)
Glencore has announced modestly improved results for 2016. Revenues of US$153bn were up 4% YoY while adjusted EBITDA of US$10.3bn was up 18% YoY. EBITDA for energy products and agricultural products were down 20% and 19% YoY to US$1.5bn and US$138m respectively. This was despite the recovery in oil prices. However, the recovery in metals prices meant that the improvement in EBITDA in the metals division of 43% YoY to US$6bn more than offset weakness in other divisions. Net income of US$1.9bn was up 48% YoY. GLEN reduced net debt by 40% YoY to US$15.5bn, below the published target, while capex was down 41% YoY to US$3.5bn. GLEN announced a dividend of US$0.07/sh.

KAZ Minerals (LON:KAZ)
KAZ Minerals  has announced strong results driven by a combination of rising copper and gold prices as well as a strong operational performance. Revenue of US$969m was up 43% YoY as copper production of 140kt was up 73% YoY and gold production of 120koz was up 245% YoY, ahead of guidance. Group net cash costs of US$0.59/lb were down 46% YoY, driven by the significant by product credit contribution. Consequently EBITDA of US$492m was up 136% YoY. Net income of US$180m reversed a loss of US$10m in the prior year. KAZ has opted to not pay a dividend given the ramp up of Aktogay and Bozshakol, which drove the increase in production, is ongoing. We note that net debt increased 18% YoY to US$2.7bn owing to continued pressures from expansionary capex. However, with the ramp ups progressing well, KAZ appears to be on track to reducing its operating leverage.

]]> VSA Capital Market Movers - Millennial Lithium Wed, 22 Feb 2017 08:40:00 +0000 Millennial Lithium (CVE:ML)
Millennial Lithium  has announced the results from the completion of a ground geophysics programme at its Cruz Property in the Salta Province, Argentina. Southern Lithium (SNL CN) has an option to acquire up to 80% of the project through the completion of certain payments, exploration funding and completion of a feasibility study.

A Transient Electromagnetic Survey (TEM) covering 20.25km2 demonstrated a continuous north-south trending conductive unit over a distance greater than 6km, the full distance of the Cruz property. In the central core of the property indications of brine are apparent from 30m and up to 250m beyond which point data becomes limited due to the highly conductive nature of the anomaly. High conductivity is often an indication of high lithium brine contents.


]]> VSA Capital Market Movers - Sula Iron & Gold, Anglo American and BHP Billiton Tue, 21 Feb 2017 14:50:00 +0000 Sula Iron & Gold (LON:SULA)
Sula Iron & Gold has announced the issue of 9.375mn ordinary shares at an exercise price of 0.16p following the exercise of warrants. The gross proceeds raised amounted to £15k. Share capital is now 2,086mn ordinary shares.

We reiterate our Buy Recommendation and target price of 1.7p/sh.

Anglo American (LON:AAL)
Following strong production results Anglo American  has announced strong full year results. Group revenue of US$23.1bn was marginally higher at 1%. However, margins were significantly stronger owing to cost cutting and currency depreciation and EBITDA of US$6.1bn was up 25% YoY. The key segments which drove the improvement were De Beers, iron ore and coal although this was offset by modest declines in platinum and copper. Net income of US$1.6bn reversed a loss of US$5.6bn in the prior year.

AAL opted not to pay a dividend in 2016. The net debt target of US$10bn was well beaten, however, as the strong earnings combined with asset sales (US$1.8bn) and capex reduction (-37% YoY to US$2.5bn) resulted in a 34% YoY decline in net debt to US$8.5bn. AAL is targeting a further US$1bn in cost savings and is aiming to resume dividend payments by the end of 2017.

BHP Billiton (LON:BLT)
BHP Billiton  has released robust interim results as the strong recovery in bulk and base metal commodity prices offset production weakness in petroleum, copper and thermal coal. Group revenues for H1 FY 2017 were up 20% YoY to US$15.7bn driven primarily by the recovery in prices in iron ore, copper and coal. Underlying EBITDA of US$9.9bn was up 65% primarily as a result of the strong top line. EBITDA in the iron ore division was up from US$2.8bn to US$4.2bn while in copper EBITDA was up from US$0.8bn to US$1.7bn and US$0.2m to US$2bn in coal.

Net debt decreased from US$25.9bn to US$20bn owing to a 38% reduction in capex to US$2.7bn combined with the significant recovery in earnings. The final dividend of US$0.3/sh. meant that the full year dividend of US$0.4/sh. was up 150% YoY.

BLT has announced an increase in exploration spending for FY 2017 and 2018 by around US$400m.

]]> Vast Resources 'survives a few challenging months quite nicely', says CEO Roy Pitchford Tue, 21 Feb 2017 14:38:00 +0000 Roy Pitchford, chief executive of Vast Resources PLC (LON:VAST) talks to Proactive about the company's 'significant' operational improvements as part of a quarterly production summary for the period to 31 December 2016.

]]> Anglo Pacific's Julian Treger talks of 'very positive' shareholder response to uranium acquisition Tue, 21 Feb 2017 13:43:00 +0000 Julian Treger, chief executive of Anglo Pacific PLC (LON:APF TSE:TPY) talks to Proactive about the response to the company's recent acquisition of a uranium mine in northern Saskatchewan, as well as spelling out the key points of the deal that investors should focus on.

]]> Bacanora eyes up Lithium growth opportunities in Germany with new acquisition Tue, 21 Feb 2017 08:21:00 +0000 Peter Secker,  chief executive of the AIM-listed junior Bacanora (LON:BCN CVE:BCN) talks to Proactive about the company's decision to take a 50% stake in the Zinnwald lithium project in Germany.

]]> 'Our shareholders understand the incredible upside to the company' says Gemfield's Ian Harebottle Mon, 20 Feb 2017 16:25:00 +0000 Ian Harebottle, chief executive of Gemfields PLC (LON:GEM) spoke to Proactive following the release of the company's interim results.

Revenue clocked in at $51mln - down from $94mln. Harebottle says the one-off Indian demonetisation programme had affected the company's auction schedule.

However taking a longer term view the coloured gems miner has performed exceptionally.

]]> Goldplat's Kilimapesa mine 'on the verge' of profitability, says CEO Gerard Kisbey-Green Mon, 20 Feb 2017 13:42:00 +0000 Gerard Kisbey-Green, chief executive of Goldplat PLC (LON:GDP) spoke to Proactive on the back the gold recovery specialist's latest interims.

The group with operations in South Africa and Ghana posted a 238% rise in pre-tax profit to £1.33mln in the six months to December on revenues of £14.4mln.

]]> Premier African's George Roach 'encouraged' by Zulu Lithium grades Mon, 20 Feb 2017 10:18:00 +0000 George Roach, chief executive of Premier African Minerals Limited (LON:PREM) talks to Proactive about their latest batch of assays from its Zulu project in Zimbabwe.

]]> VSA Capital Market Movers - Petra Diamonds Mon, 20 Feb 2017 08:16:00 +0000 Petra Diamonds (LON:PDL)

Petra Diamonds (PDL) interim results were in line with expectations following a soft trading update. The significant increase in revenues, up 48% YoY, was largely due to the timing of sales with production in the period up 24% YoY to 2mncts. PDL is on track for full year production of 4.4-4.6mncts.  Realised price performance was mixed with changes in product mix the key driver. As expected the benefits of processing undiluted ore impacted earnings positively and along with the stronger top line this meant that EBITDA of US$87m was up, 80% YoY. This meant that net income of US$35.2m reversed a loss of US$2.2m in the prior period.

PDL has not yet opted to resume dividend payments. Capex of US$135m represents the majority of spending for FY 2017 which is expected to be lower YoY overall. Net debt, however, increased in the period from US$385m to US$464m.

]]> BAM East goes from discovery to resource in just a year, says Humphries Fri, 17 Feb 2017 15:53:00 +0000 Bill Humphries, of Canada-focused Landore Resources Limited (LON:LND) talks us through the 301,000 ounce maiden gold resource for the BAM East project at Junior Lake in Ontario.
Due to wide spaced drilling good, grade it was moved up the value chain from discovery to resource in just one year.
"The discovery cost of 5$ an ounce. Drill success rate of 36 ounces of gold per metre. This is amongst the best in the world," says Humphries.

]]> Kincora Copper boss keen to get drills turning in Mongolia within six months Fri, 17 Feb 2017 12:26:00 +0000 Sam Spring, president and chief executive of explorer Kincora Copper Ltd (CVE:KCC) tells Proactive they've resumed field activities as it looks to expand the near surface target area at its Mongolian prospects.

The company has completed analysis of two high priority drill targets: Bayan Tal, an Oyu Tolgoi-style (OT) target; and East Tsagaan Suvarga (East TS), a brownfield Tsagaan Suvarga-style (TS) target.

]]> VSA Capital Market Movers - Metal Tiger Fri, 17 Feb 2017 09:06:00 +0000 Metal Tiger (LON:MTR)

MOD Resources (MOD AU), which holds a 70/30 JV with Metal Tiger (MTR LN) has announced drill results which indicate further mineralisation at greater depth than the current T3 resource. The additional drilling has been carried out as part of the PFS work. This result confirms our view that there is potential for resource expansion at the T3 project.

Hole 64D indicated new mineralisation at depth below the current zone, this may be the source of a geophysical anomaly known to lie beneath the current resource. The core showed a 75m wide zone at a depth of around 247m. The drill core also shows that the mineralised interval sediments are folded upon themselves, suggesting that the mineralised horizon repeats, at least in some places. As the potential scope of total copper in resource is expanding MOD has mobilised another drill rig to speed up the effort to assess this new discovery. A new deep drill hole, to a depth of 600m, is intended to tes geophysical anomalies south and below the T3 resource. There are, however, no assays reported as yet and it is not yet possible to determine the grade.

We reiterate our Buy recommendation and 5.68p/sh.

]]> VSA Capital Market Movers - Eco (Atlantic) Oil & Gas Ltd Wed, 15 Feb 2017 13:57:00 +0000 Eco (Atlantic) Oil & Gas (CVE:EOG) is a junior E&P with licences in highly prospective offshore acreage in Guyana and Namibia. The prize catch on offer lies in the potential of ECO’s 40% working interest in the 1,800km Orinduik Block in Guyana, which is firmed up by ExxonMobil’s (XOM US) world class Liza and Payara discoveries on the adjacent block where recoverable resources are estimated to be up to 1.4Bboe.

In light of these significant discoveries being just a few kilometres updip of Liza, ECO and its partner Tullow Oil (TLW LN) have agreed to enhance the work programme in Guyana with TLW carrying ECO for US$1.25m on the 3D seismic survey. This will refine the targets already identified from the existing 2D seismic, which TLW estimates contain prospective resources of 900mmboe, as well as scoping out new leads. ECO is also unique in that it is currently the only AIM listed oil and gas company with exposure to Guyana.

AIM Listing Raises £5m

As part of its AIM listing ECO has raised £5.09m which will be used to advance ECO’s current work programmes including enhancing the 3D seismic data programme on the Orinduik Block, funding the acquisition of new licences as well as providing general working capital.

Carried For One Well in Namibia

In Namibia ECO has working interests across four blocks with multiple leads and is again partnered by TLW and AziNam amongst others. Whilst in Namibia, ECO is contingently carried by TLW for the full costs of one exploration well on its Cooper Block. TLW and its partners are also due to be drilling on the adjacent PEL 37, once a drillable prospect is identified, which will provide read across for ECO as well as providing a catalyst for exploration in the region.

Recommendation and Target Price

We initiate coverage on ECO with a BUY recommendation and 25p 12 month target price, representing a 41% upside on the current share price. This is in line with our risked NAV using 12% WACC and a US$60/bbl flat long-term oil price.

]]> VSA Capital Market Movers - Millennial Lithium, Acacia Mining Tue, 14 Feb 2017 08:44:00 +0000 Millennial Lithium (TSX:ML)

Iain Scarr has been promoted from VP of Development and Exploration to Chief Operating Officer of Millennial Lithium.

We reiterate our Speculative Buy recommendation.

Acacia Mining (LON:ACA)

Acacia Mining (LON:ACA) has announced strong results for the full year 2016. Gold production of 830koz was up 13% YoY while gold prices averaged 7% higher YoY meaning revenues of US$1.05bn were up 21% YoY. The stronger top line alongside significant cash cost reduction resulted in EBITDA of US$415m, up 137% YoY. Operating cash costs of US$640/oz were down 17% YoY whilst on an AISC basis at US$958/oz they were 14% lower. This was despite a modest increase in capex of 7% YoY to US$196mn.

ACA significantly increased its dividend up from 4.2 cents per share in 2015 to 10.4 cents per share in 2016 after a final dividend of 8.4 cents per share. Net cash of US$218mn was up more than double from US$105m as a result of the strong performance.

]]> VSA Capital Market Movers - Sula Iron and Gold PLC Mon, 13 Feb 2017 08:23:00 +0000 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced that two diamond drill rigs for its upcoming drill programme on the Ferensola gold project in Sierra Leone were unloaded at the port in Freetown on 10th February. The original programme had envisaged a single drill covering 2,400m, however, the second drill has been provided at no additional cost to SULA meaning that the results of the programme should be received faster than planned. Furthermore, since Equity Drilling are taking a portion of payment in SULA common shares the cash freed up can be used to fund the programme beyond the original 2,400m plan.

Drilling will be carried out on the Sanama Hill target, where drilling previously backed up historical data, as well as on the significantly larger Eastern Target which was highlighted by the recent IP survey.

We reiterate our 1.7p/sh. target price and Speculative Buy recommendation.

]]> VSA Morning Agri Comment Mon, 13 Feb 2017 08:21:00 +0000 AAAP#Secures New Supply Contract

Anglo African Agriculture plc (LON:AAAP), the London-listed food manufacturing and processing company with operations in Cape Town, South Africa, has announced a significant contract win.

AAAP will supply up to 300t of speciality spices to an unnamed South African food manufacturer through CY 2017

Order subject to supply chain volumes from the purchaser

VSA Comment

In FY 2017 AAAP sold c1,100t of product through its wholly owned spice manufacturing business Dynamic Intertrade. This latest contract provides a significant proportion of the volumes needed for AAAP to exceed this figure in FY 2017.

As previously announced, AAAP is currently undergoing a number of expansion initiatives to expand its production capacity to 250t per month, which should be complete by the end of February.

The contract win highlights the continued progress at AAAP, following the installation of new senior management at the end of last year.

]]> Gold on the rise as markets struggle to gauge the actual impact of Donald Trump Fri, 10 Feb 2017 13:56:00 +0000 VSA Capital Market Movers - Metal Tiger Thu, 09 Feb 2017 08:16:00 +0000 Metal Tiger (LON:MTR)

Metal Tiger (MTR LN) announced yesterday that it has exercised 29.2mn warrants at AUD0.01/sh. for 29.2mn shares in MOD Resources (MOD AU) at a cost of AUD292k (£179k). MOD and MTR hold a 70/30 JV on the T3 copper project in Botswana. The funds arising from the exercise will be used in the development of this project where the focus is on completing a PFS. We note that the exercise of the warrants increases MTR’s holding in MOD’s issued shares to 5.01% which is notifiable on the ASX. 

We reiterate our Buy recommendation and target price of 5.68p/sh.

]]> VSA Capital Market Movers - Rio Tinto, Tullow Oil plc, Eco (Atlantic) Oil & Gas Ltd Wed, 08 Feb 2017 08:38:00 +0000 Rio Tinto (LON:RIO)

Rio Tinto (LON:RIO) has announced robust full year results for 2016. Revenues were down 3% YoY to US$33.8bn, however, EBITDA was up 7% YoY to US$13.5bn and net income of US$4.6bn reversed a loss of US$0.9bn in 2016. Segment performance was mixed with iron ore and energy and minerals performing strongly offset by weakness in aluminium, copper and diamonds. Annual production for iron ore was up 4% YoY and with the benefit of stronger prices EBITDA was up 11% to US$8.5bn. Although oil production was weaker YoY the rebound in prices drove a significant recovery in segment earnings and EBITDA was up 46% YoY to US$1.8bn. Copper and diamonds segment earnings were, however, weaker with EBITDA down 24% to US$1.4bn owing largely to weakness in commodity prices. The aluminium division also suffered due to weaker aluminium premia, offsetting strong production increases and EBITDA was down 10% YoY to US$2.5bn.

RIO have also declared a final dividend of US$1.25/sh. meaning a full year dividend of US$1.70/sh or US$3.1bn, down 21% YoY. This is alongside a share buyback programme of US$0.5bn to be carried out during 2017.

Tullow Oil (LON:TLW)

Tullow Oil (TLW) announced its results for the year ended 31 December 2016 this morning. FY working interest production was 67.1kboepd (-9% YoY), in-line with recent guidance. However, including the impact of insured barrels from the Jubilee field this increases to 71.7kboepd. With the TEN development coming on-line in August 2016 TLW’s production is now expected to increase to 78-85kboepd in 2017. Revenue was US$1.3bn (-21% YoY) and net debt at a significant US$4.8bn (+19%).

TLW’s balance sheet remains under pressure with gearing standing at 5.1x. 2016 capex was US$0.9bn (-47% YoY) and TLW plans to reduce this further in 2017 to US$0.5bn. Which includes US$125m to be offset by the completion of the farm out for 21.57% of the Lake Alberta project to Total (FP FP) for US$900m. However, only US$100m of this deal will be received upfront so it will not provide significant deleveraging of its balance sheet in the short term.

Whilst TLW was free cash flow positive in Q4 2016 after TEN first oil, we anticipate that it may farm-out more of its assets to allow it to deleverage quicker. We are cautious over the stock whilst the net debt remains at such levels.

Eco Atlantic (LON:ECO)

Eco (Atlantic) Oil & Gas (ECO)# an oil and gas company with highly prospective exploration licences offshore Guyana and Namibia was admitted to trading on AIM today. As part of the listing it raised £5.09 million before expenses by placing 31,781,250 new Common Shares.

]]> VSA Capital Market Movers - Egdon Resources Plc Tue, 07 Feb 2017 08:31:00 +0000 Egdon Resources (LON:EDR)

Egdon Resources (EDR)# has provided an update on its plans at the Wressle oil field having had planning permission refused for production at the site by North Lincolnshire Council’s Planning Committee on 11 January, going against previous planning guidance. As anticipated EDR will now submit a formal appeal against the ruling at the earliest possible opportunity.

Also as expected, EDR has lowered its average production guidance for the year ending 31 July 2017 from 165boepd to 100-110boepd, reflecting the initial refusal. EDR will now take the opportunity to submit a new planning application along with the appeal for the development to address specific concerns outlined by the council.

In our model we assume EDR’s appeal will be successful but the delay has pushed out our expected cash flows for the well by one year, with the Wressle income and associated capex now occurring in FY 2018. However, this does not impact on our NAV and we maintain our BUY recommendation and 34p TP.

]]> VSA Capital Market Movers - Goldplat and Rangold Resources Mon, 06 Feb 2017 08:29:00 +0000 Goldplat (LON:GDP)

Goldplat has announced the successful commissioning of its Stage One processing facility at its Kilimapesa mine in Kenya. Although in line with our expectations this news confirms that the turnaround at the mine, which has resulted in significant losses in recent period is well underway. The plant has a design capacity of 200tpd and stage one represents the commissioning of the plant whilst stage two includes the installation of the crusher circuit and three leach tanks and stage three is the installation of a second mill and three further leach tanks.

A stockpile of 6kt of crushed ore was created to enable the plant to operate whilst stage two is completed. At the current rate, GDP has guided to gold production of 4,600oz in FY 2017 which is marginally above our estimate of 4,500oz and up from 2,005oz in FY 2016. In line with GDP’s guidance we anticipate that Kilimapesa is likely to reverse operating losses in FY 2017 which would strongly benefit the results of the wider group.

We reiterate our Buy recommendation and 11.2p/sh. target price.

Randgold Resources (LON:RRS)
Randgold Resources has delivered robust operational results for 2016 although the significant announcement is the dividend increase to US$1/sh., up 52% YoY. Group production of 1.25mnoz up 3% YoY was in line with guidance while total cash costs were down 6% YoY to US$639/oz.

As a result of stronger production and a recovery in the gold price revenue of US$1.55bn was up 11% YoY. Given stronger revenues and a reduction in cash costs, profit from mining activity was also up strongly by 31% YoY to US$752mn. RRS long term plan indicates that production is due to rise further in 2018 alongside declining unit costs.

]]> Why small cap miners can be far better bets than their larger peers Fri, 03 Feb 2017 15:51:00 +0000 VSA Capital Market Movers - Metal Tiger, Millennial Lithium Fri, 03 Feb 2017 08:14:00 +0000 Millennial Lithium (TSX:ML)

Millennial Lithium (ML) has added to its existing prospective lithium acreage in the Pocitos basin of NW Argentina with the signing of an option to acquire 100% of an additional 15.9km2. This acreage is to be called the Pocitos West project. ML currently has a license at the north end of the basin optioned to Southern Lithium (SNL CN) and lies 40km west of ML’s primary project Pastos Grandes. ML will make initial payments of US$0.25m and a further set of staged payments over 36 months to total US$4.5m to acquire 100% of the license.

The Pocitos basin is 60km long and is a known host of lithium brines. Historical results from 12 shallow holes drilled in 1979 by an Argentine government agency yielded lithium in brine of up to 417ppm and potassium in brine up to 15,300ppm. Historical geophysical evidence suggests the basin is 500m deep under this license and has a floor which dips toward this ground.

ML continues to consolidate the ownership of prime lithium acreage in the Lithium Triangle of South America; the source of 80% of the world’s current lithium reserves.

We retain our SPEC BUY recommendation.

Metal Tiger (LON:MTR)

Metal Tiger (MTR LN)’s JV partner MOD Resources (MOD AU) announced this week a quarterly activities report. MTR holds a 30% interest in the T3 copper project in Botswana, for which MOD holds a 70% interest. Although the release does not contain additional new information MOD has confirmed that the PFS is now underway following the release of a PEA in Q4 2016.

The PEA demonstrated the potential for a low cost copper project producing c20ktpa Cu and 609kozpa Ag. Our analysis derived a post-tax NPV of US$170m on a 100% basis with initial capital of US$135m and cash costs of US$1.19/lb.

Currently MOD’s market capitalisation of A$48.8m (£29.7m) implies that MTR which currently has a market capitalisation of £9.8m does not even reflect the full value of its interest in the T3 project. We therefore believe that MTR continues to be heavily undervalued particularly given its broader portfolio of interests such as the brownfield zinc-lead-silver mine at Boh Yai and Song Toh in Thailand.

We reiterate our Buy recommendation and 5.68p/sh. target price.

]]> VSA Morning Agri Comment Tue, 31 Jan 2017 09:03:00 +0000 NWF Group: H1 2017 Results

UK-focused specialist agricultural and distribution business NWF Group (NWF LN) has announced six month results for the period ended 30 November 2016 (H1 2017).

Revenue: £255.9m, +13.9% YoY (H1 2016: £224.6m), FY 2017 consensus is currently £487.3m (+4.6% YoY)

Adjusted Operating Profit: £2.2m, -21.4% YoY (H1 2016: £2.8m), FY 2017 consensus is currently £9.0m (+3.4% YoY)

Adjusted PBT: £2.0m, -23.1% YoY (H1 2016: £2.6m), FY 2017 consensus is currently £8.3m (+22.1% YoY)

Interim Dividend: 1.0p, flat YoY (H1 2016: 1.0p)

Net Debt: £19.1m, +83.7% YoY (30 November 2015: £10.4m)

Feeds: Revenue was £65.1m, +4.8% YoY (H1 2016: £62.1m), operating loss was £0.3m (H1 2016: profit of £0.3m)

Food: Revenue was £20.1, +4.1% YoY (H1 2016: £19.3m), operating profit was £1.6m, +14.3% YoY (H1 2016: £1.4m)

Fuels: Revenue was £170.7m, +19.2% YoY (H1 2016: £143.2m), operating profit was £0.9m, -18.2% YoY (H1 2016: £1.1m)

VSA Comment

Following its trading update on 19 December, NWF has confirmed the extent to which it has been impacted by the poor underlying market conditions in H1, particularly through Q1.

In feeds, following a very strong November for UK ruminant feed production (+8.0% YoY), DEFRA data shows overall ruminant compound feed production fell just 1.0% in NWF’s H1 with a QoQ turnaround clearly visible in the data (Q1: -4.7% YoY; Q2: +2.3% YoY), with sheep feed volumes being particularly strong.

This increase in demand has arrived alongside significant input commodity price increases as a result of the devaluation of the pound following the Brexit vote. This has caused margin pressure for NWF, leading to a loss for its feed division, despite two price increases being implemented during the period (in-line with peers). A third price increase has been made earlier this month as input commodity prices have continued to increase (UK feed wheat now +40% since 1 June 2016).

Although NWF gained market share in H1 (+1.5% YoY to 268,000t) it has clearly come at a cost with regards to margins. If commodity prices stabilise and NWF can maintain these customers, then it should receive a boost from these new customer additions in H2.

Net debt has increased in-line with expectations, with c£4m spent on automating the blending plant at Wardle and doubling capacity to more than 200,000t, and also doubling capacity at the compound feed plant at Longtown to 120,000t.  c£5m was also spent on the acquisition of Jim Peet Agriculture.

NWF’s food division continues its solid performance with its Wardle warehouse fully utilised and high service levels maintained. The division is benefiting from the gradual recovery in the ambient grocery market.

NWF’s fuel supply business was impacted by warm weather and lower demand for heating oil through summer (H1 volumes -20% YoY). FY performance will depend on temperatures in the remaining winter months, with a cold snap forecasted for February, which would be beneficial for volumes of higher margin heating oil.

NWF remains confident on meeting FY expectations, which would represent a significant turnaround from its performance in the quieter H1 period (adjusted PBT moving from -20% YoY for H1 to +20% YoY for FY). Due to higher commodity prices, consensus expectations for revenues are likely to be upgraded through £500m following these results. As we have been writing for some time, underlying market conditions have turned in the UK agricultural sector and NWF appears set to benefit from this improved sentiment in H2.

]]> VSA Capital Market Movers - Egdon Resources Plc Mon, 30 Jan 2017 09:01:00 +0000 Egdon Resources (LON:EDR)

Egdon Resources (EDR)# has acquired an additional 12.5% working interest in PEDL 201 in the Widmerpool Gulf from Corfe Energy for a consideration of 424,593 shares, equivalent to £50k based on the average closing mid-price for the five days prior to completion.

This increases EDR’s interest in the licence to 45% which lies in its core area of the East Midlands which is considered prospective for both conventional and unconventional resources. We value PEDL 201 as part of EDR’s shale portfolio, therefore, the value added by increasing its net acreage offsets the dilution by the issuance of these additional shares. Hence we maintain our BUY recommendation and 34p TP.

]]> Trump and May are both heralds of a new protectionism, and gold will benefit Fri, 27 Jan 2017 13:58:00 +0000 VSA Capital Market Movers - Anglo American, Kaz Minerals, Polymetal International Thu, 26 Jan 2017 08:23:00 +0000 Anglo American (LON:AAL)

Anglo American (LON:AAL) has released largely strong production results for Q4 2016 with production increases across all commodities bar copper and met coal. Diamond production of 7.8mnct was up 10% YoY reflecting curtailed production in 2015 and also the increased contribution from Gahcho Kue in Canada. Platinum production of 610koz was up 2% YoY in Q4 meaning full year production of 2.38mnoz was also up 2% YoY.

Copper production of 147kt was down 19% YoY in Q4 and 10% YoY to 577kt for the full year. This was due to unplanned disruptions as well as planned sequencing of lower grades at Los Bronces. Nickel production of 11kt was up 4% YoY in Q4 meaning full year production of 45kt was up 47% YoY driven by the ramp up of additional capacity.

Iron ore production at Kumba was strong, up 9% YoY to 12mnt in Q4, however, full year production was 8% lower YoY at 42mnt. The optimisation of the pit shell did not take effect until H2 2016 hence the weaker annual output. The ramp up at Minas Rio continued strongly, however, with production of 4.9mnt up 49% YoY with full year production of 16.1mnt up 76% YoY. Met coal production was 2% lower YoY in Q4 and the full year at 5.4mnt and 21mnt respectively following the sale of Foxleigh. Thermal coal production up 4% in Q4 to 8mnt was insufficient to offset the sale of Callide meaning full year production of 33mnt was down 4%.

Polymetal (LON:POLY)

Polymetal (POLY LN) has announced strong Q4 2016 production results with gold equivalent production of 375koz, up 21% YoY. This was primarily driven by stronger gold production, up 30% YoY to 285koz in Q4 while silver production was down 3% YoY to 3mnoz. Full year production of 1.27mnoz gold equivalent was marginally ahead of full year guidance of 1.26mnoz.

POLY expect gold equivalent production of 1.4-1.55mnoz, however, cash costs are expected to rise versus 2016 to between US$600-650/oz from US$525-575/oz and on an AISC basis to US$775-825/oz from US$700-750/oz.


KAZ Minerals (LON:KAZ)

KAZ Minerals (LON:KAZ) has announced strong Q4 production results with 140kt of copper produced in the full year, up 73% YoY and in line with guidance.  Gold production was strong and ahead of guidance with 40koz produced in Q4 meaning that full year production of 120koz was up 245% due to elevated grades at Bozshakol.

]]> VSA Capital Market Movers - Antofagasta Plc, BHP Billiton plc, Fresnillo Wed, 25 Jan 2017 08:34:00 +0000 Antofagasta (LON:ANTO)

Full year copper production at Antofagsta (LON:ANTO) narrowly missed full year guidance of 710-740kt at 709.4kt despite a 12.5% YoY increase. Q4 2016 copper production of 206kt was up 14% QoQ and 22% higher YoY. 2016 gold production of 271koz was up 27% YoY at the upper end of guidance of between 245-275koz.

Despite weaker than planned copper production, net cash costs were ahead of guidance of US$1.25/lb at US$1.20/lb, down 20% YoY. Q4 2016 net cash costs were down 4.2% QoQ to US$1.13/lb.

Guidance for 2017 suggest broadly flat copper production at 685-720kt. Gold production is expected to decline significantly to between 185-205koz while molybdenum production is expected to modestly increase from 7.1kt in 2016 to 8.5-9.5kt in 2017. Capex was previously guided to below US$900m in 2017 while group cash costs are forecast to rise modestly to US$1.30/lb, due to a weaker by-product credit contribution. Operationally the outlook appears weaker in 2017, in our view; however, this is likely to be offset somewhat by stronger copper prices.

BHP Billiton (LON:BLT)

BHP Billiton (LON:BLT) has released weak results, with production declines in petroleum, copper and thermal coal in H1 FY 2017. Petroleum production of 106mmboe was down 15% YoY in H1 due to a sharp decline in onshore US production. Conventional production was largely flat, meanwhile. Copper production of 712kt was down 7% YoY as although Escondida production was flat at 452kt this was offset by maintenance at Pampa Norte and grade weakness at Antamina.

Iron ore production of 118mnt in H1 FY 2017 was up 4% YoY as production continued to ramp up at Jimblebar. Met coal production of 21mnt was up 1% YoY while thermal coal production was down 4% YoY to 14mnt.

Fresnillo (LON:FRES)

Fresnillo (LON:FRES) has released strong results with silver production of 50.3mnoz, up 7% YoY and in line with guidance. Q4 2016 production of 13.3mnoz was up 10% YoY. FRES also benefitted from strong gold production of 934koz, up 23% YoY and ahead of guidance. This was enhanced by a one off inventory drawdown at Herradura. Guidance for 2017 is for continued strong silver production with a further annual increase to 58-61mnoz including 4mnoz from the silverstream. Gold production is again expected to be strong although without the inventory drawdown impact this will likely be lower at between 870-900koz.

]]> VSA Capital Market Movers - Petra Diamonds Mon, 23 Jan 2017 11:09:00 +0000 Petra Diamonds (LON:PDL)

Petra Diamonds (LON:PDL) has announced a trading update for H1 FY 2017 which is soft, in our view, as achieved prices disappointed. Production increased 24% YoY to 2mnct as mining at Finsch and Cullinan moved away from undiluted ore thereby improving grades while PDL also benefitted from the increased contribution from tailings production at Ekapa. Grades were in line with company guidance and full year guidance of 4.4-4.6mnct is unchanged. However, since the period end, PDL has experienced some labour disruption at Cullinan due to a dispute with contractors. This may impact up to 0.6mnt of ore throughput.

Revenue was up 48% YoY to US$228.5mn, in part due to the timing of sales as volumes sold increased 47% YoY to 1.9mnct. However, per carat prices demonstrate a mixed picture. Despite a periodic increase in per carat values at Finsch of 20% and at Koffiefontein of 8% these disappointed versus guidance. At Cullinan and Williamson per carat values were ahead of guidance although at Williamson values declined 17% YoY.

Capex was marginally lower at US$135m (-4% YoY) although this represents c70% of FY 2017 capex. Net debt was up 21% YoY to US$465m.

]]> Mining hits new highs, as world awaits Trump Fri, 20 Jan 2017 14:25:00 +0000 VSA Capital Market Movers - Mariana Resources Ltd, Shanta Gold Limited Thu, 19 Jan 2017 14:25:00 +0000 In the news: Mariana Resources, Shanta GOLD, West African Resources, Base Resources & The Alchemist


We have a few items of news today. In the Companies section we have a review of the amazingly robust results of a Preliminary Economic Assessment into the development of the Hot Maden Project in Turkey, in which Mariana Resources† has a 30% interest. The study delivered a post-tax NPV8 of US$1.4bn for the whole project and an IRR of 153%. We also review the quarterly production report from Shanta Gold, a company that is building a solid reputation for delivery from its New Luika operations in Tanzania.

You might have missed this on West African Resources (we did!). The company has now received the mining permit for its lead project in Burkina Faso; this has been renamed Sanbrado (it was formerly Tanlouka). With this significant milestone passed, the company is now focused on the delivery of the definitive feasibility study for the project, which is scheduled to be completed by the end of 1Q17.

Just to remind you about our latest publications. Jim Taylor put out Base Resources*† — December Quarterly Activities Report, 17 January 2017. The company’s latest quarterly figures show it continuing to offer quality exposure to improving mineral sands markets. Production was largely stable, with guidance for 2017 largely unchanged.

We also published our latest edition of The Alchemist. This was focused on zinc, which should benefit from rising commodity prices, production cuts, minimal new mine development and growth in demand. The piece looks at where investors can obtain exposure to zinc miners. It can be viewed here.




LON:MARL| £0.835 | US$128m

Stellar Economics Highlighted in the Hot Maden PEA

Mariana Resources has announced the results of its Preliminary Economic Assessment (PEA) of the 30%-owned Hot Maden gold-copper project in Turkey. Headline figures includes a base case of 1.0Mtpa mined, a nine-year mine life producing 2.6Moz Au and 142,000t Cu, an IRR of 153% and an NPV8 of US$1.4bn.

COMMENT: The Hot Maden PEA assumes very low operating costs and a low upfront capital intensity from a sizeable underground mining operation. The economics showing a post-tax NPV8 of US$1.4bn and an IRR of 153% highlight why Mariana’s stock price has quintupled over the last 12 months. The pace of development has been fast, with no sign of letting up. The current programme includes a further 10,000m of drilling, with the next milestone the planned publication of a pre-feasibility study in 3Q17. Subject to financing and permitting, we suggest that this could see the completion of a DFS and the project construction completed by the end of 2018.

Mariana’s flagship asset is the Hot Maden Project in Turkey — Hot Maden is a gold-copper project in north-eastern Turkey. It is a joint venture, of which Mariana owns 30%. The JV partner owning 70% is Turkey-based Lidya Madencilik Sanayi ve Ticaret AS (Lidya), the mining arm of Çalık Holding, a private Turkish conglomerate with operations in energy, construction, mining, textile, finance and telecommunications. The company’s 30% interest was acquired as part of its acquisition of Aegean Metals Group (announced in September 2014). Drilling commenced in December 2014 and was performed (and fully funded) by Lidya in order to earn its 70% interest.

Very low capital intensity is key to driving IRR — Upfront capex is expected to be US$169m, which equates to US$51/oz AuEq over life-of-mine. Total capex (upfront + sustaining) is expected to be US$261m, which equates to US$79/oz AuEq life-of-mine.

Low-cost underground mining adds to the positive economics — The mine plan assumed in the PEA is an all underground operation using transverse and longitudinal long-hole open stoping. The base rate for mining and processing is 1.0Mtpa, with an assumed mineable quantity of 7Mt at 11 g/t gold and 1.9% Cu over a nine-year mine life. Mining costs are assumed to be low at US$31.05/t.

The gravity and flotation process delivers high recoveries — Metallurgical testing to date has been done through flotation and concentration, and indicated high recoveries of both copper and silver. The assumed recoveries vary based on grade, but the life-of-mine weighted averages are 88% Au and 90% Cu. The flow sheet for the PEA assumes the production of one standard copper-gold concentrate, and a second gold-bearing pyrite concentrate for sale to smelters. Processing these concentrates is assumed to cost US$15.13/t.

Economics highlight a low-cost operation with a very high NPV — In calculating the NPV, the company assumed a gold price of US$1,250/oz and a copper price of US$2.75/lb. Royalties on the property include a 2.6% state royalty and a 2% NSR to pay to Sandstorm. The PEA highlights an NPV of US$1.4bn using an 8% discount rate, and an IRR of 153%.

The fast pace of development is expected to continue — Lidya and Mariana will continue to advance this project rapidly in order to capitalise on what appears to be a highly cash-generative asset. This went from early drill results to PEA in 20 months, and is expected to move to PFS by 3Q17. The PFS is expected to consider the economics of the hanging-wall zinc zone (2.8Mt at 4.0% Zn), which was not considered in the PEA. The study will be conducted concurrently with a 20,000m drill programme planned for this year, including exploration drilling aimed at the discovery of new resources south of the Main Zone in the area of the old Russian mine.


LON:SHG | £0.11 | US$81m

December Quarterly Production and Operational Update

Shanta Gold has announced that 4QFY16 production from New Luika in Tanzania was 18,897oz (-8% QoQ). Cash costs were US$486/oz (+26% QoQ) and AISC US$747/oz (+20% QoQ). For the full year, production was 87,713oz (+7% YoY) and AISC were US$661/oz (-22%).

At 15,285oz, gold sales for the quarter were 81% of the total produced over the period. This, and a lower gold price received of US$1,187/oz, contributed to cashflow from operations going from US$11m in 3QFY16 to an outflow of US$0.1m in 4QFY16. Capex of US$13m and the receipt of US$5m in cash from a silver streaming deal led to a US$5m increase in net debt QoQ to US$43m (debt of US$58m and cash of US$15m).

Production and cost guidance for FY17 was 80,000–85,000oz at AISC of US$800-850/oz. Production is expected be lower during 1H17, when the ramp-up of higher-grade underground ore is scheduled to commence, than in 2H17.

COMMENT: Annual production was a record for the operation and was ahead of guidance for the year of 82,000-87,000oz. Also, AISC for the year of US$661/oz were lower than guidance of US$690-740/oz, further building the current management team’s growing reputation for delivery. This was reinforced by statements that the all-important, fully-funded transition to underground operations is on budget and on schedule to deliver first ore by mid-year.

With respect to the future; an updated mine plan is planned to be completed by the end of 1Q17, which we expect to increase the planned mine life by two years (to 2023). The project retains considerable local and regional exploration potential, on which the company is now re-focusing its attention.

Encouragingly, the company also stated that its net debt will continue to decline in 2017, despite the completion of the underground development programme in 1H17.

In summary, the outlook for Shanta looks positive.

Production has been stable and costs have fallen — Commercial production was declared at the 100%-owned New Luika gold mine in south-west Tanzania in 2Q13. The company produced 64,000oz in 2013, 8,000oz in 2014 and 82,000oz in 2015; it has now delivered 88,000oz in 2016. Over each of these years, All-in Sustaining Costs (AISC) declined YoY (from US$1,049/oz to US$941/oz, to US$834/oz and to US$661/oz in 2016).

Much of cashflow hitherto has been re-invested in the project — A large proportion of the healthy cashflow generated by New Luika since coming on-stream has been reinvested in the operation. Between 2013 and 2016, Shanta’s operating cashflow totalled US$140m; over the same three-year period, a total of US$115m of this was reinvested in the operations (mainly on retrofitting the plant), resulting in net cashflow before finance over the four years of US$25m. In spite of the planned capex in 2017 of US$33m, much of which will be spent in 1H17, the company has stated that it expects to reduce net debt over the coming year.

New Luika commenced transition to underground in 2016 — Operations currently comprise production from two open pits — Ilunga and Jamhuri (which contained 39,000oz of gold reserves) — and from stockpiles. A further three small deposits (with total reserves of 49,000oz) are planned to be mined by open pit until the end of 2021. Under the current plan (‘Base Case Mine Plan’ of September 2015), production from underground mining operations is planned to commence at the Bauhinia deposit in early 2017, and at the Luika deposit by mid-2017. This plan included total production of 310,000oz from 2016 to early 2022, at average AISC of US$640/oz and pre-production capex of US$38m (excluding working capital). Assuming throughput of 600,000tpa, recoveries of 90% and a head grade of 4.8 g/t, the Base Case Mine Plan forecast average production of 84,000oz pa between 2016 and 2020.

New mine plan to be published in 1Q17 — The company plans to announce a new mine plan in 1Q17 that will update the previous ‘Base Case Mine Plan’ of September 2015. The new plan is expected to include a modest increase in reserves at the Elizabeth Hill deposit, and also the incorporation of a third planned underground operation at the Ilunga deposit. We expect that this will extend the mine life by two years (until mid-2023).

To date, development of the first underground operation at Bauhinia is on time and budget — The decline has now intersected the first ore levels and the first stope is planned to be in production by July 2017, with full production from Bauhinia to be reached by 1Q18. We anticipate first production from Luika underground by the end of 2017 and full production around mid-2018.

Current EV of US$124m — Net debt at the end of 2016 was US$43m, comprising US$15m of cash and US$58m of gross debt. We estimate that this comprised:

• US$3m of promissory notes, repayable April 2017

• US$37m loan from Investec (Libor +4.5%, repayable over four years)

• US$15m of convertible loan notes (maturing April 2019, 13.5% interest, convertible at US$0.47/share (equivalent to £0.38/share))

• US$3m of equipment finance and lease finance

At the company’s current share price and with 583m shares outstanding, the current market cap is equivalent to US$81m. With net debt at end-December of US$43m, the estimated enterprise value is therefore US$124m.


]]> VSA Capital Market Movers - Acacia Mining Thu, 19 Jan 2017 08:41:00 +0000 Acacia Mining (LON:ACA)

Acacia Mining (LON:ACA) has announced strong production results for Q4 2016. Production of 213koz was up 6% YoY resulting in record full year production of 830koz, up 13% YoY. Higher throughput and stronger recoveries offset a marginal YoY decline in grade driving cash costs down by 7% YoY whilst AISC were down 5% YoY to US$952/oz. For the full year AISC of US$958/oz, down 14% YoY, indicates strong free cash flow generation, which given the stronger gold price for much of the year, resulted in net cash rising from US$114m to US$219m.

Although full year guidance was not provided at this time, ACA indicated that production at Buzwagi would be extended by six months to the end of 2017 before two years of stockpile processing. This will likely result in an increase in annual production from 162koz in 2016 at Buzwagi.

It was announced recently that ACA is in talks to merge with TSX listed Endeavour Mining (EDV CN). EDV has assets in Mali, Ghana and Ivory Coast. EDV produces less gold per annum at below 625koz, however, this at a lower AISC of less than US$920/oz. EDV is currently capitalised at C$2.17bn (£1.3bn) versus ACA at £1.78bn. The merger would create a geographically diversified Sub-Saharan gold producer with significant growth potential from EDV’s Hounde project in Burkina Faso. With the gold price likely to be volatile in 2017, the strong cost position of both firms places them in a strong position.

]]> VSA Capital Market Movers - Hochschild Mining Wed, 18 Jan 2017 09:08:00 +0000 Hochschild Mining (LON:HOC)

Production numbers for Q4 and the full year show a robust growth in output of both gold and silver for Hochschild (HOC). Total silver equivalent ounces for the year rose 31% to 35.5m ounces on the back of a rise in gold output to 246kozs while silver output rose to 17.3mozs.  AISC costs per equivalent ounce of Ag are looking to come in at $11/oz-$11.50/oz.  Cash grew by almost US$60m to US$140m over the year.

Forward guidance is rather conservative with growth of 2mozs to a 37moz target.  AISC costs are predicted to rise about $1/oz to above US$12/oz due to increased exploration budgets and capex on the Pablo vein development.

We see Inmaculada mine is proving its production worth for the company but also is its corporate vulnerability; being its flagship operation and significant source of cashflows.  It will be interesting to see what HOC may do with its rising cash on M&A opportunities in coming months.

]]> Gold bulls slowly returning, as Trump boost to dollar fades and balance of power shifts Tue, 17 Jan 2017 11:03:00 +0000 VSA Capital Market Movers - Rio Tinto Tue, 17 Jan 2017 08:25:00 +0000 Rio Tinto (LON:RIO)

Rio Tinto (LON:RIO) has announced mixed production results for Q4 2016 resulting in a robust full year result. Copper production was up by 20% YoY to 134kt meaning full year production was up 4% to 523kt, however, this was short of guidance owing to no contribution from Grasberg. This was despite strongly higher production at Kennecott and a marginal recovery at Escondida.

Iron ore shipments were modestly higher, up 4% YoY and 3% QoQ to 86mnt with full year shipments of 330mnt up 6% YoY. As well as a targeted increase in production which met guidance, RIO also benefitted from minimal disruption from poor weather. Coking coal production was up strongly by 15% QoQ and 1 % YoY to 2.2mnt although up just 4% YoY to 8.1mnt. Semi soft and thermal coal production was weak, down 13% QoQ and 3% YoY to 5.2mnt in Q4 2016 and 4% lower YoY at 21.4mnt although this was in line with guidance.

Bauxite and aluminium production was strong, with record annual aluminium production. Bauxite production of 12mnt was up 8% QoQ although down 2% YoY while full year production was up 9% to 47.7mnt, ahead of guidance. Aluminium production driven by the improved Kitimat smelter was up 7% QoQ and flat YoY to 925kt while full year production was up 10% YoY to 3.6mnt.

RIO should benefit from stronger commodity prices in Q4 2016 which should offset production weakness in copper and thermal coal and enhance revenues in aluminium and iron ore.

]]> VSA Morning Agri Comment Mon, 16 Jan 2017 08:18:00 +0000 MPE Share Buy-back Programme

Indonesian palm oil producer MP Evans (LON:MPE) has announced a share buy-back programme.

£5m share buy-back programme

Duration of up to 12 calendar months

Programme will be kept under review and Board will make a decision in due course on whether to extend it

VSA Comment

Following its successful bid defence against Kuala Lumpur Kepong (KLK MK), one of the key concerns for us is that we may see a gradual drifting of the share price from current levels, as MPE naturally takes time to deploy its surplus cash into earnings enhancing assets.

Although fairly small, the commencement of a share buy-back programme should help address this issue and maintain the share price at around the current level, given the low levels of liquidity in the stock. Over the past 90 days, MPE has traded on average c60,000 shares a day (£350-400k).

Fellow palm oil producer REA Holdings (RE/ LN) carried out a similar share buy-back programme at the end of 2013 through to late 2014, which stabilised its share price somewhat. However, its share price fell significantly following completion of this programme.

In the case of MPE we feel this is less likely to happen, given the strength of its balance sheet, and this programme should give the company a little more time to implement its post-KLK bid strategy, including the completion of various acquisitions to support its long-term growth plans.

]]> VSA Capital Market Movers - Egdon Resources Plc, Premier Oil PLC Thu, 12 Jan 2017 09:00:00 +0000 Egdon Resources (LON:EDR)

Yesterday afternoon North Lincolnshire County Council’s Planning Committee refused planning consent for the development of the Wressle Oil Field. This is disappointing for stakeholders in the licence including Egdon Resources (EDR)#, which holds a 25% WI and is operator of the licence. Permission was refused by the council over concerns that it had insufficient information on ground contamination, effect on the local community and the local economy.

Wressle is a “conventional” oil field and does not require fraccing. Therefore, this result comes as a surprise to us. EDR will now consider its options on the project including its right to appeal and we await further updates.

However, Wressle only formed a small part of our 34p/sh valuation (1p/sh) and we therefore maintain our BUY recommendation.

Premier Oil (LON:PMO)

Ahead of its FY 2016 results Premier Oil (PMO) announced an operational update with record production of 71.4kboepd in 2016 (+24% YoY), in-line with its upgraded guidance. This strong operational performance was largely driven by the acquisition of E.ON’s North Sea portfolio and the Solan field coming online. Furthermore, estimated capex for 2016 is expected to be US$690m, below guidance of US$730m. Whilst net debt reduced in Q4 as anticipated to US$2.8bn with cash and undrawn facilities was cUS$600m.

PMO 2017 production guidance for 2017 is 75kboepd before any contribution from Catcher is considered and is revised for lower Solan production due to poorer than expected reservoir performance which is limiting water injection, production uplift from works to repair this is unlikely to be added before 2018.

Catcher is on schedule for start-up later this year with total capex now forecast at US$1.6bn (29% lower than originally sanctioned).

Approval of the Tolmount gas field in the Southern North Sea is expected shortly, however, we question if PMO should begin committing significant capex to greenfield development projects whilst it is still looking to reduce its net debt. Details on its refinancing are expected shortly.

]]> VSA Capital Market Movers - Tullow Oil plc Wed, 11 Jan 2017 08:57:00 +0000 Tullow Oil plc(LON:TLW)

In an operational update ahead of its FY 2016 results, Tullow Oil Plc (LON:TLW) confirmed production was in line with its recent guidance, with West Africa averaging 65,500boepd, whilst in Europe FY net production averaged 6,200boepd.

TLW successfully brought TEN online in August 2016. Gross annualised working interest production in 2016 averaged 14,600boepd (net 6,900boepd) but in early January the capacity of the FPSO was successfully tested at an average rate of 80,000boepd over a 24 hour flow test. However, TLW now expects production from TEN to average c50,000boepd gross in 2017 as no new wells can be drilled before the ITLOS ruling in Q4 2017 with regard to the maritime border dispute between Ghana and Cote d’Ivoire.

This follows TLW’s announcement yesterday over its major farm out for 21.57% of the Lake Alberta project to Total (FP FP) for US$900m. This will leave TLW with 10% of the project, which is expected to produce c230,000boepd once complete. The deal will consist of US$200m cash with Total to pay US$700m of TLW’s remaining development costs on the project. We view this as a positive deal as it will allow TLW to repair its balance sheet with cash flow from its producing assets and not enter into another intensive capex period. Indeed net debt at the end of 2016 stood at US$4.8bn and capex is expected to reduce from US$0.9bn in 2016 to US$0.5bn in 2017.

However, this update is likely to be largely overlooked by Aiden Heavey leaving his post as TLW’s CEO to become a non-executive chairman and will be succeeded by Paul McDade (the current COO) and we expect the stock to trade a little weaker today.

]]> VSA Morning Agri Comment Tue, 10 Jan 2017 08:20:00 +0000 Carr’s Group#: AGM Statement

Ahead of its AGM later today, Carr’s Group (LON:CARR), the agricultural, food and engineering group, has provided a trading update for the eighteen weeks to 7 January.

CARR continues to trade in-line with expectations (FactSet consensus: revenues of £328.5m, +4.3% YoY, PBT of £14.4m, +2.1% YoY).

In agriculture (c80% of operating profit), the division is performing ahead of expectations. Compound feed and fuel volumes are ahead YoY, with machinery sales showing signs of recovery in Q1. Retail sales ahead of expectations; UK feedblock sales ahead YoY; US feedblock sales flat YoY.

In engineering (c20% of operating profit), the division is performing below expectations, driven by a significant contract delay in the UK manufacturing business.

Net debt at 3 December 2016 was £16.9m (3 September 2016: net cash of £8.1m).

VSA Comment

CARR has once more demonstrated the advantage of its diversified strategy. As we expected, CARR reports that it is operating in an improved environment with regards to its agriculture operations, perhaps best demonstrated by the reported signs of recovery in machinery sales, typically the first sector to suffer in a downturn and the last to pick-up in an upturn. With an improved outlook for farmers in 2017, particularly those in dairy, as discussed in our last VSA Agri Monthly publication, we believe the environment will continue to be beneficial for CARR for its remaining FY.

CARR again delivered compound feed volumes ahead of the overall UK ruminant animal feed market, which fell 0.7% YoY for September and October (November and December data not yet available) and again highlighting the market share gains that the larger producers are making. 

Although there has been little weather-related boost this winter to overall feed volumes so far, it is worth noting that sheep feed volumes have posted double digit increases in every month since the Brexit vote at the end of June and subsequent devaluation of the British pound. Key to this market will be whether these significant increases continue through the peak winter and early spring period.

More important to CARR will be UK demand for cattle and calf feed, for which the overall monthly YoY production decreases are moderating but have some way to go to reverse course, due to milk production continuing to be significantly lower YoY in recent months (last available data: -7.3% YoY in November, -4.2% YTD), despite steadily increasing milk prices.

As CARR had previously flagged would happen, US feedblock sales have slowed, as low US cattle prices begin to impact producers. CARR’s new facility at Shelbyville, Tennessee, expected to open by autumn 2017, should help a return to growth in this area over the medium-term. Although US cattle prices has staged somewhat of a recovery over the last two months, they remain significantly below those seen in 2014 and 2015 and farmers will need time to adjust to what may be a new normal.

No new information on potential acquisition targets was provided following the recent disposal of its flour milling division and the €7.85m acquisition of long-term strategic engineering partner STABER GmbH, except that management continues to review suitable acquisition opportunities. With £32.5m of undrawn facilities, CARR certainly has the firepower to make significant acquisitions in the coming year and we expect it will do.

As we move towards invoking Article 50 in March, considerable uncertainty has emerged in the UK and the unknown agriculture policy post-Brexit provides uncertainty for the sector over the medium-term, despite the guarantee of similar levels of funding until at least 2020. At the recent Oxford Farming Conference, Andrea Leadsom, Secretary of State for Environment, Food and Rural Affairs, outlined some of her views on this particular issue and professed her strong support for UK farmers, but it is also clear that much of detail remains unknown. Assessing the recent commentary, it seems that post-Brexit a focus on farming efficiency and high quality production seems most likely. This should support demand for CARR’s products in the market, which are particularly focused towards this segment of the UK farming sector.

]]> VSA Capital Market Movers - Metal Tiger Thu, 05 Jan 2017 08:18:00 +0000 Metal Tiger (LON:MTR)

Metal Tiger (LON:MTR) has announced that it has appointed Alastair Middleton as a Technical Director to its Board. He has 27 years of experience in both underground and open pit operations as well as in financial markets. Having spent 4 years at Goldfields of South Africa he worked for 14 years for Datamine International. He is a qualified Competent Person for gold, base metals, coal and industrial minerals.

We reiterate our Buy recommendation and 5.68p/sh. target price.

]]> VSA Capital Market Movers - Metal Tiger Thu, 22 Dec 2016 08:20:00 +0000 Metal Tiger (LON:MTR)#

Metal Tiger (LON:MTR) has announced that it has today received High Court approval to cancel its share premium account alongside the cancellation of Deferred Shares. In the event of an exit from one of MTR’s multiple projects this would enable the possibility of a dividend payout to shareholders.

Whilst this does not alter our outlook this is a positive development, in our view, which gives MTR greater flexibility.

We reiterate our Buy recommendation and target price of 5.68p/sh.

]]> VSA Capital Market Movers - Goldplat plc Tue, 20 Dec 2016 08:19:00 +0000 Goldplat (LON:GDP)

Goldplat (LON:GDP) has announced that it has received a renewed license from the Ghanaian Government to purchase and deal in gold. The new license is valid for three years and its receipt was expected given GDP’s long operating track record in the region.

The terms of the new license include a 5% royalty on all minerals and a commitment to install an additional elution plant as previously announced. The timeframe stipulated in the license agreement is that the plant should be commissioned by June 30 2018, in line with our expectations. The additional capacity will enable GDP to progress with its strategy of sourcing additional feedstock from overseas and expand the group’s gold output.

The receipt of the license enables a small inventory of by-products which require further processing outside of Ghana to be shipped which will positively impact earnings, most likely, in H2 FY 2017.  Despite the recent weakness in the gold price, the shares have remained supported and within their recent trading range and we continue to expect the turnaround at Kilimapesa to support earnings in FY 2017.

We reiterate our Buy recommendation and target price of 11.2p/sh.

]]> VSA Morning Agri Comment Mon, 19 Dec 2016 08:27:00 +0000 NWF H1 Trading Update

UK specialist agricultural and distribution business NWF Group (LON:NWF) has announced a trading update for the six months ended 30 November 2016 (H1 2017).

Trading was lower YoY in H1 due to a weaker Q1

However, trading has increased in recent months and NWF remains on track to reach FY expectations for performance and net debt

VSA Comment

DEFRA data shows that overall UK ruminant feed production fell 3.0% YoY for the first five months of NWF’s H1 period (data not yet available for November; Q1 period was -4.7% YoY) as demand was impacted by lower milk prices and a smaller UK herd size.

Despite this overall market decline, NWF reports that for the first five months of its H1, its animal feed production actually increased 1.5% YoY. This reflects the trend that we have been discussing throughout the milk price downturn, whereby the larger feed producers, such as NWF, have been gaining market share at the expense of the smaller players.

Looking forward, UK milk prices have been steadily increasing since the middle of the year. There is now evidence that this is being translated into increased animal feed consumption.

Total UK ruminant feed production fell just 0.5% in October (last data available) and although this was against our expectations for an increase YoY, this is much better than the 5%+ monthly falls we saw earlier in the year. We believe the UK market will move into monthly YoY increases in the near-term, which will translate into increased sales volumes for NWF in H2 and into its FY 2018.

In terms of its input commodities, a typical basket used for compound feed has reportedly increased c20% since March. This has been reflected in increased compound feed costs for UK farmers. NWF reports that it has increased its prices twice during the year, in-line with competitors, so margins should be maintained.

NWF’s food division continues its solid performance with its Wardle warehouse fully utilised and high service levels maintained.

NWF’s fuel supply business was impacted by warm weather and lower demand for heating oil through summer and early autumn but reports a strong performance in November. FY performance in this division will depend on temperatures in the remaining winter months and resulting demand for heating oil.

In general, the most important factor for all of the UK agricultural input companies is whether winter extends into March, a factor which has historically provided the strongest boost to animal feed purchases and heating oil demand.

NWF remains trading in-line with market expectations. Current FY 2017 (Y/E May 2017) FactSet consensus is for revenues of £487.3m, +4.6% YoY, with an adjusted PBT of £8.3m, flat YoY.

]]> VSA Capital Market Movers - Sula Iron and Gold PLC and Independent Oil & Gas PLC Fri, 16 Dec 2016 08:13:00 +0000 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced that it has raised a further £0.3m at 0.21p/sh. from the open offer which in conjunction with the prior placing, also at 0.21p/sh. brings total proceeds to £1.47m. Consequently a total of 702m shares will be issued. In addition, SULA has announced that in lieu of accrued fees SULA will pay certain directors of SULA and its wholly owned subsidiary a total of 8.8mn shares.

SULA is now in a strong position to commence its exploration programme focusing on the targets at Sanama Hill and the larger Eastern Target.

We reiterate our Speculative Buy recommendation and target price of 1.7p/sh. which was previously adjusted to reflect the full dilution of the share placing and open offer.

Independent Oil & Gas (LON:IOG)

Independent Oil & Gas (IOG)# has announced an increase to its internal management resources estimate for the Elgood and Harvey discoveries, in its Southern North Sea portfolio, after technical work was carried out across the licences. Therefore, the P50 resources at Harvey have increased to 113BCF (previously 16BCF) and at Elgood P50 resources have increased to 22BCF (previously 11BCF).

Further to this IOG has agreed both a three month extension to the Harvey licence and a two year extension to the Skipper licence.  We maintain our BUY recommendation on the stock.

]]> VSA Capital Market Movers - Stratmin Global Resources PLC Thu, 15 Dec 2016 09:04:00 +0000 StratMin Global Resources (LON:STGR)

StratMin Global Resources (LON:STGR) has agreed to bring forward the payments due from its Share Purchase Agreement with Bass Metals (BSM AU) into an early discounted cash settlement. Under the agreement BSM equity was due to be issued to STGR in two tranches of A$3m and A$5m subject to certain share price performance criteria. However, with STGR currently identifying possible targets for an RTO and the upcoming dilution overhanging BSM the companies have agreed to strengthen both their positions through early settlement of the deal.

BSM will pay A$2.46m in cash in three tranches, the first of A$955k is to be paid by 16 December 2016, alongside the immediate placement of the entire remaining 70mn shareholding in Bass at a minimum price of A$0.013, equivalent to A$910k. Additionally, STGR has a royalty of 2.5% on BSM and BSM now has the option to buy out that royalty for A$500k prior to 30 June 2018. In total STGR will receive an immediate £1.1m of a total £2.1m with a potential further £296k from the royalty.

STGR had previously agreed a loan facility of US$1.5m using the BSM holding as collateral. However, given the latest announcement this facility, which was undrawn will be terminated. Whilst the company has taken a reduced amount of cash we believe that the upfront cash and simplified payment structure put STGR in a far stronger position ahead of a potential RTO.

]]> VSA Capital Market Movers - Metal Tiger Wed, 14 Dec 2016 08:55:00 +0000 Metal Tiger: Showing Its Claws

Botswana - Copper

Metal Tiger (LON:MTR) in partnership with MOD Resources (ASX:MOD) in a 30/70 JV has rapidly developed the T3 copper project on the Kalahari copper belt in Botswana. A Scoping Study was released in December 2016 having only discovered the deposit in March 2016. Our analysis suggests a post-tax NPV of US$170m on a 100% basis following initial capital of US$135m.

The open pit mine will exploit an initial 28mnt resource with a grade of 1.24% Cu along with a 15.7 g/t Ag credit. This high grade project will likely have lowest quartile cash costs after by-product credits and we expect these to average US$2,690/t over the nine year life of mine. The resource remains open in multiple directions and there are additional satellite deposits in the vicinity implying significant future exploration and expansion potential.

Thailand - Lead, Zinc, Silver

Metal Tiger (LON:MTR) has an effective 78% interest in a brownfield lead zinc silver project in Thailand. Lead and zinc prices have rallied 30% and 68% YTD and based on our analysis of a Primary Economic Assessment (PEA) released in 2013 we believe that the project has strong cash flow potential and attractive returns with a post-tax NPV of US$44m. Much of the original processing plant and underground infrastructure remain in good order and the restart costs are likely to be around US$15m, on a 100% basis.

MTR is currently progressing through a permitting process in order to gain a mining license as well as exploration licenses on the surrounding areas.

Attractive Valuation

Given the strong cash flow generative potential of both core assets in Thailand and Botswana, which on a 100% basis have post–tax NPVs of US$44m and US$170m respectively, we believe that MTR, is currently trading significantly below its NAV. Despite a strong turnaround in commodity prices, particularly base metals, during 2016, little credit has been reflected for the development of what are, in our view, attractive assets.

Recommendation and Target Price

Our analysis produces a target price of 5.68p/sh and we initiate with a Buy recommendation.

]]> VSA Capital Market Movers - Independent Oil & Gas Mon, 12 Dec 2016 08:32:00 +0000 Independent Oil & Gas (LON:IOG)
Independent Oil & Gas (IOG)# has announced that it has submitted the draft Blythe Field Development Plan to the Oil and Gas Authority (OGA) which was submitted on time as part of the licence extension.

Subject to development funding first gas from the field is expected in 2018, which we use for our modelling purposes. As a reminder the Blythe Field forms part of IOG’s Southern North Sea (SNS) gas hub with 2P reserves of 34.3BCF and all the subsurface work is complete.

We maintain our BUY recommendation.

]]> Will Trump be good or bad for the oil price? Fri, 09 Dec 2016 13:24:00 +0000 VSA Capital Market Movers -Sula Iron & Gold Thu, 08 Dec 2016 08:35:00 +0000 Sula Iron & Gold (LON:SULA)
Sula Iron & Gold  has announced the results of further analysis of the historic drill core recovered prior to the November 2015 programme. SULA has also announced the issue of equity arising from the exercise of warrants. Consequently 65,468,750 new ordinary shares were issued at a price of 0.16p/sh resulting in gross proceeds of £104,750. The warrants related to fundraisings in February and March 2016.

The highlights of new assays included 0.7m at 28.9g/t Au from 13.6m depth, 1m at 1.64g/t Au from 35.3m depth and 6.45m at 1.72g/t Au all of which were oxide samples. There was also 1m at 1.26g/t Au from 108.3m depth from a sulphide sample.

In total 25 samples were collected from historic drill holes, all of which were part of the campaign now known to have drilled sub parallel to the dip of mineralisation. Whilst the November 2015 results are likely to demonstrate more accurately the potential of the deposit these latest assays highlight the existence of shallow oxide mineralisation with strong grades.

We reiterate our Speculative Buy recommendation although our target price is reduced marginally to 1.7p/sh to reflect the dilution.

]]> VSA Capital Market Movers - Millennial Lithium Wed, 07 Dec 2016 09:12:00 +0000 Millennial Lithium (ML CN)

Millennial Lithium (ML CN) has released further results from its current drilling campaign. The previously announced first hole intercepted three brine aquifers over 94.5m to a maximum depth of 192m (the depth of the hole). The second hole drilled to a depth of 352m encountered significant presence of brine aquifers, once again. Eight samples were taken at varying depths from 92m-275m, all bar one of which encountered brine flow in excess of 0.5l/second.

As a result of the drilling results and flow rates obtained, ML is proceeding with the installation of a production scale pumping test well. A larger drill has been mobilised for this and will enable a 24 hour pumping test to be completed. Further work is required to determine precipitation sequencing and lithium recovery

]]> VSA Morning Agri Comment Mon, 05 Dec 2016 08:19:00 +0000 Anglo African Agriculture Trading Update

On Friday Anglo African Agriculture plc (LON:AAAP), the London-listed food manufacturing and processing company with its main operations in Cape Town, South Africa, published a trading update ahead of its results for the year ended 31 October 2016 (FY 2016).

AAA expects to report FY 2016 sales in its spice manufacturing business of more than ZAR 34m (c£2.0m), +44% YoY (FY 2015: ZAR 23.6m (c£1.1m))

In November 2016 (first month of FY 2017) revenues have increased to ZAR 4.4m (c£0.26m), +16% YoY (November 2015: ZAR 3.8m (c£0.18m))

Volumes in November also increased to 150t, up from an average of 90t per month over FY 2016

VSA Comment

Although it is difficult to forecast a full-year trend off just one month’s trading, if AAA can sustain its current YoY growth rate across the rest of FY 2017 revenues are on track for c£2.2m (assuming current FX rate). However, given volumes are likely to increase in-line with planned capacity expansion (to 250t per month), this figure is likely to be significantly exceeded.

On the bottom line, profitable contribution should also be provided by the soon-to-be-acquired 46.8% stake in Dynamic Intertrade Agri (Pty) Ltd, which delivered revenues of ZAR 2.3m (c£0.13m) in November 2016 and recently secured a 1,000t fertiliser order for December 2016 worth ZAR 5.75m (c£0.33m) with an expectation of a 10,000t follow-on order to be spread over 2017.

Initial signs for FY 2017 appear positive and the new management team are clearly making significant operational improvements as the company seeks the scale it needs to reach profitability. With November being the last month before the holiday season, we wait to see whether AAAP can sustain this growth through the quiet December to January period and beyond. If it can, then FY 2017 could represent a significant turning point for the business.

]]> Mines & Money showcased a sector coming back to life, if you looked hard enough Fri, 02 Dec 2016 14:59:00 +0000 VSA Capital Market Movers - Glencore and Stratmin Global Resources Thu, 01 Dec 2016 08:26:00 +0000 Stratmin Global Resources (LON:STGR)
Stratmin Global Resources has provided an update on its position as a cash shell. The company are reviewing potential opportunities and are focusing their resources on finding a suitable asset for completing an RTO. These opportunities have largely been focused on the precious metals sector in which management has prior experience.

Given STGR’s near term focus, it has decided with its JV partner, Tirupati Carbons and Chemicals to enable new investors to participate in the JV which is owned 1.47% and 98.53% respectively. The focus of the JV is the development of the Vatomaina large flake graphite project in Madagascar. Any new investment will be made at a minimum price equal to STGR’s existing investment. The proceeds would be used to accelerate the development of the project.    

Glencore (LON:GLEN)
Glencore  has provided an investor update which largely focuses on the progress on the deleveraging programme. GLEN states that it is on track for US$16.5-17.5bn net debt by end 2016. Divestments through the year have totalled US$6.3bn versus initial guidance of US$1-2bn which suggests that other areas of the programme may have disappointed.

The new target is for 2x net debt/EBITDA over the long term. GLEN anticipates robust free cash flow of US$6.5bn in 2017F. Furthermore, a new dividend policy has been announced commencing in 2017 in which US$1bn will be paid via equal instalments in H1 and H2. At the current price level this implies a dividend yield of around 2%. From 2018 onwards the minimum US$1bn will be maintained alongside a variable distribution which will represent a minimum payout of 25% of free cash flow from industrial segments.

]]> VSA Capital Market Movers - Asiamet Resources and Sula Iron and Gold PLC Wed, 30 Nov 2016 09:56:00 +0000 Asiamet Resources (LON:ARS)

Asiamet Resources (ARS LN)

Asiamet Resources (ARS LN) has released Q3 2016 financial results and quarterly operating highlights. ARS is currently progressing towards releasing a PFS on its Beruang Kanan Main project in Indonesia which will most likely produce around 25ktpa of copper at lowest quartile costs. Recent work has been focused on infill drilling to increase the economic confidence of the resource to reserve status. The programme has so far confirmed expectations and demonstrated strong continuity of mineralisation within the resource. Additionally drill holes which have extended the bounds of mineralisation indicate the potential to reduce the stripping ratio of the project and therefore the unit costs. 56 holes for 5.6km have been completed with a further 62 holes for 5.4km planned.

Bulk sampling has also taken place and the results of the subsequent testwork were also positive. The results indicated low energy requirements for crushing which limits capital requirements. Environmental assessment work is currently underway also.

ARS expenses reached US$1.1m during 3Q 2016, of which US$946k related to exploration. For 9mo16 expenditures were US$2.0m with US$1.3m relating to exploration expenditure. Cash at the end of Q3 2016 stood at US$701k.

We reiterate our Speculative Buy recommendation and target price of 6.2p/sh.

Sula Iron & Gold (LON:SULA)

Following the previous announcement by Sula Iron & Gold (SULA LN) relating to its share placement, the company has announced the terms of the open offer. The record date for qualifying shareholders is the 29th November 2016 and for every 13 existing ordinary shares 1 open offer share is available.

The price of 0.21p/sh. is the same as the placing although given the strong performance of the shares since the placing this now represents a 16% discount to the last close versus 7% at the time of the placing. Consequently we believe that the open offer provides an opportunity to buy at an attractive valuation.

We reiterate our Speculative Buy recommendation and 1.8p/sh. target price.

]]> VSA Capital Market Movers - Metal Tiger Mon, 28 Nov 2016 08:43:00 +0000 Metal Tiger (LON:MTR)
Metal Tiger following the announcement on Friday 25 November that it had received an indicative offer from BMR Group (BMR LN) of 0.231 BMR shares for every 1 MTR share, MTR has rejected the offer. The BoD will not recommend the offer to shareholders on the grounds that it undervalues MTR.

On 24 November MTR’s share price closed at 2.275p/sh. whilst BMR closed at 5.875/sh with the bid therefore implying a valuation of MTR’s shares at 1.36p. BMR now has until 23 December 2016 to announce a firm intention to make an offer or announce that it does not intend to make an offer.

]]> Gold, Trump and the Federal Reserve Fri, 25 Nov 2016 17:53:00 +0000 VSA Capital Market Movers - Zambeef Products Fri, 25 Nov 2016 08:51:00 +0000 Zambeef: FY 2016 Results

Zambeef (LON:ZAM), a vertically-integrated agribusiness with operations in Zambia, Nigeria and Ghana, has released its full-year results for the period ended 30 September 2016 (FY 2016).

Revenue: US$219.4m, -0.4% YoY (FY 2015: US$220.2m); FactSet FY 2016 consensus was for US$202.2m.

Adjusted profit before tax (exc. unrealised FX and biological adjustment): US$8.6m, +390.9% YoY (FY 2015: US$2.2m)

Debt-to-equity ratio: 26% (30 September 2015: 60%)

Gross Profit by Segment (in US dollars):

Retailing: US$16.8m, -7.0% YoY (FY 2015: US$18.0m)

Cold Chain Food Production: US$24.6m, -11.3% YoY (FY 2015: US$27.7m)

Row Crops: US$23.3m, -35.2% YoY (FY 2015: US$35.9m)

Stockfeed: US$13.3m, +27.1% YoY (FY 2015: US$10.5m)

VSA Comment

ZAM’s year-end trading update on 30 September had already highlighted that its strong H1 trading performance had continued into H2, in particular highlighting significant volume growth across its beef, pork, dairy and stock feed operations, largely as a result of the ongoing roll-out of its macro retail stores (during the year ZAM’s total retail network expanded to 171 outlets from 154, and ten new macro stores are targeted for 2017).

These results confirm these more positive trends, with 10.8% volume growth in cold chain food products and 15.3% volume growth in stock feed reported, delivering a much improved group adjusted PBT. In Kwacha terms the performance was even more pronounced, with ZAM delivering a six-fold increase in group adjusted PBT and gross profit growth of more than 40% in retailing, more than 35% growth in cold chain food production and 95% in stockfeed (row crops Kwacha gross profit fell 0.6%).

This year ZAM has provided additional clarity on the specific financial impact on the group from its retailing operations, which contributed 20.7% of group gross profit in the year, up from 17.8% in 2015. This, combined with the strong reported volume growth, is evidence to us that the group’s macro store expansion strategy and general renewed focus on its retail network is starting to achieve results. With ZAM revealing its segmental results from its Zambian retail network for the first time, perhaps the most interesting new observation is that gross profit margins in Zambian retail are roughly half of that seen in its West African retail operations (GP margin: 12% vs. 23%).
With a much more stable local currency, an IMF support package likely soon and strong political support (as evidenced by Wednesday’s commendation for ZAM from the Zambian Agriculture Minister), the macro environment now appears to be much more positive for ZAM.

As we said at the time, the US$65m CDC transaction during the year was transformation for ZAM, strengthening its balance sheet and removing considerable uncertainty from the stock for investors. ZAM’s share price has increased c150% since the deal was announced on 4 August. However, we believe the stock still offers compelling value at these levels, especially with a progressive dividend policy likely to be re-instated from 2017 onwards.

]]> Today's Market View - IronRidge Resources Limited, SolGold Plc, ZincOx Resources Plc Thu, 24 Nov 2016 11:06:00 +0000 IronRidge Resources* (LON:IRR) – Gold portfolio secured in Ivory Coast

SolGold* (LON:SOLG) – Cascabel exploration update

ZincOx (LON:ZOX) Suspended – MOU signed with Korea Zinc on joint design and development of new recycling plant in Vietnam

The US$ index is trading at the highest in more than a decade amid solid economic data strengthening the policy tightening case.

Gold prices are flat trading close to the lowest level since Feb this year.

Holdings in gold ETFs contracted for a 10th consecutive day, as investors are reducing positions in the non-yielding metal.

On a positive note, copper, zinc and lead are having a good day while iron ore prices have nearly made up all losses incurred last week.

Iron ore futures climbed 2.9% today closing a little way off a one-year high (for Jan futures) recorded last week.

Brent is little changed today despite comments by Iraq’s prime minster that the country will agree to cut production as part of the OPEC deal in contrast to previous calls for an exemption.

US government debt – who is going to buy new US government bonds

We are wondering who is going to buy new US government bond issues – to fund Trump’s new infrastructure plans.

Middle Eastern sovereign funds are depleted by low oil prices and certain Trump comments may not have endeared him to leaders in this region.

China is also not happy with Trump comments about trade barriers and may not wish to support his growth plans.

The US dollar has strengthened making US Treasuries look more expensive compared with local currencies.

Fund flows back into the US dollar may potentially spark a collapse in weaker emerging market currencies and starve local markets of capital.

While many other investors will buy the relative safety of US Treasuries we wonder how high US rates will need to go to attract sufficient funds.

The world changed with the election of Donald Trump.  Trump’s selection of key personnel around him is further evidence of this change and of his likely hard line stance towards other nations.

Trump’s impact on the US dollar and on Fed interest rates is going to affect the rest of the world though it is still too early to know how this is going to play out.

If Trump gets the cash to rebuild American infrastructure then demand for metals will rise in the US but this may be tempered by slower growth elsewhere.

Skyscanner sold to Chinese group for £1.4bn

The sale serves to highlight the re-emergence of Chinese companies acquiring overseas businesses.

Lundin Mining is also selling its 30% share in the Tenke Fungurume copper, cobalt mine in the Congo for $1.14bn.

Health & safety going mad

The advertising watchdog has gone bonkers and banned an ad by Heinz which shows a teenager drumming out a tune on a tin of Heinz Baked beans.  Apparently teenagers might cut themselves by drumming out tunes on the serrated edges of opened cans.

Given that we all face greater dangers on a daily basis we have to wonder what else they the authorities will ban and where the teenagers of today will learn the basic skills that help them better avoid stupid accidents in the future.

Dow Jones Industrials  +0.31% at 19,083 Thanksgiving today. Market closed
Nikkei 225        +0.94% at 18,333 
HK Hang Seng   -0.30% at 22,608 
Shanghai Composite    +0.02% at   3,242
FTSE 350 Mining          0% at 14,986 FTSE 350 +104% since 1st January
AIM Basic Resources   -1.08% at  2,406 AIM Basic Resources +48% since 1st January

Economic News

US – Durable goods orders surprised on the upside in Oct while FOMC Nov meeting minutes showed members are thought it was appropriate to raise rates “relatively soon”.

A pick up in core durable goods suggest business investment may be finally changing its trend following declines in spending by the energy sector amid lower oil prices.

With US elections results uncertainty behind us and the latest economic data demonstrating good growth momentum, the Dec hike has now been fully priced by the market given the implied probability of the move at 100%, according to Bloomberg.

Looking past 2016, the FOMC members appeared unconvinced to accelerate the pace of tightening next year beyond the previously guided two rate increases.

Germany – Business sentiment came in strong in Nov confirming that “the economic upturn in Germany remains intact”, according to Ifo Institute.

Despite a slight drop in the expectations index this month, the sentiment held up well with the gauge hovering around a two-year high.

Ifo Current Assessment: 115.6 v 115.1 in Oct and 115.0 forecast.

Ifo Expectations: 105.5 v 105.9 in Oct and 106.0 forecast.

UK – New budget guides for an extra £122bn in borrowing by 2020-21 versus previous forecasts prepared in Mar with the OBR estimating than a little less to be due to the decision to leave the EU.

The economy is expected to grow at a slightly higher rate in 2016, while medium term forecasts have been brought down on “lower investment and weaker consumer demand, driven respectively, by greater uncertainty and by higher inflation resulting from sterling depreciation”.

2016 growth to come in at 2.1% v Mar estimates for 2.0%.

2017 growth expected at 1.4%, down from 2.2%.

Overall 2016-2020 growth has been brought down to 7.4% from 8.8% assuming the UK leaves the EU by Apr/19.

CPI inflation driven by the weaker pound is expected to climb from 0.9% in Oct to above 2% in early 2017 and peak at 2.6% in mid-18.

China – platform collapse at a new power station in China kills 40

The collapse serves to highlight the need for rigorous health and safety procedures in major construction projects.

Some workers remain trapped in the tangled remains of the collapsed steel platform and concrete slabs.

While these incidents appear more common in China this may partially be due to the ongoing high level of construction activity in the region.


US$1.0554/eur vs 1.0607/eur yesterday.   Yen 113.03/$ vs 111.04/$.   SAr 14.105/$ vs 14.085/$.   $1.245/gbp vs $1.238/gbp.    

0.740/aud vs 0.742/aud.   CNY 6.917/$ vs 6.898/$ – Yuan weakens further

Commodity News

Precious metals:

Gold US$1,188/oz vs US$1,212/oz yesterday 

Gold ETFs 61.2moz vs 61.6moz yesterday 

Platinum US$917/oz vs US$940/oz yesterday

Palladium US$733/oz vs US$744/oz yesterday 

Silver US$16.35/oz vs US$16.64/oz yesterday

Base metals:   

Copper US$ 5,865/t vs US$5,589/t yesterday 

Aluminium US$ 1,772/t vs US$1,764/t yesterday

Nickel US$ 11,630/t vs US$11,365/t yesterday 

Zinc US$ 2,698/t vs US$2,592/t yesterday

Lead US$ 2,242/t vs US$2,198/t yesterday

Tin US$ 21,285/t vs US$21,200/t yesterday


Oil US$49.1/bbl vs US$49.2/bbl yesterday 

Natural Gas US$3.011/mmbtu vs US$2.957/mmbtu yesterday

Uranium US$18.50/lb vs US$18.50/lb yesterday


Iron ore 62% Fe spot (cfr Tianjin) US$73.0/t vs US$71.5/t 

Chinese steel rebar 25mm US$452.5/t vs US$452.2/t

Thermal coal (1st year forward cif ARA) US$64.0/t vs US$68.5/t yesterday

Premium hard coking coal Aus fob US$308.8/t vs US$308.8/t – unch

Ordinary hard coking coal is $270.0/t vs $270.0/t (Dalrymple Bay Coal Terminal)


Tungsten - APT European prices $198-203/mtu vs $198-203/mtu unch last week – boringly unchanged.  Price will have to start rising sometime soon if Trump goes for growth.

Company News

IronRidge Resources* (LON:IRR) 16.5p, Mkt Cap £39m – Gold portfolio secured in Ivory Coast

IronRidge which holds concessions for iron ore in Gabon, gold in Chad, lithium in Ghana and gold, copper and other minerals Australia is taking on a highly prospective gold portfolio in the Ivory Coast.

The tenement portfolio covers 2,310sqkm including artisanal workings over an 8km strike at Kineta North.

The region covers Birimian greenstones which are generally known to host multi-million ounce gold deposits.

The license includes four principal gold bearing structures with two of these as splay structures off the Sassandra Shear zone.  Similar structures host the Syama at 7moz and Tongon 5moz gold mines in the north of the Ivory Coast.

Structures to the south also include Ahafo at 23moz, Bibiani 7moz and Chirano at 5moz.

Kineta North (100%):  The Kineta North appears to be located on the same structural shear as the Wa 2.2moz and Konkera 3.3moz which is now held by Centamin.

Pictures in the IronRidge press release show a larger scale artisanal pit and underground workings.  Atrisinal miners are good at finding gold mines but are often held back by the water table and ground conditions which often kill workers in lower levels.

Understanding the potential of these diggings to host much larger gold discoveries is a skill and an art with the potential to reveal multi-million gold discoveries particularly where the workings are show the presence of gold mineralisation at key intersections along structural shears.

Bianouan (100%):  lies at the south-western extension of a structural setting which hosts the Ahafo 23moz, Bibiani, 7Moz and Chirano 5moz structures.

Bodite (100%):  is a different sort of geology with gold seen in Birimian metasediments and a where a thicker package of turbidite sequence rocks are intruded by more fractionated granitic intrusives.  Turbidite structures are formed from deep water sedimentary flows often in underwater avalanches.

This setting is similar that which hosts Siguiri 13.3moz and Lefa 8moz.

The team:  The IronRidge team, led by Nick Mather are expert at identifying and locating interesting mineral prospects.  They have a proven track record as project generators and use a combination of high-tech and traditional geological techniques to evaluate the potential of their projects.  They know what makes a good project for sale to a major and equally they know how not to waste too much time on projects of lesser value.

The license agreement allows IronRidge to earn into 100% of each project through expenditure and feasibility study work and also gives an NSR of 2.5% to the vendors of which 40-50% may be acquired for US$2-3m at any time.  The deal demonstrates an new found co-operation between license holders and explorers which should serve to advance the projects for both parties.

SolGold* (LON:SOLG) 22.4p, Mkt Cap £334m – Cascabel exploration update

SolGold report that Hole 18 has intersected visibly strong copper mineralisation at Hole 18 on the Alpala property at Cascabel in Ecuador.

The company states that visible copper mineralisation is seen from 903.9m depth to 1,321.5m with the intensity and veining of the mineralisation increasing with depth as drilling continues towards the target depth of 2,300m.

Intense veining of up to 48% of the total rock mass has been observed.

The team currently have three rigs at Alpala.

Hole 19 is currently at a depth of 153m

Hole 20R is at a depth of 321m and should serve to enable another seven directional drilling daughter holes testing up to 650m below the thickest and richest part of the Alpala deposit.

ZincOx (LON:ZOX) Suspended – MOU signed with Korea Zinc on joint design and development of new recycling plant in Vietnam

ZincOx is looking to remerge from the ‘ashes’ or should we say the ‘Electric Arc Furnace Dust’ to develop a new recycling plant in Vietnam.

The press release is short on technical details on the project but does tell us that it’s a 51:49 joint venture in favour of Korea Zinc and that the ‘Definitive Development Study’ is expected to cost about $2.5m.  If this cost rises to >$3m then ZincOx’s interest will be diluted proportionately though ZincOx will be able to buy back its interest to 49% in the following six months.

The new Vietnam recycling plant will be based on ZincOx’s developed Rotary Hearth Furnace technology and with capacity to treat 100,000tpa of EAFD.  We guess this could result in 30,000t of high quality zinc oxide (80% zn) production worth around twice as much as zinc concentrate plus some by-product iron.

This should lead to a significant increase in sales for a relatively modest increase in overall operating cost leading to a substantial uplift in margin, value and profit compared with the last plant built.  We believe the ZincOx plant built in Korea is now working well and enjoying the benefits of the significant uplift in zinc prices since Korea Zinc took control of 91.3% of the plant as part of a financial restructuring during the prolonged commissioning process.

ZincOx shares were suspended on 28th October and must requote within six months to avert delisting.

Debt:  ZincOx is carrying £3.78m of corporate loan notes with interest accruing at 10%pa from 1st August 2016 and are due for repayment in January 2018.

Assets:  ZincOx retains an 8.7% interest in the Korea Recycling Plant which it designed and built.  Very sadly extended plant commissioning combined with prevailing low zinc prices allowed Korea Zinc to take control and majority ownership of the plant just ahead of a recent and sustained rise in Zinc prices.

The value of Zincox’s stake in Korean Zinc Recycling Plant should now be substantially more than the last implied value of $6.3m.

ZincOx also owns what is described as a valuable plot of industrial land in Turkey.

Conclusion:  It’s good to see ZincOx re-emerge from losing control of its Korea Zinc Plant.  It is interesting to note that Korea Zinc are still working as cooperating partners with the ZincOx team.  Korea Zinc must respect the skill and knowhow of the ZincOx team and must also need to utilise these skills to advance with their next EAFD project.

]]> Today's Market View - BlueRock Diamonds Plc, Medusa Mining Limited, Norilsk Nickel, Shanta Gold Limited Wed, 23 Nov 2016 10:53:00 +0000 BlueRock Diamonds Plc (LON:BRD) – plant improvements finished ahead of time
Medusa Mining Limited (LON:MML, ASX:MML) – AGM statement shows infrastructure work at mine on track
Norilsk Nickel (NILSY US) - Norilsk joins United nations Global Compact
Shanta Gold Limited (LON:SHG) – Site visit presentation

Metal markets along with the US$ index and Brent are relatively flat this morning.

One of the exceptions is iron ore futures which climbed 7.3% today on the Dalian Commodity Exchange.

Iron ore prices volatility is reported at the highest level in six years with Dalian futures seen dropping 10% last week after climbing 23% in the period to Nov 11.

The benchmark spot price climbed to $74.9/t compared with a two year high of $79.8/t recorded earlier this month, according to Metal Bulletin.

Stornoway to sell 91,000cts of stones from new Renard diamond mine in the Otish mountains of Quebec

Dominion Diamonds moving HQ to Calgary in move to cut costs

Dow Jones Industrials  +0.35% at 19,024 Thanksgiving tomorrow
Nikkei 225    at 18,163  Bank Holiday in Japan today
HK Hang Seng   -0.01% at 22,677 
Shanghai Composite    -0.22% at   3,241
FTSE 350 Mining   +1.50% at 15,037 FTSE 350 +105% since 1st January
AIM Basic Resources   +0.51% at  2,433 AIM Basic Resources +49% since 1st January

Economic News

Eurozone – Activity in the single currency zone advanced to the highest in 11-months on climbing order books

Employment increased at one of the strongest rates since early 2008 with inflation pressures reported to be at the highest for over five years.

Markit Manufacturing PMI (Nov): 53.7 v 53.5 in Oct and 53.3 forecast.

Markit Services PMI (Nov): 54.1 v 52.8 in Oct and 52.9 forecast

Markit Composite PMI (Nov): 54.1 v 53.3 in Oct and 53.3 forecast.

Germany – Manufacturing held up well in Nov with the pace of growth holding up close to the highest level in nearly two years

Services PMI hit the strongest reading in six months.

New business orders including export markets came in strong.

Input inflation is reported to have accelerated to the fastest rate since Mar/12 on higher prices for raw materials including aluminium and steel as well as weaker euro.

“Although the PMI failed to further build on October’s ten-month high, the latest survey results highlight that Germany’s private sector economy remains in good shape in Nov,” Markit said.

“Moreover, the data suggest that economic growth has picked up from the meagre 0.2% rate in the third quarter.”

Markit Manufacturing PMI (Nov): 54.4 v 55.0 in Oct and 54.8 forecast.

Markit Services PMI (Nov): 55.0 v 54.2 in Oct and 54.0 forecast.

Markit Composite PMI (Nov): 54.9 v 55.1 in Oct and 55.0 forecast.

France – Private sector growth held up well in Nov driven by stronger performance from the services sector

New business increased for the fifth consecutive month with orders in manufacturing broadly unchanged and gains led by services sector.

Manufacturing input costs are said to have recorded the sharpest increase recorded in the manufacturing sector in nearly five years.

Markit Manufacturing PMI (Nov): 51.5 v 51.8 in Oct and 51.5 forecast.

Markit Services PMI (Nov): 52.6 v 51.4 in Oct and 51.9 forecast.

Markit Composite PMI (Nov): 52.3 v 51.6 in Oct and 51.9 forecast.

South Korea – State prosecutors raided offices of Samsung Group and the National Pension Service, the nation’s largest pension fund, as part of the investigation over Samsung contributions into foundations linked to Choi Soon-sil, a confidante of the current South Korea President.

Local media report that investigators are looking into NPS’s decision to vote through the $8bn merger of Samsung C&T and Cheil Industries.

Prosecutors allege that Samsung transferred €2.8m to a company co-owned by Ms Choi in return for the President approval of the deal.

Nigeria – central bank keeps rates on hold as economy deteriorates

Lowish oil prices continue to deepen the recession in Nigeria with the central bank holding rates in an attempt to support the economy.

South Africa – Q3 official unemployment rises to 27.1% highest level in 13 years

That’s 5.9m people without jobs vs 5.6m in Q2.

The unemployment rate is 36.3% when including people who have given up looking for jobs


US$1.0607/eur vs 1.0646/eur yesterday.   Yen 111.04/$ vs 110.72/$.   SAr 14.085/$ vs 14.091/$.   $1.238/gbp vs $1.249/gbp.     

0.742/aud vs 0.740/aud.   CNY 6.898/$ vs 6.885/$ – Yuan weakens further

Commodity News

Precious metals:

Gold US$1,212/oz vs US$1,218/oz yesterday 

Gold ETFs 61.6moz vs 61.8moz yesterday 

Platinum US$940/oz vs US$948/oz yesterday 

Palladium US$744/oz vs US$741/oz yesterday 

Silver US$16.64/oz vs US$16.87/oz yesterday

Base metals:   

Copper US$ 5,589/t vs US$5,664/t yesterday 

Aluminium US$ 1,764/t vs US$1,748/t yesterday 

Nickel US$ 11,365/t vs US$11,445/t yesterday 

Zinc US$ 2,592/t vs US$2,627/t yesterday

Lead US$ 2,198/t vs US$2,204/t yesterday

Tin US$ 21,200/t vs US$21,095/t yesterday 


Oil US$49.2/bbl vs US$49.6/bbl yesterday 

Natural Gas US$2.957/mmbtu vs US$2.981/mmbtu yesterday

Uranium US$18.50/lb vs US$18.50/lb yesterday 


Iron ore 62% Fe spot (cfr Tianjin) US$71.5/t vs US$69.0/t 

Chinese steel rebar 25mm US$452.2/t vs US$446.6/t 

Thermal coal (1st year forward cif ARA) US$68.5/t vs US$67.0/t yesterday

Premium hard coking coal Aus fob US$308.8/t vs US$308.8/t – unch

Ordinary hard coking coal is $270.0/t vs $270.0/t (Dalrymple Bay Coal Terminal)


Tungsten - APT European prices $198-203/mtu vs $198-203/mtu unch last week – boringly unchanged.  Price will have to start rising sometime soon if Trump goes for growth.

Company News

Dominion Diamonds moving HQ to Calgary in move to cut costs

Stornoway to sell 91,000cts of stones from new Renard diamond mine in the Otish mountains of Quebec

Stornoway is on track to hit commercial production by the year end with the diamond sale a meaningful part of this target.

The average diamond value is expected to be $155/ct for 1.9mctpa over the first 10-year mine life

BlueRock Diamonds* (LON:BRD) 6.8p, Mkt Cap £2.6m – plant improvements finished ahead of time

BlueRock, which is now being led by CEO Adam Waugh is ahead of schedule in terms of repositioning of certain parts of the diamond recovery plant.

The repositioning of the pans and scrubber is now done and this should improve the flow of material while improving recovery rates.

Testing of the new plant configuration using stockpiled ore will take place over the next few weeks.

The new primary crushing and pre-screening circuits are due for completion by mid-January at a cost of around R2.5m

This should cut process costs, deliver better feed material and improve recoveries.

Contractors African Mining and Crushing (AMC) are to run the Drilling and Blasting, Loading and Hauling work at the mine with operational and cost benefits expected to follow from this new relationship.

The team are working on water management and are re-lining and repositioning the main primary water reservoir.  South Africa either seems to have too much or too little water depending on where you are these days.

The team are also recruiting to support ramping up to 24 hour processing.

Conclusion:  Adam Waugh is working hard to turn around the diamond mining and recovery operations.  The calculated grade of the mine should support economic operation assuming the plant is able to meet reasonable industry standards with the potential for recovery of special stones to boost profits.  Once the first diamond mine is working properly then BlueRock may consider development of other kimberlite pipes within their license area.
*SP Angel acts as Nomad & Broker to BlueRock Diamonds

Medusa Mining (LON:MML, ASX:MML) – AGM statement shows infrastructure work at mine on track

Norilsk Nickel joins United nations Global Compact

The initiative run by the UN is in the area of Corporate Social Responsibility and Sustainable Development.

“The mission of the Global Compact is to promote recognition and practical application by businesses worldwide of ten basic principles on human rights, labour, environment and anti-corruption. Following these principles globally will provide for sustainable development going forward.”

Currently, the Global Compact brings together over 13,000 corporate participants and other stakeholders from more than 160 countries, with global industry leaders among them. By joining the initiative, the Global Compact participants gain access to the UN's knowledge and experience in corporate social responsibility and sustainable development, as well as to its expertise of the private sector.

Shanta Gold (LON:SHG) 11.4p, Mkt Cap £66.3m – Site visit presentation

Our intrepid mining analyst Simon Beardsmore is at the Shanta Gold, New Luika mine site today.  .

The company report production is stable at 60,000-90,000oz with a base case plan of 84,000ozpa from 2016 to 2020.

The plan will be updated in Q1 with new resources being added from the Ilunga and Elizabeth Hill prospects.

Costs which have been running at an impressive AISC 780/oz reflect the quality of the resource and the team.

Q3 costs were even better with Q3 AISC costs at US$621/oz and a cash cost of US$387/oz.

Initiatives could cut costs further with cheaper power, water, tailings, contractors and lower capital going foward

The Base Case mine plan does not include some 514,000oz of known resources. This give some confidence in the ability to extend the life of the mine by another 4-5 years in the short term depending on prevailing gold prices.

The mine started the new satellite Ilunga open pit in July.

Shanta finished mining at the Bauhinia Creek open pit in September

Underground operations at Bauhinia Creek in Q1 next year and should feed higher grade ore to the plant.

Open pit mining will continue at Ilunga, Shamba and Black Tree through most of 2017

While mining at the Jamhuri open pit finishes at the year end ore should be processed from this pit through most of 2017

Singida project:  further work is ongoing to better understand the potential of this resource with exploration ongoing and a pilot mining project in progress.

Higher expected grades should compensate for higher strip ratios expected through November and December.  We also expect lower contractor costs to help (this is our own assumption).

Exploration:  the exploration team have done well to add ounces to the production plan and we look forward to further news from Piet Prinsloo, the exploration manager and his team.

Conclusion:  Shanta’s presentation appears to deliver a positive message.  We look forward to confirmation of this from out analyst in the field.

]]> Today's Oil and Gas Update: Eland Oil and Gas PLC, JKX Oil and Gas, Pantheon Resources Plc Wed, 23 Nov 2016 10:17:00 +0000 Headlines

Eland Oil and Gas (LON:ELA – 36p) – Operational Update Underlines Opportunity and Issues

JKX Oil and Gas (LON:JKX – 17p) – October Production a Filip

Pantheon Resources (LON:PANR – 94p) – New Plan Needs to be Disclosed

In Brief

Eland Oil and Gas (LON:ELA – 36p) – Operational Update Underlines Opportunity and Issues: While today's update doesn't make for spectacular reading, what it does underline is the drive within the management team to continue to drive the Company forwards. Today's well results are a timely reminder of the scale of opportunity available in Nigeria, but again, the operational issues that continue to provide headwind to the Company’s progress, also underline the issues of operating in country. All in all, we believe that the Company outlook remains buoyant, and while production (and cash flow) is patchy currently, we believe that all necessary elements are in place to allow the Company to achieve sustainability.

JKX Oil and Gas (LON:JKX – 17p) – October Production a Filip: The production report for October underlines the fact that the management team are still focused on its task, despite the issues that have plagued it over the last 6 months, both internal and external. While this appears to be once again trending in the right direction, what is really needed is guidance and direction allied with measurable milestones. That way, management can start the process of rebuilding investor confidence and more importantly, value.

Pantheon Resources (LON:PANR – 94p) – New Plan Needs to be Disclosed: Today's results are a reminder of the progress that the Company has made over the last 12 months, albeit punctuated with the horizontal well drilling failure, which is still yet to be fully understood, especially when there is no issue drilling vertically, or indeed horizontally in the same formation elsewhere. With ample cash resources the immediate forward programme is assured, but given the fact that horizontal drilling will not be possible in its acreage, there is still a need to understand the impact that the new vertical development scenario has on its assumed horizontal development plan previously. More specifically, management need to highlight the differences in cash flows, and while costs are likely to be lower, the returns are too, and it’s how this all pivots on the programme's timing that's important.

]]> VSA Capital Market Movers - Millenial Lithium Wed, 23 Nov 2016 09:34:00 +0000 Millenial Lithium (CVE:ML)

Millenial Lithium (CVE:ML) has released the first results from its Phase 1 lithium brine drilling programme at its Pastos Grandes project in Argentina. The first drill hole encountered brine aquifers over a total of 94.5m, from surface to 13m, 19.5-66m and 157-192m. This was the depth of the hole meaning the brine remains open. Brine sampling demonstrated a density of 1.22g/cm3.

This initial programme is aiming to identify the depth of brine resources and this result which has identified deeper brines than historical drilling is therefore in line with the company’s expectations.

]]> Today's Market View - Amur Minerals Corporation, Asiamet Resources, DiamondCorp PLC, Sierra Rutile Ltd Tue, 22 Nov 2016 10:17:00 +0000 Amur Minerals Corporation (LON:AMC) – Agreement with the Far East Investment and Export Agency

Asiamet Resources (LON:ARS) – Metallurgical test-work from BKM

DiamondCorp PLC (LON:DCP) Suspended – Business rescue practitioner appointed

Sierra Rutile Ltd (LON:SRX) – Iluka merger cleared

Lundin – artisanal miners rush to Tenke Fungurume

13 clandestine miners have been killed in at the Tenke Fungurume mine site last week following an invasion of the property by artisanal miners.

The timing of this artisanal rush to the Tenke Fungurume mine which involved some 5,000-10,000 miners is interesting

We suspect the rush is related to some form of political interference with the timing potentially related to the agreement by Lundin Mining to sell its 30% stake in the mine to a Chinese group for $1.14bn.  Freeport also agreed to sell its 56% stake to China Molybdenum in May

Gecamines, the DRC state miner which holds a 20% stake in the mine is trying to block the sale

Risk on sentiment is driving metal prices and miners higher.

Four major US equities indices including Dow Jones, S&P500, Nasdaq and Russell 2000 hit record highs since 1999.

Brent climbed 5% yesterday reaching a three-week high on expectations for OPEC to agree a detailed plan to cut output during an official meeting next week.

Copper is up 1.7%/$94/t hovering around the highest in a week with reports demonstrating strong interest in the metal. US money managers hheld the largest net-long copper futures position on record as of Nov 15, according to the CFTC data.

Gold prices increased slightly amid flat US$ index.

Jan iron ore futures jumped 3.3% on the Dalian Commodity Exchange on the back of reports suggesting issues with deliveries of the material due to bad weather. A jump in iron ore is mirrored in steel and coking coal markets.

LME stocks fall as metal is withdrawn from warehouses

Copper stocks fell 4,800t to 242,275t

Aluminium fell 8,050t to 2,144,100t

Zinc fell 75t 445,000t

Nickel stocks rose 1,026t to 367,482t

Tin fell 75t to a relatively modest 3,010t

Lead stocks fell 1,025 to 187,825t

Dow Jones Industrials  +0.47% at 18,957
Nikkei 225   +0.31% at 18,163
HK Hang Seng   +1.43% at 22,678 
Shanghai Composite    +0.94% at   3,248
FTSE 350 Mining   +3.17% at 14,688 FTSE 350 +100% since 1st January
AIM Basic Resources   +1.39% at   2,420 AIM Basic Resources +48% since 1st January

Economic News

Japan – Authorities lifted the most severe tsunami warning issued in the country in the last five years as the risks to life reduced.

A 7.4 magnitude earthquake struck off the coast of Fukushima this night causing no significant damages to residents or onshore infrastructure recorded.


US$1.0646/eur vs 1.0646/eur yesterday.   Yen 110.72/$ vs 110.67/$.   SAr 14.091/$ vs 14.230/$.   $1.249/gbp vs $1.235/gbp.     
0.740/aud vs 0.736/aud.   CNY 6.885/$ vs 6.894/$ – Yuan strengthens a touch but remains at an eight-year low vs the US dollar

Commodity News

Precious metals:

Gold US$1,218/oz vs US$1,216/oz yesterday 

Gold ETFs 61.8moz vs 62.1moz yesterday – ETF holdings continue to fall as investors cut lower yield investments in favor of equities and potential rate rise

Platinum US$948/oz vs US$932/oz yesterday – Market deficit has been cut to 170koz in 2016, down from previous estimates for a 520koz shortage, according to the World Platinum Investment Council.

A revision is attributed to softer Chinese jewellery sales on stronger than forecast recycling by retailers.

Global jewellery demand is set to decline 10%yoy this year.

Global deficit is expected to narrow to 100koz in 2017, marking the sixth consecutive annual deficit, with both supply and demand estimated to drop.

Above ground stockpiles are estimated to further come down to 2.1moz (YE16) and 2.0moz (YE17) compared with 2.3moz (YE15).

This equivalent to 14, 13 and 14 weeks of demand respectively.

Palladium US$741/oz vs US$730/oz yesterday 

Silver US$16.87/oz vs US$16.73/oz yesterday

Base metals:   

Copper US$ 5,664/t vs US$5,576/t yesterday –

Aluminium US$ 1,748/t vs US$1,715/t yesterday –

Nickel US$ 11,445/t vs US$11,165/t yesterday –

Zinc US$ 2,627/t vs US$2,586/t yesterday

Lead US$ 2,204/t vs US$2,185/t yesterday

Tin US$ 21,095/t vs US$20,585/t yesterday – Prices may hit $30,000/t in 2018/19 on the back of a market deficit as new supply lags demand growth, ITRI estimates suggest.

Tin market is set to record a 10-15kt deficit this year and same in 2017.

China, the world’s largest supplier of the metal, is expected to post a recovery in mine output in 2017.

Ore output fell 17.6%yoy in 2015 and is set to decline 6.0%yoy in 2016, according to Yunnan Tin estimates.

Indonesia, the second biggest producer, is expected to come in at 60-70kt (2015: 50kt; 2014: 76kt (USGS).


Oil US$49.6/bbl vs US$47.5/bbl yesterday 

Natural Gas US$2.981/mmbtu vs US$2.928/mmbtu yesterday

Uranium US$18.50/lb vs US$18.50/lb yesterday – Latest Japanese tsunami is unlikely to accelerate the return to full scale nuclear power generation in Japan.


Iron ore 62% Fe spot (cfr Tianjin) US$69.0/t vs US$67.3/t 

Chinese steel rebar 25mm US$446.6/t vs US$443.4/t 

Thermal coal (1st year forward cif ARA) US$67.0/t vs US$63.0/t yesterday

Premium hard coking coal Aus fob US$308.8/t vs US$308.8/t – remains unchanged for a week, not sure exactly why?

Ordinary hard coking coal is $270.0/t vs $270.4/t (Dalrymple Bay Coal Terminal)


Tungsten - APT European prices $198-203/mtu vs $198-203/mtu unch last week – boringly unchanged.  Price will have to start rising sometime soon if Trump goes for growth.

Company News

Amur Minerals Corporation (LON:AMC) 9.1p, Mkt Cap £46.9m – Agreement with the Far East Investment and Export Agency

The Company signed a Financial Advisory Agreement with the government Far East Investment and Export Agency (FEIE).

The FEIE Agency is a newly established organisation, a subordinate of the Far East Development Ministry, responsible for attracting investment and finding strategic partners in local projects.

In particular, the Agency is reported to have access to an extensive network of investors and trading companies in Russia, India and China.

“We will use our core investment banking experience and wide investor network to provide the development of Amur’s Kun Manie nickel project with necessary capital,” Petr Shelakhaev, the head of the FEIE said.

The team will continue cooperation with the Far East Development Fund (FEDF) regarding the Kun Manie infrastructure development

Conclusion: Local authorities remain supportive of the Kun Manie nickel/copper project with the FEIE Agency offering assistance in attracting development funds.

Asiamet Resources (LON:ARS) 2.7 pence, Mkt Cap £17.0m – Metallurgical test-work from BKM

Asiamet has reported results of metallurgical testing on samples from its Beruang Kanan Main (BKM) deposit in central Kalimantan.

The testing addressed two main aspects of the plant; the  crushing characteristics of the ore types within the proposed mining area; and the leachability and potential for the generation of acid drainage.

Tests have shown that “The BKM ore types will require mineral crushing [and will produce] … Relatively low wear rates … for the metal components within the crushing plant.” These characteristics will require low energy within the crushing circuit and are “expected to provide a favourable capital cost outcome for the BKM crushing facilities.”

Geochemical testing of 79 samples of ore and waste has demonstrated “that the mineralogy of the BKM heap leach feed material will be acid generating and limit the need for acid importation to support the processing activities on site. This is considered a favourable outcome for the operating and capital cost requirements at the BKM heap leach facility.”

In our opinion, the acid generating capacity of the ore at BKM, while it clearly offers economic benefits as described, will also require a detailed plan to manage fluid movements within the site area and ensure that any potential for leakage of acidic water to the wider environment is minimised.

Addressing this issue, “Detailed waste and water management plans will be developed to ensure protection of water resources and incorporated into the Feasibility Study and Environmental and Social Impact Assessment (AMDAL) for the project.” The company is planning a second phase of geochemical assessment work to support the continuing assessments.

Conclusion: Testing indicates that crushing and leaching of BKM ore should be relatively low-cost and this work will be incorporated into the feasibility studies currently underway. We look forward to the release of the study which will help provide a view on the economics of the project. Today’s news in addition to the resources drilling programme which is finding shallow mineralisation should have a positive impact.

DiamondCorp PLC (LON:DCP) Suspended – Business rescue practitioner appointed

DiamondCorp which entered into Business Administration last week has appointed Daniel Terblanche of Deloitte & Touche as their business rescue practitioner in accordance with the provisions of section 129 of the Companies Act, 71 of 2008.

The company put the Lace mine into South African Business Administration to protect the asset against its creditors and to preserve the mine for a potential rescue or sale.  Business Administration is the equivalent to Chapter 11 in the US.  The mine is likely to remain closed for more than 12 weeks according to a report on ‘’ which reckons the mine would take more than seven days to pump the production level dry.  That is once the pumps are reinstated.

The mine was forced to take this drastic action following severe flooding in the region which caused the Lace mine to suddenly flood in an event which overwhelmed the mine pumping system and forced its evacuation.

Pictures show water in the historic open pit and water in the decline.  There were two extreme thunderstorms on November 11 which resulted in almost 90mm of rain in just over an hour equivalent to almost a third of annual rainfall at the mine.

Sierra Rutile Ltd (LON:SRX) 34.5p, Mkt Cap £205.5m – Iluka merger cleared

Sierra Rutile and Iluka Resources have announced that the German Antitrust Authority has cleared the merger between the two companies.

In statements released by Sierra Rutile and Iluka Resources the companies stated “The Merger is now expected to become effective and closing is expected to occur on or around 29 November 2016.”

Sierra Rutile’s shareholders have previously approved the merger and  the clearance by the German investigation has removed the impediment to completion of the deal in which Sierra Rutile shareholders are to receive 36p/share in cash.

]]> Today's Oil and Gas Update: Union Jack Oil PLC Tue, 22 Nov 2016 09:03:00 +0000 Headlines

In Brief:
Union Jack Oil* (LON:UJO – 0.17p) – $4.9mm – $33.6mm (0.11p – 0.74p) – A Bigger Slice of Wressle

In Brief

Union Jack Oil* (LON:UJO – 0.17p) – $4.9mm – $33.6mm (0.11p – 0.74p) – A Bigger Slice of Wressle: Todays news that the Company has completed the acquisition of an additional 3.34% interest in PEDL180 and PEDL182 for ~$0.75mm, and provides the Company with access to cash flows (once the field is commissioned), which in turn provides it with greater flexibility. The valuation remains $33.6mm (0.74p), of which $4.9mm (0.11p) is core.


]]> VSA Capital Market Movers - Asiamet Resources Tue, 22 Nov 2016 08:58:00 +0000 Asiamet Resources (LON:ARS)

Asiamet Resources (LON:ARS) has released a further positive update on its progress towards completing a feasibility study for the Beruang Kanan Main (BKM) copper project in Indonesia. The latest announcement relates to metallurgical and geochemical testwork for the design of the crushing circuit.

The tests show that the majority of the ore has a low crushing energy requirement and low wear-metal consumption which will benefit operating costs. Therefore there is also no need for additional equipment for the processing of harder ores and we believe that only a single stage crusher would be required benefitting the project’s capital cost.

In total 79 ore samples were tested with ten sent for metal content and short term metal leaching tests. These tests confirmed previous results which demonstrated that the leach material can be considered Potential Acid Forming. This reduces operating costs as it limits the volume of acid which must be imported and transported to site.

The latest announcement further underpins our confidence that the feasibility study will confirm the potential for the development of a low cost copper project.

We reiterate our Speculative Buy recommendation and target price of 6.2p/sh.

]]> Today's Market View - Kibo Mining and Tethyan Resources Mon, 21 Nov 2016 10:40:00 +0000 Kibo Mining (LON:KIBO) 7.1 pence, Mkt Cap £25.3m – Agreement signed with GE on Mbeya Coal to Power Project

Tethyan Resources (LON:TETH) 2.5 pence, Mkt Cap £2.3m – Raising £353,000

Chinese investors pile into commodities as Yuan continues to weaken

Copper prices regain upward momentum on strong demand for infrastructure in China and weaker supply growth

Iron ore and coal prices pull back but remain at high levels despite China raising rates and margins on futures trading

Chinese investors are piling into commodities as the US dollar continues to strengthen and as China allows its currency to depreciate against the US dollar.

President elect-Trump is likely to lower US corporation taxes bringing US dollars back into the US and to rebuild American infrastructure

Markets are increasingly pricing in a Fed Rate rise this year and further rises next year as the Fed moves to issue new treasuries into the market to cover Trump’s spending aspirations.

Middle Eastern and Chinese sovereign wealth funds are reported to have been sellers of US Treasuries this year leaving us wondering on who will buy new issues of US Treasuries going forward.

The Fed dare not go too far in terms of raising interest rates as it may damage US growth when coupled with the strong dollar.

The US Treasury may need to print new US dollar bills to pay for Trump’s expenditure plans, a move which could reverse US dollar gains and allow the Fed to maintain lower rates for longer

The impact of a significantly stronger dollar is hurting US exporters and also serves to raise the effective cost of US energy production versus overseas energy producers.  Trump pledged to help US coal miners.

Mining and oil stocks trade higher as FTSE falls

US$ index is slightly off following a five sessions’ winning strake which saw the index hitting the highest level in more than a decade.

Gold prices are up (+0.7%/+$8/oz) trading at $1,216/oz after sliding below the $1,205/oz level on Friday on US$ index gains.

Brent crude is trading higher ahead of the OPEC meeting in Vienna next week and Iran’s Oil Minister suggesting it is “highly probable” members will agree details of production cuts

Base metals are all up this morning as buying accelerated as Chinese investors are using commodities as a hedge against depreciating yuan.

Iron ore futures continued to fall on the back of increased Chinese trading charges and falling steel prices.

Dow Jones Industrials  -0.19% at 18,868
Nikkei 225   +0.77% at 18,106
HK Hang Seng   +0.06% at 22,358 
Shanghai Composite    +0.79% at  3,218
FTSE 350 Mining   +2.13% at 14,282 FTSE 350 +94% since 1st January
AIM Basic Resources   -1.07% at 2,387 AIM Basic Resources +46% since 1st January

Economic News

US – Fed minutes are unlikely to alter Dec rate hike expectations with the latest economic data coming strong and more hawkish comments made by FOMC members.

Markets currently suggest that a hike is a done deal with the probability of an increase stading at 98%. 

China – The recent industrial private report showed industrial sector remained in contraction last quarter amid state driven cutbacks of overcapacity, according to responses of 2,000 surveyed businesses.

The headline business sentiment index came in at 46 in Q3 signalling a decline in the sector activity, the Cheung Kong Graduate School of Business quarterly report read.

Large firms with a significant share of state owned companies in the category favoured better than medium and small sized companies, with respective readings of 48, 46 and 45.

The outlook remains weak as with inflation and overcapacity are forecast to “increase costs and hinder the recovery of the industrial economy”.

Shijiazhuang city stops production at steel and cement plants and cuts thermal coal power generation

Shijiazhuang city is taking drastic measures to meet emissions targets for PM 2.5 fine particles for the year.

The city produces around 15mt of steel representing around 2% of Chinese production

Shijiazhuang has also cut production by drug manufacturers as part of the measures.

The action serves to highlight China’s determination to cut pollution and to force companies to clean up


US$1.0646/eur vs 1.0602/eur yesterday.   Yen 110.67/$ vs 110.61/$.   SAr 14.230/$ vs 14.575/$.   $1.235/gbp vs $1.241/gbp.    

0.736/aud vs 0.738/aud.   CNY 6.894/$ vs 6.888/$.   – Another low in the Yuan as China continues to depreciate currency against the US Dollar

Commodity News

Precious metals:

Gold US$1,216/oz vs US$1,205/oz yesterday 

Gold ETFs 62.1moz vs 62.4moz yesterday 

Platinum US$932/oz vs US$926/oz yesterday

Palladium US$730/oz vs US$717/oz yesterday 

Silver US$16.73/oz vs US$16.51/oz yesterday

Base metals:   

Copper US$ 5,576/t vs US$5,427/t yesterday 

Aluminium US$ 1,715/t vs US$1,685/t yesterday – Aluminum stocks fall 2.9% in Japan

Nickel US$ 11,165/t vs US$11,045/t yesterday 

Zinc US$ 2,586/t vs US$2,516/t yesterday

Lead US$ 2,185/t vs US$2,144/t yesterday

Tin US$ 20,585/t vs US$20,105/t yesterday 


Oil US$47.5/bbl vs US$46.1/bbl yesterday 

Natural Gas US$2.928/mmbtu vs US$2.725/mmbtu yesterday

Uranium US$18.50/lb vs US$18.50/lb yesterday 


Iron ore 62% Fe spot (cfr Tianjin) US$67.3/t vs US$69.0/t –

Chinese steel rebar 25mm US$443.4/t vs US$444.3/t –

Thermal coal (1st year forward cif ARA) US$63.0/t vs US$64.5/t yesterday

Premium hard coking coal Aus fob US$308.8/t vs US$308.8/t – remains unchanged for a week, not sure exactly why?

Ordinary hard coking coal is $270.4/t (Dalrymple Bay Coal Terminal)


Tungsten - APT European prices $198-203/mtu vs $198-205/mtu unch last week – tungsten prices edge off as price recovery struggles to get going

Company News

Kibo Mining PLC (LON:KIBO) 7.1 pence, Mkt Cap £25.3m – Agreement signed with GE on Mbeya Coal to Power Project

Kibo Mining reports that it has now signed the previously announced agreement with General Electric (GE) to supply equipment, technology and services to the Mbeya Coal to Power Project (MCPP) in Tanzania.

Under the Agreement, GE will also assist in the implementation of the project which involves the development of a 250-350MW mine mouth thermal power station in at Rukwa in southwest Tanzania based on a 121m tonnes resource, of which 91% is classed as either measured or indicated, within 7 seams.

In addition to GE, Kibo Mining has previously  also signed an agreement with the China based contractor, SEPCO III, “granting it the right to become the the sole bidder for the contract to build the power plant component of the MCPP in exchange for SEPCO III refunding 50% of the development costs incurred by Kibo to date on the project. Kibo has alreadt received the first tranche of this funding in the amount of US$1.m million”.

As well as the technical partners for the MCPP, Kibo Mining uses Standard Bank as its Financial Advisor for the project.

The company is expecting to complete the integrated Bankable Feasibility Study (BFS), comprising a definitive coal mining study and a power pre-feasibility study shortly.

Conclusion: The MCPP appears to be moving forward as it assembles the team which will be required to turn the forthcoming BFS into reality.

Tethyan Resources (LON:TETH) 2.5 pence, Mkt Cap £2.3m – Raising £353,000

Tethyan Resources reports that Canadian listed Southern Arc Minerals has subscribed for 16.5m new shares at a price of CAD0.36 cents per share for a 15.44% interest in the company.

In addition, Southern Arc is purchasing a further 14.64m shares in the company from Newmont taking its interest to 29.15%. Two of Southern Arc’s nominees, John Proust and Michael Andrews are to join the Board of Tethyan.

Tethyan Resources is exploring copper and gold projects in Serbia and Bulgaria and recently started drilling at the Rudnitza porphyry copper prospect in Serbia where it is planning a programme of approximately 2500m of drilling in four or five holes to a maximum depth of 800m.

In addition to its investment in Tethyan Minerals, Southern Arc is reported to hold 43% of Canadian listed  Japan Gold Corp and a stake in Osisko Mining, also listed in Canada.

]]> Today's Oil and Gas Update: EnQuest PLC Mon, 21 Nov 2016 09:00:00 +0000 Headlines

In Brief:
EnQuest (LON:ENQ/ENQ SS – 28p/SEK3.09) – Coming Together

In Brief

EnQuest (LON:ENQ/ENQ SS – 28p/SEK3.09) – Coming Together: While the Company has faced significant headwinds fiscally, which to some extent will continue for some time to come, there is no doubt that operationally at least the Company has been firing on all cylinders. With the announcement of first oil from Scolty/Crathes and the impending sail away of the Kraken FPSO, we believe that provided oil prices don’t experience another significant downward leg, that the combined effect of Scolty/Crathes and Kraken (want is commissioned) will see the fiscal outlook of the Company improve significantly. Whilst further fundraising can’t be ruled out, the further into 2017 it goes without undertaking of fundraising, the less likely it comes. While investors can be rightly nonplussed at the way that the Company has run its finances, specifically failing to address the risks associated with its indebtedness, we believe that management has done well to get to this point and place the Company on more secure footing.