Pan African Resources repositions after challenging year Mon, 24 Sep 2018 10:55:00 +0100 Pan African Resources' (LON:PAF) Cobus Loots and Deon Louw tell Proactive that the firm has "effectively repositioned" the business as low-cost, low-risk, and long life following a challenging year.

Loots says over 50% of the firm's business will now be from surface tailings and re-mining of old mine dumps.

Louw adds that the company is hoping the firm's share price will recover as the benefits from the repositioning come through to the bottom line.

]]> Thor Mining receives approval for acquisition of Bonya licenses Mon, 24 Sep 2018 10:39:00 +0100 Anglo-Pacific adds more firepower for acquisitions with new loan facility Mon, 24 Sep 2018 10:06:00 +0100 Savannah Resources achieves several "important valuation milestones" in first half Mon, 24 Sep 2018 09:19:00 +0100 Savannah Resouces PLC's (LON:SAV) David Archer tells Proactive that the company has increased investment in its assets, particularly its Mina do Barroso (MdB) lithium project in Portugal, over the first half of the current year.

Archer also says that the firm's latest results have highlighted "a number of important valuation milestones" including an increased resource at the MdB project to over 20mln tonnes from 3mln tonnes at the end of 2017.

Savannah reported a narrowed loss for the first half of its financial year, of £1.2mln compared to a £1.5mln loss a year ago with cash and cash equivalents at £786,764.

]]> Randgold Resources and Barrick Gold confirm plans for US$18.3bn merger Mon, 24 Sep 2018 09:00:00 +0100 VSA CAPITAL MARKET MOVERS - Central Asia Metals#: Strong Interim Results Mon, 24 Sep 2018 08:51:00 +0100 Higher Commodity Prices and Robust Cost Control

Central Asia Metals (CAML LN) announced strong H1 2018 results in the first full period reflecting the contribution from Sasa. Revenue was up 160% YoY to US$96.6m primarily driven by the acquisition as well as an 18% YoY increase in realised copper prices. EBITDA of US$64.6m was up 166% YoY as costs at Kounrad were in line with expectations and Sasa unit costs were held flat. With no significant non-cash charges net income of US$28.5m reflected the benefit of the acquisition also, up 88% YoY. 

Sasa Integration Driving Strong Returns

Although the results demonstrate strong performance in H1 2018, in our view, the impact of the acquisition makes comparability difficult. However, the 19% 27% and 68% increase in EPS, FCF/sh and EBITDA/sh. to US$0.16/sh., US$0.19/sh and US$0.37/sh. respectively highlight the accretive nature of the transaction. Furthermore, despite the transaction the interim dividend of 6.5p/sh. has been maintained which is impressive and marks CAML out against its peers. 

Low Cost Base Protects Against Metals Volatility

The shares have sold off sharply from March highs, down 31%, on the back of metals market volatility which is excessive, in our view, given CAML’s relatively low operational leverage. The share are, however, up 13% from recent lows. The low-cost nature of the operations provides significant protection to the earnings outlook, in our view, and we have made only modest adjustments to our forecasts in 2018F. We now expect a dividend of around 14.5p/sh. implying a yield of 6% which remains amongst the highest in the peer group.

Recommendation and Target Price


Although we have made only modest adjustments amidst the recent commodity price sell-off the peer group has corrected and we have reduced our target EV/EBITDA multiple from 5.0x to 4.9x. However, we remain persuaded that commodity markets and equities are oversold and that there is currently a significant value opportunity.

We reiterate our Buy recommendation although adjust our target price down by 4% to 309p which implies 33% upside and 39% on a total return basis. 

]]> Landore rises after hailing success of the summer drilling campaign at Junior Lake Mon, 24 Sep 2018 07:57:00 +0100 Bushveld Minerals settles share option dispute with AMCU Mon, 24 Sep 2018 07:47:00 +0100 Ironridge identifies another “high-grade, coherent gold anomaly” in Chad Mon, 24 Sep 2018 07:45:00 +0100 Eurasia Mining’s shares jump as subsidiary agrees to progress with second mine at West Kytlim with project exceeding expectations Mon, 24 Sep 2018 07:44:00 +0100 Strategic Minerals rises as it identifies additional nickel-sulphide deposits at Hanns Camp Mon, 24 Sep 2018 07:11:00 +0100 Alderan Resources’ copper-zinc results indicate potential large deposit at Accrington Mon, 24 Sep 2018 04:26:00 +0100 Capricorn Metals fields acquisition proposal from Regis Resources, shares surge Mon, 24 Sep 2018 04:03:00 +0100 Australian Vanadium in trading halt pending Gabanintha PFS base case news Mon, 24 Sep 2018 02:48:00 +0100 Platina Resources to develop aluminium-scandium master alloy from Owendale ore Mon, 24 Sep 2018 01:55:00 +0100 Orion Minerals confirms two copper-zinc massive sulphide targets Mon, 24 Sep 2018 01:52:00 +0100 Lithium Australia begins trade-off studies for large-scale lithium processing pilot plant Mon, 24 Sep 2018 01:36:00 +0100 Azumah Resources finds way to lower costs, increase output at gold project Mon, 24 Sep 2018 00:35:00 +0100 Alkane Resources green light for Tomingley Gold Operations underground development Sun, 23 Sep 2018 23:35:00 +0100 Castillo Copper downhole surveys target additional massive sulphides Sun, 23 Sep 2018 23:27:00 +0100 Metro Mining’s Bauxite Hills Mine in QLD sells all bauxite production for 2018 Sun, 23 Sep 2018 23:00:00 +0100 Metro Mining Ltd (ASX:MMI) managing director & CEO Simon Finnis speaks with Proactive Investors about the bauxite producer’s Bauxite Hills Mine in northern Queensland, which began production in April.

The Brisbane-based company is ramping up strongly on its way to producing 2 million tonnes of bauxite for 2018.

Bauxite Hills has an estimated reserve of 92.2 million tonnes and total resources of 144.8 million tonnes and will deliver bauxite into China over a 17-year mine life.

“Our primary focus now that we’ve commissioned Bauxite Hills is to grow that mine itself … 2018 is sold out and we’re actually looking for ways to escalate that expansion, so 3 million tonnes next year for us now is looking like it will be sold very quickly,”says Finnis.

]]> Neometals receives 50 cent price target from Euroz Sun, 23 Sep 2018 22:34:00 +0100 Enertopia Corp is fully funded and ready to get work underway at Clayton Valley project Fri, 21 Sep 2018 20:01:00 +0100 Enertopia Corp (CSE:TOP) CEO Robert McAllister joined Steve Darling in the Vancouver office of Proactive Investors to share details of fund raise, which is complete,  and when they may have drills in the ground.

McAllister also talked about the technology they will be using and how it's been effective for two other Lithium companies.

]]> Tethyan Resources getting ready for significant work on Kizevak Project Fri, 21 Sep 2018 18:55:00 +0100 Tethyan Resources (CVE:TETH) President and CEO Fabian Baker dropped by the Vancouver studios of Proactive Investors to talk about the companies recent cash raise and how that money is going to be used.

Baker also said Tethyan is putting big focus on the Kizevak project, which was a producing mine until local conflict caused it to close. 

]]> Golden Arrow Resources set to raise C$2.625mln from placing Fri, 21 Sep 2018 18:36:00 +0100 Jaxon Mining set for C$1mln raise Fri, 21 Sep 2018 18:29:00 +0100 Nano One Materials outperforms global benchmarks and breaks new ground in the lithium-ion battery market space Fri, 21 Sep 2018 15:57:00 +0100 Enertopia has lithium drill program in sights; closes C$66,750 tranche of placing Fri, 21 Sep 2018 14:42:00 +0100 Bonterra Resources receives court approval for spin-off Fri, 21 Sep 2018 13:53:00 +0100 Arden praises Asiamet’s “world class” Beutong copper asset as it sets bullish 24p target Fri, 21 Sep 2018 13:53:00 +0100 The Fed’s forthcoming decisions on rates are likely to have major implications for the mining sector and emerging markets Fri, 21 Sep 2018 13:49:00 +0100 Thor Mining heartened by the improvement in tungsten prices Fri, 21 Sep 2018 12:56:00 +0100 Khot Infrastructure receives CSE conditional approval to list Blockchain Holdings Ltd shares Fri, 21 Sep 2018 12:51:00 +0100 MGX Minerals Inc's ZincNyx subsidiary continues to advance next generation fuel cells Fri, 21 Sep 2018 12:38:00 +0100 Afarak Group to consider request to implement a tender offer to shareholders Fri, 21 Sep 2018 11:32:00 +0100 Premier African Minerals's George Roach discusses Zulu DFS options Fri, 21 Sep 2018 11:15:00 +0100 George Roach, chief executive of Premier African Minerals Ltd (LON:PREM) spoke to Proactive's Andrew Scott after announcing they'd been unable to reach final terms with Cadence Minerals Plc to fully fund the Definitive Feasibility Study of the Zulu Lithium and Tantalum Project.

Roach also updates on activities at RHA and offers a word on developments at Circum

]]> Cradle Arc PLC renews two prospecting licenses 'with significant potential' Fri, 21 Sep 2018 09:57:00 +0100 Kevin van Wouw, chief executive of Cradle Arc Plc (LON:CRA) tells Proactive's Andrew Scott they've renewed prospecting licenses for an area north of its Mowana copper mine in Botswana.

He says two renewals have been granted by the Botswana Ministry of Minerals, Energy and Water Resources for a period of two years, with a proposed work plan to conduct further geophysics to extend the resource through the northernmost permit area ahead of a maiden drilling programme to prove mineralisation in the known structure.

]]> Galena Mining celebrates a year amid increased equity Fri, 21 Sep 2018 09:00:00 +0100 SIG sees first-half profits drop after builders delayed projects because of Britain’s long icy winter Fri, 21 Sep 2018 07:55:00 +0100 Tantalum prices forecast to decline despite growing market Fri, 21 Sep 2018 07:20:00 +0100 Roskill analyst Stefano di Nardo discusses his Global Industry, Markets & Outlook report for Tantalum through to 2027.

He says tantalum is a small market in tonnage terms and, often, is susceptible to substantial fluctuations in response to single events.

He adds it's a relatively rare element in nature but is widely distributed, with known deposits present in all continents.

]]> Savannah Resources submits mining lease application in Mozambique as half year loss narrows Fri, 21 Sep 2018 06:42:00 +0100 Heron Resources intersects high-grade base metals at Woodlawn Copper Zinc Project Fri, 21 Sep 2018 06:31:00 +0100 Panoramic Resources set to reopen its Savannah Nickel-Copper-Cobalt Project by March Fri, 21 Sep 2018 06:12:00 +0100 New Age Exploration delivers high-grade results at Redmoor amid declining tin supply Fri, 21 Sep 2018 06:02:00 +0100 New Age Exploration Ltd (ASX:NAE) managing director & CEO Gary Fietz updates Proactive Investors on the advanced explorer’s recent drilling results from its Redmoor Tin-Tungsten Project in the United Kingdom.
Results of up to 14.10 metres at 1.44% tin equivalent from 420.25 metres, including 2.00 metres at 4.55% highlight increasing grades at depth.
Fietz highlighted a study by the Massachusetts Institute of Technology that showed that tin was the number one metal impacted by new technology, with Tungsten ranking as number seven.
“Often we think of lithium and graphite and sometimes cobalt, we don’t often think of tin as a new technology EV metal but interestingly this study showed tin as number one,” Fietz says.
]]> Arrow Minerals to receive consideration for sale of 49% interest in Pilbara Gold Project Fri, 21 Sep 2018 05:28:00 +0100 Bannerman Resources well positioned to leverage nuclear sector recovery Fri, 21 Sep 2018 04:48:00 +0100 Bannerman Resources Ltd (ASX:BMN; NSX:BMN) managing director Brandon Munro updates Proactive Investors on the uranium development company’s position in a deepening deficit within the nuclear sector.

“We’ve had a series of systemic supply disruptions and we’ve now got a sector that’s moved from almost a decade of surplus into quite a deep deficit this year,” Munro says.

He continues, “there is some inventory that need to be worked through, but we’ve seen not only that inventory shrinking but we’re seeing an awful lot of physical buying coming from financial investors.

“Bannerman is tremendously well positioned … our coffers are full, we’ve got a lot of financial discipline in the company so that gives a lot of runway to see this sector recovery all the way through.”

]]> Cape Lambert Resources commences important drilling programs Fri, 21 Sep 2018 03:33:00 +0100 Meteoric Resources seeks to prioritise cobalt targets at Canadian tenements Fri, 21 Sep 2018 02:42:00 +0100 Metro Mining passes 1-million tonne milestone of bauxite shipments to Chinese customers Fri, 21 Sep 2018 02:03:00 +0100 Aeris Resources raising $35.1 million to accelerate exploration at Tritton and Torrens Fri, 21 Sep 2018 01:38:00 +0100 Artemis Resources building a mining future around the Radio Hill plant Thu, 20 Sep 2018 23:24:00 +0100 Archer Exploration highlights advanced materials business strategy amid exploration divestments Thu, 20 Sep 2018 22:57:00 +0100 American Lithium closes private placement, raises C$4.5mln Thu, 20 Sep 2018 21:47:00 +0100 Fireweed Zinc shares shoot up following "exceptional' first drill assays from Macmillan Pass Thu, 20 Sep 2018 19:00:00 +0100 Leading Edge Materials Corp keeping in line with its Europe strategy Thu, 20 Sep 2018 18:30:00 +0100 Great Bear Resources kicks off new drill programme in famous Red Lake gold district; sees revised high grade assays Thu, 20 Sep 2018 18:17:00 +0100 Maxtech Ventures moves into fluorspar as it's poised to buy American Strategic Metals Thu, 20 Sep 2018 17:18:00 +0100 Medgold Resources encouraged by latest drill assays from Tlamino project Thu, 20 Sep 2018 17:03:00 +0100 Jaxon Mining Inc hails Backbone prospect sample results; plans drilling programme Thu, 20 Sep 2018 16:35:00 +0100 Barsele Minerals hails more solid drill results from Swedish project Thu, 20 Sep 2018 16:28:00 +0100 Global Energy Metals set to raise C$500,000 to advance business Thu, 20 Sep 2018 14:58:00 +0100 Anglo Asian declares maiden dividend which could “nearly double next year” says broker Thu, 20 Sep 2018 14:44:00 +0100 Kier Group sees full-year profit, revenue rise thanks to new projects and contract wins, plans to simplify operations Thu, 20 Sep 2018 13:36:00 +0100 Orsu Metals set to expand drill programme at Sergeevskoe gold project; in talks with gold plant owner Thu, 20 Sep 2018 12:54:00 +0100 GGX Gold discovers extension to Gold Drop vein system Thu, 20 Sep 2018 12:34:00 +0100 Caledonia Mining adds 13% to mining resource at Blanket Mine in Zimbabwe Thu, 20 Sep 2018 12:30:00 +0100 Europa Metals increases resource at Toral project in Spain by 19% Thu, 20 Sep 2018 12:12:00 +0100 Laurence Read, executive director of Europa Metals Ltd (LON:EUZ) (ASX:EUZ), tells Proactive's Andrew Scott they've increased the JORC mineral resources estimate for their 100%-owned Toral lead-zinc-silver project in northern Spain, following a recent re-logging programme of certain historical core samples.

Read says this has led to a 19% increase in zinc equivalent Inferred resource to 19mln tonnes, a 7% increase in contained tonnes of zinc to 720,000, a 6% increase in contained tonnes of lead to 570,000, and an 8% increase in contained ounces of silver to 14mln ounces.

]]> Tsodilo Resources makes third delivery of diamonds for cleaning and analysis Thu, 20 Sep 2018 12:02:00 +0100 Mike de Wit, president and chief operating officer of Tsodilo Resources Ltd (CVE:TSD), updates on the BK16 kimberlite project in Botswana, where a bulk sampling program is ongoing.

He says a third parcel of 279 diamonds totalling 43.95 carats has now been delivered to Gaborone in preparation for acid cleaning.

]]> Real diamonds losing their sparkle among millennials, claims Berenberg Thu, 20 Sep 2018 10:34:00 +0100 Grades at Galileo’s Star zinc project indicate upside could be greater than previously thought Thu, 20 Sep 2018 10:07:00 +0100 Kodal Minerals turns its thoughts to the economics of production, following a maiden resource at Bougouni Thu, 20 Sep 2018 09:53:00 +0100 Wishbone Gold’s sales continue to rise as business model rolls out Thu, 20 Sep 2018 09:19:00 +0100 Vast Resources rises on good news relating to its Blueberry and Baita Plai projects Thu, 20 Sep 2018 08:47:00 +0100 VSA CAPITAL MARKET MOVERS - VSA MORNING MINER, 20/09/18 Thu, 20 Sep 2018 08:05:00 +0100 NuLegacy Gold (NUG CN / NULG OTCGX)#

NuLegacy Gold (NUG CN) has announced that Ed Cope who has been on the BoD since 2017 has now joined the management team to oversee exploration efforts and take responsibility for property evaluation and acquisition. Mr Cope has already contributed significantly to NUG, playing a key role in the discovery of Iceberg and Avocado as well as in the appointment of key personnel including Charles Weakly who has led the recent reinterpretation work.

As VP Exploration for Barrick (ABX US), Mr. Cope was instrumental in recognizing and attracting the exploration team that was responsible for the significant growth in Barrick’s Nevada reserves and resources.  In 2014, Mr. Cope was, along with his team members, co-recipient of the Prospectors & Developers Association of Canada’s “Thaver Lindsley International Mineral Discovery of the Year” award for the discovery of the 10+ million ounce Goldrush deposit, located adjacent to NUG's Red Hill Property. He is therefore one of the foremost experts in the regions geology and exploration.

Following the geological reinterpretation work NUG delivered its best drilling results to date which included 22.1m at 6.59g/t Au and 8.7m at 16.92g/t Au. With follow up drilling planned to further validate the reinterpretation we believe that the increased focus from Mr Cope will be a valuable addition.

We reiterate our Speculative Buy recommendation.

]]> Mkango Resources receives more encouraging assays from drilling at Songwe Hill Thu, 20 Sep 2018 08:05:00 +0100 North Korea tipped to be a significant future player in Magnesia industry Thu, 20 Sep 2018 07:33:00 +0100 Roskill's Alison Saxby spoke to Proactive's Andrew Scott following the release of her industry, markets & outlook 2018 report for magnesium compounds.

Saxby says China has dominated world magnesia supply for decades, accounting for 70% of world production capacity and 60% of world production.

She adds supply tightness affecting certain magnesia markets is expected to persist for the foreseeable future.

]]> Chaarat Gold contractor begins equipment deployment at Tulkubash gold deposit Thu, 20 Sep 2018 07:32:00 +0100 Europa Metals raises mineral resources estimates for Toral project following recent re-logging of historical core Thu, 20 Sep 2018 07:25:00 +0100 BlueRock Diamonds jumps as it reports narrowed half-year losses amid improved grades at Kareevlei Thu, 20 Sep 2018 07:11:00 +0100 Oracle Power outlines next phase of development in Pakistan Thu, 20 Sep 2018 06:55:00 +0100 Danakali’s advanced Colluli Potash Project in Eritrea is a cut above the rest Thu, 20 Sep 2018 06:54:00 +0100 Alba Mineral Resources sets off on the next stage to define new gold targets at its mine in North Wales Thu, 20 Sep 2018 06:28:00 +0100 Canyon Resources upgrades Minim Martap bauxite resource to JORC 2012 classification Thu, 20 Sep 2018 06:12:00 +0100 Graphex Mining updates Chilalo Graphite Project PFS with improved economics Thu, 20 Sep 2018 05:44:00 +0100 Coziron Resources encouraged by gold recovered by prospectors at Pilbara project Thu, 20 Sep 2018 04:06:00 +0100 Ventnor Resources bulk sample testing confirms glass-making quality sand Thu, 20 Sep 2018 03:15:00 +0100 New Talisman Gold Mines commences gold mining activities Thu, 20 Sep 2018 02:34:00 +0100 Aeris Resources enters trading halt ahead of capital raising Thu, 20 Sep 2018 02:21:00 +0100 Davenport Resources aims to bring unique German potash assets into JORC compliance Thu, 20 Sep 2018 02:15:00 +0100 Davenport Resources Ltd (ASX:DAV) non-executive chairman Patrick McManus speaks to Proactive Investors about the agri-minerals company’s South Harz Potash Project in central Germany.

In July of this year Davenport received three perpetual mining licences for the German project, unique concessions that carry no expenditure commitments or royalties on production.

“We’ve got this huge body of data that came with the purchase of the mining licences and our geological team have been reviewing that,” McManus says.

He continues, “[we’ve] identified Soviet-era resources on all three of the licences and we’re now in the process of … updating it to JORC-compliance.”

]]> Anson Resources aims to re-enter three wells as part of fast-track lithium strategy Thu, 20 Sep 2018 02:15:00 +0100 Nexus Minerals acquiring additional tenements to expand its Wallbrook Gold Project Thu, 20 Sep 2018 01:29:00 +0100 Peninsula Energy managing director and CEO buying shares Thu, 20 Sep 2018 01:22:00 +0100 Peninsula Mines progresses Korean graphite commercialisation strategy Thu, 20 Sep 2018 01:00:00 +0100 Tyranna Resources commences drilling at gold project Thu, 20 Sep 2018 00:44:00 +0100 New Age Exploration receives best results to date from Redmoor Tin-Tungsten Project Wed, 19 Sep 2018 23:53:00 +0100 PolarX drills 15 metres at 2.3% copper and 2.2 g/t gold Wed, 19 Sep 2018 23:32:00 +0100 Peninsula Mines drilling for graphite, gold-silver and zinc at 3 South Korean projects Wed, 19 Sep 2018 23:19:00 +0100 Peninsula Mines Ltd (ASX:PSM) managing director Jon Dugdale updates proactive investors as the South Korea-focused company commences a drill program that will span three projects encompassing battery, base and precious metals.

The focus of works is on delivering a maiden resource at the flagship Gapyeong Flake Graphite Project. Metallurgical testing for processing high purity spherical graphite is ongoing in parallel with project development works.

]]> Ventnor Resources entire board boost their stake with share purchases Wed, 19 Sep 2018 22:43:00 +0100 Peninsula Mines starts drilling in Korea with focus on flake graphite at Gapyeong Wed, 19 Sep 2018 22:37:00 +0100 Fireweed Zinc shares encouraging results from drill hole at MacMillan Pass Project Wed, 19 Sep 2018 20:55:00 +0100 Fireweed Zinc Inc. (CSE:FWZ) President and CEO Brandon MacDonald stopped by the Vancouver Studio of Proactive Investors to update a drill hole results taken from their project, MacMillan Pass in the Yukon.

MacDonald also told Proactive, we should be seeing more results soon.  He talked about the work that will done over the winter to get ready for the 2019 drill season which should begin June 1st.

]]> Pacific Empire Minerals provides major update on 2018 drilling program Wed, 19 Sep 2018 19:38:00 +0100 Pacific Empire Minerals (CVE:PEMC) CEO Brad Peters joined Proactive Investors Steve Darling on Skype to provide an update on a number of their projects including Copper King, Stars, and Plateau.

Peters also chatted gave us an update on what the company has planned for the rest of 2018 and the first half of 2019.

]]> Canamex Gold set to closes its GoldUSA token offering later this month Wed, 19 Sep 2018 17:55:00 +0100 With its zeolite project looking strong, Progressive Planet Solutions ups communications Wed, 19 Sep 2018 17:50:00 +0100 Carube Copper is a pioneer in opening up Jamaica to copper mining, and also has a highly attractive BC portfolio Wed, 19 Sep 2018 16:11:00 +0100 Bonterra Resources finds new high grade gold zone north of Gladiator; shareholders approve Metanor deal Wed, 19 Sep 2018 16:02:00 +0100 Rainbow Rare Earths looks to build production as Burundi operation hits stride Wed, 19 Sep 2018 14:55:00 +0100 Anglo Asian Mining surges as it declares maiden dividend in half year results Wed, 19 Sep 2018 14:35:00 +0100 Bonterra Resources makes major acquisition that will aid flagship Gladiator Project Wed, 19 Sep 2018 14:13:00 +0100 Bonterra Resources (CVE:BTR) CEO Nav Dhaliwal dropped by the Vancouver Studios of Proactive Investors to share details about the companies multi million dollar acquisition and some major news about new targets at their Flagship project Gladiator.

Dhaliwal also had a major update about their Larder Lake, Ontario project .

]]> Rainbow Rare Earths looking ahead to increased production and maiden resource Wed, 19 Sep 2018 14:10:00 +0100 Martin Eales, chief executive of Rainbow Rare Earths PLC (LON:RBW), tells Proactive's Andrew Scott he's expecting production from the Gakara licence in Burundi to rise towards 400 tonnes per month by the end of 2018.

Production of rare earth concentrate came on stream late in 2017 and in the final quarter of the year to June was running at 100tpm.

]]> Anglo Asian Mining announces jump in profits and maiden dividend Wed, 19 Sep 2018 14:04:00 +0100 Anglo Asian Mining Plc's (LON:AAZ) CFO Bill Morgan and Director of Geology & Mining Steve Westhead caught up with Proactive's Andrew Scott to discuss the group's interim results, maiden dividend and recent resource estimate for the Gedabek Main Open Pit.

Anglo Asian's declared an interim dividend of US$0.03 per share as it swung to a pre-tax profit of US$8.1mln from a US$1.3mln loss the year before as revenues climbed to US$40mln from US$29.8mln.

]]> Eurasia Mining debt-free as it converts remaining loan to shares Wed, 19 Sep 2018 13:02:00 +0100 Amur Minerals sees 81% increase in inferred high grade zone at Kun-Manie Wed, 19 Sep 2018 09:34:00 +0100 Strategic Minerals reports best drilling results to date from Redmoor Wed, 19 Sep 2018 09:33:00 +0100 Bluebird Merchant Ventures "delighted with progress" in South Korea Wed, 19 Sep 2018 08:13:00 +0100 Metminco joins electric vehicle charge with nickel acquisition Wed, 19 Sep 2018 07:47:00 +0100 Pan African Resources reports financial results after decisive action to maintain profitability Wed, 19 Sep 2018 07:14:00 +0100 Landore Resources looks forward to big BAM milestones in coming months Wed, 19 Sep 2018 06:47:00 +0100 Rockfire Resources successfully completes Marengo gold-copper drilling Wed, 19 Sep 2018 06:30:00 +0100 Ausgold starts drilling of high-grade gold targets at Katanning project Wed, 19 Sep 2018 06:27:00 +0100 Cygnus Gold identifies multiple VMS targets at Burracoppin polymetallic project Wed, 19 Sep 2018 06:08:00 +0100 Blackham Resources drills more high-grade gold at Matilda-Wiluna, mining set to recommence this month Wed, 19 Sep 2018 05:49:00 +0100 Antipa Minerals intersects high-grade gold at Chicken Ranch in WA Wed, 19 Sep 2018 04:35:00 +0100 Core Exploration targets lithium concentrate production at Finniss by late 2019 Wed, 19 Sep 2018 04:12:00 +0100 Commerce Resources getting ready to be a major player in Rare Metals and Tantalum Tue, 18 Sep 2018 19:25:00 +0100 Commerce Resources Corp. (CVE:CCE) President Chris Grove joined Steve Darling in the Vancouver studio of Proactive Investors to provide details on their two major projects producing rare metals, Niobium, and Tantalum.

Grove also shared the companies next steps and how they hope to put together a joint venture to move  the company to the next level. 

]]> VSA CAPITAL MARKET MOVERS - VSA Morning Miner, 18/09/18 Tue, 18 Sep 2018 08:27:00 +0100 M2 Cobalt (MC CN)#


M2 Cobalt (MC CN) has announced that it has appointed Mahendra Naik to the BoD with immediate effect. Mr Naik was previously a consultant to M2 and will now act as audit chair. He has experience of developing projects in Africa as well as in cobalt and related markets and we view his decision to join M2 as a positive endorsement of the assets and strategy.

Mr Naik is a Chartered Professional Accountant and is one of the founding directors and key executives who started IAMGOLD Corporation (“IAMGOLD”), a TSX and NYSE listed gold mining company. As Chief Financial Officer of IMAGOLD from 1990 to 1999, he was involved in the negotiation of a number of mine joint ventures with Anglo American and was instrumental in arranging over $550m in debt and equity financings for IAMGOLD including its IPO. Since 2000, Mahendra has been a Director and member of the Audit and Compensation committees for IAMGOLD. Today IAMGOLD has a market capitalization of approximately C$2.4bn.

Mr. Naik is also the Chairman of the Board, Audit and Compensation Committees of Fortune Minerals Limited, a TSX listed company focused on the NICO cobaltgoldbismuthcopper Project in the North West Territories. As Chairman of Fortune, Mr. Naik has been actively involved in helping to raise in excess of C$100 million for Fortune and in the negotiation of several joint ventures. Mr. Naik is also a Director of Goldmoney Inc, a TSX listed precious metals financial services company and is involved in number of non-profit organizations including the Indus Entrepreneurs and Trillium Hospital Foundation.

We reiterate our Speculative Buy recommendation.

]]> Apollo Minerals 'very welcome in France with flagship project progressing well' Tue, 18 Sep 2018 07:07:00 +0100 Apollo Minerals' (ASX:AON) Hugo Schumann and IHS Markit analyst Kit Nicholl discuss the recent developments in France and reforms introduced by President Emmanuel Macron.

''The pace of reform has been blistering and that is likely to continue over the coming year or so with reforms to local government, public administration .. some quite politically sensitive areas'', Nicholl says.

He adds: ''The new environment minister has some key challenges on his hands with regards to energy policy and reforms to the mining sector''.

Schumann says: ''We're seeing this in practice, these reforms coming into place''.

''Certainly the changes to the labour code are very beneficial .. the environment and mining code needs to be reformed … we'd like to see some more rapid decision-making in these areas''.

''We've been very, very welcome by the politicians in France and particularly by the local people where we are developing this project''.

]]> W Resources assay results 'point to a very substantial extension of the Régua orebody' Tue, 18 Sep 2018 07:00:00 +0100 W Resources PLC (LON:WRES) chairman Michael Masterman updates Proactive Investors on just-announced assay results from RC drilling at the Régua tungsten project in Portugal, and development at the flagship La Parrilla tungsten-tin project over the boarder in Spain, as well as key appointments to the management team and board.

"Our priority is very much La Parrilla, which is under full development at the moment. Régua in Northern Portugal is coming very closely behind. In terms of development, we're able to leverage a lot of the existing infrastructure... to allow us to move, at low cost, into tungsten production in Northern Portugal," Masterman says.

]]> Renegade Exploration has drilled only 5/9 high priority targets, already found 5-6 more Tue, 18 Sep 2018 03:27:00 +0100 Mark Wallace, non-executive director of Renegade Exploration Ltd (ASX:RNX), stops by Proactive Investors to discuss the completion of a 285-hole, 23,789-metre first pass aircore drilling program at the camp scale Yandal East Gold Project in Western Australia.

Follow up drilling is already planned for next quarter. Wallace says, "The next program is far more concentrated, so it's evolving the process. It'll be targeting three of the five new targets. It will be roughly $250,000, and we've got about $1.5 million in the bank now, and we got a grant back as well... we're good to go."

]]> Artemis Resources looking at 'strong news flows, resource updates, before end of year' Tue, 18 Sep 2018 01:24:00 +0100 Wayne Bramwell, new chief executive of Artemis Resources (ASX:ARV) (FRA:ATY) (US OTC:ARTTF), updates Proactive Investors on the Carlow Castle project and Radio Hill Processing Plant.

Bramwell says, "My attraction to this company really was the asset package and the portfolio that they have put together, and also the speed at which this company has seemed to be moving... The Artemis story's quite simple: it's really about gold, cobalt and base metals. It's been the first company to put together a large package of gold, base and battery metal tenements in the Karratha region, the Pilbara region, with a processing plant."

]]> Goldex 'the Airbnb of gold' launches peer-to-peer trading system Mon, 17 Sep 2018 13:50:00 +0100 Sylvia Carrasco, founder and chief executive of Goldex Technologies, introduces the platform to Proactive's Andrew Scott.

''It's the most sophisticated trading app to buy and sell physical gold'', Carrasco says.

She adds that it's the first gold provider operating as an agency - not owing its own gold.

]]> Kavango Resources kicks off airborne survey of Botswana project Mon, 17 Sep 2018 12:08:00 +0100 Mike Moles, director of Kavango Resources Plc (LON:KAV), caught up with Proactive's Andrew Scott not long after an airborne electromagnetic geophysical survey kicked off at their KSZ Project in southwest Botswana.

Canadian firm Geotech is carrying out the VTEM survey over the Kalahari Suture Zone.

Kavango is exploring for sulphide orebodies rich in nickel/copper/platinum group metals.

]]> VSA CAPITAL MARKET MOVERS - Novo Lítio (NLI AU): Gold Project Acquisition Mon, 17 Sep 2018 10:38:00 +0100

Novo Lítio#: Gold Project Acquisition


Acquisition of Highly Prospective Gold Project

Novo Lítio (NLI AU) has agreed to acquire two granted licenses and one license application in northern Côte d’Ivoire, from Apollo Consolidated (AOP AU) who have decided to focus their efforts on their Australian gold and nickel sulphide assets. With a strong cash position of A$16m NLI is well placed to advance exploration and has committed to a A$5m initial exploration programme.

Within the 830km2 license areas, which have largely not been explored, three major gold-in-soil anomalies have been identified within the highly prospective Birimian greenstone trends which host the world class Tongon (Randgold Resources) and Syama (Resolute Mining) mines. Limited RC drilling has been carried out although notable results include 17m at 22.52g/t Au from 8m whilst aircore drilling at two of the three anomalies has yielded consistent grades of 2-5g/t Au at shallow depths.

NLI intend to issue 90m shares to complete the acquisition (this requires approval from shareholders at a meeting scheduled for September 28 2018) implying a valuation of A$4.6m (100%) using A$0.041/sh. at the time of announcement.

Sepeda Update

NLI continues to reserve its legal rights in relation to the Sepeda Lithium Project in Portugal. The company has engaged a new legal firm in Portugal; Coelho Ribeiro & Associados, to advise it on the dispute going forward. If NLI is unable to reach a commercial settlement it intends to pursue its rights in the Portuguese courts. No further exploration work has been carried out on the company’s lithium assets in Sweden.


Although this marks a significant change of direction from the lithium strategy these assets are highly attractive, in our view, with significant exploration potential and located in a highly prospective region. We believe the terms of the acquisition are attractive offering NLI shareholders exposure to attractive gold assets while providing AOP shareholders with continued exposure to future upside potential.   

We reiterate our Speculative Buy recommendation although withdraw our target price based on the lithium assets given the planned acquisition.


]]> Black Iron Inc hails recent breakthroughs for Shymanivske development Mon, 17 Sep 2018 08:51:00 +0100 Matt Simpson, chief executive of Black Iron Inc (TSE:BKI), caught up with Proactive's Andrew Scott to discuss two recent milestones for the company - the receipt of a land lease proposal from the government as well as 'strong interest' from a number of several steel mills and trading houses to buy the high-grade pellet feed expected to be produced from the project.

Simpson says many of these groups have signed confidentially agreements to review the project in greater detail.

]]> VSA CAPITAL MARKET MOVERS - VSA Morning Alternative Energy Comment, 17/09/18 Mon, 17 Sep 2018 08:42:00 +0100 redT Energy (RED LN)#

redT energy (RED LN)#, an energy storage solutions company, has received a conditional commitment letter from an energy infrastructure fund to invest €37m, alongside partners, for full rights to the first phase deployment of a 700MWh portfolio of grid-scale energy storage projects in Germany, which was previously announced on 26 July 2018.

  • The first phase of the project will see the deployment of 800 tank unit modules for a total capacity of 60MWh to supply Secondary Control Reserve (SCR) and other grid services to the German and Austrian market.
  • Full financial close is targeted for 31 December 2018.
  • Financing will form part of an overall US$120m initial development portfolio across RED’s three target sectors - Commercial & Industrial, Grid-scale and Large-scale Solar – for which it remains in active discussions with a number of infrastructure investors.

VSA Comment

Following on from the announcement in July that it had signed an exclusive deal to develop energy storage projects to support the German electricity grid, RED is now well advanced in securing the financing for funding the initial stage of this project. With financing expected to be secured by year-end, this project should deliver significant revenues for RED over its FY 2019 and FY 2020.
With the potential securing of a number of large-scale projects, RED has identified a need for the provision of infrastructure finance, in a similar vein to what has been seen in the wider renewable energy sector. Although flow machines have yet to be financed in this way, we believe the technology is ideally suited to such financing, as the machines suffer from very little degradation and offer significant flexibility in an era of constantly changing energy regulation.

Recent regulatory changes in Germany, which have also been seen in the UK, are clearly favouring long-duration storage technology, as opposed to lithium-ion battery projects that are targeting short-term grid service revenue streams in what is an increasingly crowded and much smaller market. In comparison, this first German project is expected to make-up just 1% of the entire German SCR market, which clearly highlights the significant potential for expansion if this initial project proves successful.

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

Risers and Fallers (Last Close)


Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Biome Technologies plc





Powerhouse Energy Group PLC





Plutus PowerGen plc








Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

SSE plc





redT Energy PLC





Good Energy Group PLC






]]> Millennial Lithium drills south of their flagship project and receives good results Fri, 14 Sep 2018 19:05:00 +0100 Millennial Lithium (CVE:ML) President and CEO Farhad Abasov stopped in to the Vancouver studios of Proactive Investors to talk about drill results on the southern area of their project, Pastos Grande in Argentina.

Abasov also told Proactive how much money they have in the bank as they get ready for a very busy fall of 2018 and an even busier 2019.

]]> Kazera Global '110%' focused' on JORC resource at Homestead says CEO Johnson Fri, 14 Sep 2018 14:31:00 +0100 Larry Johnson, Kazera Global's (LON:KZG) chief executive, tells Proactive investors the junior is working as hard as possible to get a JORC-compliant resource for the Homestead mine in Namibia.

Channel sampling is underway at the mine with over 160 samples sent to the lab for assaying.

Talks are also under way with a number of engineering firms over a contract to build the Orange River pipeline, which will supply water to the project.

Getting the resource completed is the focus with Orange River the long future of Kazera said Johnson.

]]> US mid-terms loom, gold ticks up, and the global economy roars on Fri, 14 Sep 2018 13:16:00 +0100 DekelOil Public Limited#: H1 2018 Results Fri, 14 Sep 2018 07:56:00 +0100 On 13 September Côte d'Ivoire palm oil producer DekelOil Public Limited (DKL LN)# announced interim results for the period ended 30 June, reporting revenue of €14.1m (H1 2017: €19.6m) and a net loss of €0.5m (H1 2017: profit of €2.4m).

Results As Expected After July Production Update

DKL’s interim results were disappointing given its record of improvement since the Ayenouan mill begun processing crude palm oil in 2014. However, operations during the period were impacted by regional-specific climatic issues and lower CPO prices, both factors which are outside of the control of management. The lower availability of fruit for processing also led to increased competition from mills, which impacted margins.

However, we were encouraged by management’s aggressive move to acquire additional palm kernels for processing into palm kernel oil (PKO production +9% YoY, compared with a 18% YoY drop in CPO production) as well as a YoY reduction in general and administrative costs of more than 7%, which helped partially offset some of the financial weakness arising from the factors that the group could not control.    

Early Positive Signs for Future Fruit Levels

With a difficult 2018 high season behind it (albeit FY 2018 results will of course be impacted) DKL can now look forward to 2019. In this regard, an elevated high season tends to follow a lower one, as last seen in Côte d'Ivoire in 2010/2011. Therefore, we are hopeful that this will indeed be the case in H1 2019, although it is by no means guaranteed. Early July production was previously reported ahead YoY and in its interim results DKL has stated fruit levels have “shown signs of stabilising” in Q3.

Recommendation and Target Price

We initiated on DKL with a BUY recommendation and a target price of 12p on 6 August 2018. Following these results, we maintain both our recommendation and target price. 


For full report click here

]]> Australian Mines doing 'a phenomenal amount of drilling' for BFS at Sconi Fri, 14 Sep 2018 07:10:00 +0100 Australian Mines Ltd (ASX:AUZ) exploration manager Stuart Peterson updates Proactive Investors on development of the company's flagship Sconi Cobalt-Nickel-Scandium Project in northern Queensland.

A 50,000-metre drill program is underway there currently, targeting three areas, including resource expansion drilling on the Greenvale deposit. A Bankable Feasibility Study (BFS) on Sconi is nearing completion.

]]> Bulls, Bears & Brokers: Alto Capital's Tony Locantro brings an oil & gas sector slant Fri, 14 Sep 2018 04:00:00 +0100 Tony Locantro, stock market commentator and investment manager at Alto Capital, gives Proactive Investors a speculative market update, and speaks about his experience at the RIU Good Oil Conference 2018 held in Perth this week.

To hear Tony's Tips on what to buy and what to avoid, as well as how to tell the difference for yourself, watch our full video interview.

]]> Prospero Silver releases encouraging drill results from Buenavista project in Mexico Thu, 13 Sep 2018 20:43:00 +0100 Prospero Silver Corp (CVE:PSL) Executive Vice President Ralph Rushton dropped in to the Vancouver Studios of Proactive Investors to share their drill results from the Buenavista Project located in the Durango state of Mexico.

Rushton also talked about the companies recent cash raise with Fortuna Silver Mines and what the company has in store for the fall of 2018.

]]> VSA CAPITAL MARKET MOVERS - VSA Morning Alternative Energy Comment, 13/09/18 Thu, 13 Sep 2018 08:24:00 +0100 redT energy#: H1 2018 Results

redT energy (RED LN)#, an energy storage solutions company, has announced its interim results for the six months ended 30 June 2018.

  • Revenue: £1.2m, +33.3% YoY (H1 2017: £0.9m), VSA FY estimate is £4.1m
  • EBIT: loss of £5.7m (H1 2017: loss of £3.1m), VSA FY estimate is a loss of £11.9m
  • Net Cash as of 30 June 2018: £3.9m (31 December 2017: £6.6m)

VSA Comment

RED has revealed results for H1 in-line with our expectations for the FY. More importantly, since the period end RED has made considerable in-roads into key markets, all of which have the potential to lead to significant orders for RED’s flow machines over the next few years.

In July, the company announced an exclusive deal to develop 690MWh of energy storage projects to support the German electricity grid (with finance to be secured – no update in these results, but we would expect progress by the end of the year).

This was followed in August by an order from Anglian Water for one of its 60kW-300kWh flow machines, alongside a collaborative partnership to optimise energy storage across all of its sites, and most recently by the announcement that it had been selected as a preferred supplier of energy storage solutions to the public sector under Essentia’s Battery Storage Framework.

These agreements suggest a growing acceptance of the suitability of deploying flow machines in large-scale energy storage infrastructure applications.

The company has also revealed that its overall pipeline has grown by more than three times since it last reported (to £1bn+ from €357m in December 2017) - see attached pdf for more detail.

The company has also provided a split of the total gross pipeline across its three key target sectors – Commercial & industrial (£115m), Grid-Scale (£702m) and Large Solar & Storage (£256m).

It is clear that RED now has enough orders in its pipeline to deliver on our forecasts for the next couple of years and as such the company will now be focused on scaling up production via its manufacturing partners in order to satisfy these.

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

Risers and Fallers (Last Close)


Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg






redT energy





Solid State








Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg











AFC Energy






]]> Brookside Energy progressing well with land leasing and development strategy Thu, 13 Sep 2018 03:30:00 +0100 Brookside Energy Ltd (ASX:BRK) managing director David Prentice speaks to Proactive Investors about achieving first payout in just 11 months from a well forming part of the company's STACK play in the Anadarko Basin area of Oklahoma, USA.

Prentice describes the milestone as, "a remarkable achievement in the current pricing environment... further endorsement of the quality of the oil and gas reservoirs in the Anadarko Basin."

He continues, "this is obviously going to lead to significantly more reserves per well, and then ultimately to higher valuations per acre, which is really what our business model is all about."

]]> Technology Metals Australia progressing Gabanintha with drilling and test work Thu, 13 Sep 2018 01:15:00 +0100 Technoloy Metals Australia Ltd (ASX:TMT) executive director Ian Prentice updates Proactive Investors on the company’s ongoing development of its Gabanintha Vanadium Project in Western Australia.

Significant progress is being made on a definitive feasibility study (DFS) for Gabanintha, on track for completion in the June quarter of 2019.

The DFS includes drilling aimed at expanding the indicated mineral resource within the global mineral resource estimate of 119.9 million tonnes at 0.8% vanadium pentoxide and 9.7% titanium dioxide.

Recent metallurgical test work has also achieved an impressive high purity 99.53% vanadium pentoxide from Gabanintha ore, providing further confidence for the DFS.

]]> Lithium Australia 'will have lithium cathode material ready for testing within 2 weeks' Thu, 13 Sep 2018 01:11:00 +0100 Lithium Australia NL (ASX:LIT) managing director Adrian Griffin speaks to Proactive Investors about the recent grand reopening of Australia's only cathode powder pilot plant and battery-testing facility, in Brisbane, Queensland.

The plant has been recommissioned by Lithium Australia's wholly-owned subsidiary, the Very Small Particle Company, VSPC Pty Ltd, to produce cathode material for use in the production of lithium-ion batteries.

"Within two weeks we will have lithium cathode materials ready for shipping to China for testing by major battery producers," says Griffin.

He adds, "to prove processes commercially it's very important to scale up... we'll probably produce a larger scale plant in the near future, but to get there we have to complete feasibility, that's already commenced and we anticipate completing that by about March. That will give us all the parameters for building a larger plant which will probably be the first, shall we say moderate scale, production unit for cathode powders in Australia."

]]> Castillo Copper approaching 'critical 12 months' - Capital Network analyst Wed, 12 Sep 2018 14:50:00 +0100 Capital Network analyst Ed Stacey discusses Castillo Copper Ltd (ASX:CCZ).

Castillo's a metal explorer primarily focused on Copper, Zinc, Cobalt, and Nickel.

The flagship project consists of three prospects at Jackaderry in NSW, Australia which are highly prospective for Copper-Cobalt-Zinc.

]]> W Resources Plc on site at La Parrilla in Spain as construction advances Wed, 12 Sep 2018 09:27:00 +0100 Michael Masterman, chairman of W Resources PLC (LON:WRES), skyped into the Proactive studio from onsite at La Parrilla in Spain to update on construction.

He says the crusher is well on schedule for completion and the jig should be completed by year-end.

''There's a lot of action onsite at La Parilla ... a lot of things happening'', he says.

Masterman says all is on track for completion in the first quarter of next year.

]]> Matador Mining starts maiden drilling at flagship Cape Ray Gold Project in Canada Wed, 12 Sep 2018 05:00:00 +0100 Matador Mining Ltd (ASX:MZZ) managing director Paul Criddle speaks to Proactive Investors about the gold exploration company’s flagship Cape Ray Gold Project in Newfoundland, Canada.

“When we acquired the Cape Ray project in July, we did that … at the same time as a capital raising here in Australia, where we raised $5 million. The proceeds of that were to complete the acquisition, and to also fund our current exploration activities,” Criddle says.

He continues, “our current work programs, one, focus on expansion of the existing resources, and two, delineating and enunciating the regional package. As of 2 weeks ago, we’ve commenced our maiden 8,000 metre drilling program and that’s principally designed to expand the existing resource base.”

The project holds 750,000 ounces of gold at 1.75 g/t within 6 deposits over roughly 10 kilometres of strike.

]]> Global Energy Metals acquires cobalt mine down the road from Tesla Gigafactory Tue, 11 Sep 2018 17:53:00 +0100 Global Energy Metals (CVE:GEMC-OTCQB:GBLEF) President and CEO Mitchell Smith joined Steve Darling in the Vancouver Studio of Proactive Investors to discuss Global Energy's acquisition of an 80 percent stake in the Lovelock and Treasure Box Cobalt mines in Nevada.

Smith also talked about  how the deal is structured and why the mines's proximity to Tesla's Gigafactory is another strong selling point in the Cobalt space. 

]]> Arc Minerals reports strong results from early drilling at Kalaba in Zambia Tue, 11 Sep 2018 11:47:00 +0100 Nick von Schirnding, executive chairman of Arc Minerals LTD (LON:ARCM), tells Proactive's Andrew Scott they've intersected extensive copper and cobalt mineralisation in drilling at the Kalaba prospect in Zambia, which is part of the larger Zamsort project.

All four of the reverse circulation holes drilled intersected copper and cobalt mineralisation.

Among the highlights were 20 metres at 1.31% copper equivalent, 25m at 1.24% copper equivalent, and 26 metres at 1.10% copper equivalent.

In addition, 19 diamond drill holes have been completed with initial assays expected shortly.

]]> Stage II testing of Lithium Australia's SiLeach® process successfully underway Tue, 11 Sep 2018 06:30:00 +0100 Adrian Griffin, managing director of Lithium Australia NL (ASX:LIT), speaks to Proactive Investors about the two-stage SiLeach® pilot plant trial at ANSTO Minerals.

SiLeach® is a proprietary process for extracting lithium from mine waste materials to produce lithium chemicals. In a world first, Lithium Australia aims to convert mine waste to lithium-ion batteries.

Griffin describes Stage I results as 'spectacular.' Proactive Investors can reveal that Stage II testing began two days ago, producing lithium phosphate within 16 hours of starting up.

]]> FYI Resources seeks to leverage growing HPA market with 4N-standard products Tue, 11 Sep 2018 04:05:00 +0100 FYI Resources Ltd (ASX:FYI) managing director Roly Hill speaks to Proactive Investors about the company’s recent metallurgical test work of feedstock from its Cadoux Kaolin Project in Western Australia, which aims to produce a high purity alumina product suitable for battery applications.

Independent metallurgical testing has confirmed company’s flowsheet has exceeded the target grade of 99.99%, the required grade for 4N standard alumina products, and leaves room for potential expansion to higher-grade 5N products.

“[The] market sits around about 25,000 tonnes per annum demand. Independent research has suggested that that’s going to grow dramatically, around 17% per annum year-on-year,” Hill says.

He continues, "we're anticipating some good growth in this market and it's certainly a product that some investors who are investing in battery-related commodities should look at. It’s a critical part to batteries and certainly has a broader base anyway."

]]> Blackstone Minerals eyeing drilling after identifying 'two cracking IP anomalies' Tue, 11 Sep 2018 03:00:00 +0100 Scott Williamson, managing director of Blackstone Minerals (ASX:BSX), speaks to Proactive Investors about first phase IP survey results that have turned up multiple new targets along strike at the company's flagship Little Gem Cobalt-Gold Project in the state of British Columbia in Canada.

"[It's] a great start to our IP survey. What this shows is that we're potentially onto something with some significant scale here; much larger that we first expected. So [we're] pretty excited to put some drill holes into these anomalies over time," says Williamson.

]]> Samo-1 well offshore The Gambia gaining attention of industry experts for FAR Ltd Tue, 11 Sep 2018 00:00:00 +0100 FAR Ltd (ASX:FAR) managing director Cath Norman speaks to Proactive Investors about the Samo-1 well offshore The Gambia, which is generating a lot of buzz amongst global oil & gas market experts. She also provides updates on the exploration company's Senegalese project.

Norman explains, "the Samo-1 well of course follows on from eleven successful wells that we've drilled in Senegal. The Samo-1 well is on the same geological trend as the big SNE field that we discovered to the north, and it's only 20 kilometres south of  the centre of the SNE fields. So that's part of the reason why it's creating a lot of buzz, but you've also got to put it into context... Samo being an 825 million barrel prospect must be one of the biggest prospects that's been drilled for some time. And of course FAR has 40% of it... we're the operator of the well."

]]> Leading Edge Materials Corp looking for a busy fall after a very productive summer Mon, 10 Sep 2018 20:52:00 +0100 Leading Edge Materials Corp (CVE:LEM) CEO Blair Way dropped in to the Vancouver Studio of Proactive Investors to provide and update on their flagship Woxna Graphite project in Sweden. Way explained what happened this summer and what "Spheronisation" is and why it's so important.

Way also provided and update on the companies three other divisions and what we can expect from Leading Edge in the next six months. 

]]> Savannah Resources reports 44% increase to resource at Mino do Barrosso Mon, 10 Sep 2018 08:43:00 +0100 Savannah Resources Plc's (LON:SAV) CEO David Archer tells Proactive's Andrew Scott they've boosted the resource base at the Grandao lithium deposit in Portugal by 64% to 16.4mln tonnes grading 1.04% Li₂O.

Total contained lithium rings in at 171,400 tonnes.

The upgrade brings the total resource at the wider Mina do Barroso project to over 20mln tonnes, with significant scope left for further increases.

]]> Kogi Iron looks set to shake up the Nigerian steel market Mon, 10 Sep 2018 07:06:00 +0100 Martin Wood, chief executive of Kogi Iron Ltd (ASX:KFE) introduces the company to Proactive's Andrew Scott and runs through their plans to become the first primary steel producer in Nigeria.

Kogi plans to build an integrated cast steel plant in the neighbourhood of its Agbaja iron ore deposit in south central Nigeria, owned directly through the company’s subsidiary KCM Nigeria.

Recent testwork undertaken by mining and metallurgical consultant Tenova has confirmed that the Agbaja ore is amenable to the production of a beneficiated iron ore concentrate suitable for the production of pig iron, as well as a refined metal suitable for the production of billet.

]]> Kincora Copper impresses people at the Discover Mongolia Mining Conference Fri, 07 Sep 2018 22:48:00 +0100 Kincora Copper (CVE:KCC} CEO Sam Spring joined Proactive Investors Vancouver from the Discover Mongolia mining conference, with an update on their project in the Southern Gobi Copper Gold Belt.  Spring also talked about a new crew that has just arrived to start work on the East TS Project.

Spring also shared with Proactive, how working in Mongolia has been and how the government is being a cooperative willing partner in the project.

]]> Global Energy Metals ready to "rock" the Cobalt world with Australian Project Fri, 07 Sep 2018 19:14:00 +0100 Global Energy Metals (CVE:GEMC OTCQB GBLEF) CEO Mitchell Smith joined Steve Darling in the Proactive Investors Vancouver studio to talk about their recent decision to acquire 100 percent of their project in Queensland, Australia.

Smith also gave an update on what happened in the Phase 1 program of the 3 km long Millennium project and what Phase two will consist of in the fall.

]]> NQ Minerals sees Hellyer project generating £800mln in revenue Fri, 07 Sep 2018 14:23:00 +0100 Brian Stockbridge, chairman of NQ Minerals PLC (NEX:NQMI), tells Proactive's Andrew Scott they're all set to hit the ground running when production begins at the company's flagship Hellyer polymetallic mine in Australia.

Stockbridge says they're on track to begin production at the wholly-owned project, located on the west coast of Tasmania, in the fourth quarter.

The group’s subsidiary Hellyer Gold Mines Pty Ltd's entered into two marketing and off-take agreements with Traxys Europe S.A. for the sale of all lead and zinc concentrates from the mine.

]]> Jewellery designer Yossi Harari delighted to be working with Shefa Yamim Fri, 07 Sep 2018 13:48:00 +0100 The renowned Israeli jewellery designer Yossi Harari speaks to Proactive's Andrew Scott following the signing of a letter of intent with Shefa Yamim (ATM) Ltd (LON:SEFA).

Harari, whose necklaces and earrings have been worn by the likes of Jane Fonda and Oprah Winfrey, will use gemstones found in Shefa’s Kishon Mid-Reach deposit in Northern Israel.

Initially, the designer will create 18 handcrafted pieces of jewellery using selected gemstones, which he is expected to lay within his trademark 24-carat gold settings.

The pieces will reflect Israel’s “special heritage”.

]]> The junior mining sector is showing real signs of life, as the global economy powers on Fri, 07 Sep 2018 12:46:00 +0100 Galantas Gold looks to raise £1.26mln for continued development of Omagh mine Fri, 07 Sep 2018 11:47:00 +0100 Roland Phelps, president and chief executive of Galantas Gold Corp (LON:GAL CVE:GAL), discusses with Proactive's Andrew Scott plans for a private placement to raise funds for the development of their Omagh gold mine in Northern Ireland.

Phelps says the mine's commenced limited production of gold concentrate, from feed produced in development of the Kearney vein.

]]> Rimfire Pacific's Fifield ground has 'diverse geology in terms of metals' Fri, 07 Sep 2018 03:03:00 +0100 Rimfire Pacific Mining NL (ASX:RIM) managing director & CEO John Kaminsky speaks to Proactive Investors about the exploration company’s multi-commodity tenement package in Fifield, NSW.

The Fifield district is within the Lachlan Traverse Zone, one of the most important copper-gold corridors globally, and the only substantial area in Australia where platinum was mined.

Rimfire has focused on gold and silver as it develops the Sorpresa discovery, which has a JORC resource of 125,000 ounces of gold with 7.9 million ounces of silver.

The company also has seven further prospects within a 6km radius of Sorpresa that are undergoing assessment and around 30 prospects across the district.

]]> Demand for nickel sulphate set to explode as industry excitement builds Thu, 06 Sep 2018 12:06:00 +0100 Thomas Hohne-Sparborth, senior economic analyst at Roskill, discusses with Proactive Investors the outlook for nickel sulphate.

Nickel sulphate is the key material used to produce precursor materials for lithium-ion batteries.

Hohne-Sparborth suspects forecasts that nickel sulphate demand will increase five fold over the next decade are conservative and says the big question is not so much whether the demand is there but whether there will be enough raw materials to meet that demand.

]]> Pan African reports significant boost to resource at Royal Sheba project Thu, 06 Sep 2018 11:20:00 +0100 Cobus Loots, chief executive of Pan African Resources plc (LON:PAF), tells Proactive's Andrew Scott they've more than doubled the mineral resource estimate at their Royal Sheba gold project in South Africa after results from the latest round of drilling exceeded expectations.

Pan African now reckons the orebody is host to 0.9mln ounces of gold – a 150% increase on its previous estimate of 0.36mln ounces.

]]> ECR Minerals sees 'significant gold opportunity' at Blue Moon in Australia Thu, 06 Sep 2018 11:12:00 +0100 ECR Minerals PLC's (LON:ECR) CEO Craig Brown and geologist Dr Rodney Boucher discuss the recent work programmes carried out at the Blue Moon gold project in Australia.

ECR's identified a significant gold target at the Blue Moon prospect as well as two new gold targets in the same area - now named Yellow Moon and Red Moon.

Brown says it's evident the Blue Moon target offers an opportunity to discover a significant gold deposit and that will be their prime objective in the forthcoming drill campaign.

]]> VSA CAPITAL MARKET MOVERS - VSA Morning Agri Comment, 06/09/18 Thu, 06 Sep 2018 07:57:00 +0100 Genus: FY 2018 Results

Genus (GNS LN), the developer and marketer of animal breeding and genetic products for the porcine and bovine industries, has announced its full year results for the period ended 30 June 2018 (FY 2018).

  • Revenue: £470.3m, +2.4% YoY, (FY 2017: £459.1m); FactSet FY 2018 consensus revenue was £476.0m, +3.7% YoY.
  • Adjusted PBT*: £58.5m, +3.7% YoY (FY 2017: £56.4m); FactSet FY 2018 consensus PBT was £58.3m, +3.4% YoY.
  • Net Debt: £108.5m, -2.8% YoY (30 June 2017: £111.6m); FactSet FY 2018 consensus net debt was £114.3m, +6.0% YoY.
  • Total Dividend: 26.0p, +10.2% YoY (FY 2017: 23.6p)
  • Genus PIC (Porcine Division) Adjusted PBT (inc. JV): £94.8m, flat YoY (FY 2017: £94.8m).
  • Genus ABS (Bovine Division) Adjusted PBT (exc. non-controlling interest): £26.1m, +22.5% YoY (FY 2017: £21.3m).
  • R&D Investment: £46.8m, +6.8% YoY (FY 2017: £43.8m)

* Excluding IAS 41 valuation movement on biological assets, amortisation of acquired intangible assets, share-based payment expense and exceptional items.

VSA Comment

In February, GNS revealed strong interims (revenues +7.4%; adjusted PBT +15.5%), despite a strengthening GBP during H1 (+4.6% against USD), with continued recovery in Genus ABS and a solid performance in Genus PIC reported. Although GNS failed to maintain this level of growth over the FY, these divisional trends continued and its FY results have been delivered in-line with consensus expectations. However, its outlook statement for FY 2019 was weak and we would expect share price weakness today as a result.

In terms of currency, the GBP reversed against the USD in H2 (-2.4%) but still strengthened 2.1% over FY 2018. This provided a modest operational headwind for the group over the year (although it was beneficial for its net debt position). Although early in FY 2019, GNS is currently operating with slight currency tailwind as the GBP has weakened c2.6% against the USD over July and August.

In terms of the GNS operations, we would highlight its bovine division in particular, which posted an almost 23% YoY increase in adjusted PBT over the period (+29% in constant currency) as well as the group’s strong cash conversion (101%). Overall volumes in the bovine division increased 5% YoY with sexed volumes increasing 25% supported by strong demand for its proprietary Sexcel product, which has traded ahead of expectations since its launch in September 2017.

In terms of underlying market conditions, global and UK milk prices (c28.5ppl) remain elevated and are likely to remain high with recent increases in input costs (UK feed wheat +20% YoY) due to excessive heat in key feed wheat regions and milk production flat or showing a slight YoY increase in key producing regions (NZ flat YoY, Europe +3% YoY, Australia +3% YoY, US +1% YoY, UK +0.5% YoY).

US live cattle prices have increased almost 10% in the last four months and although pork prices have been weaker than that, the recent outbreaks of African swine fever in China and Eastern Europe have started to influence pricing in the last few months. We believe there is significant potential for further price increases if the disease fails to be contained quickly in key markets, particularly in China (c50% of global pork production and consumption).

However, any wider outbreak of the disease would also impact the level of demand from its customers in the affected regions. Growing barriers to trade are also a concern in underlying agricultural markets, particularly around the international trade of pork products between China, Mexico and the US.

Tellingly, the Board made no direct comment on FY 2019 consensus expectations only saying that it expected “further financial and strategic progress” during FY 2019 and highlighting the more challenging external environment that its customers face in the short-term (Current FactSet FY 2019 consensus: revenues: £500.6m, +6.4% YoY; adjusted PBT: £63.9m, +9.2% YoY).

Risers and Fallers (Last Close)


Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Obtala Limited





Carr's Group





Plant Health Care








Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Sirius Minerals










Anglo-Eastern Plantations






]]> VSA CAPITAL MARKET MOVERS - VSA Morning Miner, 06/09/18 Thu, 06 Sep 2018 07:53:00 +0100 Lake Resources (LKE AU)#


Lake Resources (LKE AU) has provided an update on planned drilling at its Cauchari project now expected to commence in early October following positive discussions with local authorities. The programme is likely to consist of three holes, with a possible fourth, drilled to depths of 400m targeting extensions of the known high grade lithium bearing brines on adjacent leases.

These targets extend from the resources defined by Advantage Lithium (AAL CN) and Orocobre (ORE AU) as well as Lithium Americas (LAC CN) whose JV partner is soon to switch from SQM (SQM US) to Ganfeng Lithium) following the recently announced transaction.

We also highlight the recent concern over export taxes in Argentina following the decline of the Peso. This is primarily targeted at the agricultural sector and LKE have confirmed that they are not affected by these changes.

We reiterate our Speculative Buy recommendation. 

]]> Zenith Energy enjoys rapid growth from new contracts and expanded capacity Thu, 06 Sep 2018 05:04:00 +0100 Hamish Moffat, managing director of Zenith Energy Ltd (ASX:ZEN), spoke to Proactive Investors at the ASX Small and Mid-Cap Conference in Sydney.
Zenith Energy is an independent power producer that reported a net profit after tax of $8.47 million for the 2018 financial year, an increase of 171% on last year. The company’s strong performance comes off the back of new contracts and an expanded capacity of power generation.
]]> Emmerson Resources announces 'one of most exciting deals ever at Tennant Creek' Thu, 06 Sep 2018 03:05:00 +0100 Emmerson Resources Ltd (ASX:ERM) managing director & CEO Rob Bills visits the Proactive Investors Perth studio to discuss the just-announced Strategic Alliance with Territory Resources (ASX:TTY) at the Tennant Creek gold projects in Australia's Northern Territory.
The alliance forms a mining and exploration joint venture over 25% of Emmerson’s Tennant Creek landholding, an area known as the Southern Project Area (SPA).
The alliance will facilitate the construction of a modern processing mill, fast-track the development of Emmerson’s small mining projects and provide funding for SPA exploration.
]]> Zip Co sees strong revenue growth for disruptive digital credit accounts Thu, 06 Sep 2018 01:54:00 +0100 Larry Diamond, chief executive officer of Zip Co Ltd (ASX:Z1P), spoke to Proactive Investors at the ASX Small and Mid-Cap Conference in Sydney.

Zip Co is a leading player in the digital retail finance and payments industry having debuted on the ASX in late 2015. Earlier this month, the company reported revenue of $40.4 million, up an impressive 138% on the prior year. Through the brands zipPay and zipMoney, Zip provides customers with interest-free ‘buy now, pay later’ options.

]]> Rebrand sees Stratex International begin trading as Oriole Resources Wed, 05 Sep 2018 14:23:00 +0100 Tim Livesey  speaks to Proactive Investors as Stratex International begins its new life as Oriole Resources PLC (LON:ORR)

CEO Livesey says the re-branding is part of an effort to focus back on earlier stage work which was the foundation of the company.

''We've been through a lot of different phases, both administrative-wise and with our projects ... the re-naming is literally the last step to give the visual sign that we have effectively re-structured and re-built the company''.

]]> Arafura Resources educates investors on key element that powers electric cars Wed, 05 Sep 2018 13:30:00 +0100 Arafura Resources Ltd (ASX:ARU) CEO Gavin Lockyer tells Proactive Investors that the neodymium and praseodymium (NdPr) exploration company is in New York to speak to investors about how NdPr, a rare earth magnet, is a key element in powering automotive electric motors.

Lockyer says the company is currently in advanced feasibility with its Nolans Rare Earths project to mine NdPr in Australia. Earlier this year the company received environmental approval from the local and Australian government. The company will complete advanced engineering studies by end of this year. Project financing and construction will follow next year.

]]> Kodal Minerals sees $50mln free cash a year from Bougouni lithium project Wed, 05 Sep 2018 12:50:00 +0100 Bernard Aylward, chief executive of Kodal Minerals PLC (LON:KOD), discusses with Proactive's Andrew Scott the maiden mineral resource for the Bougouni lithium project in Southern Mali.

Based on the three most advanced prospects, Bougouni has an inferred 17.3mln tonnes (Mt) at a grade of 1.2% lithium.

A resource of that size places the project among the top 15 hard rock lithium deposits worldwide.

]]> European Metals Holdings 'back to business as usual' with work on updated PFS Wed, 05 Sep 2018 11:46:00 +0100 Keith Coughlan, managing director of European Metals Holdings Limited (LON:EMH), tells Proactive's Andrew Scott they've commenced work on an update of the preliminary feasibility study for the Cinovec lithium and tin project in the Czech Republic.

This study will model the production of higher value lithium hydroxide, the use of which is increasing in lithium-ion batteries.

The study will take two months to complete.

]]> Chaarat Gold reports 'significant increase' to resource and grade at Tulkubash Wed, 05 Sep 2018 10:24:00 +0100 Dusty Nicol, Chaarat Gold Holdings Ltd's (LON:CGH) technical director and head of exploration, tells Proactive's Andrew Scott  they've significantly increased the resource estimate for their Tulkubash oxide gold deposit in the Kyrgyz Republic.

Chaarat's been carrying out an intensive drill campaign at the project this year, drilling just over 10,500 metres since the end of January.

With the new data in hand, Chaarat now believes there are 1.41mln ounces (oz) of gold there – 46% more than previously thought.

]]> FYI Resources delivers low-impact environmental report for Cadoux project Wed, 05 Sep 2018 08:48:00 +0100
FYI Resources Ltd (ASX:FYI) managing director Roly Hill updates Proactive Investors on the company’s recently completed environmental and baseline studies at its Cadoux Kaolin Project in Western Australia.
The study findings demonstrate positive outcomes and a low environmental impact for the project, allowing FYI to begin formal permitting for its proposed high purity alumina operation. 
FYI’s mining trade-off study identified that the project is likely to have a low annual total mining rate, up to 240,000 tonnes total, supported by a small operational footprint, minimising the disturbance area.
Nearby infrastructure such as power, water, phone lines and proximity to major sealed roads and rail are considered by FYI as significant for permitting and capital expenditure.


]]> Castillo Copper confirms 'very exceptional results, very high grade mineralisation' Wed, 05 Sep 2018 08:20:00 +0100 Alan Armstrong, executive director of Castillo Copper Ltd (ASX:CCZ), speaks to Proactive Investors about the first batch of assay results received from five holes of an ongoing 39-hole drill program on the Cangai Copper Mine project in NSW, Australia. 
The results confirm extensive massive sulphide mineralisation across the majority of holes completed; with intersections including 11 metres at 5.94% copper, 2.45% zinc and 19.13 g/t silver from 40 metres including 1-metre grades of up to 10.25% copper, 6.04% zinc and 32.5 g/t silver. 
A range of survey and sampling work is also ongoing.
Armstrong says, "this is very high grade mineralisation. As we look over the last 12 months there's very few other results that have come through like this, across the broader sector let alone on the ASX."
]]> VSA CAPITAL MARKET MOVERS - VSA Morning Miner, 05/09/2018 Wed, 05 Sep 2018 07:55:00 +0100 Lake Resources (LKE CN)#


Lake Resources (LKE AU) has announced that it has agreed a partnership with US based Lilac Solutions to utilise Lilac’s innovative ion exchange technology which could potentially significantly reduce extraction time for lithium brines, reduce costs and the environmental impact of lithium from conventional brine production. The partnership will focus on the development of LKE’s Kachi project although LKE will, out of prudence, continue to concurrently assess the potential for production via conventional methods.

Lilac have established a team of chemical experts and lithium industry professionals who will now work to establish a flowsheet for the Kachi brine, attractive to them due to its scale and 100% ownership by LKE. The technology Lilac has developed is a one step, ion-exchange, process which absorbs lithium from a brine and releases lithium at a high concentration. Whilst conventional evaporation processes take between 9-24 months to achieve around a 40% recovery Lilac’s approach achieves a 95% recovery in less than two hours. This could potentially significantly enhance the economics of lower grade projects and Lilac have indicated that their technology is suitable where high concentrations of other salts such as magnesium. Although we highlight that LKE’s results so far have demonstrated low magnesium ratios.

The other benefit is the potentially lower environmental impact from Lilac’s technology and the partnership represents a proactive step from LKE’s management team following the announcements in Chile that lithium brine production expansions using conventional evaporation processes may be constrained due to their impact on groundwater. Lilac’s approach would reduce the overall footprint of the operations and the methodology means that brine could be re-injected into the same aquifer it was extracted from without significantly impacting the water quality. Although Argentina has not proposed similar constraints this is a prudent step from LKE, in our view.

The announcement represents a promising step with other industry experts providing greater credibility to the Kachi project whilst also providing an opportunity which could significantly enhance the economics of its development. LKE has also indicated that it intends to announce the maiden resource for Kachi within the next eight weeks.

We reiterate our Speculative Buy recommendation.

]]> Xebec Adsorption signs major deal to produce clean technology in Toronto Tue, 04 Sep 2018 17:39:00 +0100 Xebec Adsorption (CVE:XBC) Kurt Sorschak joined us in San Francisco at the LD Micro show to chat about a major contract his company just signed with the city of Toronto.

He also talked about the company becoming profitable and some big plans for the rest of this year and in to 2019.

]]> Savannah Resources Plc begins trading on Frankfurt Stock Exchange Tue, 04 Sep 2018 14:07:00 +0100 Savannah Resources Plc's (LON:SAV) CEO David Archer skyped into the Proactive studio from Portugal on the day the company also began trading on the Frankfurt Stock Exchange.

Archer reckons the move will increase Savannah's investor and corporate visibility in Europe, particularly in Germany, which he says is one of the continent's largest consumers of lithium.

]]> BlueRock Diamonds PLC begins processing from KV1 pipe Tue, 04 Sep 2018 13:56:00 +0100 Adam Waugh, chief executive of BlueRock Diamonds PLC (LON:BRD), tells Proactive's Andrew Scott kimberlite processing's begun at their KV1 pipe at the Kareevlei diamond mine in South Africa.

Waugh says the KV1 pipe, one of the five known kimberlite pipes in the Kareevlei project area, has an inferred mineral resource grade of 6.3 carats per hundred tonnes (cpht), 40% higher than the KV2 pipe where processing commenced in 2014.

]]> Greatland Gold reports high grade gold from rock chip samples at Black Hills Tue, 04 Sep 2018 12:01:00 +0100 Gervaise Heddle, chief executive of Greatland Gold plc (LON:GGP), discusses with Proactive's Andrew Scott new rock chip results from their Black Hills licence in the Paterson region of Western Australia.

Greatland collected 28 rock chip samples over the Saddle Reefs prospect and several rock chip samples from the Rogers prospect.

Of the 28 samples collected from Saddle Reefs, 11 returned gold values of more than 10 grams per tonne (g/t).

Heddle also updates on the recent Ernest Giles drilling campaign as well as looks ahead to a second round of drilling which is due to kick off in the next few weeks at the Havieron project.

]]> VSA Capital Market Movers - M2 Cobalt (CVE:MC)# Tue, 04 Sep 2018 08:49:00 +0100 M2 Cobalt (CVE:MC)#


M2 Cobalt (MC CN) has announced the discovery of six additional major anomalies at its Bujagali licenses in central Uganda. The infill sampling programme and first phase of exploration has yielded significant large-scale results. We had previously indicated that the Waraji target, which has now been expanded from 750mx550m to 1,000mx900m, within the Bujagali licenses appeared to be host to Katanga style sediment hosted cobalt-copper mineralisation and with these additional anomalies identified this is now building towards what could be a much larger regional play. Given that this style of mineralisation is the most important geological source of cobalt globally, M2’s ability to demonstrate scale brings greater credibility to our view that Uganda offers an attractive route for investors to gain exposure to DRC style cobalt projects without the high associated political risk.

The overall results have so far demonstrated a significant number of high grade cobalt and copper samples with 51 rock grab samples of 0.1%-1.75% Co, 39 of between 0.1%-0.8% Cu, 141 samples of between 0.01%-0.13% Co and 236 samples of 0.01%-0.05% Cu. Although rock samples are not sufficient to be considered representative given the level of weathering at surface in tropical regions like Uganda these surface grades are encouraging, in our view.

These soil samples have confirmed the presence of mineralisation following anomalies shown by high resolution ground magnetics and VTEM surveys. The largest of the anomalies revealed by geophysics is the Club anomaly which is 2kmx1.7km.

In addition to the sediment hosted anomalies M2 has made further progress at Bombo with further ultramafic style mineralisation identified and an additional 2.1kmx1.0km anomaly containing up to 0.08% Ni, 0.03% Cu and 0.05% Co in soil. The original Bombo target has been expanded via the trenching programme from 1.2kmx0.9km to 2.2kmx1km.

M2 has made real progress in the last few months demonstrating extensive mineralisation of cobalt, copper and nickel and is now in a strong position to begin initial drilling of its more advanced targets.   

We reiterate our Speculative Buy recommendation.

]]> VSA Capital Market Movers - Egdon Resources (EDR LN)# Tue, 04 Sep 2018 08:47:00 +0100 Egdon Resources (LON:EDR)#

Egdon Resources (EDR LN) has provided an update following the announcement by Europa Oil & Gas (LON:EOG) that it intends to withdraw its planning application to drill the Holmwood prospect from the Bury Hill Wood Site. The lease is due to expire on the 18th September 2018 and the Minister for the Environment, Food and Rural Affairs has decided not to renew the lease. However, the PEDL 143 license has recently been extended to 30th September 2020 and EOG will now consider alternative sites from which to target the Holmwood prospect.

Whilst the site is being re-evaluated for testing we withdraw Holmwood from our valuation, which on a risked basis contributed just 0.4p/sh. indicating a lower target price of 51.6p with the valuation continuing to be dominated by EDR’s shale acreage.

We reiterate our Buy recommendation although reduce our target price by 1% to 51.6p/sh.

]]> Regency Mines forecasts $30mln revenue for its US coal project by next June Tue, 04 Sep 2018 07:08:00 +0100 Andrew Bell, chairman of Regency Mines Plc (LON:RGM), tells Proactive's Andrew Scott their 47%-owned associate Mining Equity Trust (MET) has forecast revenues of US$30.5mln for the ten months to June next year.

MET has just resumed metallurgical coal production at Cedar Bluff in the Central Appalachian region in Virginia.

]]> Black Rock Mining’s Mahenge project boasts a 10-1 NPV to capital ratio Tue, 04 Sep 2018 06:40:00 +0100 Black Rock Mining Ltd (ASX:BKT) chief executive officer John de Vries updates Proactive Investors about the graphite company’s development of its Mahenge Graphite Project in Tanzania.
Mahenge is one of the largest JORC-compliant flake graphite resources globally, with 211.9 million tonnes at 7.8% total graphitic carbon for 16.6 million tonnes of contained graphite.
Black Rock’s pre-feasibility study for the project considers a three-stage construction schedule to deliver up to 250,000 tonnes per annum of 98.5% graphite concentrate for 31 years.
“The PFS delivered a $905 million NPV10 (net present value at a 10% discount), after tax, after government free-carried, on top of a $90 million-dollar investment,” de Vries says.
He continues, “that is a 10-1 NPV to capital ratio which is just simply unheard of in a lot of modern projects.”
]]> Celebrity designer to team up with Shefa Yamim for limited edition collection Mon, 03 Sep 2018 12:44:00 +0100 Shefa Yamim LTD's (LON:SEFA) Vered Toledo tells Proactive's Andrew Scott they've signed a letter of intent with renowned Israeli jewellery designer Yossi Harari.

Harari, whose necklaces and earrings have been worn by the likes of Jane Fonda and Oprah Winfrey, will use gemstones found in Shefa’s Kishon Mid-Reach deposit in Northern Israel.

Initially, the designer will create 18 handcrafted pieces of jewellery using selected gemstones, which he is expected to lay within his trademark 24-carat gold settings.

]]> New focus sees African Battery Metals discontinue activities in Sierra Leone Mon, 03 Sep 2018 10:48:00 +0100 Roger Murphy, chief executive of African Battery Metals PLC (LON:ABM), tells Proactive they've decided to discontinue activities in Sierra Leone after a review of the portfolio following the recent acquisition of two new nickel and cobalt projects in Cameroon and Cote d'Ivoire.

Murphy says there are attractive long-term market fundamentals for battery metals.

]]> Antimony to experience modest growth over next decade Mon, 03 Sep 2018 09:43:00 +0100 Jack Bedder and Nils Backeberg from Roskill discuss with Proactive Investors their near term expectations for demand and supply of Antimony.

Antimony is mostly used in flame retardants and lead-acid batteries.

Together these end-uses accounted for 84% of antimony demand in 2017.

]]> Red Rock Resources focused on production as it advances portfolio of assets Mon, 03 Sep 2018 08:41:00 +0100 Andrew Bell, chairman of Red Rock Resources Plc (LON:RRR), introduces the company and its portfolio of natural resources assets to Proactive's Andrew Scott.

Bell talks through the recent progress on efforts to acquire an interest in a joint venture company in the DRC focused on copper/cobalt tailings and dumps.

As part of a wide-ranging discussion, he also discusses their interest in Jupiter Mines as well as updates on progress in commissioning the ferrosilicon plant in Bosnia which is owned by a subsidiary of Steelmin Limited - Steelmin is 22% owned by Red Rock.

]]> VSA Morning Miner, 03/09/18 Mon, 03 Sep 2018 07:59:00 +0100 Altyn (ALTN LN)#

Altyn (ALTN LN) has announced robust results for H1 2018 with the company making the significant step of returning to net profitability driven by a recovery in gold prices and stronger production. Gold production of 8.4koz was up 15% YoY largely due to a higher run rate of ore processed which included low grade stockpiled ore. Consequently, ore milled was up 39% to 182kt although ore mined was largely flat YoY at 152kt. As a result of stronger production, revenue of US$10.9m was up 18% YoY, the received gold price in the period was up 7% YoY to US$1,323/oz.
Mined ore grades were marginally lower in H1 2018 at 1.96g/t and milled grades, which are diluted by the lower grade stockpiled ore were down 16.5% YoY which placed upward pressure on costs, despite a modest improvement in gold recoveries to 83.65%. Unit costs at ALTN of US$731/oz were up 11% YoY, however, on an all in basis and due to capital discipline total cash costs were slightly lower YoY at US$883/oz versus US$899/oz. Overall this resulted in gross profit of US$2.7m, up 69% YoY which along with the reduction in finance expenses, now that ALTN has significantly reduced its net debt, meant that the company generated a small net profit of US$0.6m.

ALTN currently has net debt of US$4.2m, down from US$14m in H1 2017 and although production remains constrained, ALTN have now demonstrated that they can operate profitably and effectively at this lower run rate. The financing for expansion remains the key catalyst for the shares and this has been further delayed, however, given that the operational performance has now been stabilised this provides a robust platform to build on, in our view.

We reiterate our Buy recommendation and target price of 3.54p

Shefa Yamim (SEFA LN)#

Shefa Yamim (SEFA LN) has announced the signing of an LoI with world renowned jewellery designer Yossi Harari to create jewellery using gemstones from the Kishon Mid Reach project in Northern Israel. Yossi Harari features in 40 high end jewellery stores globally although is perhaps best known for his bespoke pieces. A key attraction for Yossi Harari in choosing SEFA’s gemstones is the heritage and unique backstory behind their discovery.

We have indicated previously that we believe that SEFA’s location in Israel could result in premium pricing for its gemstones as has happened elsewhere in the gemstone market where regional significance has been attached to gemstones. As yet there has been little to give investors firm indication as to the gem quality nature of the stones found to date, however, we believe that today’s announcement should act as a significant endorsement of the quality of the wide range of stones that have been found by SEFA to date.

We reiterate our Speculative Buy recommendation. 

]]> Ironbark Zinc demonstrates 'proof of concept that derisks the project in a very big way' Mon, 03 Sep 2018 06:44:00 +0100 Jonathan Downes, managing director of Ironbark Zinc Ltd (ASX:IBG), speaks to Proactive Investors about development of the Citronen Zinc-Lead Project in northern Greenland, as the emerging producer announces hitting the milestone of demonstrating shipping access.

A mining services agreement is in place with Byrnecut Group, and ground works are underway at site.

Ironbark Zinc is furthermore conducting test work to asses the potential for economic levels of germanium.

]]> Enertopia announces fund raise as it looks to start drilling in the fall Fri, 31 Aug 2018 18:42:00 +0100 Enertopia Corporation (CSE:TOP) President and CEO Robert McAllister joined us in the Vancouver Studios of Proactive Investors to update us on their first tranche close from a private placement.

McAllister also updated us on their fall timeline and when we may see the drilling program start.

]]> Will the US’s trade deal with Mexico encourage Donald Trump to double down with China? Fri, 31 Aug 2018 13:00:00 +0100 Funding commitments firm up Aspire Mining’s near-production Ovoot project Fri, 31 Aug 2018 07:17:00 +0100 Aspire Mining Ltd (ASX:AKM) managing director David Paull speaks to Proactive Investors about the development company’s recent work and financing arrangements at its Ovoot Coking Coal Project in Mongolia.

Aspire is targeting early production of washed coal from Ovoot within 12 to 15 months of approval, and has formulated the Ovoot Early Development Plan (OEDP) including related funding commitments.

In support of the OEDP, the company has executed definitive and binding documentation with substantial shareholder Tserenpuntsag Tserendamba to invest $10 million as part of a $15 million strategic financing package.

]]> Chaarat Gold to acquire producing and profitable polymetallic mine Fri, 31 Aug 2018 07:05:00 +0100 Artem Volynets, chief executive of Chaarat Gold Holdings Ltd (LON:CGH), tells Proactive's Andrew Scott they're raising up to US$100mln to help fund the acquisition of a producing and profitable polymetallic mine in the Russian Commonwealth.

In 2017, the mine produced around 50,000 ounces of gold equivalent and turned a profit before tax of US$19mln, while the gross assets were valued at US$100mln.

]]> Predictive Discovery advancing West Africa ' Golden Triangle' projects via partnerships Fri, 31 Aug 2018 03:06:00 +0100 Paul Roberts, managing director of Predictive Discovery Ltd. (ASX:PDI) refreshes Proactive Investors on the gold-focused prospect generator's business model and portfolio, which includes 12 projects covering 7,500 square kilometres of Côte d’Ivoire,  Burkina Faso and Mali.

The company is advancing a number of its projects in the continent through partnerships with Toro Gold and Progress Minerals.

]]> Impact Minerals will be sampling at new Blackridge Gold Project 'almost straight away' Fri, 31 Aug 2018 00:50:00 +0100 Impact Minerals Ltd (ASX:IPT) managing director Dr. Mike Jones speaks to Proactive Investors about the acquisition of a mining lease at the Blackridge Gold Project in central Queensland. The explorer recently completed the sale of another earlier stage gold project in Western Australia's Pilbara region.

"The mining lease is fully granted, and we're going to be in a position to be able to get onto the ground almost straight away and commence some very large sampling programs. That's very important for us because we've seen from all the activity in the Pilbara - and the work of Novo Resources in particular with the massive discovery up there - that bulk sampling is the key to being able to define resources with these styles of deposits," explains Jones.

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

]]> Cradle Arc PLC getting to grips with issues at Mowana Thu, 30 Aug 2018 15:02:00 +0100 Kevin Van Wouw, Cradle Arc Plc’s (LON:CRA) chief executive, believes the miner is now on top of the processing issues that hit copper production at the Mowana mine in Botswana.

The junior ran at a loss in July and August but Van Wouw says sustainable ore supplies are now coming through with the quality and level of recoveries both improving.

As recoveries improve the financial performance will pick up, he says and by the fourth quarter copper production should be back up at 3,000 tonnes of metal with a 70% recovery rate.

]]> Azarga Metals' Dusty Nicol discusses positive PEA on Unkur project Thu, 30 Aug 2018 14:54:00 +0100 Dusty Nicol, president and CEO of Azarga Metals Corp (CVE:AZR), talks Proactive's Andrew Scott through the PEA (preliminary economic assessment) for their Unkur copper-silver project in Russia.

The report is based on the March announced inferred resource estimate for the project of 62 million tonnes at 0.53% copper and 38.6g/t silver, containing 328,600 tonnes (724mln pounds) of copper and 76.8mln troy ounces of silver.

Nicol says he's extremely encouraged Unkur's been able to demonstrate a positive PEA result given it's based only on initial exploration.

]]> VSA CAPITAL MARKET MOVERS - Egdon Resources#: Operational Update Thu, 30 Aug 2018 08:33:00 +0100 Production Update

Egdon Resources (EDR LN) has provided an operational update ahead of full year results which are due to be announced on 30 October 2018. Production in H2 FY 2018 was 70bopd, down 41% YoY, resulting in full year production of 84boepd, down 20% YoY and below our estimate of 100boepd. This was largely due to the summer maintenance shutdown at Ceres (operated by Spirit Energy) which was brought forward into FY 2018 and extended due to additional unforeseen maintenance requirements. Due to the lower than expected production in FY 2018 we have lowered our earnings estimates for FY 2018 although these are partially offset by higher oil and gas prices as we mark to market for H2.

The impact at Ceres was, however, on the backout gas that has been producing whilst primary production has been offline. Primary production is expected to resume in October 2018 providing EDR with an incremental net 125boepd in H1 FY 2019. With EDR’s other production performing in line with guidance we anticipate H1 FY 2019 production of 168boepd and FY 2019 production of 200boepd.

Developments for UK Shale

IGas has made significant progress at Springs Road, where EDR is fully carried on its 14.5% interest, and is close to completing wellsite preparations, ahead of drilling. Drilling is due to take place first at IGas’ Tinker Lane site, also on the Gainsborough Trough where EDR’s core shale acreage is located.  

Cuadrilla have made significant progress at Preston New Road with the completion of two horizontal wells and receipt of approval for hydraulic fracturing and testing. With results due later this year we highlight the important industry newsflow coming up and that EDR as one of two UK listed plays with exposure to UK shale is well placed to benefit.

Recommendation and Target Price

We reiterate our Buy recommendation and target price of 52p.

]]> VSA CAPITAL MARKET MOVERS - VSA Morning Flow Test, 30/08/18 Thu, 30 Aug 2018 08:27:00 +0100 Columbus Energy Resources (CERP LN)#


Columbus Energy Resources (CERP LN) has provided an update in relation to the decision made by the Trinidad government to restructure Petrotrin which will involve the closure of the Point-a-Pierre refinery. Transition to a new structure for Petrotrin will begin as early as October 2018 although CERP have indicated that they do not expect any adverse impacts from the decision. We also note that there were no negative impacts to CERP’s operations from the recent earthquake in Venezuela which impacted Trinidad.

The restructuring which includes the phasing out of oil refining and restructuring of the exploration and production operations is part of a major overhaul to return Petrotrin to profitability. Since 2006 production at the refinery has fallen from full capacity of 165kbbls/d by almost half with almost two thirds of output made up from importing crude oil from international markets. This has meant using valuable foreign currency reserves to support the refinery which has now been deemed as unsustainable and a negative long term drag on the wider economy.

CERP has highlighted that currently it receives a discount to WTI of between 4-6% in the current price environment under the production contract between CERP and Petrotrin for Goudron. This is despite the fact that Goudron produces a 38 API product which in the broader market would typically trade at a premium to other Trinidad crude oil. Given that Trinidad will now be selling crude directly into international markets, likely via global traders, this opens up the potential for a renegotiation of pricing. Given Leo Koot’s track record in this regard we believe that CERP would be well placed to benefit in this case.

Furthermore, we believe that the closure of the refinery is likely to be an initial step of a new more commercial strategy at Petrotrin potentially opening up Trinidad which has been underexplored to date.
We reiterate our Buy recommendation and 25p target price.

]]> Accelerate Resources drilling for battery metals at Mount Read Thu, 30 Aug 2018 06:40:00 +0100 Accelerate Resources Ltd (ASX:AX8) executive director Andrew Haythorpe updates Proactive Investors on the gold and cobalt explorer’s drilling program at its Mount Read Cobalt Project in Tasmania.

The company has moved a drill rig from the Thomas Creek prospect in order to test a 300-metre electromagnetic (EM) conductor identified at the Young Henry prospect, targeting its sulphide potential.

“We also have nickel and cobalt occurring above the EM conductor, so we’re hoping it’s nickel and cobalt mineralised more so than graphite,” Haythorpe says.

He continues, “the rig is currently about 50 metres downhole and we’re aiming for a 200-metre total downhole depth. Because it’s such a discrete combination of EM conductor, good geology and mineralisation evident at surface, we’re very excited to be on the site drilling now.”

]]> Walkabout Resources first to receive mining licence under new Tanzanian legislation Thu, 30 Aug 2018 06:38:00 +0100 Walkabout Resources Ltd (ASX:WKT) non-executive director Andrew Cunningham updates Proactive Investors on the graphite company’s grant of a Tanzanian mining licence, and the planned development to bring its Lindi Jumbo Graphite Project into production.

“We are the first ASX-listed company to get our mining licence under the new Tanzanian legislation, to say we’re excited is probably the understatement of the century,” Cunningham says.

Granting of the mining licence allows Walkabout to further progress advanced project funding options.

The project hosts a JORC 2012-compliant measured, indicated and inferred mineral resource of 29.8 million tonnes at an estimated grade of 10.9 % total graphitic carbon (TGC).

This resource contains a super high-grade core of 4.7 million tonnes at 22.8% TGC for 1,076,500 tonnes of contained graphite, making it the highest mineable graphite resource in Tanzania.

]]> Thor Explorations announces strong drill results from Douta Project in Senegal Wed, 29 Aug 2018 20:56:00 +0100 Thor Explorations (CVE:THX) President and CEO Segun Lawson joined Proactive Investors Vancouver to update their postive drill results from the Maka South area on the Douta permit in Senegal.

Lawson also had an update on their current capital raise and the next major steps on their flagship project in Nigeria.

]]> American Manganese reveals dramatic independent testing results Wed, 29 Aug 2018 20:41:00 +0100 American Manganese Inc. (CVE:AMY) CEO Larry Reaugh joined us in the Proactive Investors Vancouver studio talk about his companies patent technology in recycling lithium-ion batteries and minerals needed for the steel manufacturing industry.

Reaugh also shared the dramatic results of their technology tested by Independent Canadian lab Kemetco.

]]> Afarak Group Plc confident on outlook despite challenging second quarter Wed, 29 Aug 2018 13:00:00 +0100 Guy Konsbruck, chief executive of Afarak Group Plc (LON:AFRK), speaks to Proactive's Andrew Scott after what's been a tough second quarter for the business.

He says the period presented some serious challenges for the business - mainly around their operations in South Africa.

Konsbruck says they were hit by the unexpected quality of ore mined as well as unfavourable exchange rate movements.

However he adds they've continued with planned investments and project development as well as remained committed towards sustainability.

]]> Strategic Minerals moving forward at Leigh Creek after securing key approvals Wed, 29 Aug 2018 12:16:00 +0100 Strategic Minerals Plc's (LON:SML) managing director John Peters and Leigh Creek project manager Jonathon Trewartha tell Proactive's Andrew Scott they've received approval from the South Australian government following two submissions relating to a program for environment protection and rehabilitation at the copper project in South Australia.

The approvals cover the Mountain of Light processing facility as well as the Paltridge North and Lynda deposits.

]]> Great Boulder Resources drilling across Yamarna project whilst advancing metallurgy Tue, 28 Aug 2018 23:01:00 +0100 Great Boulder Resources Ltd (ASX:GBR) managing director Stefan Murphy updates Proactive Investors on drilling at the company's flagship Mt Venn project, and electromagnetic survey work and maiden drilling at the earlier-stage Eastern Mafic complex.

Together the assets make up the Yamarna copper-nickel-cobalt project in Western Australia, which Great Boulder has the right to earn a 75% interest in by funding exploration expenditure with $2 million over a five year period.

In parallel, Great Boulder has been successfully conducting metallurgical tests to produce nickel and cobalt sulphate products as well as clean copper concentrates.

]]> Galan Lithium making its mark on 'one of the best places in Argentina's lithium triangle' Tue, 28 Aug 2018 22:31:00 +0100 Galan Lithium Ltd (ASX:GLN) managing director JP Vargas speaks to Proactive Investors about the explorer’s potentially large scale Salar de Hombre Muerto Lithium Project in Argentina’s Catamarca Province, also known as the ‘lithium triangle.’

“The Hombre Muerto basin is one of the best places in the lithium triangle, and has the perfect combination of high grade lithium with one of the lowest [levels of] impurities… this translates into low operating costs once you’re up an running. To us this [project] is ticking a lot of boxes,” Vargas says.  

Notably, tenement neighbour Galaxy Resources Limited (ASX:GXY) just executed a deal to sell some of its land to POSCO for $280 million.

Galan has been de-risking the project through soil sampling and geophysics, and expects drilling permits to be granted by October. The company anticipates drilling targets before the end of this calendar year, with a maiden JORC resource announcement planned before the end of the financial year.

]]> Rig mobilised to Europa Metals' Toral project ahead of Phase One drilling Tue, 28 Aug 2018 11:17:00 +0100 Laurence Read, executive director of Europa Metals Limited (LON:EUZ), tells Proactive's Andrew Scott they've mobilised a rig at the Toral project in northern Spain as they prepare to begin a campaign to evaluate the potential extension of the mineral structure.

Read says phase one of the programme will involve drilling to determine whether a mineralised structure at the project continues outside the current defined JORC resource area for the  project.

]]> Caledonia Mining to increase stake in Blanket mine to 64% Tue, 28 Aug 2018 07:44:00 +0100 Steve Curtis, chief executive of Caledonia Mining Corp PLC (LON:CMCL), tells Proactive's Andrew Scott they've entered into a memorandum of understanding with Fremiro Investments (Private) Limited to buy a 15% stake in the Blanket mine in Zimbabwe for US$16.6mln.

Following the completion of the acquisition, Caledonia’s ownership in the mine would increase to 64%.

]]> Impact Minerals' MD updates on drilling and dealings across project portfolio Mon, 27 Aug 2018 00:50:00 +0100 Impact Minerals Ltd (ASX:IPT) managing director Dr. Mike Jones updates Proactive Investors on drilling campaigns at the Commonwealth gold-silver-base metal project in New South Wales, the Clermont gold project in Queensland and the Mulga Tank gold and nickel project in Western Australia.

On the dealings side, the sale of the explorer's least advanced Pilbara conglomerate-hosted gold project to Pacton Gold Inc (CVE:PAC) has been completed, having been approved by the TSX. Impact is progressing JV paperwork with BlueBird Battery Metals Inc. (CVE:BATT) on The Broken Hill Project.

]]> Alt Resources moving Bottle Creek project towards development Sun, 26 Aug 2018 23:58:00 +0100 Alt Resources (ASX:ARS) CEO James Anderson introduces Proactive Investors to the Western Australia-focused gold exploration and emerging development company, and discusses in depth the flagship Mt Ida Gold Project and Bottle Creek gold mine.

Anderson says, "Now we're sitting on about 340 square kilometres of exploration ground, and contained within that we've got three of four ore bodies that we've been developing and drilling over the last six months. Mount Ida's got a nearly 100,000 ounce JORC resource, and we've just released a Maiden Resource for Bottle Creek which is about 110,000 ounces of gold and 650,000 ounces of silver."

He continues, "There's no gold plant in the area, so always our strategy's been to put a hub here with a processing plant so that we can bring these stranded assets [in this part of the Goldfields] into one play, and develop it as a processing hub for the whole area."

Alt will probably do a cash raise in the next six to eight weeks, in order to continue to grow resources around Bottle Creek. Assay results from a recent drilling program should flow in the meantime.

]]> Kin Mining receiving assays, on track for updated resource estimate in September Sun, 26 Aug 2018 23:40:00 +0100 Andrew Munckton, newly appointed managing director of Kin Mining NL (ASX:KIN), speaks to Proactive Investors about the emerging gold production company's wholly-owned Leonora Gold Project, located in the highly prospective North-Eastern Goldfields region of Western Australia.

Kin has suspended construction at the Cardinia process plant site, as it works to develop utilities and infrastructure in the area, and simultaneously grow its resources. An updated resource estimate is on track to be announced to the market in September.

]]> The intrigue around the proposed rescue package for Noble Group reveals appetite for commodities trading is a strong as ever Fri, 24 Aug 2018 13:00:00 +0100 Ashley House 'pressing ahead on all fronts' with strong pipeline of new business Fri, 24 Aug 2018 08:18:00 +0100 Antony Walters, chief executive of Ashley House Plc (LON:ASH), tells Proactive they saw a significant increase in profits and improving cash for the financial year ended 30 April.

Revenue for the year totalled £18.47mln, compared to £18.56mln in the year before, though gross profit improved 31% to £4.74mln from £3.63mln and pre-tax profit increased to £1.75mln from £67,000.

]]> Resolute Mining announces FY18 results and dividends claimable as gold bullion Fri, 24 Aug 2018 03:21:00 +0100 Resolute Mining Ltd (ASX:RSG) managing director and chief executive John Welborn tells Proactive Investors the highlights of the gold major’s End of Financial Year 2018 report.

"We are a strongly profitable gold mining company. We've produced more than 8 million ounces over the last 25 years, and we're increasing our production," says Welborn.

]]> VSA CAPITAL MARKET MOVERS - VSA MORNING MINER, 23/08/18 Thu, 23 Aug 2018 08:04:00 +0100 Shefa Yamim (SEFA LN)#


Shefa Yamim (SEFA LN) has announced interim results for H1 2018 highlighting the progress that has been made since listing on the LSE in December 2017. The completion of the 6.4kt bulk sampling campaign which yielded 9,733ct of gemstones in the Zone 1 area of the Kishon Mid Reach was an important step towards trial mining in 2019. Shefa commenced the period with a cash position of NIS6.5m and ended the period with NIS 1.7m.  

Post period end the company received its first Prospecting License which enables the company to carry out its next steps. In H2 2018, SEFA appointed Paradigm Project Management to conduct a Technical Economic Evaluation to better understand the capital and operating costs associated with the alluvial mining project. SEFA will continue to advance the mine to market strategy that the company intends to follow to take gemstones through to jewellery. This is made possible by the management team’s experience in all aspects of the gemstone industry and the strong local infrastructure, in this regard. We also note that the company has expanded its Gem Box suite of precious stones with three further minerals including spinel.

Gem prices have continued to strengthen in 2018 according to the Gemval Index and SEFA remains one of the few companies to offer investors exposure to this growing market.

We reiterate our Speculative Buy recommendation.

]]> VSA CAPITAL MARKET MOVERS - VSA Morning Miner, 21/08/18 Tue, 21 Aug 2018 07:57:00 +0100 Lake Resources (LKE AU)#

Lake Resources (LKE AU) has announced geophysical study results, from its Cauchari license area, which provide a strong indication that as expected, the known brine aquifers which form the 3mnt LCE resource of Advantage Lithium (AAL CN) and Orocobre (ORE AU) extend into LKE’s leases. Drilling by AAL/ORE has been carried out as close as 350m from LKE’s lease areas intercepting high grade lithium bearing brine aquifers.

The passive seismic techniques, which have proven successful at identifying distinctions between unconsolidated sediments and harder cemented sediments and basement rocks at other salt lakes, have indicated that coarse sediments and brines extend into LKE’s license. AAL/ORE intercepted sandy sediments in the West Fan Unit which directly extends into LKE’s license area and have demonstrated high pumping rates and permeabilities. These sandy sediments show distinct patterns within LKE’s license to a depth of 400m and since LKE carried out the survey along a provincial road which crosses both third party licenses and LKE’s own, the company has been able to directly compare the survey results between known resources and the expected extensions. The ability to directly compare this data provides strong evidence of the potential, in our view.  

With recent announcements demonstrating strong economics on AAL’s resource and the corporate transaction between Lithium Americas (LAC CN), Ganfeng Lithium and SQM (SQM US) the Cauchari basin is proving to be one of the most attractive future lithium sources globally. LKE has recently secured a drill rig enabling it to test key targets identified via the geophysical survey. Given the interest in the basin the timing for drilling and derisking of the license area means the shares are well placed to react from near term positive catalysts from drilling.  

We reiterate our Speculative Buy recommendation.

]]> VSA CAPITAL MARKET MOVERS - Energy Storage Briefing, August 2018 Mon, 20 Aug 2018 14:43:00 +0100 This report is designed to be used as an easy-to-reference marketing briefing for investors interested in the rapidly emerging energy storage sector. It contains contributions from across our London-based natural resources and alternative energy research teams as well as input from our China office, combining our expertise across both sectors and geographies, and providing a holistic view of both the upstream and downstream markets.

In the report we outline a number of areas that we believe investors interested in the sector should be looking at. It also sets out our house view on a number of strategically important commodities and emerging energy storage sub-sectors.

Emerging Applications – Grid Storage, Electric Vehicles and IoT

- UK Grid Storage – Serious Money into the Wrong Technology
- Electric Vehicles – Chinese Dominance
- Micro Storage – Key to Development of IoT Sector

Battery Technologies

- Lithium-ion
- Selected Emerging Lithium-ion Technologies
- Selected Post Lithium-ion Technologies
- Solid-state Batteries
- Flow Batteries

Battery Raw Materials

- Battery Raw Material Requirements per KWh
- Lithium – Battery Quality Market to Stay Tight
- Copper – Oversold But EV Impact Will Take Time
- Nickel – EVs to Create an Inflection Point for Demand
- Graphite – China’s Environmental Crackdown Shakes up Market
- Cobalt – Restricted Sources Make It Highly Volatile
- Vanadium – Spikes Have Historically Been Short-lived

VSA Shanghai Office – The Chinese Perspective


- China – Positioning for Global Leadership of the Battery Sector

]]> Dominant dollar drives all before it as China’s growth falters Fri, 17 Aug 2018 13:19:00 +0100 VSA CAPITAL MARKET MOVERS - VSA Morning Flow Test, 17/8/18 Fri, 17 Aug 2018 08:30:00 +0100 Independent Oil & Gas (IOG LN)#

Independent Oil & Gas (IOG LN) has announced a non-binding term sheet for a new non-convertible loan facility for £15m with the use of proceeds primarily attributable to the Harvey appraisal well. In addition, the funds would also be used to repay in full the remaining liabilities relating to Skipper and other working capital.

The loan will carry interest of LIBOR plus 9%pa, repayable 36 months after drawdown and secured against IOG and its assets. In addition IOG will issue 20m warrants to London Oil & Gas (the lender) at a price of 32.18p, a 10% premium to the last close, with an expiry of five years.

We assume that given the support of LOG to date that the terms will be successfully finalised and funding secured. The funding using our fully diluted target price methodology equates to 5p/sh and we reduce our target price accordingly.

The Harvey appraisal well is targeted for December 2018 and initial preparatory work is ongoing. Seismic reinterpretation is expected to conclude in August 2018.

Drilling at Harvey presents a significant potential catalyst for the shares, in our view. The high case of 286BCF in terms of prospective resources would significantly increase the company’s reserve base whilst the mid case of 114BCF would mean Harvey was IOG’s largest single asset. The field is situated close to the Vulcan Satellites hub and the Blythe hub and could therefore potentially be tied into the Southern North Sea gas project and the Thames Pipeline export route.

Although we have valued the project using the adjacent Blythe hub as an analogue and currently attribute a target value of 6p/sh. there is clear further upside should drilling be successful alongside the fact that the economics of extraction are potentially higher at Harvey. A fault line divides Harvey and Elgood which means that permeability is significantly higher on the Harvey prospect. Consequently, the appraisal well at Harvey represents an important milestone for IOG which could materially enhance the Southern North Sea Gas project.

We reiterate our Buy recommendation and adjust our target price to 91p to reflect the additional funding.

]]> VSA CAPITAL MARKET MOVERS - VSA Morning Miner, 16/08/18 Thu, 16 Aug 2018 09:15:00 +0100 Shefa Yamim (SEFA LN)#

Shefa Yamim (SEFA LN) has provided an update on its licenses at its assets in Northern Israel. SEFA has had one exploration permit renewed and for the area known as the Kishon Mid Reach Zone 1, where the majority of bulk sampling to date has taken place, a Prospecting License has been awarded. This license is an upgrade on the exploration permit previously issued and enables the company to carry out the next phase of the work programme.

The programme included in the Prospecting License phase includes a conceptual mining plan and the completion of a Technical Economic Evaluation which will provide the company with key information on parameters such as capital costs to bring the Kishon Mid Reach into production. This is an important step for SEFA as once the work programme is completed it will be in a position to apply for a Certificate of Discovery which gives the company exclusive rights over a mining license.   

We reiterate our Speculative Buy recommendation.

]]> VSA CAPITAL MARKET MOVERS - VSA MORNING MINER, 15/08/18 Wed, 15 Aug 2018 08:08:00 +0100 NuLegacy Gold (NUG CN / OTCQX)#


NuLegacy (NUG CN) has announced the completion of the second tranche of its announced financing, raising a total of C$2.5m for 12.7mn units at C$0.20/sh. The placing received strong support from OceanaGold Corporation (OGC CN) who maintained their equity position in NUG at 16.2% whilst directors also provided strong support.

The net proceeds will be used to support further exploration at the Red Hill property where a summer exploration programme is currently underway. The shares have pulled back as the gold price has dipped below US$1,200/oz as the dollar has strengthened in the face of weak EM currencies, notably the Turkish lira. However, with CFTC data showing net shorts increasing from record positions there is potential for a strong short covering rally ahead. With this in mind and further newsflow expected from NUG as the exploration programme continues we remain positive on the outlook for NUG.    
We reiterate our Speculative Buy recommendation.

]]> VSA Capital Market Movers - VSA Morning Miner Tue, 14 Aug 2018 08:00:00 +0100 Lake Resources (LKE AU)#

Lake Resources (LKE AU) has announced that having secured a drill rig it intends to commence drilling next month at its wholly owned licenses at the Cauchari project in Argentina. These licenses cover approximately 18,000ha and LKE is targeting a direct extension of the lithium bearing brine aquifers with contiguous reserves and resources that have been proven by SQM (SQM US), Lithium Americas (LAC CN) and Advantage Lithium (AAL CN). AAL recently announced an expanded resource of 3mnt LCE at 450mg/L Li in these adjoining licenses and gravity surveys have indicated that the density patterns exhibited by the lithium bearing brines extend into LKE’s license area. Indeed, drill results from the margins of LKE’s resource have yielded grades of up to 600mg/L Li and high flow rates.

Aside from AAL, the other major project on Cauchari is the SQM and LAC project which has total LCE reserves and resources of 14.8mnt. LAC yesterday announced a major transaction with Ganfeng Lithium (GFL) who have agreed to purchase SQM’s interest in the project. LAC will increase its stake to 62.5% while GFL will purchase the remaining 37.5% for US$87.5m plus a deferred payment of US$50m contingent on the successful completion of certain milestones. GFL will also provide a US$100m subordinated loan facility to be repaid from LAC’s proceeds from the project.

The transaction highlights the ongoing disparity between recent weak lithium equities performance, continued corporate activity and rising downstream demand. The fact that GFL is acquiring additional top tier lithium projects highlights to us that the demand outlook from China is far stronger than in the West and that lithium stocks are due a rerating. We also highlight that LAC and GFL have also entered into a strategic collaboration agreement to explore future opportunities and develop lithium resources.

LKE has direct exposure to the top tier lithium brine at Cauchari, a market capitalisation of just A$29m and a drilling programme due to commence in the coming weeks and we believe that the shares offer a highly attractive way to gain exposure to this play.

We reiterate our Speculative Buy recommendation.

]]> VSA Capital Market Movers - VSA Morning Miner Mon, 13 Aug 2018 08:09:00 +0100 Lake Resources (LKE AU)#

Lake Resources (LKE AU) has announced further results from its drilling programme at its Kachi lithium brine project in Argentina. The results build on the initial encouraging robust grades in the Northern area of the salar with K03R12 demonstrating 267mg/L Li from 358-400m depth with a low magnesium ratio of 4.4 Mg/Li. In terms of grade this is comparable to the best results achieved at K03R03 which yielded 306mg/L Li albeit from a depth of 3-242m. This confirms, in our view, that hole K03R03 was not a one off and that there is significant potential in the Northern area with robust grades and thick horizons of lithium bearing brines. Two further holes, one rotary and one diamond, are being drilling currently in the Northern area which should provide further clarity on the potential.

In the Southern area of the salar LKE has released the results of two further holes both of which intercepted lithium bearing brines. The Southern area has not previously demonstrated as strong results as the North, however, we note within hole K05D11 the significant intercepts of 175mg/L Li from 224-248m, 234mg/L Li from 291-334m and 185mg/L Li from 349-391m. These results demonstrate that there is potential across the entire Kachi target area which at 22km x 8km the latest results further confirm the scale of the project.

With the latest results the company demonstrates that it is on track for a maiden resource announcement in October 2018 while these results also confirm widespread robust lithium grades across a large scale salar.

]]> VSA CAPITAL MARKET MOVERS - DekelOil Public Limited (LON:DKL) Mon, 06 Aug 2018 13:00:00 +0100 Inherent Value Hidden by a Down Year

In five years DekelOil Public Limited (DKL LN)# has established itself as the fourth largest palm oil producer in Côte d'Ivoire through the successful development of a 60t/hr mill and smallholder project near Ayenouan in the South East of the country (expandable to 75t/hr in the high season). Building on the success of this first project, DKL has recently commenced work on a second palm oil project in Côte d'Ivoire and has also secured an option to acquire 58.5% of a cashew processing project in the country, both of which could eventually become more profitable than Ayenouan.

High Quality Mill Operation

DKL’s mill has achieved an average CPO extraction rate of c23% since starting operations in 2014. This is testament to the operational skill at the mill site and compares very well to other African mills and even those in the mature South East Asian palm oil sector. It is particularly impressive given that DKL almost exclusively processes smallholder fruit and is therefore unable to control the quality of fruit it receives, as opposed to peers that often have surrounding company-owned estates supplying their mills.

Current Share Price Provides Attractive Entry

DKL produced almost 40,000t of crude palm oil in 2017, generating sales of €30.2m, +13.5% YoY. Its reported EBITDA increased 10% YoY to €4.5m with its PAT increasing to €1.6m, +23% YoY. For the second year running, it paid £500k of its profits out as a dividend (dividend yield: c3.3%). Although ongoing climate-related issues and low CPO prices are likely to impact operational and financial results this year, an inevitable normalisation of both of these factors could mean that the current share price proves to be an extremely attractive entry price. Our conservative forecasts suggest a PAT of c€7m is possible for 2022, with the cashew project delivering an additional attributable profit of €3m, assuming the option is exercised.

Recommendation and Target Price

Having valued DKL using a five-year discontinued cash flow, we initiate research coverage with a BUY recommendation and target price of 12p.

]]> Base metals fall on trade war fears, as Trump doubles down on Chinese tariff rhetoric Fri, 03 Aug 2018 17:32:00 +0100 VSA CAPITAL MARKET MOVERS - CENTRAL ASIA METALS: CASHFLOW IS KING Thu, 02 Aug 2018 09:11:00 +0100 Strong Free Cash Flow and Stable Dividends

Following the acquisition of Lynx Resources’ Sasa mine in Macedonia, Central Asia Metals (CAML LN) is now demonstrating the successful transition to an expanded group with not one but two well managed operations both with low operating cost bases, low capex demands and stable operational track records. We expect this performance to continue resulting in levered free cash flow generation of US$84-99m over the next three years, which underpins a “best in class” dividend yield of 7.5%, based on the stated 30-50% of free cash flow target payout range. 

Undemanding Valuation

Currently, the stock trades at a modest 6% discount to global small-mid cap mining peers on a 12-month forward EV/EBITDA of 4.7x. Following robust interim production results we anticipate production of 13.75kt Cu, 28.8kt Pb and 22.3kt Zn, well within the guidance range. Furthermore, CAML has the highest yield in our peer group at 7.5% and with other dividend paying peers typically trading on yields of 1-2% we believe that this highlights the value potential at CAML. We therefore believe that with a robust operational outlook, high dividend yield and strong balance sheet (we expect net debt/EBITDA of 0.7x by year end), the discount versus peers is unjustified.
Although the shares rallied 40% following the transaction which was completed in November 2017 the shares have pulled back 30% from March 2018 highs and we believe this provides an attractive entry point. As one of the lowest cost copper producers globally, US$0.52/lb in 2017, and with a first successful full year at the low cost Sasa mine likely to result in strong free cash flow generation and a doubling in group EBITDA YoY we believe that there are a number of catalysts to drive a rerating.   

Positive Commodity Outlook

We remain persuaded of the positive outlook for commodities and believe that the recent selloff has been excessive with copper, lead and zinc prices down 14%, 24% and 17% respectively YTD. We do not believe that prices currently reflect fundamentals which indicate finely balanced copper and zinc markets and a deficit in the lead market based on data from H1 2018 and therefore expect a recovery in H2.

Recommendation and Target Price

Our valuation produces a 12-month Target Price of 322p/sh, this implies 36% upside potential and 43% on a total return basis and we rate the stock a BUY.

]]> VSA CAPITAL MARKET MOVERS - VSA MORNING MINER Thu, 02 Aug 2018 07:50:00 +0100 NuLegacy Gold (NUG CN / NULG OTCQX)#

NuLegacy Gold (NUG CN) has announced the results of an induced polarisation (IP) gradient array survey at the VIO discovery. VIO hosts epithermal type mineralisation unlike the other targets at Red Hill and NUG has been utilising different exploration techniques that have proven successful at other epithermal discoveries along trend on the Northern Nevada Rift which occur in conjunction with Carlin style mineralisation such as Mule Canyon.

The IP survey was conducted over 2km2 starting to the west of the hole VIO17-01 which yielded 9.1m of 1.8g/t Au and 17.6g/t Ag. The results indicated four distinct areas of high chargeability. NUG will follow these results up with targeted sampling, mapping and modelling to best identify suitable drill locations. Following the initial encouraging discovery we believe that this is a positive step which should enable NUG to better capitalise on the results to date.

We also note the news from Barrick Gold (ABX US) which in its latest quarterly results upgraded its Fourmile exploration target to a discovery following recent impressive drilling results. The discovery drilling took place two years ago with senior NUG employees Ed Cope and Charles Weekly heavily involved. Fourmile is just 2km to the North of Goldrush and the latest drilling which included 13.9m at 56.8g/t Au, 16.6m at 71.6g/t Au and 16.8m at 57.9g/t Au has meant that ABX now considers the discovery a direct extension to the Goldrush deposit. This discovery yet again highlights the prospectivity of the Cortez Trend and the potential for Red Hill where the geology shares many of the characteristics of Goldrush and Fourmile. Indeed, the similarities in terms of structural geology and geochemistry are a key reason why NUG has attracted some of the most experienced geologists in the region.

The stock has been rangebound in recent months which given the softness in the gold price represents robust performance, in our view. The gold price has taken little notice of global trade concerns and lower industrial metal prices and been traded largely on the back of the Fed rate hiking cycle. However, with record net shorts reached on Friday the market is perhaps positioned for a more positive second half with a heightened risk of short covering.

We reiterate our Speculative Buy recommendation.  

]]> VSA CAPITAL MARKET MOVERS - VSA MORNING FLOW TEST Thu, 02 Aug 2018 07:47:00 +0100 Egdon Resources (EDR LN)#


Egdon Resources (EDR LN) has announced that its application for an extension for planning consent from April 2018 to August 1 2019 was refused at yesterday’s meeting of the North Lincolnshire Council Planning Committee despite a positive recommendation by the Council’s planning officers. EDR will appeal this decision in light of the fact that they recently submitted an application which comprehensively addresses the issues that largely relate to the potential impact on groundwater at the site and that a previous appeal for a similar application was successful.

The shares were down sharply on the announcement, closing 14% lower at 8.65p. However, this represents a significant overreaction, in our view, given that we prescribe just 0.9p/sh. to Wressle in our current valuation. This remains unchanged. Although we recognise the benefit of additional cashflow and the consequent disappointment from the decision in terms of sentiment we also highlight that EDR will benefit in H2 2018 from the restart of the Ceres well which is currently producing from backout gas.

Aside from this we see a number of catalysts in the near term which are likely to provide catalysts for the stock. These include drilling at Springs Road in which EDR has a 14.5% interest and is a play opening well for the Gainsborough Trough whilst externally increased activity at IGas (IGAS LN), Cuadrilla, Third Energy and INEOS Shale indicate significant positive momentum for the UK shale industry. 

We reiterate our Buy recommendation and 52p target price.

]]> VSA CAPITAL MARKET MOVERS - VSA MORNING MINER Wed, 01 Aug 2018 08:03:00 +0100 Lake Resources (LKE AU)#


Lake Resources (LKE AU) has announced a quarterly update highlighting the recent progress including the maiden drilling programme at Kachi which confirmed the discovery of a large lithium brine deposit extending 22km x 8km to a depth of over 400m. Drilling and results are expected to continue ahead of a maiden resource statement which is likely to be released in October 2018. The most significant result was from the northern part of the salar where 300m of lithium bearing brines were intercepted with grades of 306mg/l Li and a low Mg/Li ratio of 4.3. We see significant potential at Kachi, given the early drilling results which demonstrated the scale of the project with seven holes over 11km yielding positive lithium results.

With regard to LKE’s other projects, the company is still awaiting permits to drill at its Olaroz – Cauchari and Paso brine projects. LKE have indicated that this will likely be soon with drilling ready to commence in the coming weeks, LKE also intend to carry out geophysical surveys across their license areas. The adjacent tenements are held by Orocobre (ORE AU), SQM (SQM US) and Advantage Lithium (AAL CN) whose recent drilling, close to LKE’s license area, has yielded strong lithium brine results of 450-600mg/L with high flow rates of 19-35litre/s.
LKE finished the period ending June 2018 with a cash position of A$1.7m although have subsequently announced an underwriting agreement for options valued at A$1.9m. Therefore, LKE is well positioned for its current planned activities, in our view.

Although sentiment towards lithium stocks remains weak, corporate activity continues and we highlight the May 2018 purchase of Galaxy’s (GXY AU) North tenements at the Salar del Hombre Muerto by POSCO for US$280m with a total resource containing 2.54mnt LCE implying a value of US$110/t. This is around 100km from Kachi.

Meanwhile, end users have also been active with BYD announcing a trebling of their incremental target capacity to 60GWh by 2020. BMW has signed a US$4.7bn contract with the recently Shenzhen listed CATL for lithium ion batteries as well as a 14GWh battery plant in Europe. Given this strong downstream activity and rising demand outlook we see the current weakness in lithium producer shares as an attractive entry point and believe that LKE is well placed to benefit.

We reiterate our Speculative Buy recommendation.  

]]> VSA CAPITAL MARKET MOVERS - VSA Morning Flow Test Mon, 30 Jul 2018 08:16:00 +0100 Egdon Resources (LON:EDR) has announced that the sale of the holdings by Infinis Energy Services (100% owner of Alkane Energy Limited) to Petrichor Holdings Coӧperatief has been completed at a price of 12.8p. Petrichor now holds 29.99% of the outstanding share capital (259.9m shares).


The price of 12.8p represents a premium of 22% to the last close of 10.5p, however, this premium was narrowed in recent days by the news that Cuadrilla had been awarded final consent for hydraulic fracturing at its first horizontal shale gas exploration well at its Preston New Road; a lateral 800m well at a depth of around 2,300m. Although the geological read through in terms of test results is less apparent at Preston New Road in comparison to Thrid Energy’s Kirkby Misperton 8 well, the consent is an important step for the industry and successful results are likely to provide a significant boost for shale exploration in the UK. As one of two UK listed stocks which provide exposure to UK shale exploration we believe that EDR is well placed to benefit. We value EDR’s shale acreage alone at 14.8p/sh. which is based on past transactions and does not therefore substantially factor in the potential for exploration success given the stage of the industry. Therefore, although the premium in this transaction should provide some near term support for the shares we see significant further upside potential with the Preston New Road test just one of a number of industry catalysts alongside those relating to EDR’s own assets.



We reiterate our Buy recommendation and 52p/sh. target price. 

]]> Bad news will be good for gold, as President Trump continues to prop up the price Fri, 27 Jul 2018 13:38:00 +0100 VSA CAPITAL MARKET MOVERS - redT Signs €50m Project Agreement Thu, 26 Jul 2018 08:23:00 +0100

redT Signs €50m Project Agreement

redT energy (LON:RED), a developer of vanadium redox flow machines for large-scale energy storage infrastructure applications, has announced an exclusive deal to develop 690MWh of energy storage projects to support the German electricity grid, with an initial two 40MWh projects (1,066 tank unit modules) to be built in 2019 and 2020, subject to financing.

  • Based on the current Gen3 price for a 60-300kWh system, the initial two projects could result in revenues of c€50m for RED split across FY 2019 and FY 2020
  • The initial projects have planning approval, grid connection and approval to supply Secondary Control Reserve (SCR) to German and Austrian markets
  • The projects will replace coal-fired power plants which typically supply Secondary Control Reserve by ramping up generation when required  
  • Agreement signed with Energy System Management, a German energy development company, part of WWF solar
  • RED is confident that the projects will obtain the required funding in the near-term

VSA Comment

This is the first ‘mega project’ announced by the company and is clearly extremely significant in terms of the mid-term financial impact. Aside from the order value, this agreement also confirms the suitability of long-duration flow machines for grid supporting projects across Europe.

Recent regulatory changes in Germany, which have also been seen in the UK, are clearly favouring long-duration storage technology, as opposed to lithium-ion battery projects that are targeting short-term grid service revenue streams in what is an increasingly crowded sector.

Our current forecasts are for 500 tank unit sales in FY 2019 and 2,500 tank unit sales in FY 2020. Depending on the eventual split of delivered modules, this one order could potential satisfy our 2019 forecast as well as providing a solid underpinning for our sales forecast in 2020.

This is clearly a very positive announcement for the company and we would expect a strong share price reaction today. In addition, we are hopeful that further large-scale projects will be announced over the next few months. RED’s outsourced manufacturing model provides us with confidence that it will be able to deliver this German pipeline, on top of any additional orders that may be secured in the coming months.   

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

Risers and Fallers (Last Close)


Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Advanced Power Components





Drax Group





Impax Environmental Markets







Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

China New Energy










Ceres Power








]]> VSA Capital Market Movers - Egdon Resources (LON:EDR) Tue, 24 Jul 2018 08:24:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources’ (LON:EDR) operating partner, Europa Oil & Gas (EOG LN), has provided an update in relation to the Holmwood license, PEDL 143. EDR holds an 18.4% interest and is fully carried on its share of the exploration well costs up to a cap of £3.2m.

EOG intends to submit an application to Surrey County Council to extend the temporary permission for the well site by a further three years and to remove the requirement to include an identified HGV holding area. It has also applied for two other associated planning applications for the underground drilling corridor and the temporary well site security fence. The initial term of the license for PEDL 143 has been extended until 30 September 2020.

In addition, the Environment Agency has granted a permit allowing the drilling and testing of a single exploration well. This includes permits for storage of oil on site and in relation to the management of radioactive waste.

We reiterate our Buy recommendation and target price of 52p.

]]> VSA Capital Market Movers - Shefa Yamim (LON:SEFA) Mon, 23 Jul 2018 08:26:00 +0100 Shefa Yamim (LON:SEFA)

Shefa Yamim (LON:SEFA) has announced an operational update highlighting the progress made in H1 2018. Most recently, SEFA has appointed a South African project management group, Paradigm Project Management to carry out a Technical Economic Evaluation of its Kishon Mid reach project. The study will focus particularly on the project’s working and capital costs and is set to be completed in August 2018. SEFA has now set a target for trial mining in 2019 and commercial mining in 2020 and this study is a key milestone on the way to achieving that.

During H1 2018 SEFA also completed processing on 14 bulk samples from Zone 1 yielding 9,778ct from 6,384t of gravels from bulk sampling. 26 boreholes were completed in Zone 2 where exploration efforts are now focused. In addition, the company has also been cutting and polishing examples of the gemstones found to date in order to demonstrate the gem quality nature of the stones. This is an important step as SEFA looks to develop its mine to market strategy whereby the company will create gemstone jewellery. We believe that the region’s heritage and provenance of the stones will likely enhance SFEA’s unique brand value.

Over the balance of 2018 SEFA will apply for an additional exploration permit as well as upgrading to a Prospecting Lice sense for the Kishon Mid Reach Zone 1. SEFA is also targeting obtaining grade estimations along with preliminary valuations for the gem suite which will provide a key metric for benchmarking valuations for the shares.

 We reiterate our Speculative Buy recommendation.

]]> Strong economic growth represents the perfect backdrop for Trump to steer the US onto a new economic course Fri, 20 Jul 2018 12:26:00 +0100 VSA Capital Market Movers - Carr’s Group#: H2 Trading Update Wed, 18 Jul 2018 09:07:00 +0100 Carr’s Group#: H2 Trading Update

Carr’s Group (LON:CARR)#, the agriculture and engineering group, has provided a trading update for the 17 week period ended 30 June 2018.

  • Trading slightly ahead of expectations and significantly ahead YoY across both agriculture and engineering
  • Second interim dividend of 1.075p declared, +13% YoY (2017: 0.95p)
  • Preliminary results to be released on 12 November

VSA Comment


In its interim results on 16 April, CARR had already confirmed that it was experiencing much better trading conditions this year, with a more than 20% YoY increase in PBT recorded for H1. This trading update confirms that, as we forecast, conditions have improved further into H2 across both divisions.

In agriculture, CARR has seen improvement in feed volumes, retail sales, machinery sales, fuel sales and feed block sales. UK milk prices remain high with the average DEFRA price recorded at c27p as of May (last available data) and many UK milk processors announcing price increases for August.

It looks positive for CARR going into this winter as well, as the recent hot weather will be impacting the quality and amount of silage cut for storage and use during the period. Therefore, farmers will need to purchase additional animal feed.

In our opinion, the recent increases in feed wheat pricing are likely to be maintained given the hot weather will now likely impact the size and quality of the 2018 harvest. These higher prices will be passed onto farmers and should result in higher revenues for the group in FY 2019.

Having highlighted an “excellent recovery” across its various engineering businesses in H1, it is encouraging to see this has carried through into the second half as well, with a strong recovery in UK manufacturing particularly notable. Acquired in August 2017, integration of US nuclear engineering business NuVision is progressing well and significantly strengthening the group’s order book in this area. The group has also highlighted potential new opportunities for the division in the US and China, which continue to be explored. 

Current FactSet consensus forecast for FY 2018 (Y/E 1 September 2018) is for revenue of £380.1m, EBITDA of £18.5m and a PBT of £15.7m.


Risers and Fallers (Last Close)


Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Carr's Group





Plant Health Care





Sirius Minerals







Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

















]]> VSA Capital Market Movers - Independent Oil & Gas (LON:IOG) Tue, 17 Jul 2018 09:23:00 +0100 Independent Oil & Gas (LON:IOG)

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

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

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

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


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

]]> President Trump’s bluster and thunder has a deeper purpose behind it in regard to NATO, Russia and China Fri, 13 Jul 2018 11:53:00 +0100 VSA Capital Market Movers - Shefa Yamim (LON:SEFA) Tue, 10 Jul 2018 07:38:00 +0100 Shefa Yamim (LON:SEFA)


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

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

We reiterate our Speculative Buy recommendation. 

]]> Copper strength in doubt as trade war fears take centre stage in markets Fri, 06 Jul 2018 10:04:00 +0100 VSA Capital Market Movers - Shefa Yamim (LON:SEFA) Tue, 03 Jul 2018 08:52:00 +0100 Shefa Yamim (LON:SEFA) has announced that it has updated its target mineral assemblage of gemstones to better reflect the make-up of its Kishon Mid Reach Deposit. Previously the gemstone focus was on Diamond, Moissanite, Corundum and Hibonite (DMCH) although now spinel is being added along with garnet and ilmenite to this target group which will be renamed the “Gem Box”. This has been retroactively applied to Zone 1 and will be applied to the bulk sampling for Zone 2. The overall grade from Zone 1 bulk sampling has therefore increased from 45cpht to 154cpht.

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

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

We reiterate our Speculative Buy recommendation.

]]> Gold still on the slide, but could turn at any moment if trade war boils over Fri, 29 Jun 2018 11:13:00 +0100 Trade war heats up, gold cools off, but the long-term attractions look better than ever Fri, 22 Jun 2018 17:42:00 +0100 VSA Capital Market Movers - Wynnstay Group: H1 2018 Results Wed, 20 Jun 2018 08:21:00 +0100 Wynnstay Group: H1 2018 Results

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

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

VSA Comment

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

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

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

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

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


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

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

]]> Gold price shrugs off latest interest rate rise from the Fed, at least for now Fri, 15 Jun 2018 10:52:00 +0100 VSA Capital Market Movers - Columbus Energy Resources (LN:CERP) Tue, 12 Jun 2018 10:04:00 +0100 Columbus Energy Resources (LON:CERP)

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

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

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

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

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

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

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

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

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


We reiterate our Buy recommendation and 26p target price.

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


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

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

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

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

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

We reiterate our Buy recommendation and 96p target price.

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

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

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

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

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

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

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

FY 2017 Orders to Contribute to FY 2018 Results

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

2018: Focus on Pipeline Conversion; Gen3 Launch

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

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

Recommendation and Target Price


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

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

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

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

Additional Goddard and Abbeydale Blocks

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

Recommendation and Target Price

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We reiterate our Speculative Buy recommendation.

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


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

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

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

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

We reiterate our Buy recommendation and 72p price target. 

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


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

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

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

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

We reiterate our Buy recommendation and 26p target price.  

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

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

We reiterate our Buy recommendation and 48.5p target price.

Independent Oil & Gas (LON:IOG)

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

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

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

We reiterate our Buy recommendation and 72p target price.

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

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

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

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

VSA Comment

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

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

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

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

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

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

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


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

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

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

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

We reiterate our Buy recommendation and 48.5p target price

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

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

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

VSA Comment


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

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

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

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

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


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

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

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

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

The above is fully funded from existing cash resources.

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

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

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

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

We reiterate our Buy recommendation and 26p target price. 

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

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

VSA Comment


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

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

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

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

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

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



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

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

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

We reiterate our Buy recommendation and 17p target price.

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

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

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

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

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

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

We reiterate our Buy recommendation and 48.8p target price.

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

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

We reiterate our Speculative Buy recommendation.

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

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

We reiterate our Buy recommendation and 48.8p target price.

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

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

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

We reiterate our Speculative Buy recommendation.

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

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

We reiterate our Buy recommendation.

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

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

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

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

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

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

We reiterate our Buy recommendation and 35.5p target price.