Landore Resources eyes larger gold area at BAM East after latest drilling results Wed, 28 Jun 2017 07:15:00 +0100 VSA Capital Market Movers - Millennial Lithium, Petra Diamonds Wed, 28 Jun 2017 07:13:00 +0100 Millennial Lithium (CVE:ML)

Drilling results for hole PGMW17-04b at Pastos Grandes have shown yet further depth of lithium brine. The hole bottomed in brine at a depth of 564m, over 150m deeper than the deepest prior drilling so far. Grades were significantly better than prior drill holes with a continuous interval from 93.5m to 475m grading an average 535mg/l. Potassium values range from 4,906 mg/L to 6,148 mg/L and average 5,610 mg/L over the 381.5m intersection.  Similar to magnesium, the sulphate/lithium ratio is also lower in this region, averaging 17.4 compared to an average of approximately 22.1 in holes PGMW16-01 and 02. The sediments continue to be highly permeable gravels and sands to the bottom of the hole.

Two rigs are operating and a third will be added in coming days. Two more holes currently underway are expected to TD this week. An upgraded resource estimate will be deferred until later in calendar Q3 or early Q4 2017 given the far better than expected depths and grades of brine being encountered. We suspect management wants to get a better idea of just how much bigger this resource might be.

The smaller surface area of the Pastos Grandes basin is proving to be highly deceptive as to the actual lithium volumes and grades within it. Looking to the longer term this would increase the scale of annual LCE output and significantly increase the potential mine life.

We re-iterate our SPEC BUY recommendation.

Petra Diamonds (LON:PDL)

Petra Diamonds (PDL LN) has announced that it is likely to significantly miss its production targets by 8-9% owing to slow progress at its expanding projects. Prior full year guidance had been 4.4mncts. Revenue is therefore expected to be lower, also by 8-9%, and there will consequently be a negative effect on earnings for FY 2017.

This announcement follows a series of soft trading updates by PDL, however, given the company is at the target run rate of 5mnctpa FY 2018 production guidance remains unchanged. The announcement also indicates that PDL may technically break its debt covenants relating to financial ratios but believes that this can be resolved with its lenders.

]]> Empire Resources appoints mine manager at gold operation Wed, 28 Jun 2017 06:00:00 +0100 Merlin Diamonds readies drill for exploration campaign Wed, 28 Jun 2017 05:00:00 +0100 Ardea Resources reveals upgraded resource at KNP Cobalt Zone Wed, 28 Jun 2017 05:00:00 +0100 European Lithium assays confirm Zone 2 resource potential Wed, 28 Jun 2017 04:00:00 +0100 ShareRoot’s shares rise on achieving substantial user growth Wed, 28 Jun 2017 03:00:00 +0100 Sayona Mining aims to capitalise on strong pricing window Wed, 28 Jun 2017 03:00:00 +0100 Stavely Minerals has assays on the table Wed, 28 Jun 2017 02:30:00 +0100 Great Boulder Resources gets exploration clearance Wed, 28 Jun 2017 01:30:00 +0100 Mustang Resources swells ruby inventory as discoveries continue Wed, 28 Jun 2017 00:30:00 +0100 BidEnergy to reveal new clients Wed, 28 Jun 2017 00:00:00 +0100 Cokal to update on first coal production Tue, 27 Jun 2017 23:30:00 +0100 Avira Energy in an ASX trading halt pending AGM outcome Tue, 27 Jun 2017 23:00:00 +0100 Mandalay Resources' search for Cerro Bayo miners unsuccessful Tue, 27 Jun 2017 19:54:00 +0100 Mundoro Capital doubles size of copper and gold anomolies at Zeleznik property Tue, 27 Jun 2017 19:41:00 +0100 MGX Minerals shares rise as it completes larger oil brine extraction system Tue, 27 Jun 2017 17:59:00 +0100 Zinc One moves closer to production as it finalises option on Peru projects Tue, 27 Jun 2017 17:42:00 +0100 Balmoral Resources kick starts drilling again at Detour trend in Quebec Tue, 27 Jun 2017 17:03:00 +0100 Excelsior Mining receives amended state permit for Johnson Camp Tue, 27 Jun 2017 15:41:00 +0100 Ironveld eyeing up production and profitabilty by Q1 next year - CEO Peter Cox Tue, 27 Jun 2017 15:07:00 +0100 Peter Cox, chief executive of Ironveld (LON:IRON) talks Proactive's Andrew Scott through the latest developments at their High Purity Iron, Vanadium and Titanium Project in the Northern
Limb of the Bushveld Complex in Limpopo Province, South Africa.

Cox also goes through the detail on their recent £2.1mln fundraise as well as ongoing discussions regarding the potential acquisition of a 7.5 MW smelting plant and associated independent power plant in Middleburg, South Africa.

]]> Cruz Cobalt hires Aaron Powell PLLC for work program in Montana Tue, 27 Jun 2017 14:55:00 +0100 European Metals' Keith Coughlan talks through 'excellent' Cinovec maiden ore reserve Tue, 27 Jun 2017 14:54:00 +0100 Keith Coughlan, managing director of European Metals Holdings Limited (LON:EMH, ASX:EMH) tells Proactive they've declared a maiden ore reserve for the Cinovec lithium-tin deposit in the Czech Republic as well as securing a A$2mln interim funding package that will “maintain momentum” behind the project.

]]> Ignore spot price, uranium one want to watch for long term says Justin Chan at Numis Tue, 27 Jun 2017 14:11:00 +0100 VSA Capital Market Movers - Metal Tiger Tue, 27 Jun 2017 13:54:00 +0100 Metal Tiger (LON:MTR)

Metal Tiger has announced the results of recent exploration work on its Spanish gold and tungsten JV. A significant soil sampling programme as well as limited shallow RAB drilling has been carried out resulting in the identification of significant gold and tungsten anomalies. At Logrosan South two parallel structures of 6km by 950m have been identified as a gold anomaly. At Logrosan East an anomaly of 5km in length and up to 80m in width has been identified that combines two previously known gold anomalies into one larger block. Additionally at Logrosan East a new tungsten anomaly has been identified following positive soil sampling results which measures 2.3km by 900m. At Logrosan East a gold anomaly of 2.5km long has been identified.

MTR in conjunction with its JV partners is now identifying possible drill sites to follow up on the recent work.

]]> Avrupa Minerals set to bring in $500,000 for exploration and operations Tue, 27 Jun 2017 13:08:00 +0100 Gemfields shares slump as Pallinghurst gets enough support to de-list the miner Tue, 27 Jun 2017 12:04:00 +0100 Sunrise Resources unearths new pozzolan zone at CS in Nevada Tue, 27 Jun 2017 11:52:00 +0100 Metminco's full attention switches to Colombia after Los Calatos sale Tue, 27 Jun 2017 07:41:00 +0100 Metal Tiger joint-venture partner costing next-phase exploration programme in Spain Tue, 27 Jun 2017 07:13:00 +0100 Galileo Resources doing extra prep work on its sampling programme at Concordia Tue, 27 Jun 2017 07:01:00 +0100 Richland firms up the sales pipeline for its Australian gemstone output Tue, 27 Jun 2017 07:00:00 +0100 Rambler Metals looks to go bigger and deeper at the Ming copper-gold mine Tue, 27 Jun 2017 06:46:00 +0100 European Metals passes major landmark as it publishes reserves estimate; secures interim funding Tue, 27 Jun 2017 06:27:00 +0100 Aphrodite Gold delivers pre-feasibility study for gold project Tue, 27 Jun 2017 05:30:00 +0100 Paladin Energy bondholders continue to back restructure Tue, 27 Jun 2017 05:00:00 +0100 Australian Vanadium to test proprietary mineral recovery process Tue, 27 Jun 2017 03:00:00 +0100 Rumble Resources raising $1M to advance Braeside project Tue, 27 Jun 2017 02:30:00 +0100 Argent Minerals extends option to purchase property next to Kempfield Tue, 27 Jun 2017 02:00:00 +0100 Alkane Resources upgrades gold production guidance Tue, 27 Jun 2017 02:00:00 +0100 White Cliff Minerals assays confirm gold at East Burtville Tue, 27 Jun 2017 01:00:00 +0100 WPG Resources director lifts stake on-market Tue, 27 Jun 2017 00:30:00 +0100 Dart Mining NL to outline placement for lithium exploration Tue, 27 Jun 2017 00:00:00 +0100 Longford Resources with two active drill rigs at zinc project Tue, 27 Jun 2017 00:00:00 +0100 Heron Resources to reveal financing Mon, 26 Jun 2017 23:30:00 +0100 Breaker Resources NL shares rise on further gold hits at Lake Roe Mon, 26 Jun 2017 23:00:00 +0100 NioCorp reaches key milestone for Elk Creek - a Federal water permit Mon, 26 Jun 2017 20:14:00 +0100 Pallinghurst shareholders overwhelmingly approve Gemfields takeover bid Mon, 26 Jun 2017 15:06:00 +0100 Bezant begins to commission plant in anticipation of regular production in July Mon, 26 Jun 2017 14:45:00 +0100 Savannah Resources sees high quality lithium potential at Barroso in Portugal Mon, 26 Jun 2017 14:35:00 +0100 Jaxon Minerals Inc excited to have mining finance expert as new chairman Mon, 26 Jun 2017 12:57:00 +0100 Rio Tinto confirms Yancoal as preferred buyer for its Australian coal business after topping bid from Glencore Mon, 26 Jun 2017 12:31:00 +0100 Savannah Resources gives green light to Mina do Barroso drilling after 'very very positive' test work Mon, 26 Jun 2017 10:49:00 +0100 David Archer, chief executive of Savannah Resources Plc (LON:SAV) tells Proactive they're to press ahead with a drilling programme at their Mina do Barroso project in northern Portugal after metallurgical test work indicated the potential for high grade lithium.

]]> Michelmersh Brick has firepower to build for the future Mon, 26 Jun 2017 09:34:00 +0100 Strategic Minerals gets hands-on at Hanns Camp as exploration kicks off Mon, 26 Jun 2017 07:44:00 +0100 Strategic Minerals Plc (LON:SML) managing director John Peters and chairman Alan Broome discuss with Proactive's Andrew Scott their three stage exploration programme by subsidiary Central Australian Rare Earths (CARE) in Western Australia.

Hanns Camp will see the first exploration with 2,000 metres of shallow hole drilling focused on finding cobalt and nickel.

Stage two will involve deeper drilling looking for nickel sulphide deposits.

The third stage will see a soil sampling campaign at Mount Weld, 30km to the south, to identify rare earths and gold targets.

]]> Anglo Pacific to give investors more regular income with quarterly dividend Mon, 26 Jun 2017 07:35:00 +0100 Julian Treger, chief executive of Anglo Pacific Group plc (LON:APF TSE:APY) tells Proactive they're moving to a quarterly dividend payment as well as choosing to pay dividends more rapidly than they have previously.

]]> Amur Minerals pencils in resource upgrade at Kun-Manie after IKEN drilling Mon, 26 Jun 2017 07:28:00 +0100 Harvest Minerals anticipates first production from Arapua in the third quarter of this year Mon, 26 Jun 2017 07:02:00 +0100 Michelmersh Brick acquires Yorkshire bricks maker, Carlton Mon, 26 Jun 2017 06:59:00 +0100 Strategic Minerals restarts cobalt and nickel exploration at Hanns Camp Mon, 26 Jun 2017 06:36:00 +0100 Aguia Resources bags C$10.8M; gets ready for Canada listing Mon, 26 Jun 2017 06:00:00 +0100 St George Mining attracts Speculative Buy from broker Mon, 26 Jun 2017 04:00:00 +0100 Intermin Resources in-the-money options final trading day Mon, 26 Jun 2017 03:00:00 +0100 European Lithium testwork confirms battery grade concentrate Mon, 26 Jun 2017 02:00:00 +0100 Segue Resources receives approval to drill Barlee Gold Project Mon, 26 Jun 2017 01:00:00 +0100 Caeneus Minerals commences more lithium drilling Sun, 25 Jun 2017 23:00:00 +0100 Walkabout Resources extends Share Purchase Plan Sun, 25 Jun 2017 22:30:00 +0100 Cobalt-focused Global Energy Metals lists on Frankfurt Stock Exchange Fri, 23 Jun 2017 19:18:00 +0100 MGX Minerals signals petrolithium intent with appointment of industry veteran Fri, 23 Jun 2017 15:38:00 +0100 Randgold chief calls on Democratic Republic of Congo to work with miners Fri, 23 Jun 2017 14:57:00 +0100 Capital Network's Sam Catalano on Greatland Gold Fri, 23 Jun 2017 14:57:00 +0100 Sam Catalano, Capital Network's mining analyst talks through Greatland Gold plc's (LON:GGP) key assets as well as strategy and outlook.

]]> Glencore hikes offer for Rio Tinto’s Australian coal business, trumping agreed Yancoal bid Fri, 23 Jun 2017 14:45:00 +0100 MGX Minerals at the vanguard of lithium exploration and extraction Fri, 23 Jun 2017 14:41:00 +0100 Global growth will continue to spur mining, but watch for political upheaval along the way Fri, 23 Jun 2017 12:53:00 +0100 Capital Network's Sam Catalano on Thor Mining Fri, 23 Jun 2017 12:45:00 +0100 Sam Catalano, Capital Network's mining analyst talks through Thor Mining PLC's (LON:THR) key assets as well as strategy and outlook.

]]> Klondex Mines Ltd set for inclusion in Russell 3000 Index Fri, 23 Jun 2017 12:44:00 +0100 Petropavlovsk appoints new chairman and senior independent director following Hambro's departure Fri, 23 Jun 2017 06:31:00 +0100 Zinc of Ireland shares rise on outstanding zinc results in Ireland Fri, 23 Jun 2017 04:30:00 +0100 Impact Minerals spins the drill bit at Commonwealth Project Fri, 23 Jun 2017 03:30:00 +0100 Emmerson Resources commences production at gold mine Fri, 23 Jun 2017 03:00:00 +0100 Pilbara Minerals executes underwriting agreement Fri, 23 Jun 2017 02:30:00 +0100 Volt Resources signs graphite offtake term sheet Fri, 23 Jun 2017 01:00:00 +0100 Black Rock Mining chairman buys more shares on-market Fri, 23 Jun 2017 01:00:00 +0100 Sumatra Copper & Gold plc to update on financing Fri, 23 Jun 2017 00:00:00 +0100 Variscan Mines retains stake in one of the world’s highest grade tungsten mines Thu, 22 Jun 2017 23:00:00 +0100 Barsele Minerals unveils more encouraging finds in northern Sweden Thu, 22 Jun 2017 20:13:00 +0100 Maiden resource for Hollister mine is very encouraging, says Klondex Thu, 22 Jun 2017 19:35:00 +0100 Avrupa Minerals chief upbeat on Alvalade deal and upcoming newsflow Thu, 22 Jun 2017 19:09:00 +0100 Liberty One Lithium adds serial entrepreneur and a founder of Millennial to board Thu, 22 Jun 2017 18:16:00 +0100 Gold Resource Corporation shares advance as Gold Mesa prospect continues to shine Thu, 22 Jun 2017 17:00:00 +0100 Petropavlovsk waves goodbye to mining legend Peter Hambro Thu, 22 Jun 2017 15:04:00 +0100 Mining Capital's Alastair Ford reports on Peter Hambro, chairman of Petropavlovsk PLC (LON:POG), being voted off the board of the company he founded 23 years ago.

]]> Shanta Gold now set up 'for many years to come' after series of transactions Thu, 22 Jun 2017 14:48:00 +0100 Toby Bradbury, chief executive of Shanta Gold Ltd (LON:SHG) talks Proactive through their acquisition of Vancouver-based Helio Resource Corp, the raising of US$14mln from investors, and their debt restructuring deal.

''We've pulled together a number of strings for the company at one time which really sets us up to take Shanta - particularly New Luika - forward for many years to come'', Bradbury says.

]]> Berkeley Energia finalising costs as 'exciting' Salamanca construction ramps up Thu, 22 Jun 2017 11:04:00 +0100 Paul Atherley, managing director of Berkeley Energia Limited (LON:BKY) updates Proactive on construction and progress at their Salamanca uranium project in Spain.

Atherley also talks through developments with further offtake deals and financing plans.

]]> Gemfields bidding war tipped to rumble on even if Pallinghurst investors back nil-premium offer on Monday Thu, 22 Jun 2017 10:56:00 +0100 'It's nice to be active again' - Ortac CEO Vassilios Carellas Thu, 22 Jun 2017 10:02:00 +0100 Vassilios Carellas, chief executive of Ortac Resources Limited (LON:OTC), talks Proactive through their increasing focus on projects in Africa - particularly Misisi in the Democratic Republic of Congo that already boasts a resource of well over a million ounces.

Carellas adds the company's long-standing chairman Anthony Balme will stand down at the company’s next annual general meeting, to be held in September this year

]]> Orosur Mining's Ignacio Salazar 'very pleased' to hit production targets after underground move Thu, 22 Jun 2017 07:23:00 +0100 Ignacio Salazar, chief executive of Orosur Mining Inc (LON:OMI TSX:OMI) tells Proactive a pick-up in production from their new San Gregorio West underground mine in the last three months helped them to meet production guidance for a fourth year in a row.

]]> Ortac Resources receives confirmation of licence re-issue in Slovakia Thu, 22 Jun 2017 06:29:00 +0100 Indiana Resources to drill-test gold anomalies in Tanzania Thu, 22 Jun 2017 06:00:00 +0100 Boadicea Resources begins exploring the Nerramyne Project Group Thu, 22 Jun 2017 04:00:00 +0100 WPG Resources drills high-grade gold at Challenger Deeps Thu, 22 Jun 2017 02:00:00 +0100 Cape Lambert Resources appoints UK-based Strategic Adviser for offtake and funding Thu, 22 Jun 2017 01:00:00 +0100 Cobalt One gets ready to raise Wed, 21 Jun 2017 23:00:00 +0100 Argent Minerals gets approval for drilling at Loch Lilly Wed, 21 Jun 2017 23:00:00 +0100 Royal Road looking forward to drill testing Nicaragua project after encouraging samples Wed, 21 Jun 2017 19:15:00 +0100 Zinc One Resources to collect core from upcoming drilling to decide Bongara processing route Wed, 21 Jun 2017 18:56:00 +0100 Avrupa Minerals' Paul Kuhn 'really excited' to take back control of Alvalade Wed, 21 Jun 2017 15:01:00 +0100 Paul Kuhn, chief executive of Avrupa Minerals Ltd (CVE:ARU) discusses with Proactive's Andrew Scott their decision to take back full control of the Alvalade VMS project in the Iberian pyrite belt of southern Portugal.

]]> 'This is a time for growth' - Endeavour Silver's Bradford Cooke Wed, 21 Jun 2017 14:30:00 +0100 Bradford Cooke, chief executive of Endeavour Silver Corp (TSE: EDR, NYSE:EXK) updates Proactive on their plans to develop two new mines - El Compas and Terronera.

They've also recently increased their footprint in Zacatecas state through the purchase of two additional properties for under US$1mln.

''We have I think one of the most compelling organic growth profiles in the silver space'', Cooke says.

]]> ‘All to play for’ in the Gemfields tug-of-war as Pallinghurst’s support questioned Wed, 21 Jun 2017 14:25:00 +0100 Goldplat upbeat as Kilimapesa gold mine swings into profit Wed, 21 Jun 2017 14:03:00 +0100 Alaska- focused gold group Redstar hails recent drill finds Wed, 21 Jun 2017 13:53:00 +0100 Eastmain Resources starts trading on the OTCQX Best Market in the US Wed, 21 Jun 2017 13:37:00 +0100 OTCQX listing 'the natural next step' for Eastmain Resources - CEO Claude Lemasson Wed, 21 Jun 2017 13:35:00 +0100 Claude Lemasson, president and chief executive of Eastmain Resources Inc (TSE:ER, OTCQX:EANRF) tells Proactive their shares have begun changing hands on the  OTCQX Best Market in the US under the ticker EANRF.

]]> Aldridge Minerals brings in US$5mln from private placing Wed, 21 Jun 2017 13:33:00 +0100 Ferrum Crescent's Justin Tooth 'thrilled and delighted' to welcome new technical consultant Wed, 21 Jun 2017 13:14:00 +0100 Justin Tooth, executive chairman of Ferrum Crescent Ltd (LON:FCR) - more commonly known now as FCR - talks Proactive's Andrew Scott through their recent hiring of heavy-hitting technical consultant Myles Campion.

Tooth also discusses their drilling program at Toral in Spain and the increasing interest they're getting from Australian investors since making the strategic decision to distance themselves from iron ore in South Africa .

]]> 'All of our operations are now operating profitably' - Goldplat's Gerard Kisbey-Green Wed, 21 Jun 2017 10:39:00 +0100 Gerard Kisbey-Green, chief executive of Goldplat PLC (LON:GDP) tells Proactive their Kilimapesa gold mine in Kenya is now operating profitably with a processing plant upgrade also now in the commissioning stage.

]]> VSA Capital Market Movers - Goldplat plc Wed, 21 Jun 2017 08:02:00 +0100 Goldplat (LON:GDP)

Goldplat (LON:GDP) has announced an update demonstrating robust operational progress as well as the potential impacts from the recently proposed changes to the South African Mining Charter. The notable changes that GDP would need to make relate to BEE ownership and board quotas. Currently the required BEE stake, with which GDP is compliant, is 26%. However, the new proposals would increase the stake to 30%. The Chamber of Mines of South Africa had not been consulted on the proposed changes and given the controversial nature of the new Charter; it is taking legal action against the Government to prevent its implementation. This is likely to be a drawn out process.

Operationally, GDP has announced that Kilimapesa is now running profitably, this is a major step for the company and one we expect to unlock significant value in the coming years. Installation of Stage Two at Kilimapesa was completed in mid-June and commissioning of the new crusher and leach tanks should be completed by the end of the month. Target Stage 2 run rate using stockpiled ore was achieved in May 2017 at 120tpd. GDP has found a solution to switch to grid power earlier than planned which should have a positive impact on costs and once production is stabilised on this basis Stage 3 can be commenced.

GDP has altered its plans for adding an elution plant in Ghana, saving US$1m of the original US$2m budgeted. This has been achieved by purchasing a second hand plant rather than moving an existing one from the South African operations. This will also bring forward the planned completion date.

In South America, GDP has reported signing its first recurring contract demonstrating clear positive progress as the company looks to diversify and expand its network of suppliers of processing material.

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

]]> Ferrum Crescent beefs up technical team with industry veteran Campion Wed, 21 Jun 2017 07:44:00 +0100 Oracle Coalfields given July date for environmental hearing on Thar power station project Wed, 21 Jun 2017 06:29:00 +0100 Hot Chili secures funds to advance copper project Wed, 21 Jun 2017 04:00:00 +0100 WPG Resources starts drilling near Tarcoola gold mine Wed, 21 Jun 2017 03:00:00 +0100 Black Mountain Resources bags $1M from Michael Fotios’ company Wed, 21 Jun 2017 03:00:00 +0100 'Another exciting year for Otis Gold' as they eye up drilling at Kilgore Tue, 20 Jun 2017 13:57:00 +0100 Craig Lindsay, chief executive of Otis Gold Corp (CVE:OOO, OTC:OGLDF) talks through next month's drill program at their Kilgore gold project in Idaho as well as plans for fieldwork at the Oakley project in Cassia county - ahead of potential drilling.

]]> Trio of deals 'a sign of rude health' for Shanta Gold - Mining Capital's Alastair Ford Tue, 20 Jun 2017 11:56:00 +0100 Mining Capital's Alastair Ford talks through news of Shanta Gold Ltd's (LON:SHG) acquisition of Vancouver-based Helio Resource Corp for US$5.6mln.

Alongside news of the acquisition, Shanta's also announced they're raising US$14mln from investors, plus they've agreed a debt restructuring deal.

]]> Lithium acquisition 'particularly exciting' for Thor Mining - Chairman Mick Billing Tue, 20 Jun 2017 09:18:00 +0100 Mick Billing, chairman of Thor Mining PLC (LON:THR) discusses their recent agreement to acquire a 25% stake in a US lithium explorer.

Under a binding sale and purchase agreement, Thor will have an option to acquire a further 75% of the business over a period of 45 business days.

Separately, Billing also tells Proactive they've now completed the bedrock geochemistry drilling at the Dundas gold project in Australia.

]]> VSA Capital Market Movers - Sula Iron and Gold PLC Tue, 20 Jun 2017 07:22:00 +0100 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has provided an update on its current drill programme and financing. The first hole on the new programme has been completed with the core now being logged whilst two further holes, also at Sanama Hill, are underway. One of the two currently operating drill rigs will soon be moved to TZ4 where recent scout holes yielded encouraging results.

In addition, Sula has announced that it has raised £340k of the planned £400k, of which the outstanding balance is expected to be received in the coming days. The planned issue price has been adjusted downwards marginally from 0.268p to 0.25p and will result in a further 160m shares being issued.

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

]]> Premier African's George Roach 'very encouraged' by initial Zulu results Mon, 19 Jun 2017 10:01:00 +0100 George Roach, chief executive of Premier African Minerals Limited (LON:PREM) talks Proactive's Andrew Scott through the findings from German based Dorfner Anzaplan which reveal a commercial grade, high quality lithium mineral concentrate could be produced from the group's Zulu Lithium and Tantalum project in Zimbabwe.

]]> Long-term outlook for gold remains favourable, despite Fed tightening Fri, 16 Jun 2017 12:23:00 +0100 VSA Capital Market Movers - Columbus Energy Resources PLC Fri, 16 Jun 2017 11:09:00 +0100 Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (CERP)# presented to investors yesterday evening to officially launch its rebranding and gave an outline for its strategy going forward. Having spoken to the almost entirely new management in place we now view this as a materially different company. In short, we are extremely impressed by CERP’s new leadership and the significant progress that has been made both in Trinidad and London in the 5 weeks since Leo Koot was announced as CEO. Our key takeaways from the event are summarised below.


Leo Koot - CEO

In the coming years we will probably view 10 May 2017 as the day that realistically transformed LGO Energy into CERP upon the appointment of Leo Koot as CEO. We view Leo’s appointment as an extremely positive step made by the company for a number of reasons and, in truth, the announcement was a very welcome surprise to us at the time.

Primarily we are excited by LEO’s wealth of experience, not just his 28 years of expertise in the oil and gas industry but by the fact he has built an oil company effectively from scratch before as Managing Director of TAQA (Abu Dhabi National oil Company) UK. In this role he built the organisation from a few people to an organisation of over 2,000 staff and contractors and delivered a mature E&P operating company that managed 60kboepd production with US$1.7 billion in annual revenues. Further to this he has been a board member of AIM listed Sterling Energy (SEY), Managing Partner of MENA Gulf Investment Partners (Abu Dhabi), whilst prior to TAQA he was CEO of Energy Development Partners an oil and gas business creating ways to match capital and resources with developing production, for which he helped raise a US$350 million private equity fund. Leo has a Master in Petroleum Engineering and a business degree from Harvard Business School.

Gordon Stein – CFO

Further to Leo’s appointment Gordon Stein was announced as the new CFO on 15 June 2017. Gordon has already made his influence felt in the very short time he has been appointed as at the briefing yesterday it was announced CERP was moving its London office, which is estimated to be saving the company c£20,000 per month.

Gordon has over 24 years of international experience in the oil and gas sector and was most recently CFO of Madagascar Oil. Prior to this, he was CFO at Cadogan Petroleum, Vanguard Energy Limited and Regal Petroleum. Gordon is a member of the Chartered Institute of Public Finance & Accountancy.

Stewart Ahmed – Managing Director, Trinidad

Stewart Ahmed’s appointment as effectively country manager in Trinidad is another appointment we view as being important in turning the company around. Previously under the old management CERP did not have a board member in country, however, Stewart will be based in Trinidad to oversee operations and as outlined at the briefing has already made a number of operational improvements at the field to make it more productive at minimal cost. Significantly by having Stewart both on the board and working on site in Trinidad we believe this will remove any disconnect between the two and will bring his wealth of technical and commercial expertise from his international career.

Stewart has 32 years oil industry technical, commercial and management experience, most recently as Chief Operating Officer and General Manager of Madagascar Oil in Antananarivo from 2013-2016. Operating the Tsimiroro Field steam flood pilot, he gained the first Field Development License in Madagascar’s history.

Geological Potential

From the presentation made to investors yesterday it is clear that Leo is extremely enthusiastic about the potential in CERP from a geological and technical perspective. The first point he makes is that the quality of the oil is particularly good (38° API) i.e. the oil is light. This is particularly unusual when considering that the reservoir depth at Goudron is shallow (c500m), ordinarily at these shallow depths one would expect the quality of the oil to be much lower and viscous due to biodegradation of the oil and interaction with bacteria. However, as this is not the case this would indicate that the oil is leaking and, therefore, migrating from a deeper and much larger source which the management indicated it will be targeting to exploit.


Strategic and Operational Improvements

CERP has already moved on from the days of LGO and its strategy has moved accordingly and it plans to implement a 3-5 year strategy to add incremental value to the business. Previous management indicated it wanted to drill 45 new wells into the Goudron Field which were expected to produce c50bbls/d initially before gradually tailing off. The new management has now confirmed this strategy will not be followed and will be implementing a new one. Whereby, instead of drilling new wells CERP plans to increase the pressure in the reservoir through water injection in order to encourage the existing wells to produce at or close to their initial production rates. Indeed the field has produced c2000bbls/d in 2014 and these are the sort of numbers that the new management is targeting.

Management are confident by implementing these changes and a number of other cost cutting measures this will allow it to become cash flow positive in a matter of months. CERP will then use some of this cash to build up production further.


South America

Finally CERP indicated its intention to export its expertise into South America, therefore, we expect it to announce M&A activity in this region in due course.


We have summarised the key points of the meeting below and we now view CERP as an entirely different investment proposition to LGO and we are excited to see the new management follow through on these plans.

• CERP plans to implement a 3-5 year strategy to add incremental value to the business

• The first part of its strategy is to grow its production organically from its currently producing assets in Trinidad to allow it to become cash flow positive through a number of cost cutting measures

• CERP then intends to invest part of this free cash flow into its exploration portfolio in the South West Peninsula where it is targeting several large prospects

• CERP plans to build on its asset base in Trinidad with a portfolio of assets across South America

]]> Eurasia Mining ticks off key steps at Monchetundra Fri, 16 Jun 2017 08:31:00 +0100 Christian Schaffalitzky, managing director of Eurasia Mining plc (LON:EUA) caught up with Proactive's Andrew Scott to update on developments at their Monchetundra palladium and platinum project as well as progress at West Kytlim and the Semenovsky tailings project.

]]> Asiamet's Peter Bird on 'excellent' infill results at BKM Thu, 15 Jun 2017 08:58:00 +0100 Asiamet Resources Limited (LON:ARS) chief executive Peter Bird tells Proactive the infill and expansion drilling on their BKM copper project in Indonesia has met and in some cases exceeded expectations.

]]> VSA Capital Market Movers - Columbus Energy Resources Thu, 15 Jun 2017 07:30:00 +0100 Columbus Energy Resources (LON:CERP)

As of this morning LGO Energy (LON:LGO), the oil and gas E&P company focussed on onshore Trinidad, has officially changed its name to Columbus Energy Resources (CERP).

Further to this, CERP has announced that Gordon Stein has been appointed as Chief Financial Officer. Mr Stein has over 24 years of international experience in the oil and gas sector and was most recently CFO of Madagascar Oil. Prior to this, he was CFO at Cadogan Petroleum, Vanguard Energy Limited and Regal Petroleum. Mr Stein is a member of the Chartered Institute of Public Finance & Accountancy. James Thadchanamoorthy has stepped down from his position as finance director effective immediately.

As a reminder, CERP will be holding a re-branding launch event this evening at Patch St Paul’s at 18:00.

]]> 'It's all about marketing and offtake agreements' for Sirius Minerals - Liberum's Richard Knights Wed, 14 Jun 2017 14:33:00 +0100 Richard Knights, Head of Mining Research at Liberum Capital updates on progress with Sirius Minerals PLC (LON:SXX) ahead of their listing next week on the FTSE 250.

]]> W Resources unveils 'very competitive' La Parrilla maiden reserves Wed, 14 Jun 2017 11:43:00 +0100 Michael Masterman, chairman of W Resources PLC (LON:WRES) talks through their maiden statement of ore reserves at the La Parrilla tungsten/tin mine in Spain.

Based on the reserves of  29.7mln tonnes (mt) at 931 parts per million (ppm) tungsten trioxide (WO3) and 116 ppm tin (Sn), La Parrilla will have an eleven year mine life initially producing 2mln tpa (million tonnes per year) and rising to 3.5mtpa in 2020.

]]> Mariana Resources ‘likely to hit 140p in coming months’, says Zak Mir Wed, 14 Jun 2017 10:30:00 +0100 Technical analyst Zak Mir reckons the Mariana Resources Ltd. (LON:MARL) share price is “likely” to add another 40% or so in the coming two to three months.

“There’s a vast rising trend channel from April last year [with] the top of that channel currently heading towards £1.40,” explains Mir in the latest Proactive Investors Bulletin Board.

“That target is likely to be hit over the next two to three months especially while we’re able to hold above the 50-day moving average at 84p. Any dips towards that zone are currently regarded as a buying opportunity.” 

]]> VSA Capital Market Movers - Metal Tiger Wed, 14 Jun 2017 07:30:00 +0100 Metal Tiger (LON:MTR)

Metal Tiger (MTR LN) has announced the results of its updated CPR for its Thai lead zinc silver assets. A CPR was previously completed in 2013 by ACA Howe and formed the basis for our assumptions. The new report completed by SRK Consulting indicates that on a 10% discount rate the study has shown an NPV of US$45.9m with an IRR of 33% and upfront capex of US$50.3m.

In addition a JORC 2012 resource update to that defined in 2012 has been announced. This has increased the confidence categories of the resource, however, resulted in a slight reduction in tonnage. The scheduled mine life remains unchanged at 14 years.

The project is brownfield and the CPR highlights that mines are in good condition and that much of the existing infrastructure including the processing plant may be utilised.

Our target price and recommendation are withdrawn

]]> 'Full steam ahead at Yanfolila' as Hummingbird Resources ups stake to 80% Tue, 13 Jun 2017 14:58:00 +0100 Bert Monro, head of business development at Hummingbird Resources (LON:HUM), tells Proactive the group is upping its stake in the under construction Yanfolila gold project in Mali to 80%.

Monro also updates on how progress is coming along on site as the firm eyes the first gold pour towards the end of 2017.

]]> Leading Edge Materials' Blair Way 'encouraged' by lithium-ion battery cell tests Tue, 13 Jun 2017 12:38:00 +0100 Blair Way, president and chief executive of Leading Edge Materials Corp (CVE:LEM) tells Proactive they've reported encouraging test findings of 18650 lithium-ion battery cells made using high-purity graphite from their Woxna mine in Sweden.

]]> Zak Mir: ‘Now it’s through the 200-day moving average, Metal Tiger can head towards 3.6p’ Tue, 13 Jun 2017 08:35:00 +0100 Now that the Metal Tiger PLC (LON:MTR) share price has pushed through the 200-day moving average, Zak Mir thinks it could rise to 3.6p over the next month or so.

“You can see that the shares have broken through the 200-day moving average at 2.38p which is always a significant point for a stock,” explains Mir in the latest Proactive Investors Bulletin Board.

While we’re above recent 2p support at the floor of this rising trend channel from October, the target here on a technical basis is 3.6p over the next one to two months.”

]]> VSA Capital Market Movers - Metal Tiger, Sula Iron and Gold PLC Tue, 13 Jun 2017 07:40:00 +0100 Metal Tiger (LON:MTR)

Metal Tiger (MTR LN) has announced an update on its 30% owned T3 copper project in Botswana. Assay results from geotechnical drilling using wide diameter holes are encouraging and confirm the initial pit design whilst wide intersections such as 46.6m at 2.1% Cu and 6g/t Ag may benefit the resource update due in July 2017. These wide holes are primarily to determine a greater understanding of rock strength and stability as well as to provide samples for metallurgical testing, further drilling will seek to determine the potential for an expanded pit design.

MTR has stated that it expects the remaining assays from Zone 2 drilling to be returned by the end of June. A resource update is due in July 2017 covering Zones 1 and 2 although further drilling is also due to take place on nearby anomalies at the same time. In August drilling will focus on Zone 3, below the current T3 resource while in Q3 2017 the company aims to complete metallurgical, mining and processing testwork for the PFS.

We reiterate our Buy recommendation and 4p target price.

Sula Iron & Gold (LON:SULA)

Sula Iron and Gold (SULA LN) has announced that its Phase three drilling programme has commenced. The new programme is for 5,000m and will again be carried out by Equity Drilling. The focus of this drilling will follow up on the promising results from Sanama Hill as well as the Southern Target TZ4 where the initial scout hole yielded 5.2g/t over 1.2m.

The final assay results from the recent programme have now been received. The second scout hole at TZ4 also returned mineralisation with two intervals of 0.8m at 1.59g/t and 1.79g/t. At Sanama Hill hole FDD020 hit intervals of 1.3m and 1.8m at 0.97g/t and 1.48g/t respectively and in total 10 of the 14 holes at Sanama Hill returned mineralisation with an average 2.05m at 3.9g/t (average true thickness and length weighted grade).

Sula has also announced that a detailed structural review of the local geology has been carried out resulting in the identification of a total of 19 target zones including Sanama Hill and the Southern Target which includes TZ4. Given the recent results we believe that a stronger understanding of the structural geology will significantly benefit future drill targeting and enable Sula to capitalise on this drilling programme which demonstrated the potential at Ferensola for multiple zones of gold mineralisation as well as thick mineralised structures.

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

]]> Bannerman Resources' Brandon Munro outlines project development and uranium outlook Mon, 12 Jun 2017 23:00:00 +0100 Brandon Munro, managing director for Bannerman Resources, speaks with Proactive Investors.

]]> Azarga Metals' Dusty Nicol confident of increasing tonnage and grade at Unkur Mon, 12 Jun 2017 11:02:00 +0100 Azarga Metals Corp (CVE:AZR) president and chief executive Dusty Nicol tells Proactive's Andrew Scott ''as soon as we get back to work I think we will be able to both significantly increase the tonnage with the next round of work and likely increase the grade''.

In April this year, an inferred resource for the Unkur project  was put at 42 million tonnes  containing 220,000 tonnes of copper and 52 million ounces of silver at 0.52% copper and 38 grams per ton (g/t) silver.

]]> Full control of Tekton Minerals 'a spectacular acquisition', says IronRidge CEO Vincent Mascolo Mon, 12 Jun 2017 09:52:00 +0100 Vincent Mascolo, chief executive of IronRidge Resources Limited (LON:IRR) tells Proactive's Andrew Scott they're on the verge of taking full control of Tekton Minerals, which has a number of potentially high grade gold targets in Chad.

]]> Greatland Gold's Gervaise Heddle 'very excited' by new Panorama Cobalt project Mon, 12 Jun 2017 09:40:00 +0100 Gervaise Heddle, chief executive of Greatland Gold plc (LON:GGP) tells Proactive they've made an application for licences covering a large cobalt exploration property in the Pilbara Region of northern Western Australia.

]]> VSA Capital Market Movers - Egdon Resources Plc Mon, 12 Jun 2017 07:39:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR)# has acquired a 50% interest in PEDL278 in its core area of the East Midlands from Celtique Energie Petroleum and Investcan who were originally awarded the licence in the 14th licencing round. The licence contains the Kirk Smeaton tight gas discovery and further conventional and unconventional prospectivity.

IGas (IGAS) is acquiring the other 50% and will act as operator. Therefore, this acquisition adds 4,695 net acres to EDR’s unconventional resources position, which now totals c205,800 acres. The acquisition was completed for a nominal cash consideration.

This acquisition is in-keeping with EDR’s strategy within its core area. We now await further update on the development and exploration programme on this licence from EDR and IGAS.

We maintain our BUY recommendation and 34p TP.

]]> 'There's everything in our favour' - Strategic Minerals' John Peters & Peter Wale Mon, 12 Jun 2017 07:14:00 +0100 Strategic Minerals (LON:SML) managing director John Peters and non-executive director Peter Wale caught up with Proactive's Andrew Scott to update on developments at their Cobre, Redmoor and CARE Projects.

On Cobre, Peters says 'We're actually looking forward to some fairly healthy cash flow in the future''.

As far as Redmoor in Cornwall is concerned, ''We're very much in the midst of the drilling programme … it's all going to plan and we're very happy with our team we've got down there'', Peter Wale says.

''There's a chance really to produce a legacy project here'', Wale adds.

And on their decision to acquire 100% of CARE and the Hanns Camp project in Western Australia .. ''We think it's a great project'', says John Peters.

''We've been looking at things and it's looking fairly exciting for us'', Peters says.

Peter Wale adds: ''We've got high prospectivity, decent optionality … there's everything in our favour that from a probability point of view we could strike some very good results … it could be very exciting''.

]]> UK election shows era of Conservatives as natural party of government is over Sat, 10 Jun 2017 07:09:00 +0100 Vast Resources kicks off Carlibaba drilling to 'improve mine life and reduce opex costs' at Manaila Fri, 09 Jun 2017 11:02:00 +0100 Roy Pitchford, chief executive of Vast Resources PLC (LON:VAST) tells Proactive drilling has commenced at Carlibaba, the proposed location of a second open pit mining operation at Manaila in Romania.

]]> 'It's a very exciting time for us' - Pershing Gold's Jack Perkins Thu, 08 Jun 2017 15:10:00 +0100 Jack Perkins, vice president of investor relations at Pershing Gold Corporation's (NASDAQ:PGLC, TSE: PGLC) talks Proactive's Andrew Scott through their resource estimate and preliminary feasibilty study (PFS) for the Relief Canyon project.

]]> Premier African's George Roach 'pretty impressed' with Zulu maiden resource Thu, 08 Jun 2017 12:02:00 +0100 George Roach, chief executive of Premier African Minerals Limited (LON:PREM) discusses with Proactive's Andrew Scott the maiden SAMREC compliant resource estimate for their wholly-owned Zulu Lithium and Tantalum project in Zimbabwe.

]]> Lionsgold's Cameron Parry 'delighted' to secure £550,000 strategic financing at no discount Thu, 08 Jun 2017 10:39:00 +0100 Cameron Parry, chief executive of Lionsgold Limited (LON:LION) tells Proactive they've raised £550,000 to fund their mine expansion in India and also the online gold trading platform IndexGold.

]]> VSA Capital Market Movers - Eco Atlantic Oil & Gas Ltd Thu, 08 Jun 2017 07:23:00 +0100 Eco (Atlantic) Oil & Gas (LON:ECO)

Eco (Atlantic) Oil & Gas (ECO)# has announced that its operating partner Tullow Oil (TLW LN) have approved a c2,550km2 seismic survey on its Orinduik Block offshore Guyana. ECO anticipate the survey to commence in the next two weeks and will be completed by Schlumberger Guyana.

As a reminder ECO owns a 40% working interest in the Orinduik block with TLW owning the remaining interest and acting as operator. The Orinduik Block is located up dip and just a few kilometers from Exxon’s (XOM US) recent Liza and Payara discoveries confirming, by XOM estimates, in excess of 1.5Bbbls of recoverable oil. ECO has reviewed 2D seismic data across the block and leads have been identified which TLW estimates contain prospective resources of 900mmboe. This 3D seismic programme is now the next stage of the exploration programme over the block and is being completed on time as per ECO’s guidance.

TLW will fully carry ECO over the first 1,000km2 of the survey at a cap of US$1.25m with the balance being funded by both parties on a pro-rata basis. ECO is well funded to cover this by its own cash following its £5.1m raise in February. We maintain our BUY recommendation and 25p TP

]]> Stellar Resources’ Peter Blight updates investors on the Heemskirk Tin Project in Tasmania Wed, 07 Jun 2017 22:30:00 +0100 Peter Blight, managing director for Stellar Resources, speaks with Proactive Investors.

]]> Sula Iron & Gold 'very optimistic' they may have found another Sanama Wed, 07 Jun 2017 14:10:00 +0100 Sula Iron & Gold PLC (LON:SULA) has released the first results from batch 2 of their recently completed 3,783 metre, 14 hole drill program across Sanama Hill.

Chief executive Roger Murphy tells Proactive's Andrew Scott: ''We're delighted .... it's the first hole we've ever drilled into a new structure, the southern target .... interestingly the geology, the mineralisation looks very similar to what we've recovered from Sanama''.

]]> 'We're now in a much more developed place' - Fox Marble's Chris Gilbert Wed, 07 Jun 2017 11:46:00 +0100 Chris Gilbert, chief executive of Fox Marble PLC (LON:FOX) tells Proactive he expects their processing factory in Kosovo to start production next month.

The factory, which will save the company money by bringing the cutting and polishing process in house, is currently being tested and commissioned.

]]> Can Fox Marble shares add another 50% this summer? Wed, 07 Jun 2017 08:58:00 +0100 That’s what Zak Mir thinks. The technical analyst is tipping the Fox Marble Holdings PLC (LON:FOX) share price to creep up towards the 15p over the next few months.

“The shares gapped higher at the beginning of February through the 50-day moving average and after trying to fill that gap, we’re seeing a bounce on the 200-day moving average at 9.5p,” explains Mir in the latest Proactive Investors Bulletin Board.

“At least while we hold the 8-9p zone, the target here could be as high as 15p over the next three to four months.”

]]> VSA Capital Market Movers - Sula Iron and Gold PLC Wed, 07 Jun 2017 07:47:00 +0100 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (SULA LN) has announced an additional assay result from its recent drilling programme at Ferensola. Hole FDD021, a scout hole 2km South of Sanama Hill and beyond the Southern extent of the Eastern Target Zone at an anomaly known as TZ4, has yielded encouraging results.

The assay shows 5.22g/t over 1.2m at a depth 116m and is the first of two holes in this programme drilled at TZ4. Although only a single data point at this stage, the result does confirm the exploration potential beyond the existing target at Sanama Hill. Previously trenching and grab samples at TZ4 have yielded grades of 3.28g/t and 2.54g/t and the IP anomaly has a strike length of c.1km with a shallower dip than at Sanama Hill; as confirmed by the initial drill result which showed a dip of 38⁰.

A total of seven assays remain outstanding from the current programme, including a second from TZ4.

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

]]> ‘Technical glass half-full’ at Premier African, says Zak Mir Tue, 06 Jun 2017 08:55:00 +0100 Zak Mir has told the Proactive Investors Bulletin Board that the ‘technical glass’ at Premier African Minerals Ltd (LON:PREM) is half-full, and he reckons the shares could head back towards a penny.

“We’ve seen the shares recover in the recent past with a vertical push through the 200-day moving average at the beginning of February,” Mir explained.

“[The 200-day line] is now at 0.45p and while we’re above that the technical glass here is half full.

“There is a line of resistance running at 0.7p so if that can be broken over the next couple of weeks then we would be targeting 1p and a re-test of the best levels of the year-to-date,” he added.

]]> 'We're right on track', says Rainbow Rare Earths' Martin Eales Mon, 05 Jun 2017 13:20:00 +0100 Martin Eales, chief executive of Rainbow Rare Earths Limited (LON:RBW) updates Proactive on the 'good progress' they're making at the Gakari rare earth project in Burundi.

]]> Peter Hambro’s relationship with retail investors could prove as crucial as Tiny Rowland’s Mon, 05 Jun 2017 12:11:00 +0100 Berkeley Energia on the hunt for the next Zona 7 Mon, 05 Jun 2017 11:43:00 +0100 Paul Atherley, managing director of Berkeley Energia Limited (LON:BKY) tells Proactive they've begun the next phase of their exploration campaign on the Salamanca uranium project in Spain.

]]> Attempts to remove Peter Hambro as Petropavlovsk chairman 'a risky manoeuvre' for shareholders Mon, 05 Jun 2017 10:48:00 +0100 Mining Capital's Alastair Ford tells Proactive Petropavlovsk PLC (LON:POG) chairman Peter Hambro has been increasingly embracing the company's retail shareholder base and working to ensure their continued support.

It comes amid a current threat to unseat Hambro from the board at Petropavlovsk.

]]> Petropavlovsk shares headed for 9p, says Zak Mir Mon, 05 Jun 2017 08:30:00 +0100 Technical analyst Zak Mir tells the Proactive Investors Bulletin Board that Petropavlovsk PLC (LON:POG) shares could climb up to 9p over the next few months if the shares can hold above 7.5p.

“We’ve got a recovery from the middle of March [and there was] a golden cross in the middle of last month between the 50-day and 200-day moving averages,” explains Mir.

“Really while we’re above the 50-day line at 7.5p there’s a chance that Petropavlovsk shares could head towards the main resistance of the last year up to 9p.”

]]> Trump climate change decision good for coal and gold, bad for stability Fri, 02 Jun 2017 13:13:00 +0100 Canarc 'one of the strongest mining juniors' - CEO Catalin Chiloflischi Fri, 02 Jun 2017 07:52:00 +0100 Catalin Chiloflischi, chief executive of Canarc Resource Corp. (TSE:CCM) tells Proactive they've hired experienced gold explorer Dr Jacob Margolis as US exploration manager to develop their Nevada assets.

]]> Jaxon Minerals' Jason Cubitt on their 'pretty sensational' Foremore acquisition Thu, 01 Jun 2017 18:18:00 +0100 Jason Cubitt, CEO of Jaxon Minerals Inc (TSE:JAX) talks to Proactive about their acquisition of the Foremore property in the heart of the famous Golden Triangle in British Columbia.

]]> Lionsgold CEO Cameron Parry 'excited' about potential of Indian gold assets Thu, 01 Jun 2017 09:21:00 +0100 Cameron Parry, chief executive of Lionsgold (LON:LION) updates Proactive on the recently announced valuation of their Indian gold exploration assets as well as the progress being made towards a feasibility study at Jonnagiri.

]]> Horizonte Minerals' Jeremy Martin 'very pleased' with grades from trial drilling programme Wed, 31 May 2017 14:45:00 +0100 Jeremy Martin, chief executive of Horizonte Minerals Plc (LON:HZM TSX:HZM) talks through the high grade nickel indications from a small trial drilling programme at their Araguaia project in Brazil.

]]> Bezant Resources 'just months away' from production at Choco Wed, 31 May 2017 14:13:00 +0100 Laurence Read, executive director of Bezant Resources plc (LON: BZT) tells Proactive they've signed an agreement with Exumax S.A.S. that will enable production to begin at Bezant’s FKJ-083 licence area in Colombia.

]]> Zak Mir: Kibo MIning can rise to over 6p in next few weeks Wed, 31 May 2017 10:40:00 +0100 Tanzania-focused coal to power group Kibo Mining PLC (LON:KIBO) can rise to over 6p in next few weeks according to technical analyst Zak Mir.

]]> Landore Resources pushing BAM East development 'as quickly as they can' Wed, 31 May 2017 09:58:00 +0100 Richard Prickett, finance director of Landore Resources Limited (LON:LND) discusses the firm's results to the end of December 2016 and says they have another busy work programme lined up for 2017.

]]> VSA Capital Market Movers - Dakota Minerals Wed, 31 May 2017 07:25:00 +0100 Dakota Minerals (ASX:DKO)

Reported this past Monday, DKO confirms metallurgical suitability for production of Li2CO3 for the battery market from its petalite mineralisation from the Sepeda pegmatite in Portugal. Dorfner-Anzaplan of Germany conducted the work and accomplished 99.88% purity prior to bicarbonation and 99.97% purity after. This quality is quite suitable as battery grade and was accomplished with industry standard methodology of calcination (roasting), acid baking, and leaching.

DKO reported back on 24 April that metallurgical testing had confirmed the petalite would produce technical grade products suitable for the ceramic industry. It is now shown that the producible Li2CO3 will also be prime for the battery market off-takers as well.

DKO expects to have a Scoping Study completed incorporating these results by mid-June.

All the signs and results are still pointing to a robust lithium project being put forward in coming weeks for definitive feasibility studies and eventual construction finance.

]]> Pembridge Resources scouting out 'near-producing assets in North America & Europe' Tue, 30 May 2017 14:32:00 +0100 David Linsley, CEO of Pembridge Resources Plc (LON:PERE) outlines to Proactive's Andrew Scott the thinking behind their name change from China Africa Resources PLC and details their strategy to acquire near-production assets.

]]> Vast Resources' Roy Pitchford hails approval of SSCG Africa investment Tue, 30 May 2017 12:29:00 +0100 Roy Pitchford, chief executive of Vast Resources PLC (LON:VAST) tells Proactive the delayed strategic investment by SSCG Africa (SSA) has been given the go-ahead by the Reserve Bank of Zimbabwe (RBZ).

]]> VSA Capital Market Movers - Metal Tiger Tue, 30 May 2017 07:38:00 +0100 Stratmin Global (LON:STGR)

Released on Friday, STGR announced the resignation of director Shishir Poddar. He will now focus on the development of the Vatomaina graphite mine in Madagascar, which is a joint venture between Tirupati Resources Mauritius and STGR. Mr. Poddar retains a 3.55% shareholder stake in STGR. STGR holds 1.45% of Tirupati Resources Mauritius (TRM). TRM is passing its interest into private firm Tirupati Graphite plc with the intent of a future IPO.

Stratmin is proceeding to transform to a gold exploration company with the Scheme of Arrangement now filed with the Australian authorities for the reverse takeover of private firm Signature Gold by STGR. Shareholders of STGR will have a vote on the transaction at a future date.

Our recommendation and target price are suspended while STGR is not trading.

Sula Iron and Gold (LON:SULA)

SULA is not allowing any lapse in drilling activity at Ferensola with the signing of a new 5,000m contract with Equity Drilling (EQD) under largely the same terms as the previous one just completed. EQD will take a portion of its fees and costs in shares of SULA just as it did in the prior contract.

The contract is valued at US$700k and is intended to be infill and step out drilling concentrating on the TZ0 target of Sanama Hill where the latest program encountered 21m true width at 3.65gAu/t in assay. Some assays from the previous round of drilling are still pending.

As the company completes more holes into the gold and geophysical anomalies of the Ferensola gold targets, the better it understands the controls to gold mineralisation on this very big anomaly.

We retain our SPEC BUY recommendation and 1.6p price target.

]]> Savannah Resources frames up 'very exciting' Mutamba project Tue, 30 May 2017 07:12:00 +0100 David Archer, chief executive of Savannah Resources Plc (LON: SAV) tells Proactive they've completed a scoping study that has concluded the potential for a “financially robust, long life mineral sands project” at Mutamba in Mozambique.

]]> Peace be upon you: Trump wrong-foots critics with foreign travel, US dollars and religion Mon, 29 May 2017 09:19:00 +0100 UEX CEO Roger Lemaitre 'very, very excited' with Orora zone assays Fri, 26 May 2017 07:08:00 +0100 Roger Lemaitre, chief executive of UEX Corporation (TSE:UEX) tells Proactive he expects to start the summer drill program to expand the Orora zone in late June.

]]> Medgold's Dan James 'excited' to see what's going to happen with Tlamino drilling Thu, 25 May 2017 13:20:00 +0100 Dan James, president of Medgold Resources Corp (CVE:MED) tells Proactive they're coming to the end of their geophysics programme at Tlamino in Serbia with drilling expected to commence in August.

]]> Premier African to begin first concentrate shipment from RHA Thu, 25 May 2017 13:07:00 +0100 George Roach, chief executive of Premier African Minerals Limited (LON:PREM) tells Proactive they're now in a position to begin the first shipment of wolframite concentrate from RHA to Durban following the receipt of all required permits from the Zimbabwean authorities.

]]> Savannah Resources to become first lithium producer in Europe Thu, 25 May 2017 11:19:00 +0100 David Archer, chief executive of Savannah Resources Plc (LON:SAV) discusses their acquisition of 'highly prospective' Lithium projects in the north of Portugal.

''We see this initiative as really driving us into a very prominent position in the lithium space in Europe'', Archer says.

''It provides us with a tremendous springboard which means we should be able to move, all going well, into production at a fairly rapid rate''.

''What we're really looking at doing is being a very important element in the whole European energy equation''.

]]> 'It's beautiful' - Asiamet's Steve Hughes sums up latest drilling and test work at BKM Thu, 25 May 2017 10:55:00 +0100 Steve Hughes, vice president of exploration at Asiamet Resources Limited (LON:ARS, CVE:ARS) tells Proactive recent drilling has confirmed further extensions to the mineralisation at BKM, both along strike and at depth.

The update came just a day after further encouraging test work on the copper deposit in Indonesia.

]]> Zak Mir: Ferrum Crescent can rally once resistance line is cleared Thu, 25 May 2017 09:43:00 +0100 Junior miner Ferrum Crescent (LON:FCR) can almost double to 0.2p if it can break through its 50-day moving average of 0.13p believes technical analyst Zak Mir.

]]> VSA Capital Market Movers - Metal Tiger Thu, 25 May 2017 07:09:00 +0100 Metal Tiger (LON:MTR)

Announced yesterday, MTR plans significant exploration work in the Kalahari Copper Belt in support of MOD Resources (MOD AU) field work on the T3 area of Botswana. This work will take place over the summer and be led by the joint venture local operating company Tschukudu Metals Botswana.

Airborne geophysics over the wider T3 Dome area of the licenses will be undertaken beginning in June to identify areas where the apparent geology and mineral signature is a repeat of that which has localised the current high grade copper discovery at T3. The even larger T20 Dome feature will get its first detailed look as well.

The Botswana government has determined that it does not need a formal EIA completed for the next phase of exploration activity. This means the current drillers on break can return to punching holes to find new orebodies from July rather than having to wait for those more exhaustive environmental studies and measurements to be undertaken and completed. Targets to test in the next phase of 30 drillholes include under the current Zone 1 and Zone 2 compliant resources to give further definition to the size and grade of Zone 3 at the sandstone contact and a new geophysical target lying 800m north of the T3 mineralisation.

Further studies toward completion of a PFS on T3 will be undertaken over the next two quarters as well.

There are many, many kilometres of favourable rock stratigraphy yet to test on MTR licenses. We believe the chances of finding further high-grade copper-silver mineralisation in new near surface zones as very high.

We retain our BUY recommendation and 5.86p price target.

]]> Caledonia Mining to list on NYSE MKT Wed, 24 May 2017 08:20:00 +0100 Steve Curtis, chief executive of Caledonia Mining Corporation PLC (LON:CMCL TSE:CMCL) talks through their decision to seek a listing on the New York Stock Exchange’s small cap market

]]> Zak Mir: ‘Mkango shares can almost double this summer if they do this one thing’ Wed, 24 May 2017 08:10:00 +0100 Minerals explorer Mkango Resources Ltd (LON:MKA) could almost double its share price over the summer months if it can post a weekly close above recent resistance of 4p, according to technical analyst Zak Mir.

“[There’s] a rising trend channel that can be drawn from this time last year, with the top of the channel heading towards 7p,” explains Mir in the latest Proactive Investors Bulletin Board.

“Really if we can get a decent weekly close above 4p, one would be looking for shares to hit that 7p zone over the next two to three months.”

]]> VSA Capital Market Movers - Millennial Lithium, Vedanta Resources Wed, 24 May 2017 07:45:00 +0100 Millennial Lithium (CVE:ML)

Late yesterday, ML announced the entry into a JV with TSX-V junior Liberty One Lithium (LBY CN) upon its Pocitos West property. LBY may acquire a 70% stake in the property for US$5.5m in staged cash payments over 36 months and completion of work commitments of US$1m. It may increase its interest a further 10% to 80% by completing a bankable feasibility study within 42 months of the closing date of the transaction.

This transaction monetises Pocitos West to the benefit of ML by covering underlying property payments on Pocitos West while it incurs drilling costs in firming up the resources on its primary project of Pastos Grandes to the east. ML only acquired 100% of Pocitos West in February for US$4.5m and these JV payment terms and sums are in excess of those in the underlying agreement for a net gain in current valuation of the Pocitos West property to ML of US$2.1m if all thresholds are met by LBY.

ML is simultaneously advancing, profiting from, and de-risking the Pocitos West ground, a sound capital management strategy. This transaction also shows that well positioned, early stage ground within the Lithium Triangle continues to change hands for a premium on acquisition costs.

We retain our SPEC BUY recommendation.

Vedanta Resources (LON:VED)

A final dividend of US$0.35 is declared by Vedanta Resources (VED) as it discloses an underlying full year profit of US$0.011 vs a loss last year. Revenues rose 7% to US$11.5b while EBITDA rose a strong 37% to US$3.2b on the back of better commodity prices. Gross debt however worsened as a result of paying a special dividend during the year and now stands at US$18.2b. Prices in copper, aluminium, zinc, iron ore, oil and gas have all shown a strong recovery last year.

The chairman, Anil Agarwal, states a dedication this year to deleveraging the balance sheet. We hope he is serious as prior expressions of intent have not been forthcoming in large measure in prior years; lagging other integrated metal miners in that regard. Stronger commodity prices will help out, therefore, now is the time if at all.

]]> VSA Morning Agri Comment Wed, 24 May 2017 07:43:00 +0100 Obtala# Acquires Forestry Business

African forestry and agriculture business Obtala Limited (LON:OBT) has conditionally acquired (subject to due diligence) the forestry business WoodBois International ApS (WBI) for US$14.8m.

• WBI consists of three operations – a wood trading business in Côte d’Ivoire, a sawmill operation in Gabon with 41,300ha of concessions and an under construction veneer factory in Gabon, which is due to be completed in H2 and should contribute to earnings from 2018 onwards. The group employs c150 people.

• The US$14.8m consideration will be paid in three tranches. OBT will pay US$3m cash and US$3.8m in new OBT ordinary shares on completion of due diligence (target: 30 June), US$3m 120 days after completion (or on 30 September 2017, whichever is earliest) and US$5m over five years in quarterly payments starting 30 September 2017 (conditional on the continued employment of the two founders).

• In FY 2015, WBI generated revenues of DKK 106.8m (then £10.4m), an EBIT of DKK 2.54m (then £0.25m).

VSA Comment

This acquisition represents OBT’s first major move since raising cUS$27m in 2016 and early 2017 as it looks to build a leading African forestry and agriculture business.

WBI has been starved of working capital in recent years and as such OBT will look to secure export finance to significantly expand WBI’s trading operations as well as investing cUS$500k to increase the output of its sawmill (current annual capacity 24,000m3 sawn timber) and complete construction of the veneer factory in H2 (planned annual capacity of 18,000m3 veneer).

This deal also provides OBT with an established trading operation for its existing hardwood operation in Mozambique to gain greater access to international markets, with WBI currently selling wood into more than 40 separate countries. Importantly for a trading business that relies on personal networks, the two founders of the business have agreed to remain with the company for a minimum of five years.

Management believe that with additional capital WBI could rapidly improve its financial performance, contributing an operating profit of more than cUS$12m to the group by 2019 under its base case scenario.

We maintain our BUY recommendation but place our target price under review while we assess the likely impact of this significant acquisition on the wider OBT business.

Wynnstay H1 2017 Trading Update

Wynnstay Group (LON:WYN), a UK manufacturer and supplier of agricultural inputs and retail group, has updated on trading for the six months to 30 April 2017.

• WYN’s pet business, Just for Pets (JfP), has produced a loss in H1, which will result in a non-cash goodwill impairment charge being booked. Excluding JfP, H1 group performance is ahead YoY. JfP restructuring plans to be announced in H2

• Group H1 reported profits will therefore be materially below those reported last year with its adjusted PBT (before the impairment) marginally below last year, due to the loss in JfP

• Interim results will be announced on 21 June 2017

VSA Comment

Following on from UK-listed agricultural peer Carr’s Group (CARR LN)# earlier in the year, WYN has delivered its own profit warning, despite generally improving conditions in its core UK agricultural business.

WYN has long discussed the challenging trading conditions in its pet business, as well as the below expectations performance of newly opened stores. WYN had been trying to address this through the launch of new concept stores and a focus on service sales (in-store vaccinations etc…), which has been the strongest performing sub-sector in the industry. (Earlier this year, industry leader Pets at Home (PETS LN) highlighted ‘Merchandise’ like-for-like revenue growth slowing to -0.5% YoY in its Q3 (14 Oct – 5 Jan) but ‘Services’ revenue growth continuing to show decent strength, +7.0% YoY).

The 25 JfP stores contribute a proportion of group profit in the low single digits and given the challenges and seemingly unrelated nature of the business have long been seen by investors as a potential target for disposal. We would expect this to be at least considered as part of its upcoming strategic review for this division.

]]> CanAlaska on the hunt for new partners to advance drill testing at Cree East Mon, 22 May 2017 15:12:00 +0100 Peter Dasler, president of CanAlaska Uranium Ltd (CVE:CVV) talks through with Proactive's Andrew Scott their decision to buy back a 50% interest in the Cree East uranium project from their four Korean partners.

Dasler also touches on recent drilling at the Nisku deposit.

]]> 'The market's finally waking up' - Greatland Gold's Gervaise Heddle Mon, 22 May 2017 09:44:00 +0100 Gervaise Heddle, chief executive of Greatland Gold stopped by Proactive's studio to update on what's been a busy seven days for the company.

Today they've reported an airborne survey at their Ernest Giles project which has identified several new structural targets indicative of gold mineralisation.

The survey covered a large portion of the 1,800 sq km project, including the recently acquired East tenements.

]]> Thor Mining's Mick Billing on big resource hike at Pilot Mountain Mon, 22 May 2017 09:41:00 +0100 Mick Billing, executive chairman of Thor Mining PLC (LON:THR) tells Proactive's Andrew Scott they've seen a 55% increase in the resource at their Pilot Mountain tungsten project in Nevada.

Pilot Mountain now has an estimated 11.73mln tonnes at 0.28% WO3

]]> VSA Capital Market Movers - Sula Iron and Gold PLC Mon, 22 May 2017 07:27:00 +0100 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (SULA) has announced that it has completed the balance of payments to Equity Drilling Limited via the issue of 52.4m shares at 0.43p. SULA previously announced that a significant portion of the contract would be paid for via equity. The dilution of just 2% has been minimised as a result of the shares strong performance, indeed, the shares have risen 95% since the contract was agreed.

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

]]> Markets spooked by Trump’s disregard for law, spies and media Fri, 19 May 2017 13:55:00 +0100 VSA Capital Market Movers - Egdon Resources Plc Fri, 19 May 2017 07:16:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR) has announced the issue by the Environment Agency of the variation to the Mining Waste Permit for the planned Wressle field development and associated operations.

The issue of this permit is a key regulatory approval in the proposed Wressle development and provides support to the new Planning Application as submitted on 28 April 2017. This application included additional information to specifically address the concerns raised by the local council on the first refusal of Wressle. We remain confident that this new application will be accepted.

We now await further news from the company on the updated timing of the development. We maintain our BUY recommendation and 34p TP.

]]> Zak Mir: Shanta Gold can rebound as high as 11p Thu, 18 May 2017 10:58:00 +0100 Tanzanian gold miner Shanta (LON:SHG) may rebound as high as 11p according to its chart, technical analyst Zak Mir tells Proactive Investors.

]]> Stratex merger 'really exciting for the company' - CEO Marcus Engelbrecht Thu, 18 May 2017 09:56:00 +0100 Marcus Engelbrecht, chief executive of Stratex International plc (LON:STI) talks Proactive's Andrew Scott through the news they're to merge with Crusader Resources Ltd (ASX:CAS).

Crusader has two advanced gold projects in Brazil, Borborema and Juruena, with combined JORC-compliant resources of 2.7Moz Au, as well as the Posse iron ore mine.

The share based-deal values Crusader at £31.1mln (A$54.2mln) and will see its shareholders end up with an 81% stake in the enlarged company.

]]> Interest in Ariana Resources' Salinbas target grows after deal next door Wed, 17 May 2017 15:01:00 +0100 Kerim Sener, managing director of Ariana Resources plc (LON:AAU) tells Proactive they've received more indications that the gold resource at Kiziltepe is larger than thought with assay results from a site to the west of the mine.

Sener also mentions to Andrew Scott there's been outside interest in their Salinbas target following a takeover last month of Mariana Resources by Sandstorm.

]]> W Resources' Michael Masterman on La Parrilla funding & development Wed, 17 May 2017 07:26:00 +0100 Michael Masterman, chairman of W Resources PLC (LON:WRES) tells Proactive they're closing in on US$24mln in debt finance to fund the next stage of construction at the La Parrilla tin and tungsten mine in Spain.

Masterman also says their 100% owned subsidiary, Iberian Resources Spain SL has formally submitted the final Grant Application to the Junta de Extremadura Government for the project.

]]> Tharisa boss on a 'record financial performance' in H1 Tue, 16 May 2017 15:05:00 +0100 Phoevos Pouroulis, chief executive of Tharisa PLC (LON:THS), tells Proactive's Stocktube they more than doubled revenues to US$175 mln in the half year to March 31st 2017, while earnings before interest, tax, depreciation and amortization rose by more than 451% to US$81 mln.

]]> Lionsgold's Cameron Parry 'very excited' about release of Index Gold Tue, 16 May 2017 12:55:00 +0100 Cameron Parry, chief executive of Lionsgold Limited (LON:LION) talks through with Proactive's Andrew Scott the release into the public domain of IndexGold - the company’s financial technology app.

]]> 'A great day for Greatland Gold' - CEO Gervaise Heddle on Newmont deal Tue, 16 May 2017 09:32:00 +0100 Gervaise Heddle, chief executive of Greatland Gold plc (LON:GGP) talks through with Proactive's Stocktube the detail of their deal with giant Newmont Mining Corp (NYSE:NEM).

The New York-listed group has been granted exclusive access to the tenements and exploration database for six months and has the right of first refusal should Greatland opt to sell or joint venture the asset in that period.

]]> Newmont tie-up can propel Greatland Gold shares to 0.6p, claims Zak Mir Tue, 16 May 2017 08:55:00 +0100 After today’s tie-up with Newmont Mining Corp (NYSE:NEM), Greatland Gold PLC (LON:GGP) could almost double its share price in the coming few months, so says technical analyst Zak Mir.

“We already had a spike to the upside at the beginning of the year through the 200-day moving average and the shares have basically been above that ever since,” explains Mir in the latest Proactive Investors Bulletin Board.

“While we hold the 200-day line, [we’re] looking for a push towards the top of this rising January trend channel at 0.6p over the next three to four months.”

]]> Petropavlovsk's Peter Hambro on stepping aside as chairman Mon, 15 May 2017 10:40:00 +0100 Peter Hambro tells Proactive he won't be standing for re-election as chairman of Petropavlovsk PLC (LON:POG), after the company decided, as development continues, the appointment of an independent chairman would be more appropriate for corporate governance purposes.

]]> Mowana mine hitting full-time production 'all good stuff', says Alecto's Mark Jones Mon, 15 May 2017 10:21:00 +0100 Mark Jones, chief executive of Alecto Minerals PLC (LON:ALO) tells Proactive their Mowana copper mine in Botswana is now in full-time production.

]]> Group Eleven Resources keen to 'move the needle' on Ireland exploration Mon, 15 May 2017 07:59:00 +0100 Group Eleven Resources is a privately-held company, less than two years old, but already has over 2,700 square kilometres under license in Ireland.

Bart Jaworski, chief executive of Group Eleven Resources tells Proactive's Andrew Scott they're hoping 2017 will see them move the needle on their exploration.

''Our most advanced asset is Silvermines by far, it's actually a bona fide discovery that was made in 1994/95 ... only recently did it come back onto the market'... we're very, very happy with it', Jaworski says.

]]> VSA Capital Market Movers - Premier Oil PLC Mon, 15 May 2017 07:18:00 +0100 Premier Oil (LON:PMO)

Premier Oil (PMO) has produced a positive operational update ahead of its AGM on 17 May. Production for the year to date has averaged 82.6kboepd  (+44% YoY) and ahead of the current full year guidance of 75kboepd. PMO will update further on its FY production guidance once the summer maintenance period is over. The strong operational performance is largely driven by its UK North Sea operations which averaged 45.7kboepd (+160% YoY) due to a full contribution from the acquired E.ON assets and Solan.

Over this period PMO’s operating costs averaged US$13.7/boe, 11% ahead of its budget, whilst G&A costs are also anticipated to be below budget. Similarly development and exploration spend for 2017 is expected to be US$350m, reduced from US$390m, this is largely due to the deferral of a summer well workover on Solan. Net debt remains unchanged from year end at US$2.8bn with financial headroom of US$585m. PMO expects to be cash flow positive after capex and disposals in 2017 above US$50/bbl allowing it to start reducing its net debt. With the refinancing programme now completed the outlook for PMO is looking better, so long as Brent remains above US$50/bbl.

]]> Predictive Discovery talks next steps on drilling programs in West Africa Mon, 15 May 2017 05:00:00 +0100 Paul Roberts, managing director for Predictive Discovery, speaks with Proactive Investors.

]]> Savannah Resources' David Archer 'pleased' with Oman mine development Fri, 12 May 2017 13:28:00 +0100 David Archer, chief executive of Savannah Resources Plc (LON:SAV) tells Proactive they've lodged an Environmental Impact Assessment (EIA) for the Mahab 4 copper mine development - the final part of their permit applications for two copper mines in Oman.

]]> The uneasy calm in markets can’t last, and may be bullish for gold Fri, 12 May 2017 13:09:00 +0100 Sula Iron & Gold's Roger Murphy 'really encouraged' with Ferensola assays Fri, 12 May 2017 11:07:00 +0100 Roger Murphy, chief executive of Sula Iron & Gold PLC (LON:SULA) tells Proactive they've hit their best grades yet at Ferensola and is now more confident than ever the project hosts a major gold system.

]]> Zak Mir: Sula Iron & Gold target is 1.2p Fri, 12 May 2017 10:30:00 +0100 Gold explorer Sula Iron & Gold PLC (LON:SULA) has been on a decent trend since October when it broke through the 200 day average says chartist Zak Mir. 
Exploration news in Sierra Leone has been encouraging and as long as the shares hold above the 50-day average of 0.47p, the technical target is 1.2p.

]]> VSA Capital Market Movers - Sula Iron and Gold PLC Fri, 12 May 2017 07:44:00 +0100 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced the results from its Batch 1 assays which cover 5 over the 14 drill holes in this current programme. One hole was from Sanama Hill (the existing Exploration Target) and the remainder were from the Eastern Target Zone which has not previously been drilled.

Highlights from hole FDD014, on Sanama Hill, included high grade intersections such as 15.9g/t Au over 4.8m (3.1m true width), and 37g/t Au over 0.75m both from within a mineralised shear zone interval with a true width of 21m. This was intersected at a depth of between 122.85m and 155.45m. These are the most promising results that Sula has returned to date and indicate that the Sanama Hill prospect may be more attractive than previously thought.

The initial results from the Eastern Target confirm that there is indeed a mineralised system present although as yet the gold assays returned have not been significant. The most notable result was a 1m intercept at 0.63g/t. However, as structural controls are better understood this will aid in defining future drilling. There are still three drill holes with results outstanding on this target, however.

Batch 2 results will include the remaining 9 holes including the final three from the Eastern Target and the samples have been dispatched from the exploration camp. The initial results from Sanama Hill are encouraging while it remains early days for the Eastern Target.

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

]]> Orion Gold updates on new drilling program in South Africa Fri, 12 May 2017 04:00:00 +0100 Errol Smart, managing director for Orion Gold, speaks with Proactive Investors.

]]> W Resources' Michael Masterman on a 'very solid' resource update Thu, 11 May 2017 11:04:00 +0100 Michael Masterman, chairman of W Resources PLC (LON:WRES), discusses with Proactive a rise in grades and resources for their La Parilla tungsten mine in Spain.

]]> White Cliff Minerals' Todd Hibberd​ hails upgraded resource estimate at Aucu Wed, 10 May 2017 22:00:00 +0100 Todd Hibberd, managing director for White Cliff Minerals, speaks with Proactive Investors.

]]> First quarter 'the sign of a good year ahead' - Anglo Pacific's Julian Treger Wed, 10 May 2017 12:52:00 +0100 Julian Treger, chief executive of Anglo Pacific Group plc (LON:APF TSE:APY) runs Proactive's Andrew Scott through the group's first quarter update.

''Our income has gone from £2mln to £10mln which is a huge jump and I think it's a sign of the strength of the market we see coming through for the rest of the year''.

]]> Mawson Resources seeing 'great results' from drilling at Rompas-Rajapalot Wed, 10 May 2017 10:28:00 +0100 Michael Hudson, chairman and chief executive of Mawson Resources Ltd (TSX:MAW) tells Proactive they're seeing great results from drilling at Rompas-Rajapalot.

''Very pleased with the results, but the scales - this was the first stage of exploration if you like'', Hudson says.

''We've done a lot of work over the last few years but this was the first systematic test over the whole property ... we've been seeing gold literally in drill holes on the most southern, western and eastern parts of the system''.

''We doubled the depth of our first known high grade area and made at least one other discovery of another high grade shoot so we're seeing some great results''.

]]> 'It's expandable at all scales' - Hannan Metals' Michael Hudson on Kilbricken potential Wed, 10 May 2017 10:15:00 +0100 Michael Hudson, chairman and chief executive of Hannan Metals Limited (CVE: HAN) talks Proactive through their exploration plans at the Kilbricken zinc-lead-silver project in Ireland.

]]> Weak Yen: Good news for Nikkei - Tip TV Wed, 10 May 2017 09:54:00 +0100 Ronnie Chopra, Chief Market Strategist at TJM Partners tells Tip TV that Japan’s Nikkei index looks given the Japanese Yen is being offered and the USD/JPY pair looks set to test 115.00-116.00 level in the short-term.
Chopra also discusses the outlook for GBP/USD, Copper futures and Anglo American.

]]> Premier African's George Roach looking ahead to 'good and profitable' operation at RHA Wed, 10 May 2017 09:16:00 +0100 George Roach, chief executive of Premier African Minerals Limited (LON:PREM) runs Proactive's Andrew Scott through latest developments at their RHA mine in Zimbabwe as well as drilling at the  'very encouraging' Zulu lithium and tantalum project.

]]> VSA Capital Market Movers - LGO Energy PLC Wed, 10 May 2017 07:18:00 +0100 LGO Energy (LON:LGO)

LGO Energy (LGO)# has announced that Leo Koot will be appointed as its Executive Chairman effective immediately, with Neil Ritson stepping down from his role of Chairman and CEO.

We see this as a particularly positive appointment by LGO when considering the calibre of Leo’s track record. Leo has over 28 years of industry experience and he brings both financial and technical experience to LGO.

His experience in the industry includes his role as Managing Partner of MENA Gulf Investment Partners (Abu Dhabi), President of Abu Dhabi National Energy Company (TAQA) and Managing Director of TAQA UK where he built the organisation from a few people to over 2,000 staff and contractors and delivered a mature E&P operating company that managed 60,000 barrels/day production with US$1.7 billion in annual revenues.

Leo has also held roles as a board member at AIM listed Sterling Energy (SEY LN) and as CEO of Energy Development Partners, an oil and gas business creating ways to match capital and resources with developing production. In this role he helped raise a US$350 million private equity fund.

LGO has also announced its intention to change the company’s name to Columbus Energy Resources by the end of this month.

Following this news, we maintain our BUY recommendation and keep our TP under review whilst we await an update of the new management’s plans going forward.

]]> European Lithium presents an economic and valuable project for clean energy Tue, 09 May 2017 22:00:00 +0100 Steve Kesler, chief executive officer for European Lithium, speaks with Proactive Investors.

]]> 'We're very pleased with how things are coming along' - Anglo Asian's Bill Morgan Tue, 09 May 2017 12:23:00 +0100 Bill Morgan, chief financial officer at Anglo Asian Mining Plc (LON:AAZ) caught up with Proactive Investors for an update on developments at their properties in Azerbaijan.

''We're very pleased the way things are going at Anglo Asian Mining at the moment ... last year we returned the company to profitability. This was after a couple of years of being a loss-making company - obviously that was something we were very pleased with''.

Anglo Asian’s 2017 production target remains in the range of 64,000 to 72,000 ounces of gold, but the source of this production will temporarily change as Ugur comes on stream: mining operations at the Gedabek open pit will simultaneously be scaled back till the end of the year to allow for a greater focus on existing stockpiles.

]]> Caledonia Mining 's Blanket development going well says CEO Tue, 09 May 2017 11:28:00 +0100 A tweak to  guidance this year reflects the juggling act between current production and the huge upgraded currently underway says Caledonia's CEO Steve Curtis.

]]> VSA Capital Market Movers - Dakota Minerals, Millennial Lithium, Metal Tiger Tue, 09 May 2017 07:51:00 +0100 Dakota Minerals (ASX:DKO)

Yesterday, Dakota Minerals (DKO) announced that it was entering the Scandinavian lithium minerals sector with the acquisition of newly granted leases in Sweden. Three areas have been acquired - Spodumenberget (Spodumene Mountain), Raggen, and Hamrange - all in eastern Sweden near the coast.

Spodumenberget was previously sampled by LKAB in the 1980s and found to have pegmatites over a large area with some tin and columbite also. The Hamrange area contains multiple pegmatites as well. The Raggen area is a historic tin-bearing pegmatite area.

Metal Tiger (LON:MTR)

MTR announced late yesterday that it was exiting the Semenovsky tailings treatment venture with Eurasia Mining (EUA LN). Semenovsky is a Russian tailings re-treatment project dominated by silver which was in assessment for a new plant. MTR will have no further interest in the JV and will focus its capital on its base metal projects.

MTR appears to have had a nominal investment in the venture of less than £0.5m and we have never considered this project material to the MTR investment case.

We re-iterate our BUY recommendation and 5.68p price target

Millennial Lithium (CVE:ML)

Millennial Lithium (ML) has added veterans of Allana Potash to its management and board of directors with the appointment of Farhad Abasov as CEO and director, Richard Lacroix as Director, and Peter J. MacLean as Sr. VP of Technical Services.

Mr. Abasov has over 15 years of experience and most recently Mr. Abasov served as President & CEO of Allana Potash Corp., a potash development company which was sold to Israel Chemical Ltd. (ICL NY) for US$170M in 2015.

Mr. Lacroix has extensive experience in all aspects of potash mining, processing and marketing including 30+ years with Potash Corp. of Saskatchewan (PCS).  Mr. Lacroix is a former Senior Vice President of PCS and former Director and Chairman of Canpotex. Most recently Mr. Lacroix served as a Director for Allana Potash.

Most recently Dr. MacLean acted as SVP-Exploration of Allana Potash Corp. and directed all exploration and development activities on its flagship Danakhil Potash Project in Ethiopia up to its takeover by Israel Chemicals (ICL NY) including managing the Company's Feasibility Study and overseeing pilot solution mining and evaporation pond trials.

The appointments of Mr. Abasov and Mr. Lacroix as directors follow the resignations of Mr. Brian Morrison and Mr. Brent Butler as Directors. The appointment of Mr. Abasov as Chief Executive Officer follows the resignation of Mr. Kyle Stevenson as Chief Executive Officer. Mr. Stevenson will remain as President and director of the Company for the transition period.

The addition of these experienced men in feasibility studies on brines should serve ML well in coming months as it advances its Pastos Grandes brine project in Argentina.

We re-iterate our SPEC BUY recommendation.

]]> Zak Mir tips Sula Iron and Gold shares to almost double Mon, 08 May 2017 08:20:00 +0100 Technical analyst Zak Mir has tipped the Sula Iron and Gold PLC (LON:SULA) share price to almost double over the coming months and head past the penny mark.

“We’ve seen the shares already rise over recent months,” explains Mir in the latest Proactive Investors Bulletin Board.

“[There was] the big break through at the end of October with the clearance of the 200-day moving average which is at 0.27p currently.

“There’s a rising trend channel that can be drawn from that you can draw from the autumn with the top of the channel heading as high as 1p to 1.1p and that target is valid while we hold above the 50-day average of 0.46p.”

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]]> VSA Capital Market Movers - Sula Iron and Gold PLC Mon, 08 May 2017 07:33:00 +0100 Sula Iron and Gold (LON:SULA)

The current drilling program on the Ferensola gold project in Sierra Leone is now complete. A total of 14 drill holes comprised of 3,788m, 40% more than planned, have been completed. We believe this extra drilling was accomplished without additional expense above the pre-drilling budget.

Drilling extended previously completed holes in Zone 1 (Sanama Hill) and tested two other new targets (TZ2- the Eastern target, and TZ4) based upon surface sampling and geophysics anomalies as well. A hole was also for the first time put into the ‘Kuwait’ artisanal gold area, a new area of bedrock mineralisation identified last year.

A first batch of samples was sent off to the assay lab a couple of weeks ago. A second batch of samples will be dispatched from the project camp around 10 May.

We look forward to the results of the assays and re-iterate our BUY recommendation and 3.1p price target.

]]> CanAlaska's Peter Dasler excited about target potential ahead of West MacArthur drilling Fri, 05 May 2017 16:25:00 +0100 Peter Dasler, president of CanAlaska Uranium Ltd (CVE:CVV) tells Proactive they're encouraged and excited about this summer's drilling at the West McArthur uranium project.

]]> European economy in recovery mode, but China retreat drags down miners Fri, 05 May 2017 13:42:00 +0100 Amur Minerals' Robin Young pleased to kick off early Kun-Manie drilling Fri, 05 May 2017 08:35:00 +0100 Robin Young, chief executive of Amur Minerals Corporation (LON:AMC) talks through with Andrew Scott their plans for 2017 drilling at the Kun-Manie nickel-copper project in Russia’s far east.

''We're looking forward to a very productive year'', says Young.

]]> Strategic Minerals 'takes bull by the horns' with full control of CARE Fri, 05 May 2017 07:55:00 +0100 John Peters, managing director of Strategic Minerals Plc (LON:SML), talks through their decision to acquire CARE - Central Australia Rare Earths.

]]> VSA Capital Market Movers - LGO Energy PLC Fri, 05 May 2017 07:46:00 +0100 LGO Energy (LON:LGO)

LGO Energy (LGO)# has reported its full year results for the year ended 31 December 2016. Operationally LGO was constrained in 2016 by the BNP Paribas (BNPP) loan facility which saw production from its Goudron Field materially reduced. However, LGO managed to maintain production throughout this period and group oil sales for the 12 month period were 47% lower YoY at 169,702bbls (2015: 323,080bbls).

At the corporate level LGO refinanced the balance on the BNPP facility by means of a new facility from Lind Partners, of which US$1.825m was drawn down to make a payment to BNPP and to remove the previous loan from default. Revenue for the period was 52% lower YoY at £4.55m (2015: £9.48m) and was impacted by problems with production and the lower oil price environment. Pre-tax loss for the period was £11.9m (2015: £11.5m) and was largely a result of a £7.9m impairment charge against its Spanish asset.

Post balance sheet end has seen a more positive outlook for the company as it kicked off its drilling campaign in the Mayoro Sandstone interval of the Goudron Field. We now await a further update from LGO at its investor strategy briefing on Wednesday 10 May 2017 to be held at the offices of VSA Capital, 15-17 Eldon Street, EC2M 7LD at 2:00pm.

]]> Clearwater drilling 'continuing to show strong results' - Eastmain Resources' Claude Lemasson Thu, 04 May 2017 14:44:00 +0100 Claude Lemasson, chief executive of Eastmain Resources Inc (TSE:ER) updates Proactive's Andrew Scott on drilling results from the firm's Clearwater Project as well as their Eleonore South joint venture property.

]]> Ariana Resources' Kerim Sener on 'significant' Kiziltepe resource increase Thu, 04 May 2017 14:28:00 +0100 Ariana Resources plc (LON:AAU) is eyeing a substantial increase in the life of its Kiziltepe gold mine in Turkey after a big resource hike.

Managing Director Kerim Sener tells Proactive the mine is now estimated to contain 257,500 oz of gold and 4.87Moz silver to make 338,500oz gold equivalent overall.

]]> VSA Capital Market Movers - Asiamet Resources, Glencore International, Randgold Resources Thu, 04 May 2017 08:00:00 +0100 Asiamet Resources (LON:ARS)

Latest drilling results in the infill program for the Beruang Kanan project of Asiamet (ARS) have encountered unexpected thicknesses of high grade copper deeper in the BK044 area than currently anticipated in the modelling of the open pit.  Representative values include:

• 33m at 1.11%Cu from 110.5m in hole BKM32400-10

• 18m at 1.6%Cu form 13m in hole BKM32400-07

• 20m at 0.95%Cu from 86m in hole BKM32650-05

Multiple intervals of high grade copper have been encountered in this area with many zones grading well over 2% Cu. This deeper oxidized mineralisation is well beyond the PEA study pit limits suggesting the upcoming feasibility study will reflect significant increase in minable tonnes and a deeper pit model in this area.

Glencore (LON:GLEN)

Glencore (GLEN) slightly raised full year EBIT guidance range to US$2.3bn to US$2.6bn on the back of improved commodity market prices, even as Q1 production results across its commodities were mixed.

Attributable oil output was way down by 43% to 1.4mbbls due to ongoing depletion of reserves. Nickel production was down by 10% to 24,600t and copper also sank by 3% to 324,100t on a variety of local production issues at its mines. On the bright side, ferrochrome was up 10% to 439,000t and zinc 9% to 279,100t.  In these times it is a benefit to be diversified like GLEN.

Randgold Resources (LON:RRS)

A solid performance from Randgold Resources (RRS) though it was not quite as good QoQ on costs and gold production. Gold sales were down 10% to 409,603ozs vs last quarter at 453,051ozs. The gold price received was US$30 higher but did not offset the change of the cash costs which rose to US$619/oz from US$549/oz  The additional hydropower station for the Kibali mine is just about complete.

YoY comparables however were positive across all metrics with gold output, cash costs, and gold prices all improved. The cash position rose to US$600m and a dividend increase of over 50% was declared to US$1/share during the quarter.

Today’s results represent solid numbers which appear to be sustainable in the foreseeable term. The building cash pile offers great opportunity to capitalise on exploration discovery or M&A opportunity going forward.

]]> VSA Capital Market Movers - LGO Energy PLC Thu, 04 May 2017 07:41:00 +0100 LGO Energy (LON:LGO)

LGO Energy (LGO) has announced details its Investor Strategy Briefing to discuss its future programme and strategy. The meeting will be hosted by the Board and attended by senior management and will be held at the offices of VSA Capital, 15-17 Eldon Street, EC2M 7LD on 10 May 2017 at 2.00 pm and will be simultaneously webcast for those unable to attend in person.

]]> VSA Capital Market Movers - Egdon Resources Plc, LGO Energy PLC Wed, 03 May 2017 07:37:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR) has announced it submitted a new planning application for the Wressle field development on 28 April 2017 following North Lincolnshire Council’s original decision to refuse the application in January. The new application includes additional information to specifically address the concerns raised by the local council on the first refusal and we are confident this new application will be accepted.

We now await further news from the company on the updated timing of the development. We maintain our BUY recommendation and 34p TP.

LGO Energy (LON:LGO)

LGO Energy (LGO) has provided an update on its operations in Trinidad ahead of its FY 2016 results on 5 May 2017. Following the completion of the planned two infill wells in the Goudron Field, GY-682 and GY-683, the rig used to drill these wells has been demobilised whilst the new drilling contracts are negotiated for upcoming wells. Further to this, four additional infill locations have been approved by the Ministry of Energy and Energy Industries (MEEI) and work will commence as soon as the drilling contracts are agreed.

Well GY-683 has now been placed on rod pump at a stable rate of 55bopd, ahead of company guidance of 45bopd. However, GY-682 was producing at 32bopd in the first half of April suggesting it is being affected by depletion. The well will now be left on pump and LGO will perform interventions to restore production closer to the initial rate of 55bopd.

Total production in Q1 17 averaged 435bopd, however we expect this figure to be 80-90bopd higher in Q2 due to wells GY-682 and GY-683 coming on line in the period.

We now await further updates from the company in its FY 2016 results and its Investor Strategy Briefing on 10 May 2017

]]> VSA Capital Market Movers - REDT Energy Wed, 03 May 2017 07:35:00 +0100 redT energy to Deploy Unit with the RNLI

redT energy (LON:RED), a developer of vanadium redox flow machines for large-scale energy storage applications, will be installing one of its flow machines at the RNLI’s Inshore Lifeboat Centre in East Cowes on the Isle of Wight. The site is used to manufacture and maintain the RNLI’s fleet of inshore lifeboats.

• The Gen1 15kW-180kWh unit will be used for solar firming at the site and will also operate as a back-up power provider, removing the need for a diesel generator

• The site has a 100kW solar PV farm and currently exports up to 15kW when generation exceeds demand. Once the machine is installed, excess energy will be stored and time-shifted for internal use

VSA Comment

This placement represents the final deployment of the seven Gen1 15kW-180kWh flow machines that were originally destined for the Isle of Gigha (with the other six being moved to The Olde House project in Cornwall, as announced on 18 April).

Although this is again not strictly a commercial sale, this does have commercial implications with regards to accessing further sites in the RNLI’s 238 site portfolio. While only 23 of these sites currently have solar panels installed (and the majority are sub-10kW), the RNLI has a clear desire to increase its use of renewable energy (currently c5% of its total consumption). Coupling solar power generation sites with RED’s flow machines could help accelerate these expansion plans.

More importantly for potential future product sales, this deployment also provides an unique marketing opportunity into the UK charity sector, as we understand that the RNLI currently chairs Fit for the Future, a network of organisations from the not-for-profit sector, including the National Trust and 80 other organisations, that are working together to become “climate-friendly, adaptive and resilient”.

We view it as positive that RED has now re-deployed all seven of its ‘Gigha’ Gen1 machines into attractive marketing locations and hope to see these sites generating commercial Gen2 (2017) and Gen3 sales (2018) in the coming months and years.

We currently have a BUY recommendation on RED with a target price of 22p.

]]> VSA Capital Market Movers - LGO Energy PLC Tue, 02 May 2017 07:51:00 +0100 LGO Energy (LON:LGO)

LGO has announced that it will be publishing its audited full year 2016 financial results and issuing its Annual Report and Accounts on Friday, 5 May 2017.

In addition it then plans to hold an Investor Strategy Briefing on the morning of Wednesday, 10 May 2017 at the offices of its joint broker VSA Capital, New Liverpool House, 15-17 Eldon Street, London, EC2M 7LD where shareholders will be briefed on the Company's plans and the Board and management will be available to answer questions.  It is also intended to webcast the event and further details will be provided by Monday, 8 May 2017.

]]> Trump’s first 100 days: an unexpected semblance of normality pervades, for now Sun, 30 Apr 2017 16:13:00 +0100 VSA Morning Agri Comment Fri, 28 Apr 2017 08:29:00 +0100 REA Holdings: FY 2016 Results

REA Holdings (LON:RE), the Indonesian palm oil producer, has released annual results for the period ended 31 December 2016 (FY 2016).

• Revenue: US$79.3m, -12.4% YoY (FY 2015: US$90.5m); FactSet consensus was US$83.7m.

• Loss before Tax: US$9.3m (FY 2015: loss of US$12.2m*); FactSet consensus was a loss of US$11.5m.

• Own Fresh Fruit Bunches (FFB) Harvested: 468,371t, -22.0% YoY (FY 2015: 600,741t).

• Third Party FFB Harvested: 98,052t, -29.3% YoY (FY 2015: 138,657t).

• Crude Palm Oil (CPO) Produced: 127,697t, -21.1% YoY (FY 2015: 161,844t).

• CPO Extraction Rate: 22.8% (FY 2015: 22.2%).

• Newly Planted Land: 5,758ha (FY 2015: 2,251ha)

• No dividend declared (FY 2015: Nil)

* Restated due to adoption of amended IAS 41

VSA Comment

Another difficult year for REA in terms of cropping, with the severe dry periods in 2014 and 2015 continuing to have a negative impact on yields (FFB yield fell to c15t/ha vs. 20.5t/ha in FY 2015), and even as production began to show signs of picking up in the last two months of the year, heavy rains then arrived to disrupt harvesting operations.

Despite these issues, the company carried out significant financial restructuring during the year, improving its debt maturity profile and bringing in Indonesian planter Dharma Satya Nusantara (DSNJ IJ) as a 15% equity holder in REA’s principal operating subsidiary.

Although the operational figures have already been revealed in the February trading update, we would again highlight the record level of planting during the year, which would likely have hit 6,000ha had it not been for the heavy rainfall in the last two months. We are hopeful that this level of operational improvement can be sustained, despite the unexpected departure of Managing Director Mark Parry earlier in the year.

For 2017, REA has a planting target of 4,000ha. The group remains in active discussions to restructure the remaining portion of the maturing sterling and US dollar notes that it has yet to refinance, in order to meet this target.

Looking forward, although REA has not revealed its own cropping levels for Q1, a number of palm oil producers have already reported a significant uptick in production in Q1, particularly those in Indonesia – Anglo-Eastern Plantations (AEP LN) FFB production +20% YoY; MP Evans (MPE LN) FFB production +15% YoY; SIPEF (SIP BB) CPO production +22% YoY; First Resources (FR SP) FFB production +44% YoY. Official data from Malaysia also highlights this uptick, with CPO production in the country reported +18% YoY for Q1. We are therefore hopeful that REA will also have seen significantly improved crop levels early in the year.

However, this production surge has clearly had a negative impact on pricing, with the European CIF Rotterdam benchmark now trading at US$680/t, down from a 2017 high of US$827/t reached in late January. Expected large soybean crops in the Americas combined with the EU’s recent moves, which, if enacted, would result in the removal of palm oil from the EU’s biodiesel sector by 2020 have also contributed to the current negative market sentiment.

Despite this, recent comments from United Plantations (UPL MK) and SIP have highlighted the upside risk to pricing from any supply disruption due to the current low palm oil stock situation (Malaysian stocks are at about 8% of total consumption and exports, compared to a long-term average of c10%). This may be wishful thinking on the part of producers looking for higher pricing but significantly increasing production levels and stockpiles does seem to us to already be priced into global palm oil prices.

On the supply side there is some early evidence that the strong production increases in Q1 will not be sustained through Q2 (although we would still expect YoY growth). REA has also highlighted a relatively weak market for soymeal, which may constrain soybean oil production and support prices in H2 2017, a period which has been highlighted as a likely bearish period by most analysts (including us) for at least the last year.

Given the expected pick-up in production and other operational improvements, 2017 should prove to be a much better year for REA. It should deliver a significantly improved financial performance with a return to paying ordinary dividends certainly possible (cropping and price dependent).

]]> VSA Capital Market Movers - Hochschild Mining, Kaz Minerals Thu, 27 Apr 2017 07:20:00 +0100 KAZ Minerals (LON:KAZ)

KAZ Minerals (KAZ LN) has announced strong results for Q1 2017 with copper production up 16% QoQ and 130% YoY to 52kt as the ramp up at Bozshakol and Akotgay continued. The two assets now make up the majority of KAZ’s production and it is on track to produce 225-260kt of copper in 2017. We also note that gold production remained strong at 43koz in line with Q4 2016 but up 140% YoY. Grades at Bozshakol were stable which with rising production should benefit unit costs.

Hochschild Mining (LON:HOC)

Hochschild Mining (HOC LN) has released robust production results for Q1 2017 with attributable silver production flat QoQ and up 12% YoY to 4.1mnoz. Gold production of 61koz up 19% YoY although down 2% QoQ implying total equivalent ounces of 8.6mnoz. Stronger grades at Inmaculada enabled HOC to offset some unplanned stoppages. The stoppages mean that Q1 production is likely to have disappointed, however, HOC have maintained full year guidance of 37mnoz along with all in cost guidance of US$12.2-12.7/oz guidance.

]]> VSA Capital Market Movers - Antofagasta Plc, BHP Billiton plc, Fresnillo Wed, 26 Apr 2017 07:26:00 +0100 Antofagasta (LON:ANTO)

Antofagasta (LON:ANTO) Q1 2017 copper production was up 9.4% YoY although down 16.4% QoQ to 172kt due to expected weaker grades at Los Pelambres. Gold production was also weak, down 6% YoY and 42% QoQ to 53koz. ANTO is, however, on track to meet full year guidance of 685-720kt yet continues the trend of copper production underperformance by the majors in Q1 2017.

The impact of production weakness was naturally negative on cash costs which were up 12.4% QoQ on a net basis to US$1.27/lb, although down 7.3% YoY. Before by-product credits cash costs were up 8.9% QoQ and down 7.6% YoY to US$1.59/lb.

BHP Billiton (LON:BLT)

BHP Billiton (LON:BLT) has announced disappointing operational results as although modest gains were made in bulks production this was offset by significant declines in petroleum and copper production.

Total copper production of 939kt was down 20% YoY largely due to the strike action at Escondida although production at the other mines of 393kt was down 14% YoY also. Petroleum production of 157mmboe was down 15% YoY largely due to curtailments relating to market conditions.

Iron ore production of 171mnt was up 3% YoY as productivity improvements continued. Despite the cyclone impact BLT was able to increase met coal production by 2% to 31mnt YoY. Thermal coal production was unchanged YoY at 21mnt.

Fresnillo (LON:FRES)

Fresnillo (LON:FRES) has produced robust operational numbers for Q1 2017 with total silver production of 13.5mnoz up 10% YoY and 1.6% QoQ. This annual increase reflects the contribution from the San Julian mine although the marginal quarterly increase was a result of weaker ore grades at Saucito which offset improvements elsewhere.

Gold production was, however, weaker as expected and down 3.3% YoY and 17% QoQ to 222koz. FRES previously guided towards lower gold grades at Herradura in 2017. Full year silver production guidance of 58-61mnoz has been maintained along with 870-900koz gold and in order to achieve this the second phase of the San Julian ramp up is required. Currently it is due to be commissioned at the end of Q2.

]]> VSA Capital Market Movers - Metal Tiger Tue, 25 Apr 2017 07:13:00 +0100 Metal Tiger (LON:MTR) has announced drill assay results from four further holes at the T3 copper project in Botswana. The current drilling is focused on the area at depth immediately below the existing Zone 1 resource; known as Zones 2 and 3.  Highlights from the latter two zones include 5.6m at 1.4% Cu and 20g/t Ag from 243m, 8.9m at 1.7% Cu and 29g/t Ag, 13m at 0.8% Cu and 9g/t Ag from 460m and 13m at 1% Cu and 18g/t Ag from 220m. Results on a further 19 holes are outstanding which are a mixture of geotechnical and infill drilling.

The drill results which demonstrate further mineralisation at depth mean there is potential for an expanded resource and enlarged PFS. However, we believe there is further potential in the surrounding license areas and recent geophysics surveys have identified further chargeable anomalies which will be drill tested as soon as approvals are granted. In addition, airborne electromagnetic surveys are due to be carried out in May 2017 in order to assess the broader area (100km2).

The PFS appears to be progressing well with geotechnical drilling complete and metallurgical testing underway. In addition, pump testing and environmental impact assessment work is due to commence soon.

We reiterate our Buy recommendation and 4p target price.

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

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

]]> Fundamentals returning to the fore in mining, at long last Fri, 21 Apr 2017 11:36:00 +0100 VSA Capital Market Movers - Metal Tiger Fri, 21 Apr 2017 07:35:00 +0100 Metal Tiger (LON:MTR)
Metal Tiger  has announced that its private placing with Sprott has closed, raising £4.85m at a placing price of 3p/sh via the issuance of 161.7m shares with an equal number of warrants which have an exercise price of 6p/sh and five year exercise period. The funds will go towards the development of the T3 copper project in Botswana.

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

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

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

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

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

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

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

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

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

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

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

We reiterate our Buy recommendation and 5p target price.

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

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

]]> VSA Capital Market Movers - LGO Energy Tue, 18 Apr 2017 07:27:00 +0100 LGO Energy (LON:LGO)
LGO Energyhas announced that the second development well of its drilling campaign in the Mayaro Sandstone is now on production. It was drilled to a total depth of 1,250ft and perforated over a 269ft interval of net oil pay before flowing at an initial rate of 80bopd, above company guidance of 45bopd. Once the natural flow period ends the well will be placed on pump at an initial stabilised rate of c65bopd.

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

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

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

]]> Gold rises as Trump focuses attention on global flashpoints Sun, 16 Apr 2017 08:06:00 +0100 VSA Capital Market Movers - Millennial Lithium, Sula Iron and Gold PLC Thu, 13 Apr 2017 07:10:00 +0100 Sula Iron & Gold (LON:SULA)

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

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

We reiterate our Spec Buy recommendation and 1.6p target price

Millennial Lithium (CVE:ML)

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

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

We reiterate our Speculative Buy recommendation


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

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

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

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

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

Wressle Development - Appeal and New Planning Application Update

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

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

We maintain our BUY recommendation and 34p TP.

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

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

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

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

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

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

Our target place and recommendation remain under review.

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

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MP Evans: FY 2016 Results

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

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

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

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

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

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

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

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

VSA Comment

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We maintain our BUY recommendation and 34p TP.

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

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

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

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

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

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

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


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

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

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

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

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

• Provide corporate overhead and general working capital

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

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

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

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

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

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

Millennial Lithium (CVE:ML)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

We reiterate our Speculative Buy recommendation.


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

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

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

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

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

]]> Miners wobble, but Trump dump yet to have serious impact Fri, 24 Mar 2017 14:23:00 +0000 VSA Capital Market Movers - Ferrexpo Wed, 22 Mar 2017 08:41:00 +0000 Ferrexpo (LON:FXPO)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

To read our flashnote on the announcement please click here.

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

]]> Janet Yellen is already feeling the force of Trumponomics, and gold is responding Fri, 17 Mar 2017 14:22:00 +0000 VSA Morning Flow Test - Range Resources Ltd, Tullow Oil plc Fri, 17 Mar 2017 09:02:00 +0000 Tullow Oil (LON:TLW)

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

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

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

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

Range Resources (LON:RRL)

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

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

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

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

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

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

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

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

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

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

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

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

We reiterate our Speculative Buy recommendation

Polymetal (LON:POLY)

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

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

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

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

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

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

Antofagasta (LON:ANTO)

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

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

Polymetal (LON:POLY)

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

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

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

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

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

We re-iterate our BUY recommendation and 22p TP

]]> Trump v Yellen: what next for gold and the US dollar? Fri, 10 Mar 2017 14:04:00 +0000 VSA Capital Market Movers - Egdon Resources Plc Fri, 10 Mar 2017 09:15:00 +0000 Ineos/UK Shale Gas

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

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

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

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

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

Goudron Field Development Underway                                      

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

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

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

South West Peninsula Offers Additional Value

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

Recommendation and Target Price

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

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

Developing into a Forecasted Multi-Billion Market

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

Low Cost Product with Cost Reduction Schedule

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

£14.9m Financing to Accelerate Roll-Out

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

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

Recommendation and Target Price

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

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

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

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

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

We reiterate our buy and 5.68p target price.


]]> Chinese economic policy begins to mature as US anxiety feeds in on itself Fri, 03 Mar 2017 15:16:00 +0000 VSA Capital Market Movers - Sula Iron and Gold PLC Fri, 03 Mar 2017 08:39:00 +0000 Sula Iron & Gold (LON:SULA)

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

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

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

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

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

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

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

]]> President Trump one month in: gold range-bound, Europe still edgy Sun, 26 Feb 2017 09:30:00 +0000 VSA Capital Market Movers - Millennial Lithium, Glencore and KAZ Minerals Thu, 23 Feb 2017 08:29:00 +0000 Millennial Lithium (CVE:ML)
Millennial Lithium has announced that it intends to complete an equity placing of C$8.7m at a price of C$1.45 per share (6m shares), a discount of 4% to the last close. For each share purchased investors will receive one half common share purchase warrant. This will entitle the holder to purchase one common share a t a price of C$1.9 for a period of 24 months from the closing date.

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

Please click here for our recent initiation.

We reiterate our Speculative Buy recommendation.

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

We reiterate our Buy recommendation and 5.68p/sh.

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

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

AIM Listing Raises £5m

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

Carried For One Well in Namibia

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

Recommendation and Target Price

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

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

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

We reiterate our Speculative Buy recommendation.

Acacia Mining (LON:ACA)

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

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

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

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

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

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

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

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

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

Order subject to supply chain volumes from the purchaser

VSA Comment

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

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

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

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

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

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

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

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

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

Tullow Oil (LON:TLW)

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

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

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

Eco Atlantic (LON:ECO)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We retain our SPEC BUY recommendation.

Metal Tiger (LON:MTR)

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

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

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

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