Mundoro Capital gives update on annual general meeting and options grant Fri, 25 May 2018 21:45:00 +0100 MGX Minerals' energy storage subsidiary to receive grant to study use of graphene-based materials in its technology Fri, 25 May 2018 17:05:00 +0100 Blue Sky Uranium unveils new mining technique that bolsters uranium concentration Fri, 25 May 2018 16:15:00 +0100 Silvercorp Metals shares fall as fiscal 4Q earnings miss despite revenue beat Fri, 25 May 2018 15:59:00 +0100 CanAlaska Uranium's partner Cameco planning electromagnetic surveys at West McArthur Fri, 25 May 2018 14:26:00 +0100 Cruz Cobalt planning to start work at Eagle and Purcell cobalt prospects in BC Fri, 25 May 2018 13:54:00 +0100 Anglo Asian Mining posts profit for 2017 and cuts net debt Fri, 25 May 2018 13:06:00 +0100 Anglo Asian Mining Plc's (LON:AAZ) Bill Morgan tells Proactive that the company, despite a loss-making first half, managed to turn profitable in the second half of 2017 and thus post a profit for the full year.

He adds that a strong cashflow also allowed the company to cut its net debt down to £18mln from £35mln at the start of the year.

Morgan also says the company is now considering paying a dividend to its shareholders.

]]> Kavango’s Kalahari Suture Zone project bears striking similarities to the giant Norilsk deposits in Russia Fri, 25 May 2018 12:54:00 +0100 Gold holds its own in the face of weaker equities, but long-term bulls will still be hoping for worse news than that Fri, 25 May 2018 10:44:00 +0100 Centamin plunges on forecasts for weaker second quarter as low grades persist at Sukari Fri, 25 May 2018 09:03:00 +0100 Cadence Minerals excited by growth projects in age of electric vehicles Fri, 25 May 2018 08:18:00 +0100 Strategic Minerals to kick off new drill programme at Redmoor next month Fri, 25 May 2018 06:35:00 +0100 Orosur terminates option agreement on Anillo exploration project Fri, 25 May 2018 06:30:00 +0100 Fe Limited's joint venture partner reveals next exploration steps near DeGrussa Fri, 25 May 2018 04:20:00 +0100 King River Copper to reward holders with bonus option issue Fri, 25 May 2018 02:26:00 +0100 Tabakoroni results show "rapidly unfolding major discovery" for Resolute Mining Fri, 25 May 2018 01:29:00 +0100 Resolute Mining Ltd (ASX:RSG) managing director and chief executive John Welborn speaks to Proactive Investors about the “exceptional” results from multiple holes of reverse circulation (RC) and diamond drilling at the Tabakoroni Project, 35 kilometres south of the company’s Syama Gold Mine in Mali.

At Tabakoroni Nord, the multi-rig drilling program is expected to grow the previously defined resource, where open pit mining is scheduled to commence in the coming months. Meanwhile, at the Tabakoroni Main Zone, today’s announcements have revealed the potential for a new underground mine.

Exploration efforts around the wider Syama area will now be increased to investigate the full resource potential revealed with each round of thick section, high-grade results, with a focus on the Nafolo discovery.

At the Syama gold mine, oxide and sulphide processing plants are producing, as a world-class sublevel cave operation develops, set for completion in December of this year.

]]> Neometals declares dividend for shareholders Thu, 24 May 2018 23:40:00 +0100 Tyranna Resources to receive shares as Kairos defines 500,000-ounce gold resource Thu, 24 May 2018 22:28:00 +0100 VR Resources completes acquisition of Kraut property in Nevada Thu, 24 May 2018 19:13:00 +0100 Otis Gold kicks off exploration at Oakley project in Idaho; aims to model deposit Thu, 24 May 2018 19:10:00 +0100 Canamex increases minimum subscription for GoldUSA token Thu, 24 May 2018 18:23:00 +0100 Tinka Resources hails one of the best drill assays yet at West Ayawilca, Peru Thu, 24 May 2018 18:19:00 +0100 Primary Cobalt shares advance as it submits work programme for Spanish vanadium exploration Thu, 24 May 2018 18:17:00 +0100 Prospero Silver brings in near C$1.9mln as it updates on exploration plans Thu, 24 May 2018 17:57:00 +0100 Smurfit Kappa agrees to buy Dutch paper firm Reparenco in snub to International Paper takeover bid Thu, 24 May 2018 14:25:00 +0100 Eurasia Mining posts Information video showing current production activities at its West Kytlim platinum mine Thu, 24 May 2018 14:12:00 +0100 MGX Minerals expands silicon portfolio in British Columbia with Gibraltar property Thu, 24 May 2018 13:18:00 +0100 Fireweed Zinc announces successful PEA results on Macmillan Pass project Thu, 24 May 2018 12:38:00 +0100 Fireweed Zinc (CVE:FWZ) CEO Brandon Macdonald tells Proactive Investors the company has hit the targets of a successful preliminary economic assessment (PEA) on the company's Macmillan Pass Zinc project in Yukon.

Macdonald says on the back of a $404mln capital expenditure, the company sees an after-tax NPV of $448mln, and after-tax IRR of 24%.
Macdonald says the company could potentially ship around 100,000 tons of zinc contained in concentrate for the first 10 years of the mine life.

]]> VSA Capital Market Movers - Independent Oil & Gas#: 30th UK Licensing Round Awards Thu, 24 May 2018 09:37:00 +0100 Harvey Expanded, Broader Structure Captured

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

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

Additional Goddard and Abbeydale Blocks

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

Recommendation and Target Price

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

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

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

]]> Thor Mining welcomes inclusion of tungsten on US critical minerals list Thu, 24 May 2018 09:33:00 +0100 Pan African Resources completes Barberton plant as Elikhulu construction continues Thu, 24 May 2018 08:40:00 +0100 Papua Mining surges after identifying new epithermal gold zone at Lighthouse Thu, 24 May 2018 08:28:00 +0100 Metal Tiger completes infill and extension programme drilling at T3 (Motheo) Pit resource Thu, 24 May 2018 07:55:00 +0100 Anglo Asian Mining forecasts sizeable production uplift in 2018 Thu, 24 May 2018 06:57:00 +0100 Bacanora Lithium flags up surge in lithium prices in fiscal third quarter update Thu, 24 May 2018 06:56:00 +0100 Petra Diamonds launches deeply discounted US$178mln rights issue Thu, 24 May 2018 06:49:00 +0100 IronRidge Resources appoints new non-executive chairman Thu, 24 May 2018 06:46:00 +0100 Reedy Lagoon Corporation to explore lithium potential of Clayton Valley project Thu, 24 May 2018 06:28:00 +0100 Spitfire Materials strengthens its portfolio by acquiring 100% of the Mulwarrie Gold Project Thu, 24 May 2018 05:13:00 +0100 Encounter Resources raises $2.75 million to advance its projects in Western Australia Thu, 24 May 2018 02:37:00 +0100 Fireweed Zinc strides forward with preliminary economic assessment Thu, 24 May 2018 02:14:00 +0100 Cassini Resources receives new data to confirm zinc target Thu, 24 May 2018 00:49:00 +0100 Mustang Resources exports rubies to Thailand office to be sold Thu, 24 May 2018 00:16:00 +0100 Carnarvon Petroleum set to "bring forward the next phases of value for shareholders" Wed, 23 May 2018 23:30:00 +0100 Carnarvon Petroleum Ltd (ASX:CVN) managing director Adrian Cook speaks to Proactive Investors, as drilling happens at Western Australia's prolific North West Shelf.

"We've proven up a working petroleum system in this area. What we're now looking to do is cement commerciality of the resources... very shortly we're going to have two wells drilling into our Phoenix Project, both of which are looking to turn this project from Proof of Concept to a commercial project," says Cook.

The oil and gas exploration company completed a $16 million placement earlier this month, and will now accelerate plans to redevelop a former oil field, known as the Buffalo Project.

]]> Fortuna Silver Mines acquires 5.4 million Prospero Silver shares Wed, 23 May 2018 22:21:00 +0100 Valor Resources secures contractor for 7,000-metre drill program Wed, 23 May 2018 22:17:00 +0100 MGX Minerals Inc updates on Ontario joint venture lithium exploration Wed, 23 May 2018 19:00:00 +0100 Zinc One Resources says Mina Chica zone will be key to Bongara project’s growth Wed, 23 May 2018 17:48:00 +0100 Blackrock Gold completes strong stepping stones at its Silver Cloud project Wed, 23 May 2018 17:34:00 +0100 Royal Road Minerals CEO says samples from gold prospect in Nicaragua are significant Wed, 23 May 2018 16:08:00 +0100 Royal Road Minerals Limited (CVE:RYR) CEO Tim Coughlin tells Proactive Investors the exploration company released encouraging sampling results, which underlined the potential of the Caribe prospect in the Golden Triangle region of northeastern Nicaragua.

Coughlin says the soil samples are relatively high grade for the type of weathering environment they're in, up to close to 1gram of soil samples, around 3 meters down, which he says are significant.

]]> Eastmain Resources says Eau Claire project PEA shows robust economics Wed, 23 May 2018 15:52:00 +0100 AfriTin raises £6mln in oversubscribed placing to accelerate work programme Wed, 23 May 2018 14:45:00 +0100 AfriTin Mining Ltd's (LON:ATM) Anthony Viljoen tells Proactive that the group has raised £6mln in an oversubscribed share placing, which will be used to accelerate a work programme at the Uis Tin mine in Namibia.

Viljoen adds that a number of contractors have been appointed to begin ground preparations for the construction of a plant at the prospect.

He also says the firm is reaching out to new potential shareholders and has already received interest from a number of strategic investors.

]]> Alba Mineral Resources wants to extend licence for Limerick metals project Wed, 23 May 2018 14:07:00 +0100 GGX Gold bolsters technical team at Gold Drop with experienced geologist Wed, 23 May 2018 13:26:00 +0100 AfriTin Mining share placing raises £6mln for accelerated work programme at the Uis Tin Mine Wed, 23 May 2018 12:35:00 +0100 Cruz Cobalt Corp about to start operations in emerging district in Ontario Wed, 23 May 2018 12:17:00 +0100 Cornish Lithium steps on the accelerator for Lithium exploration in Cornwall Wed, 23 May 2018 12:01:00 +0100 Cornish Lithium's Jeremy Wrathall tells Proactive says Cornwall has a high presence of Lithium brines across the region from information that stretches back decades.

Wrathall says the company has a special agreement with Lord Falmouth, Cornwall's biggest landowner, to digitise his collection of mining maps to further expand knowledge of the area.

He adds that the company has "stepped on the accelerator" by hiring more staff and is currently looking into where exactly drill targets should be located.

]]> Eurasia Mining says West Kytlim is now fully operational Wed, 23 May 2018 10:47:00 +0100 Forterra downgraded to 'neutral' by Citigroup after good run over the last year Wed, 23 May 2018 10:23:00 +0100 ScotGold Resources acquires final tranche of funding for Cononish mine Wed, 23 May 2018 09:54:00 +0100 ScotGold Resources' Richard Gray says the final tranche of funding for its Cononish gold mine is "the key that's going to open up the whole future for us".

Gray adds that despite being a small gold mine, the high profitability has led to plenty of support from a senior shareholder.

In terms of time frames, Gray says commercial production is planned to commence around the first half of 2019.

]]> Strategic Minerals' profit soars; focus this year will be on developing new revenue stream Wed, 23 May 2018 09:36:00 +0100 Thor Explorations' Gillman: amount of visible gold indicates "something significant" Wed, 23 May 2018 09:34:00 +0100 Thor Explorations Ltd's Alfred Gillman tells Proactive that the company has concluded the first part of its DFS drilling workstream for the current year, and that the amount of visible gold from the drill cores is one of the more exciting aspects of the Segilola project.

He adds that the visible gold indicates something significant, with an expectation that the project could potentially yield more than 30 grams per tonne of gold.

]]> Chaarat Gold has ambitious plans to become a major regional player in Central Asia Wed, 23 May 2018 09:31:00 +0100 Bovis Homes says underlying pricing remains firm Wed, 23 May 2018 08:30:00 +0100 Strategic Minerals reports significant increase in profit for 2017 Wed, 23 May 2018 07:29:00 +0100 John Peters, managing director at Strategic Minerals Plc (LON:SML), caught up with Proactive's Andrew Scott to discuss the group's 2017 results.

After tax profit from operations came in at $1.586mln compared to a profit of $351k the year before.

Peters says the team's looking forward to progressing their projects throughout the year ahead and 2018 will be a period of consolidation for the company after the rapid growth seen in 2017.

]]> Verde AgriTech's fertiliser 'highly disruptive and beneficial to farmers' Wed, 23 May 2018 07:04:00 +0100 Agriculture-tech group Verde Agritech PLC (TSE:NPK), the producer of the  Super GreenSand fertiliser,  has a product, which is highly disruptive in the space and beneficial to farmers, according to founder and CEO Cristiano Veloso.

The pre-feasibility study for the project in Brazil revealed a net present value worth of about US$2bn with a 280% IR (internal return).

In March, the firm inked a turnkey agreement for the construction of a processing plant, which Veloso says will have a big impact on the bottom line.

]]> Galantas Gold highlights continuing improvements for Omagh mine development Wed, 23 May 2018 06:42:00 +0100 King River Copper enters trading halt pending details of a bonus issue of options Wed, 23 May 2018 04:30:00 +0100 Havilah Resources aims to put cobalt icing on its large South Australian copper cake Wed, 23 May 2018 02:27:00 +0100 Impact Minerals granted trading halt by ASX pending asset disposal news Wed, 23 May 2018 00:35:00 +0100 Core Exploration expands lithium JORC resource by 70% Wed, 23 May 2018 00:23:00 +0100 Peninsula Mines’ high-purity graphite results confirm potential of high-grade Korean deposit Tue, 22 May 2018 23:44:00 +0100 Lithium Australia producing lithium ion battery cathode materials Tue, 22 May 2018 23:28:00 +0100 Leading Edge Materials to present at high-profile European energy event today Tue, 22 May 2018 22:42:00 +0100 Mustang Resources amends funding drawdown terms Tue, 22 May 2018 22:33:00 +0100 Kincora Copper issues 210,000 shares for services Tue, 22 May 2018 21:10:00 +0100 Pacton Gold expands footprint with acquisition of Drummond East; shares rise sharply Tue, 22 May 2018 20:18:00 +0100 King’s Bay announces C$0.5mln in non-brokered private placement Tue, 22 May 2018 19:26:00 +0100 Latin American Minerals turns focus to Tacura gold zone as it updates on drilling at Paso Yobai Tue, 22 May 2018 17:40:00 +0100 Minera Alamos’ future looks bright as it builds its growing portfolio of Mexican gold projects Tue, 22 May 2018 17:31:00 +0100 Canamex Gold announces increased price of its token offering Tue, 22 May 2018 15:32:00 +0100 Verde Agritech hails major funding milestone - with BNDES loan Tue, 22 May 2018 15:17:00 +0100 Dycom Industries shares fall after an earnings miss and lowered guidance Tue, 22 May 2018 15:02:00 +0100 Mawson Resources says Raja prospect continues to deliver Tue, 22 May 2018 13:15:00 +0100 Galliford Try still suffering from the Carillion curse Tue, 22 May 2018 11:03:00 +0100 Buru Energy accelerating exploration efforts following Roc Oil transactions Tue, 22 May 2018 10:26:00 +0100 Buru Energy (ASX:BRU) executive chairman Eric Streitberg speaks to Proactive Investors about the Australia-focused oil and gas company's recent deal with Roc Oil (ASX:ROC) to sell half of its 100% ownership in the Ungani Oilfield for $64 million, and enter a Joint Venture on three of its most advanced exploration permits for a carry of $20 million. Buru Energy retains operatorship.

"The lifeblood of any company like ours is finding more oil and producing more oil, and that of course requires capital. So this seemed like a good time to bring in a partner who had a big balance sheet and was able to help us move the project forward more quickly than we would have been able to do with our internal resources," says Streitberg.

]]> Tertiary Minerals focuses attention on single acquisition in second half of financial year Tue, 22 May 2018 09:54:00 +0100 Scottish billionaire buys into Arc Minerals, following Zamsort deal Tue, 22 May 2018 09:45:00 +0100 Bushveld Minerals welcomes signing of concession agreement for Iamaloto project Tue, 22 May 2018 09:33:00 +0100 Scotgold secures final tranche of funding for construction at Cononish Tue, 22 May 2018 09:11:00 +0100 Gem Diamonds recovers another diamond of over 100 carats from the Letšeng mine in Lesotho Tue, 22 May 2018 08:45:00 +0100 ECR completes drilling at Monte Christo gold project and moves on to Blue Moon Tue, 22 May 2018 07:25:00 +0100 Balfour Beatty trading in line with expectations as restructuring makes progress Tue, 22 May 2018 07:18:00 +0100 Bluejay will shortly commence fieldwork at Dundas with a view to delivering a significant resource upgrade Tue, 22 May 2018 07:09:00 +0100 Rambler Metals raises £2.2mln for Ming expansion Tue, 22 May 2018 06:49:00 +0100 Bryah Resources leveraged to base metal recovery tests from AVL’s vanadium project Tue, 22 May 2018 03:44:00 +0100 Brookside Energy’s transformational business model validated with successful strategic divestment Tue, 22 May 2018 03:20:00 +0100 Brookside Energy Ltd (ASX:BRK) managing director David Prentice explains the company’s strategic focus to Proactive Investors, as a successful case study is revealed to the market. The oil and gas E&P company, which operates in the world-class Anadarko Basin in Oklahoma in the US, has adopted a land leasing and development approach that is “somewhat unique” in Australia, but has a proven history in the US.  

“Essentially, we’re acquiring undeveloped acreage across the Anadarko Basin in the hope of having that acreage revalued, as well as get drilled and reserves get booked…we’re very passionate about the fact that this strategy provides the best leverage for our shareholders,” says Prentice.

Brookside today announced the divestment of the first of its non-operated development units that has progressed to ‘full field’ development, at a price per acre that is greater than 10-times the average acquisition cost.

]]> Australian Vanadium adds another battery metal to the mix at Gabanintha Vanadium Project Tue, 22 May 2018 03:06:00 +0100 Red River Resources’ blast at Thalanga Far West sets the stage for underground development Tue, 22 May 2018 02:16:00 +0100 Great Boulder Resources to accelerate drilling at Mt Venn Copper-Nickel-Cobalt Project after raising $2.5 million Tue, 22 May 2018 02:09:00 +0100 Oklo Resources hits more high-grade gold in latest assays from Seko Tue, 22 May 2018 01:30:00 +0100 Sayona Mining finalises lithium processing flow sheet after completing pilot program Mon, 21 May 2018 23:56:00 +0100 Stonewall Resources deploys third rig as it seeks to add to TGME 5.15 million ounce gold bounty Mon, 21 May 2018 23:38:00 +0100 Accelerate Resources focusing on Mount Read for its "sensational" geology at surface Mon, 21 May 2018 22:00:00 +0100 Accelerate Resources (ASX:AX8) executive director Andrew Haythorpe speaks to Proactive Investors about operations since the company listed on the ASX in February, following an oversubscribed initial public offering (IPO). 

Diamond drilling is underway on multiple targets around the Thomas Creek prospect at the Mount Read Cobalt-Copper Project in Western Tasmania, with EM studies planned to follow, to inform future exploration efforts. Two nickel-cobalt prospects 15 kilometres north of Thomas Creek are also slated to be drilled as part of the current program.

"Basically [Mount Read] ticks all the boxes. Ironically, because it’s South of the harbor, access is difficult, so that's why it's still sitting there 140 years after initial discoveries were made on the West Coast of Tasmania. So, whilst it takes time for us to establish ourselves, we're well on that pathway… The significance for us at Thomas Creek is not only have we got all the great geology and mineralisation, etc, and now multiple targets: it's at surface. You can literally go out there with a shovel, as we did last year, and dig straight into ore-grade material,” says Haythorpe.

]]> Kavango Resources to list in London and advance flagship project in Botswana Mon, 21 May 2018 19:57:00 +0100 Mike Moles, founder of Kavango Resources, tells Proactive's Andrew Scott they're gearing up for an Initial Public Offering (IPO) in London in the coming weeks to raise cash to help advance their Kalahari Suture Zone (KSZ) project in Botswana.

Moles says  a good chunk of the money raised will be spent on deploying helicopters to carry out an airborne electromagnetic survey over the property to identify drill targets.

Kavango also has another asset in Botswana - a Copper Project - which is being managed and funded by joint-venture partner Rio Tinto.

]]> Verde Agritech fertiliser product disruptive in space, says CEO Mon, 21 May 2018 18:24:00 +0100 Cadence Minerals: Auroch Minerals completes geophysical reinterpretation at Bonaventura Mon, 21 May 2018 15:12:00 +0100 Goldplat completes ‘Stage 2’ expansion at Kilimapesa project Mon, 21 May 2018 14:23:00 +0100 Sunrise Resources pushing hard to deliver production in the first half of next year Mon, 21 May 2018 13:57:00 +0100 NioCorp Developments' superalloys project just nudged a little closer, as it awards contract to major Rockwell Mon, 21 May 2018 12:35:00 +0100 Greatland Gold to kick off exploration in coming weeks at Black Hills Mon, 21 May 2018 10:31:00 +0100 Gervaise Heddle, chief executive at Greatland Gold plc (LON:GGP), tells Proactive they've identified four distinct zones of gold mineralisation at their wholly-owned Black Hills licence.

He says they're planning for the first exploration programme there to commence within the next few weeks.

Heddle adds that a review of historical data has highlighted the potential for high-grade, near-surface gold mineralisation at several prospects throughout the Black Hills licence including Saddle Reefs, Eastern, Rogers and Northern Granites.

]]> Newly transformed Norman Broadbent offering a unique mix of business lines Mon, 21 May 2018 09:45:00 +0100 Mike Brennan, chief executive of Norman Broadbent Plc (LON:NBB), tells Proactive's Andrew Scott he came on board two years ago and in that time the business has been transformed into much more of a professional services business.

''We're focusing instead of on one thing we're now looking at five different service lines - across search, solutions, senior interim, assessment and research & insight''.

''It's a fairly unique mix of business lines'', Brennan says.

As for the year ahead, Brennan says: ''There may be some challenges around Brexit for some companies but I don't think we've got that ... we've not got too much exposure to Europe or to financial services ... we've got a great team in place and it's all about getting the message out''.

]]> Papua Mining pre-tax loss narrows in 2017 as it proposes name change in full-year results Mon, 21 May 2018 09:22:00 +0100 Greatland Gold surges after announcing plans to kick-off exploration at Black Hills Mon, 21 May 2018 08:52:00 +0100 West Wits Mining on its way to becoming a ‘full scale production company’ Mon, 21 May 2018 08:36:00 +0100 West Wits Mining Limited’s (ASX:WWI) chairman Michael Quinert tells Proactive Investors a mining rights application for the Witwatersrand Basin Project (WBP) has been accepted for processing by the South African mining regulator.

This marks the start of the company’s transformation into a junior gold miner.

A decision on approval will be made within 300 days, enabling WWI to scale-up mining operations at several sites concurrently across the WBP from the first half of 2019.

]]> 'Investors are starting to look seriously at Uranium again' - Fission Uranium CEO Mon, 21 May 2018 08:05:00 +0100 Fission Uranium Corp's (TSE:FCU) CEO and chairman Dev Randhawa updates Proactive Investors on their PLS project in Canada's Athabasca Basin region.

''What makes our project unique is that in the past we've seen these great big deposits in the Athabasca ... the problems were they were deep and there was water ... in Africa they've never had the water issue and they've been shallow ....well PLS is a freak in that it's the best of both worlds - it's shallow, super high-grade and there is no sandstone''.

''The focus for us is pre-feasibility this year and within 12-18 months have a bankable feasibility''.

]]> Kibo Mining confirms major Chinese company will construct power line at Mbeya Mon, 21 May 2018 06:55:00 +0100 Renegade Exploration revs up for major drilling program in premier gold country Mon, 21 May 2018 05:53:00 +0100 Antipa Minerals raising up to $7.5 million to accelerate gold, copper exploration programs Mon, 21 May 2018 04:23:00 +0100 Fe Limited stands to gain as Sandfire begins more drilling Mon, 21 May 2018 03:30:00 +0100 Silver City Minerals intersects broad copper sulphide mineralisation at Copper Blow Mon, 21 May 2018 02:52:00 +0100 Emmerson Resources shareholders overwhelming support joint venture restructure Sun, 20 May 2018 23:16:00 +0100 Emmerson Resources Ltd (ASX:ERM) managing director Rob Bills updates Proactive Investors, as the company announces the vast majority of its shareholders have overwhelmingly voted to formally approve the restructuring of the Tennant Creek Mineral Field joint venture with Evolution Mining (ASX:EVN).

The Australian gold resource company is currently midway through a 2,400 meter drilling program at Tennant Creek, seeking to add the Malbec and West Gibbet targets to its small mines portfolio, and further exploring the Mauritania greenfield discovery. Elsewhere at Tennant Creek, an Airborne EM survey of Jasper Hills and Edna Beryl areas has recently concluded, and that data being compiled now.

Emmerson Resources is also processing data from its NSW project, which is set to be released in the coming weeks.

]]> After 4 years of exploration, VR Resources begins drilling at 'exciting' Bonita property Fri, 18 May 2018 14:25:00 +0100 VR Resources (CVE:VRR) CEO Dr. Michael Gunning tells Proactive Investors the western-US focused junior explorer has begun drilling at the group's Bonita porphyry copper-gold project in Nevada.

Dr. Gunning says after four years of surveys, the drill program should take around two months to complete, and he says its 'exciting' to be on a property that continues to produce the kinds of vectors the company is targeting.

]]> Mkango Resources signs definitive agreement to develop Songwe Hill licence Fri, 18 May 2018 13:40:00 +0100 Will Dawes, chief executive of Mkango Resources Ltd (LON:MKA), tells Proactive Investors they've signed off their agreement with trading group Noble to develop the Songwe Hill licence in Malawi.

Talaxis, a subsidiary of Noble, will acquire up to 75% of Lancaster Exploration, which holds the licence, and up to 49% of Maginito, a downstream rare earths business.

]]> Giyani Metals targeting a resource at flagship Botswana project in third quarter Fri, 18 May 2018 13:33:00 +0100 Giyani Metals Corp's (CVE:WDG) Robin Birchall tells Proactive's Andrew Scott they're aiming to become the world's leading supplier of low-cost high-grade feedstock manganese for the battery industry.

''The projects we have acquired are in the bottom right-hand corner of Botswana which is where all the infrastructure is .. power, roads ... so we're very favourably located from the perspective of actually getting going'.

''Also the geological conditions are very favourable in that we have quite high-grade material ... we've done a series of soil sampling and we're now in the drilling phase''.

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

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

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

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

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

]]> Peninsula Mines "on the verge of really building value" Fri, 18 May 2018 02:26:00 +0100 Peninsula Mines Ltd. (ASX:PSM) managing director Jon Dugdale speaks to Proactive Investors about the South Korea-focused company's advancements in base metals, as well as developments in its integrated graphite strategy.

Dugdale says, "we've been focusing on drilling a series of high-grade zinc targets over at our Ubeong project area, and [at] a recently-granted tenement we were able to uncover previous very high-grade zinc results...  essentially the discovery holes have already been drilled into this new prospect, and it's greatly encouraging, because we can now follow-up that drilling, and potentially even drill up a very high-grade zinc resource."

Elsewhere, drilling is about to commence on the company’s first graphite resource target, whilst metallurgical test work continues in parallel, as part of the company’s broader strategy of becoming a downstream-integrated  producer of spherical graphite for local lithium-ion battery manufacturers.

]]> Meteoric Resources 'back on the ground' and keen to get drilling in Canada Thu, 17 May 2018 11:47:00 +0100 Andrew Tunks, managing director of Meteoric Resources NL (ASX:MEI), tells Proactive Investors when he took over as managing director in January this year he took a hard look at the company's portfolio and decided to refocus attention on the cobalt assets.

''All of the projects we have are historical producers''.

''This area we have our ground in is called the Cobalt District ... and the main town is called Cobalt - I can't imagine a better place to go and explore for Cobalt''.

]]> Tharisa makes move into Zimbabwe with Salene Chrome acquisition Thu, 17 May 2018 07:35:00 +0100 Phoevos Pouroulis, chief executive of Tharisa PLC (LON:THS), tells Proactive's Andrew Scott they've made a first move into Zimbabwe with the acquisition of 90% of Salene Chrome, located on the country’s Great Dyke platinum belt.

Salene has three special grants covering an area of approximately 95sq km on the eastern side of the Great Dyke, which entitles it to mine illuvial chrome at surface.

]]> Apollo Minerals advancing work on the world's highest grade tungsten mine Thu, 17 May 2018 07:09:00 +0100 Capital Network's Scott Finlay offers up his views on Apollo Minerals projects across France and Spain.

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

]]> Resolute Mining resolute in becoming a multi-mine global gold producer Thu, 17 May 2018 07:03:00 +0100 Resolute Mining Ltd (ASX:RSG) managing director and chief executive John Welborn updates Proactive Investors on the Africa-focused gold mining company’s operations.

One of two projects currently operating and producing gold, the Syama Gold Mine in Mali, is progressing towards the goal of becoming a world-class sub-level cave operation. "We're currently operating two processing plants there: an oxide plant which is fed by satellite open pit mines, and the large-scale historic sulphide circuit which [is] processing stockpiles while we build an underground mine. That underground mine is due to start sub-level caving in December of this year," says Welborn.

The company’s second gold producing asset, the Ravenswood Gold Mine in Queensland, Australia, has recently gained final approvals for an expansion that should take annual site production beyond 120,000 ounces, over a mine-life of 13 years or more.

At the historic Bibiani Gold Mine in Ghana, a second feasibility study is in its final stages, and should be released before the end of this quarter. Resolute Mining will then make a development decision.

Exploration around existing assets designed to enhance operations is ongoing. Meanwhile, the company has made a number of strategic investments in junior gold miners and select potential development plays. Welborn explains, "we're establishing a portfolio of gold companies that we think will add a pipeline of growth to Resolute shareholders... it's a really strong end to the financial year for Resolute.”

]]> Rox Resources establishing gold subsidiary and strategically focusing on nickel Wed, 16 May 2018 23:00:00 +0100 Rox Resources Ltd (ASX:RXL) managing director Ian Mulholland speaks to Proactive Investors about the exploration company’s strategic pivot to nickel, and plans to spin out its West Australian Mt Fisher Gold Project into a 100%-owned subsidiary, to be named Helios Gold Limited and floated on the Australian Stock Exchange.

Mulholland explains, "with the upsurge in the market at the moment, it was a great opportunity to bring new money and new energy into the gold project at Mt Fisher. It will have its own separate management team, it will be independently funded... that's a good outcome for both the project and Rox shareholders, who will benefit."

At the flagship Fisher East Nickel Project, a four-hole diamond drilling program underneath known deposits has recently wrapped, with assay results set to be announced in the coming weeks. "We've got three defined deposits at Fisher East. In total, 2 million tonnes at 2.5% nickel for about 50,000 tonnes of contained nickel. We've got a number of exploration targets along strike from those deposits,” says Mulholland.

Exploration in the area is ongoing, with 1,200 meters of air core drilling planned on the southern end. The Sabre prospect shows promise of converting into a resource.

A 5,000 meter air core drilling program will be deployed at the nearby Collurabbie Project next month.

]]> Cabral Gold's Cuiú Cuiú project 'has the potential to be a multi-million ounce system' Wed, 16 May 2018 14:10:00 +0100 Alan Carter, president and chief executive of Cabral Gold Inc (CVE:CBR), updates Proactive Investors on the latest at their Cuiú Cuiú project in Brazil.

The property lies in the Tapajos region, home to Brazil's largest gold rush, within the state of Para in the north.

An updated resource for a number of the project's deposits is currently being put together and should be released within coming weeks.

]]> Asiamet Resources announces maiden resource for BKZ deposit Wed, 16 May 2018 11:44:00 +0100 Steve Hughes, VP of exploration for Asiamet Resources Ltd (LON:ARS), discusses with Proactive's Andrew Scott the maiden mineral resource estimate for the BKZ polymetallic deposit in Kalimantan, Indonesia.

The initial Mineral Resource Estimate is subdivided into the BKZ upper polymetallic zone (BKZ-UPZ) and the BKZ lower copper zone (BKZ-LCZ).

Hughes says mineralisation remains open in multiple directions and that many targets with potential to expand the resource base remain to be tested.

]]> Fireweed Zinc reports positive metallurgical tests at Macmillan Pass in Yukon Wed, 16 May 2018 07:07:00 +0100 Brandon Macdonald, chief executive of Fireweed Zinc Ltd (CVE:FWZ), discusses with Proactive's Andrew Scott  positive metallurgical tests, which are part of the preliminary economic assessment (PEA) for their Macmillan Pass project in Yukon.

The findings show the site could potentially produce concentrates for traders and global smelter customers.


]]> Great Boulder proving scale of copper-nickel-cobalt assets at Mt Venn project Wed, 16 May 2018 05:51:00 +0100 Great Boulder Resources Ltd (ASX:GBR) managing director Stefan Murphy speaks to Proactive Investors about the latest developments at its flagship Mt Venn copper-nickel-cobalt project, and Eastern Mafic Complex early-stage exploration play.

The first results from a recent drilling program at Mount Venn were released to market this week. "All the drilling remains open along strike, and down and up dip, so we're very excited and we're continuing to show that it's a very very large discovery," says Murphy.

Promising metallurgical test results have also been announced. Murphy explains, "what we have is a unique project, so we're looking to produce a copper concentrate as well as a nickel and cobalt sulphide product. So one of the key questions has been our ability to leach the sulphide to produce those nickel and cobalt sulphate products, and really that's going into the battery market. What we've seen is we're getting great extraction rates that are over 90%. We're looking at atmospheric leaching as well as a low-pressure oxidation technique. Both techniques worked really well, so we're very encouraged by that."

At the earlier-stage Eastern Mafic Complex project, initial ground EM results are validating the findings of an airborne EM study flown earlier this year. A maiden drilling program there is forecast for late June or early July.

]]> Reward Minerals affirms globally significant SOP project with PFS Tue, 15 May 2018 23:00:00 +0100 Reward Minerals Ltd (ASX:RWD) chief executive Greg Cochran tells Proactive Investors the Potash-focussed exploration company has potentially found the largest and longest-life brine SOP Project outside of China, as detailed in a pre-feasibility study (PFS) recently released.

The PFS on the company’s flagship LD Project in Western Australia details a development period of just over three years plus a one-year production ramp up. Pre-tax net present value (NPV) calculated at a rate of 8% is $460 million, representing an internal rate of return (IRR) of 18%.

"The most important thing fundamentally about LD - the full name being Lake Disappointment, which I do like to talk about because I say, 'here's a project that is anything but disappointing' - it's got a wonderful future, given that here in one place, [in] one single deposit, we have what is arguably a hundred year plus operation... the PFS that we've just released extracts only 6% of the current existing resource," says Cochran.

]]> Canamex Gold launches 'first of its kind' security token offering Tue, 15 May 2018 14:43:00 +0100 David Vincent, chief executive of Canamex Gold Corp (CSE:CSQ, OTC:CNMXF) tells Proactive they've become the first publicly listed company in North America to launch a security token offering (STO).

Vincent says the initial offering for GOLDUSA Tokens will start at a 40% discount to the spot gold price.

]]> Kasbah Resources enjoying a boost from strengthening tin prices Tue, 15 May 2018 09:15:00 +0100 Russell Clark, chief executive of Kasbah Resources Ltd (ASX:KAS) updates Proactive's Andrew Scott on work towards their definitive feasibility study (DFS) on the Achmmach tin mine in Morocco which is due to be released in June.

''It's the third largest greenfield site on the planet, it's in a conflict-free zone ... it's drilled, we have a resource, reserve, it's permitted ... it's ready to go'', Clark says.

''If you want a project that's actually going to make tin ... Kasbah is probably the one for you'', he adds.

]]> Higher commodity prices sees Anglo Pacific get off to a solid start in 2018 Tue, 15 May 2018 08:54:00 +0100 Julian Treger, chief executive of Anglo Pacific Group plc (LON:APF), discusses with Proactive Investors their first quarter trading update.

Royalty income from the Kestrel coal mine and other projects totalled £7.9mln in the opening three months of the year, in line with the £8.2mln generated in the same period of 2017, which was a record year for the group.

]]> Arc Minerals takes control of Zamsort in 'game-changing' deal Tue, 15 May 2018 08:33:00 +0100 Arc Minerals Ltd (LON:ARCM) CEO Nick von Schirnding discusses with Proactive's Andrew Scott their move to acquire an additional 35% of Zamsort Ltd - a company that controls the Kalaba copper-cobalt project in Zambia.

Combined with a convertible loan note for 5% more, it takes Arc’s total holding to 54%, and it could go higher if further purchases take place.

]]> Admedus using capital raised to advance product development and share price growth Tue, 15 May 2018 03:06:00 +0100 Admedus Ltd (ASX:AHZ) chief executive Wayne Paterson updates Proactive Investors on product development, a major agreement, key executive appointments, and strategic financing decisions.

The global medical technologies company recently completed a $6 million capital raise. "On what is our strategy to move that share price; I realised that if we developed the portfolio, the share price would move much more quickly, and would certainly flush out any dilution impact of a small cap raise... I think [we're] probably going to bring forward the progress of the company by a couple of years," says Paterson.

Admedus has recently appointed key staff members with big pharma backgrounds. Paterson comments, "we've got very good assets, we've got a clear sense of strategy, we're growing the business dramatically, and we are now getting those folks; both in the field force [and in] key positions."

The drug development Immunotherapies Division has attracted a financing partner which will hold a majority stake moving forwards. Paterson explains that shareholders will "get to participate in the upside without putting any more money into that project, so it's a very good outcome."  

Meanwhile, development of the company’s flagship portfolio of 3D moulded surgical solutions continues. "If you imagine Admedus three years from now it will be the only company in the world, as far as I'm aware, that can make 3D surgical collagen solutions," says Paterson.

]]> Renegade Exploration bringing innovation to exploration at Yandal Greenstone Belt Mon, 14 May 2018 22:30:00 +0100 Renegade Exploration Ltd (ASX:RNX) non-executive director Mark Wallace introduces the rebranded, repositioned gold exploration and development company to Proactive Investors.

The company is focused on the Yandal Greenstone Belt, where it is taking a camp style approach to around 70 kilometres of strike. A consultant geologist has assessed structural aspects of the local geology and identified 9 high profile targets along 33 kilometres of strike. A 25,000 meter drill program will commence in 4-6 weeks, with results expected to flow in late June or early July.

"In the year 2018 there's a good chance and opportunity to, I think, match technology and innovation with going through some of these old greenstone belts,” says Wallace. To the west of Renegade’s project, Northern Star Resources (ASX:NST) has experienced large-scale success using modern exploration methods to establish the Jundee Gold Mine.

]]> Shefa Yamim wraps up bulk sampling at Kishon Mid-Reach Zone 1 Mon, 14 May 2018 17:08:00 +0100 Vered Toledo, chief operating officer at Shefa Yamim ATM (LON:SEFA) spoke to Proactive's Andrew Scott after announcing they've completed a bulk sampling campaign at the Kishon Mid-Reach Zone 1.

The latest samples, BS-1228 and BS-1208, marked the end of a fourteen-sample bulk programme at the area, totalling 249 tonnes and 123 tonnes of basal gravel respectively.

]]> Blue Sky Uranium releases mineral resource estimate for Ivana Uranium-Vanadium deposit Mon, 14 May 2018 15:37:00 +0100 Blue Sky Uranium (TSX.V: BSK) (FSE: MAL2.F) (OTC:BKUCF) Director David Terry tells Proactive Investors the uranium exploration company has released its mineral resource estimate for the Ivana Uranium-Vanadium deposit at its Amarillo Grande Uranium-Vanadium Project in Argentina.

Terry says the inferred mineral resource estimate is just under 20 million pounds of Uranium, average grade at a 100 ppm Uranium cut-off is 360 ppm of Uranium.

Terry says Blue Sky is driving toward having a preliminary economic assessment done on the project later in the year.

]]> Core Gold CEO says mining company will double production per month by end of year Mon, 14 May 2018 13:50:00 +0100 Core Gold Inc (TSXV: CGLD, OTCQX: CGLDF) CEO Keith Piggott tells Proactive Investors the Canadian based mining company is increasing production and expanding exploration at its projects in Ecuador.

Piggot says the company is currently expanding mill capacity at its Dynasty Goldfield project in Ecuador, which began mining operations in December of 2016. Piggot says right now the mine is producing 2,000 oz/month of gold and by the end of the year will be producing 4,000 oz/month of gold. Piggot says the company is mining 6 of the 100 veins at the project, and can double production by mining at a day and night shift.

]]> KEFI Minerals busy on three fronts in 2018 across Ethiopia and Saudi Arabia Fri, 11 May 2018 12:23:00 +0100 Harry Adams, executive chairman of KEFI Minerals (LON:KEFI), tells Proactive's Andrew Scott the formal mandate process for the listed infrastructure bonds has now started for the construction of their Tulu Kapi gold mine in Ethiopia.

The loan funding is now expected to be US$160mln, up from US$150mln, while the amount of equity rises to US$50mln from US$40mln.

]]> US disregard for allies over Iran decision will have China wringing its hands in glee Fri, 11 May 2018 10:52:00 +0100 Jervois Mining on fast track to production at flagship Nico Young copper-nickel project Fri, 11 May 2018 01:50:00 +0100 Jervois Mining (ASX:JRV) chief executive Bryce Crocker updates Proactive Investors on the company’s renewed strategic focus, following over 50 years listed on the ASX.

Crocker explains, "we're looking to transform the company into a raw materials supplier for lithium-ion batteries, specifically the cathode, and Nico Young is the core focus there... we're looking to really move the project, move the company, forwards. There's a lot of investment alternatives out there, but there's not a lot that have credible management teams. We've come from a large company background and we're looking to come in and be able to position where we can finance, construct, commission and operate mining projects and really give investors a viable investment alternative, with a team that understands the commodity."

The flagship Nico Young nickel-cobalt project, which is in PFS stage, comprises the Ardnaree and Thuddungra resources. A resource upgrade is expected on Ardnaree in June or July, and around the same time drilling and metallurgical testing will recommence to upgrade Thuddungra. Meanwhile, testing is ongoing to establish a heap leaching process for the ultimate production of a mixed hydroxide product.

“It's a balance between getting to market quickly and not introducing a lot of technical and commercial risk, which some of our peers are doing in trying to produce a very downstream refined product. So, we're actually going to be quicker to market than, we think, any other nickel-cobalt project on the east coast of Australia... We anticipate production by the end of 2020," says Crocker.

]]> Silver City Minerals has "set the scene for what we're looking for" Thu, 10 May 2018 23:40:00 +0100 Silver City Minerals Ltd (ASX:SCI) managing director Chris Torrey tells Proactive Investors the latest about the base and precious metals explorer’s activities around the famed mining districts of Broken Hill and Cobar in NSW, Australia.

The Copper Blow copper-gold-cobalt project continues to generate strong news flows, with geophysical studies and a drill program underway. Silver City Minerals is looking to develop more copper and cobalt assets across its tenements.
"Not only does Copper Blow have cobalt in it, but in fact the district has all these mapped copper-cobalt occurrences... 30% of those lie within our ground. Now we don't know enough about them because no one's actually done a lot of assaying for copper and cobalt, so we've got a team that will be investigating those and sampling those over the next three months," says Torrey.

In the next six to eight months, the company is planning to commence drilling at the Razorback West lead-zinc project, north of Broken Hill. In the meantime, a field team will deploy to the earlier-stage Cobar exploration area.

Torrey comments, "it's really important, we think, to be close to these mining districts because of the likelihood of finding another [significant discovery] is very high."

]]> Cassini Resources has "solid development project" and "significant" exploration targets Thu, 10 May 2018 23:01:00 +0100 Cassini Resources Ltd (ASX:CZI) managing director Richard Bevan tells Proactive Investors that the base and precious metals explorer and developer now has, "a really solid development project with a great portfolio of exploration assets."

Bevan explains, "the way that this year has been structured is that the development activity will continue in the background with some very key milestones over the next six to nine months; but there's a lot of exploration work coming up."

The flagship West Musgrave Project under JV with Oz Minerals is "very much entrenched in the pre-feasibility stage. The site and field works are underway, we've got in excess of 30 people on-site out there,  four drill rigs, currently we're doing a lot of work around collecting metallurgy samples and the resource drill out. But very soon the drilling program will also start to focus on our exploration targets in that project,” says Bevan.

A drill program is being designed for the Yarawindah Brook Nickel-Copper-Cobalt Project on the back of electromagnetic (EM) survey work. Similarly, a June drill program for the West Arunta Zinc Project will be finalised once results from an airborne EM survey there are released next week. Cassini is looking at deploying drill rigs at the Mount Squires Gold Project in the later half of this year.

]]> PPX Mining CEO says Igor Project has the potential to be a district-scale project Thu, 10 May 2018 20:54:00 +0100

PPX Mining Corp (CVE:PPX) CEO Brian Maher tells Proactive Investors about the exploration company's Igor Project.

The Vancouver-based company's flagship gold and silver project sits on 1,300 hectares of land in Northern Peru's gold and copper belt. Shares closed at US$0.95 on Wednesday.


]]> Maverix Metals CEO says the company expects record revenue in 2018 Thu, 10 May 2018 18:04:00 +0100 Maverix Metals Inc (TSX-V:MMX) CEO Dan O'Flaherty tells Proactive Investors the mining royalty and streaming company has a 2018 production guidance of gold equivalent to be between 16,500 and 18,500 ounces.

O'Flaherty says revenue for 2018 is expected to be between C$26 mln to C$30 mln, which he says is up substantially from 2017, where revenues stood at C$19.5 million.

]]> Sphinx Resources teaming up with Osisko metals to search for zinc in Quebec Thu, 10 May 2018 14:44:00 +0100 Sphinx Resources (TSX-V: SFX) CEO Normand Champigny tells Proactive Investors the Canadian metal exploration company is entering into a joint venture with Osisko metals to explore for zinc in the Grenville area in Quebec.

Champigny says the company is looking for Broken Hill-type zinc deposits in the region.

]]> Lumina Gold plans to have PEA out on Cangrejos Gold-Copper project by end of June Thu, 10 May 2018 14:13:00 +0100 Lumina Gold Corp (TSXV: LUM) CEO Marshall Koval tells Proactive Investors the precious and base metals exploration and development company plans to have a Preliminary Economic Assessment (PEA) out by the end of June on their flagship project, with results going out at the end of the first quarter.

The company's flagship project is the Cangrejos Gold-Copper project in the El Oro Province, in southwest Ecuador. The company has an inferred resource of 8.8mln oz of gold, and 1 billion oz of copper.

]]> PolarX prepares for immediate drilling at Zackly after raising $2.5 mln Thu, 10 May 2018 13:31:00 +0100 PolarX Limited (ASX:PXX) CEO Frazer Tabeart tells Proactive Investors the company has received commitments to raise about AUD $2.5 million from existing major shareholders and new investors via the issue of shares at AUD $0.10 each.

The funds will be used for exploration and development activities at the Alaska Range Project in Alaska, US, including resource extension drilling at the Zackly deposit.

]]> Anglo Pacific CEO says Kestrel royalty brings increased confidence in growth from organic sources Wed, 09 May 2018 20:10:00 +0100 Anglo Pacific Holdings PLC (LON:APF) CEO Julian Treger tells Proactive Investors a huge increase in the contribution from its Kestrel coal royalty in Australia helped the company to record revenues.

Treger says Kestrel has been ramping up mining, and will continue into the year, saying the market's expectations of coal prices has increased, leaving Treger with increased confidence in growth from organic sources in 2018.

]]> Perseus Mining moving from one mine one country operator to multi mine and jurisdictional business Wed, 09 May 2018 19:50:00 +0100 Perseus Mining Limited (ASX:PRU) (TSX:PRU) CEO Jeff Quartermaine tells Proactive Investors over the next four years the mining company hopes to increase production to around 500,000 ounces of gold per year with three operating mines in West Africa by 2020.

Quartermaine says they expect fairly reliable cash flows from that point forward.

]]> FPX Nickel CEO says nickel prices will continue to rise after years of being in oversupply Wed, 09 May 2018 18:04:00 +0100

FPX Nickel Corp (TSXV:FPX) CEO Martin Turenne tells Proactive Investors what he finds so appealing about the nickel market and how the exploration company's latest projects fit in the space.

The Baptiste deposit, its flagship nickel property located in the Decar Nickel District in central British Columbia, is one of the world's largest undeveloped nickel deposits with a potential mine life of 35 years, according to Turenne.

"If it was in production today, it would be one of the 10 largest nickel mines going," said Turenne.

While nickel has been in oversupply for the last several years, the market is now in deficit. Nickel prices have been on the rise and the company believes that it will continue to move in that direction. 


]]> Canamex Gold first publicly listed company to launch Security Token Offering Wed, 09 May 2018 17:39:00 +0100 Canamex Gold (CSE:CSQ) CEO David Vincent tells Proactive Investors the company will be launching an initial Security Token Offering, which will provide the funds to complete mining and development work at the company's Bruner Gold Project in Nevada.

Vincent says the initial STO for GOLDUSA Tokens will start at a 40% discount to the spot gold price

]]> NQ Minerals expects to reach full production levels by next year Wed, 09 May 2018 17:04:00 +0100

NQ Minerals Ltd (OTCQX: NQMLF)  CEO Roger Jackson tells Proactive Investors about the refurbishment of its Hellyer polymetallic plant in Tazmania.

The flagship property has "substantial" reserves of zinc, lead, silver, gold and copper as a result of the 1990s mining of the Hellyer Gold Mine. The company acquired the gold mine in June 2017, as well as its assets which include a mill facility and existing infrastructure.

The company expects the refurbishment to be completed by the fourth quarter with production to follow. At full production levels, NQ Minerals expects to produce about 1 million tons.

Jackson forecasted revenue at around US$705mln for the nine-year life of the project.


]]> TriStar Gold identifies two new gold targets on its property in Brazil Wed, 09 May 2018 15:05:00 +0100

TriStar Gold Inc (TSXV:TSG) CEO Nick Appleyard tells Proactive Investors that the minerals exploration company has identified two new gold targets in its flagship property Castelo de Sonhos in Brazil.

Despite the vastness of Brazil, which can be challenging in terms of infrastructure, Appleyard says the property has access to highways, high-tension power lines and a water supply without interfering with any national parks or other protected lands.

The Arizona–based company will continue drilling into the fall. After assessing its findings and updating its resources, TriStar Gold will conduct a preliminary economic assessment.

The results are expected to be published by early next year.


]]> Globex Mining sees more acquisitions on the horizon Wed, 09 May 2018 14:24:00 +0100

Globex Mining Enterprises Inc (TSE:GMX) CEO Jack Stoch tells Proactive Investors about the mineral property bank's current projects, like a property in Germany that has been mined on-and-off for the last 750 years. Going forward, the company sees more acquisitions in its future and also has plans to upgrade current projects.

The mining and exploration company's main focus is acquiring assets, receiving royalties from more than 40 early to advance staged properties, including a zinc mine in Tennessee. The Vancouver-based company has several geologists on the board, including its CEO.


]]> Orsu Metals kicks off 2018 exploration programme at Sergeevskoe project Wed, 09 May 2018 12:29:00 +0100 Sergey Kurzin, executive chairman of Orsu Metals Corporation (CVE:OSU), spoke to Proactive Investors as the company began its 2018 exploration programme at the Sergeevskoe gold project in Russia.

The drilling campaign is to test new targets and build towards an estimation of a maiden resource.

]]> Capital Drilling expanding in West Africa and targeting longer-term contracts Wed, 09 May 2018 12:12:00 +0100 Jamie Boyton, executive chairman of Capital Drilling Ltd (LON:CAPD), tells Proactive's Andrew Scott they're continuing to expand their  presence in the West Africa region as an additional 12 rigs arrived in the first quarter of 2018.

The 12 new rigs joined 13 already located in Mali and Mauritania, with further rigs scheduled to arrive in the second quarter.

Financially, the group reported an increase in average monthly revenue per operating rig (ARPOR) in the quarter to US$205,000, up 4.6% from the same period last year.

]]> VSA Capital Market Movers - NuLegacy (TSX-V:NUG) (OTCMKTS:NULGF) Wed, 09 May 2018 09:02:00 +0100 NuLegacy ((TSX-V:NUG) (OTCMKTS:NULGF)#

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

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

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

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

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

We reiterate our Speculative Buy recommendation.

]]> "Smelters will be lining up to try and buy the product" says Galena Mining's CEO Wed, 09 May 2018 07:18:00 +0100 Galena Mining Ltd (ASX:G1A) chief executive Ed Turner updates Proactive Investors on the exploration and development company’s progress since it “hit the ground running” after floating on the ASX last September.

Metallurgical testing results have just been announced from the flagship Abra Project, a world-class base metals deposit with a globally significant resource of lead-silver which transitions into gold-copper rich mineralisation at depth. A pre-feasibility study (PFS) is underway and scheduled to complete in September, at which point a bankable feasibility study (BFS) will commence.

Turner explains, “what was very positive out of today's results is we're getting at least 72% lead in the concentrate plus 150-200 grams per tonne silver, so that exceeded our expectations. The average sort of concentrate on a similar type deposit might be 60% for example, and plus 70% recovery is very good. So this is highly salable product, and a lot of smelters will be lining up to try and buy the product from us."

Meanwhile, regional exploration is ongoing, with drilling active at the Woodlands copper targets within the Jillawarra Project.

]]> Thunderstruck Resources says Fiji location was chosen for its 'spectacular' assets Wed, 09 May 2018 06:52:00 +0100

Thunderstruck Resources Ltd (TSXV:AWE) CEO Bryce Bradley tells Proactive Investors about the exploration company's flagship property on Viti Levu, the main island of Fiji.

"I didn’t choose Fiji. Fiji chose me," said Bradley, who had looked at several possible locations but was drawn to the potential of the copper, zinc and gold assets on the island. The Vancouver-based mining company is currently in talks to form joint venture partnerships.


]]> Musgrave Minerals drilling to grow resource base with a view to production Wed, 09 May 2018 04:17:00 +0100 Musgrave Minerals Ltd (ASX:MGV) managing director Rob Waugh explains the gold-focused company’s two-pronged approach of exploring to grow its resource base, whilst working to get into production in the near term.

Waugh says, "we're out exploring, we've defined a new resource at Break of Day which is a high-grade gold resource at around seven grams, and we're looking forward to getting into production sometime in the near future."

A fully funded drilling program is underway at the Cue Project in Western Australia.

"We're out doing a 12,000 meter drilling program testing these ten targets, hoping to grow that resource base, and that will help build a picture for us with a stronger resource base to give us more development options going forward," explains Waugh.

]]> Azumah Resources shares soar following "major step forward" Wed, 09 May 2018 01:09:00 +0100 Azumah Resources Ltd (ASX:AZM) managing director Steve Stone talks Proactive Investors through fresh RC drilling results from the gold prospector's Wa Project in Ghana under JV with Ibaera.

"These results are telling us that whilst we've always delivered some very good quality shallow mineralisation, we now think we know where that's coming from. We basically think that we've discovered the 'motherload' or the feeder zone, and this looks to be quite high grade, and it's going to have important implications for the design of the pits... It really is a major step forward for the understanding and the development of the project, and we hope to replicate what we've learnt here to a number of other targets," says Stone.

There are currently six drill rigs active at Wa, with comprehensive drilling planned for the rest of the year to increase resources, and consistent news flows expected.

Stone summarises, "it's a very exciting time to be a shareholder of Azumah as we unlock the value that we believe has been compressed into what was a small market capitalisation."

]]> Bryah Resources looks at getting into manganese production at Bryah Basin Tue, 08 May 2018 23:00:00 +0100 Bryah Resources Ltd (ASX:BYH) managing director Neil Marston speaks to Proactive Investors about recent developments at the high-grade copper-gold and manganese explorer’s flagship Bryah Basin Project and secondary Gabanintha Project in Western Australia.

“The Bryah Basin is also world-renowned for historical manganese production, so we've branched our exploration strategy out to address the manganese opportunity and we've been progressing that pretty well in the last few months… we announced a deal we've been working on for about a month or so now to acquire the historical Horseshoe South Manganese Mine... that, combined with the extra 150 odd square kilometres of ground adjoining that, pretty much gives us the whole of the prospective horizon for manganese deposits in the area for us to evaluate,” says Marston.

Meanwhile, another drilling program targeting copper and gold at Gabanintha is slated for the second half of the year.

]]> Torq Resources acquires the West Mercur gold project, its second acquisition in Utah Tue, 08 May 2018 20:48:00 +0100

Torq Resources Inc (CVE:TORQ) CEO Michael Kosowan tells Proactive Investors about the exploration company's second acquisition in Utah.

The Vancouver-based company announced on Tuesday that it acquired the West Mercur gold project, which sits on 43,000 hectares in western Utah near Bingham Canyon, one of the world's most prolific copper and gold mines.


]]> Canshale has big plans for its recent $20mln investment Tue, 08 May 2018 20:07:00 +0100

Canshale Corporation CEO Christopher Hopkins tells Proactive Investors about the shale oil company's latest projects.

The privately-owned company recently raised US$20mln and says its next step is to install a demonstration facility. Its Golden Plain Project in Saskatchewan was designed to produce ultra-low sulphur diesel fuel.


]]> Auryn Resources to begin drilling on its Sombrero Project by the fourth quarter Tue, 08 May 2018 19:19:00 +0100

Auryn Resources Inc (NYSE:AUG, TSX:AUGCEO Ivan Bebek tells Proactive Investors about the expansion of its Sombrero Project in southeastern Peru.

The Vancouver-based gold exploration company will begin drilling by the fourth quarter.


]]> Vast Resources 'readying itself for the next phase of growth' Tue, 08 May 2018 16:36:00 +0100 Andrew Prelea, chief executive of Vast Resources PLC (LON:VAST), discusses with Proactive's Andrew Scott the group's quarterly update.

The period was ''another record quarter” at the Pickstone-Peerless gold mine in Zimbabwe, where overall gold production and sales increased by 4% and 14% respectively.

Meanwhile activity at the Manaila mine, in Romania, was focussed on pre-stripping and plant maintenance, with the aim of ensuring sustainable supply to satisfy a recently agreed offtake deal.

]]> Kintavar Exploration to begin drilling in Nasigon region in July Tue, 08 May 2018 15:59:00 +0100

Kintavar Exploration Inc (TSXV:KTR) CEO Kiril Mugerman tells Proactive Investors the company has completed an induced polarization (IP) geophysical survey on the Nasigon grid, part of the Mitchi property, which demonstrated a strong connection between the data gathered and copper showings.

The Montreal-based copper mining company will begin drilling in the Nasigon region in July.


]]> Metals Creek Resources releases Ogden Gold Project's first four drill hole results Tue, 08 May 2018 14:44:00 +0100 Metals Creek Resources (TSXV:MEKCEO Sandy Stares tells Proactive Investors that the exploration company has released the results from the first four of nine drill holes on the Ogden Gold Project in Timmons, Ontario.

The company's flagship property is in Ontario but it has projects in Newfoundland and the Yukon as well.

]]> Riversgold accelerates drilling in West Australia ahead of Alaskan field season Tue, 08 May 2018 08:38:00 +0100 Riversgold Ltd (ASX: RGL) managing director Allan Kelly speaks to Proactive Investors about the recently-listed gold exploration and development company’s international plans for 2018.

Focus is currently on the Kurnalpi Project in Western Australia, with RC drilling underway at the recently-acquired Cutler target, and follow-up drilling planned for other areas.

In July and August, the company’s attention will turn to the South-west Alaska project for the duration of the short field season there.

In the second half of the year, Riversgold will continue to progress operations in Western Australia, and additionally turn its attention to the Churchill Dam Iron-Oxide Copper-Gold Project in South Australia.

In the meantime, the company has applied for four promising concessions in Cambodia.

]]> Emmerson Resources completes airborne survey and commences drill program Mon, 07 May 2018 22:00:00 +0100 Emmerson Resources Ltd (ASX:ERM) managing director Rob Bills updates Proactive Investors on activities across the company’s Tennant Creek Project in the Northern Territory.

The high-grade cobalt-copper-gold Jasper Hills Project is "really taking shape,” whilst a third gold bar has been produced from Edna Beryl, the first in what should be a series of small high-grade gold mines.

The company has concluded an airborne electromagnetic survey for high-grade copper, cobalt and gold deposits in previously unexplored areas of Tennant Creek. On the same day, a 2,400 meter RC drilling program commenced, looking for extensions to high-grade gold discoveries made under a former JV with Evolution Mining (ASX:EVN).

]]> Inland Homes PLC is outstanding growth prospect says chief executive Fri, 04 May 2018 14:47:00 +0100 Stephen Wicks, Inland Homes Plc's (LON:INL) chief executive, explains how the builder intends to double the number of houses it builds by targeting partnerships with housing associations.

Unlike London, it has not been affected by the slowdown and is seeing good demand for its £325,000 price bracket properties.

"We have a nice niche market" says Wicks and the growth opportunity is outstanding.

]]> 'It's time for CanAlaska to shine and shareholders to make money' - President Dasler Fri, 04 May 2018 14:16:00 +0100 Peter Dasler, president of CanAlaska Uranium Ltd (CVE:CVV) caught up with Andrew Scott while in London to present at the Proactive Mining Capital event .

As part of a wide-ranging discussion, Dasler discusses recent results from Cameco drilling at the West McArthur project in the Athabasca basin as well as the decision to acquire a third nickel-cobalt project in the Thompson Nickel Belt.

]]> Erris Resources awarded licence for new gold target in Sweden Fri, 04 May 2018 13:38:00 +0100 Merlin Marr-Johnson, chief executive of Erris Resources plc (LON:ERIS), tells Proactive Investors they've been awarded a licence for a new gold target in Sweden.

Enåsen no.5 comprises 59.4 sq km in central Sweden that surrounds the Enasen gold mine, which produced between 1984 and 1991.

]]> This week’s Mining Capital event showcased a sector that’s beginning to enjoy rude health Fri, 04 May 2018 13:18:00 +0100 Sparkly news for Tango Mining as Bluedust 7 completes due diligence on Oena diamond mine Thu, 03 May 2018 18:48:00 +0100 Tango Mining Limited (CVE:TGV) CEO Samer Khalaf tells Proactive Investors mining contractor Bluedust 7 has completed due diligence on Tango's Oena diamond mine in South Africa.

Khalaf says Bluedust 7 will own and operate all equipment on the site and will pay Tango royalties of 25% on all income from diamond sales from run-of-mine-gravel and stones sold from tailings processing.

Next steps from Bluedust include sending more equipment to the mine, which Khalaf says would improve processing capabilities.

Total production of the Oena mine since Tango acquired it a few years ago has been south of 1800 karats, averaging over $1,100 per karat.

]]> Plastics Capital's films business growing 'stunningly well' Thu, 03 May 2018 11:06:00 +0100 Faisal Rahmatallah, executive chairman at Plastics Capital (LON:PLA), tells Proactive Investors the group saw "exceptionally strong" sales over the year just ended.

Films (food wrapping and the like) did particularly well with a record year for Flexipol, while there was a recovery at Palagan and good performance from Synpac.

]]> Hannan Metals has de-risked project and is "ready to make further discoveries" Thu, 03 May 2018 08:56:00 +0100 Hannan Metals Ltd (CVE:HAN) chief executive Michael Hudson updates Proactive Investors on progress at its zinc-lead-silver-copper project in County Clare, Ireland.

Results from a major seismic study have recently been compiled, and will be released in addition to news on soil sampling and drill targeting, ahead of a planned summer drill program to further extend the resource.

Hudson explains, "seismic really is the game-changer for this project, which really the last year of work had led up to... basically we've stripped back the geology of that south western part of Ireland and we're very well placed."

]]> Mawson Resources has “expanding system with great high grades” of gold in Finland Thu, 03 May 2018 07:49:00 +0100 Mawson Resources Limited (TSX:MAW) chief executive Michael Hudson speaks to Proactive Investors about the company’s current surveying to extend the system at the Rajapalot gold project in northern Finland, beyond the bounds of a completed 15,000 meter winter drill program.

The majority of assay results from that drill program are yet to flow, but early results support hopes of a high-grade system over a large area. Financing is in place for another two drill programs.

”We've really only explored 5% of the known mineralized target to date, so we're in that fine balance between looking to try and put a Maiden Resource on this project either this year or next year... but also not just focusing too early in the areas where we have found gold, so it's a 50-50 split between those two philosophies," says Hudson.

]]> "It's going to be a very busy 12 months" at Cangai and Broken Hill for Castillo Copper Thu, 03 May 2018 05:09:00 +0100 Castillo Copper Ltd (ASX:CCZ) chairman Peter Meagher speaks to Proactive Investors about progress at the company’s flagship historical Cangai Copper Mine, and Broken Hill cobalt project.

Meagher explains, “we have Cangai as our lead project and we are planning, as a result of work going on over the next year, that we will be able to reopen the mine, we will be able to reprocess the stockpiles. And in addition, we will be continuing the work that's going on presently at Broken Hill. So hopefully over the next 12 months the company will have a lead project in copper, and will have developed the Broken Hill project as well to a point where we will be drilling that and hopefully will be developing cobalt resources."

]]> Medgold kicks off drilling at Tlamino gold project in Serbia Wed, 02 May 2018 15:07:00 +0100 Dan James, president at Medgold Resources Corp. (CVE:MED), spoke to Proactive's Andrew Scott as a new programme of drilling got underway at the Tlamino gold project in Serbia.

An initial programme of 1,250 metres in 11 drill holes will test high-grade gold mineralisation identified from channel sampling in 2017.

]]> Vast Resources CEO on Botswana Diamonds MoU and wider company strategy Wed, 02 May 2018 14:28:00 +0100 Vast Resources PLC (LON:VAST) CEO Andrew Prelea caught up with Proactive Investors to discuss the thinking behind their decision to team up with Botswana Diamonds PLC (LON:BOD) to investigate diamond opportunities together in Zimbabwe.

Under the terms of the MoU, the two companies have agreed to  exchange information derived from past exploration on areas prospective for diamonds in Zimbabwe and to form a special purpose jointly owned company to develop and exploit diamond resources in Zimbabwe.

Prelea also updates on the latest at their Pickstone-Peerless mine in Zimbabwe and the Manaila Polymetallic Mine in Romania.

]]> Thor Mining's Mick Billing 'encouraged' with surface sampling at Bonya Wed, 02 May 2018 11:39:00 +0100 Mick Billing, chairman of Thor Mining PLC (LON:THR), tells Proactive's Andrew Scott they've had positive findings from an initial surface sampling exploration programme at the Bonya tungsten and copper project in Australia’s Northern Territory.

Billing describes assay results from rock chip samples taken from four of the 13 outcropping tungsten deposits that comprise the project as “encouraging”.

The project is located 30km east of Thor's Molyhil mine project

]]> Savannah Resources reports significant increase in resource at Mina do Barroso Wed, 02 May 2018 11:34:00 +0100 David Archer, chief executive at Savannah Resources Plc (LON:SAV), caught up with Proactive's Andrew Scott in studio to talk through another significant increase in the mineral resource estimate at their Mina do Barroso lithium project in northern Portugal.

Savannah's reported a 52% increase in the JORC 2012-Compliant Indicated and Inferred Mineral Resource Estimate for the project - which now stands at 14 million tonnes (Mt) at 1.1% of lithium dioxide (Li₂O).

]]> IronRidge Resources secures new gold and lithium exploration licences in Côte d'Ivoire Wed, 02 May 2018 11:24:00 +0100 Vincent Mascolo, chief executive of IronRidge Resources Limited (LON:IRR), discusses with Proactive's Andrew Scott their four new exploration licences in Côte d'Ivoire.

The four licences - Marahui, Vavoua South, Vavoua North and Adzope - are allocated within the group’s gold and lithium portfolios.

They form parts of the Kineta and Vavoua gold projects, and the Adzope lithium area.

]]> Berkeley Energia to move to London's main market and list in Spain Wed, 02 May 2018 11:16:00 +0100 Paul Atherley, managing director of Berkeley Energia Limited (LON:BKY), tells Proactive Investors they're to list the business in Spain as well as move from AIM to the main board in London.

Atherley says the will allow them to build support among European institutional investors while advancing activities on-site towards production.

]]> Xanadu Mines moves to expand copper resources as global supply shortfall threatens Wed, 02 May 2018 08:20:00 +0100 Managing director of Xanadu Mines Ltd (ASX:XAM) Dr Andrew Stewart speaks to Proactive Investors about the company’s flagship Kharmagtai copper and gold project in Mongolia, as results from the first hole of an aggressive new drilling program reinforce the potential for a significant expansion of the JORC resource.

Xanadu is looking for a resource upgrade before the end of 2018, to be followed immediately by scoping and feasibility studies. The Zaraa discovery comes at a time that global consumers are searching for projects to fulfil future demand for copper, which is set to increase with the proliferation of electric vehicles.

“What really excites us and what drives our strategy is the fact that there has been very little exploration over the last decade. When you look globally you can count the amount of discoveries in this space on one hand... I think the real excitement and what we need to be looking for in the industry is where those new discoveries are going to come from to replace the existing projects,” says Stewart.

]]> Renaissance Gold turning drill bits for 2 projects in potentially 'huge breakthrough' Tue, 01 May 2018 12:14:00 +0100 Renaissance Gold Inc (TSX-V:REN) CEO Bob Felder tells Proactive Investors that results should be coming soon from drilling at the company's Silicon Project in the Bare Mountain mining district of Nevada with partner Anglo Gold Ashanti. Felder says the second project Renaissance Gold is making headway on is the South Roberts project, where drilling has just begun, operated by partner S2 Resources.

Renaissance Gold has five more projects in the pipeline, with Felder saying any one of the projects is potentially a 'huge breakthrough' for the exploration company.

]]> Chaarat Gold outlines terms of its offer for the Kumtor mine in Kyrgyzstan Tue, 01 May 2018 08:33:00 +0100 Chaarat Gold Holdings Ltd's (AIM: CGH) Dusty Nicol and Artem Volynets discuss with Proactive Investors the recent proposal they've made in relation to the potential acquisition of the Kumtor mine from Centerra Gold Inc (TSE:CG)

The mine currently produces around half a million ounces of gold a year, and is one of Kyrgyzstan’s biggest.

Since recording Chaarat's confirmed the proposal values Kumtor at US$800 million.

Separately, the company has also started drilling on its Tulkubash gold project, also in Kyrgyzstan, and a visual inspection of the core produced so far has indicated that mineralisation has already been intersected.

]]> Corazon Mining advances core projects against backdrop of strong commodity prices Tue, 01 May 2018 07:51:00 +0100 Corazon Mining Ltd (ASX:CZN) managing director Brett Smith speaks to Proactive Investors about the company's two core projects, namely the Lynn Lake Nickel-Cobalt Project in Canada and the Mount Gilmore Cobalt-Copper-Gold Project in Australia.

"What we're doing at Lynn Lake is fairly low key and low cost at the moment but we think it's going to add enormous value to that project. If you look at the predictions and forecasts in the nickel metal price going forward it is quite attractive, so we want to position Lynn Lake such that it can take advantage of any improvement," says Smith. 

He continues, "most of our exploration activity and our exploration capital is going into Mount Gilmore, especially the Cobalt Ridge deposit... we're driving as hard as we can towards resource definition."

]]> W Resources begins new resource drilling at São Martinho in Portugal Tue, 01 May 2018 07:47:00 +0100 Michael Masterman, chairman of W Resources PLC (LON:WRES), talks Proactive Investors through their new drill programme at the São Martinho gold project in Portugal.

The company will now carry out five weeks of reverse circulation drilling, comprising fifteen holes or 2,000 metres.

]]> Hummingbird Resources achieves commercial production at Yanfolila Mon, 30 Apr 2018 12:25:00 +0100 Bert Monro, head of business development at Hummingbird Resources PLC (LON:HUM), caught up with Proactive's Andrew Scott to discuss their first quarter update.

Hummingbird poured 18,785 ounces of gold in the first three months of the year with 9,912 ounces of that figure in March.

From April 1-24 it has poured a further 8,648 ounces.

The company's reiterated its 2018 guidance of 105,000-115,000 ounces gold.

]]> Apollo Minerals to expand team ahead of upcoming drill programmes Mon, 30 Apr 2018 12:13:00 +0100 Apollo Minerals' (ASX:AON) Hugo Schumann discusses with Proactive Investors what's been described as an 'exceptionally busy' quarter.

As well as a capital raise of A$6mln, Apollo also signed a deal that will see it take full ownership of the Couflens project where initial exploration success has unearthed high gold grades and tungsten.

]]> Strategic Minerals' John Peters updates on Cobre and Leigh Creek Mon, 30 Apr 2018 10:05:00 +0100 John Peters, managing director at Strategic Minerals Plc (LON:SML), talks Proactive's Andrew Scott through their work programme to restart operations at the recently acquired Leigh Creek copper mine in South Australia.

Peters also adds further detail around the announcement that they've suspended the minimum monthly tonnage requirement of 4,000 tons of magnetite to one of their customers at the Cobre tailings operation in New Mexico.

]]> Sunrise Resources signs MOU for first sales of perlite from CS project Fri, 27 Apr 2018 11:13:00 +0100 Patrick Cheetham, executive chairman of Sunrise Resources Plc (LON:SRES), tells Proactive's Andrew Scott they've signed a non-binding memorandum of understanding (MOU) that will pave the way for the first sales of perlite from its CS Pozzolan-Perlite project in Nevada, USA.

Cheetham says under the terms of the MOU the parties would negotiate a purchase and sales agreement to sell/buy a minimum quantity of raw perlite over a specified period.

]]> Rising Treasury yields send a cold wind through markets, but miners remain a hot spot Fri, 27 Apr 2018 10:48:00 +0100 Discovery of a new aquifer 'amazing news' for 3Q project, says Neo Lithium CEO Thu, 26 Apr 2018 20:49:00 +0100 Neo Lithium Corp (TSXV:NLC) CEO Waldo Perez discusses with Proactive's Steve Darling the discovery of a new aquifer at depth at their wholly-owned 3Q project in Argentina.

Perez says they've been drilling all summer and they've been seeing 'outstanding' results … not only expanding the resource at surface but they've also discovered another aquifer, another layer of rock, which contains brine.

]]> AVZ Minerals bullish on expectations for DRC lithium project Thu, 26 Apr 2018 04:24:00 +0100 AVZ Minerals Ltd. (ASX:AVZ) managing director Nigel Ferguson speaks to Proactive Investors about the company’s progress with and high expectations for the lithium-rich LCT (lithium, caesium, tantalum) Manono Project in the Democratic Republic of Congo (DRC).

Fully-funded diamond core drilling programs, metallurgical testing and mining studies are underway, whilst discussions into strategic investment and offtake agreements continue.

Speaking about the Manono Project, Ferguson says, “We've got about 12 kilometres of strike length, we're operating within the Southern sector at the moment... it's 250m - 300m wide, it's about two kilometres long, we've got extensions to that as well…. we hope we will have the first resource calculation out in the late end of June and from there we'll obviously be doing infill drilling to get minable reserves [alongside] engineering studies, with the view to fast tracking things as quickly as we can to get into production."

]]> Thor Explorations LTD CEO Lawson thrilled by initial drill results Wed, 25 Apr 2018 13:23:00 +0100 Thor Exploration LTD (TSXV:THX} CEO Segun Lawson is delighted by the initial drill results from the Segilola project in Nigeria.

Lawson, who founded the Vancouver company, says the positive results further proves they are on the right track to making Segilola, the first large scale commercial gold mine in Nigeria.

Lawson further adds they are expecting more drill results in May.

]]> VSA Capital Market Movers - Independent Oil & Gas (LON:IOG) Tue, 17 Apr 2018 08:01:00 +0100 Company Name (Ticker)#


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

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

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

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

We reiterate our Buy recommendation and 72p price target. 

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


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

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

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

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

We reiterate our Buy recommendation and 26p target price.  

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

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

We reiterate our Buy recommendation and 48.5p target price.

Independent Oil & Gas (LON:IOG)

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

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

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

We reiterate our Buy recommendation and 72p target price.

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

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

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

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

VSA Comment

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

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

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

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

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

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

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


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

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

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

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

We reiterate our Buy recommendation and 48.5p target price

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

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

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

VSA Comment


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

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

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

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

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


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

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

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

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

The above is fully funded from existing cash resources.

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

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

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

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

We reiterate our Buy recommendation and 26p target price. 

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

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

VSA Comment


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

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

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

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

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

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



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

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

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

We reiterate our Buy recommendation and 17p target price.

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

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

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

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

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

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

We reiterate our Buy recommendation and 48.8p target price.

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

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

We reiterate our Speculative Buy recommendation.

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

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

We reiterate our Buy recommendation and 48.8p target price.

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

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

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

We reiterate our Speculative Buy recommendation.

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

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

We reiterate our Buy recommendation.

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

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

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

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

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

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

We reiterate our Buy recommendation and 35.5p target price.

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

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

We reiterate our Buy recommendation.

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

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

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

We reiterate our Buy recommendation.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We reiterate our Speculative Buy recommendation.

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

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

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

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

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

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

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

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

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

We reiterate our Buy recommendation and 35.5p target price.

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

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

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

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

We reiterate our Buy recommendation.


Sula Iron & Gold (LON:SULA)#

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

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

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


Goldplat (LON:GDP)#

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

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

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

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

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

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


Polymetal (LON:POLY)#

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

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


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

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

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

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

We retain our BUY rating and 17p price target.

Millennial Lithium (CVE:ML)#

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

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

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

We retain our SPEC BUY recommendation.

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

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

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

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

We reiterate our Buy recommendation

Multi-Million Ounce Potential

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

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

Support From the Region’s Experts

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


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

We initiate coverage with a Speculative Buy recommendation.

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

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

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

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

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

Gulfsands Petroleum (LON:GPX)

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

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

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

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

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


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

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

Our estimates our Under Review following this announcement.

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

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

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

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

We reiterate our Speculative Buy recommendation.

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

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

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

We reiterate our Buy recommendation.


redT Announces 1MWh Order in Australia

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

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

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

VSA Comment

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

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

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

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

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

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

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

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

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

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

We reiterate our Buy recommendation.

Obtala Limited#: Q3 Update

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

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

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

VSA Comment

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

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

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

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

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

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

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

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

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

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

VSA Comment

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

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

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

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

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

Zambeef: Crop Damage Not as Bad as Feared

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

NWF Group: In-Line AGM Statement

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

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

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

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

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

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

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

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

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

VSA Comment

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

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

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

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

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

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


Novo Lítio (ASX:NLI)#

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

VSA Comment

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

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

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

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

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

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


Independent Oil & Gas (LON:IOG)#

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

We reiterate our Buy recommendation.

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

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

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

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

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

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

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

VSA Comment

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

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

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

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

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

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

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

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

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

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

VSA Comment

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

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

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

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

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

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

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

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

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

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

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

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

Independent Oil & Gas (LON:IOG)

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

We reiterate our Buy recommendation.

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

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

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

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

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

We reiterate our Buy recommendation and 22p target price.

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

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

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

We reiterate our Buy recommendation and 12.2p target price.


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

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

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

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

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

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

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

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

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

We reiterate our Buy recommendation and 22p target price.

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

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

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

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

We reiterate our Buy recommendation and target price of 25p

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

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

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

We reiterate our SPEC BUY recommendation.

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

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

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

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

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

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

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

VSA Comment

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

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

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

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

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

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

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

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

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

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

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

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

Is he bluffing?

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

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

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

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

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

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

Recent rhetoric

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

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

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

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

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


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

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

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

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

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

We reiterate our Speculative Buy recommendation.


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

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

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

We reiterate our Buy recommendation and 25p target price.


]]> VSA Capital Market Movers - Goldplat plc, Vedanta Resources Wed, 23 Aug 2017 07:21:00 +0100 Goldplat (LON:GDP)

Goldplat (LON:GDP) will today hold its shareholder conference call. Shareholders may submit questions in advance of the call via email using or alternatively via the following link:

The link will enable shareholders to access the call and submit questions via a chat function.

Telephone dial in details are as follows: 0808 109 0701 or for international callers +44 (0) 20 3003 2701 with participant pin 9478969#.

The call will begin at 12pm UK time.

Vedanta (LON:VED)

Vedanta (LON:VED) has announced robust results for FY Q1 2018 benefitting from stronger zinc and aluminium prices in particular. Group revenue of US$3.1bn was up 32% YoY while primarily as a results of the stronger top line group EBITDA was up 48% YoY to US$778mn. VED continues to deleverage with a US$1.4bn decline in net debt since March 2017. 

As well as a 35% YoY increase in zinc prices and a 26% increase in lead prices VED increased zinc production in India by 90% YoY to 194kt while lead production was up 42% YoY to 35kt. This was partially offset by a decline in output at the international assets of 25% YoY to 32kt. Total aluminium production of 352kt was up 44% YoY while prices averaged 21% higher YoY. Copper production of 90kt was down 10% YoY in India due to planned maintenance while in Zambia copper production was up 5% YoY to 47kt.

Oil and gas production was weaker, however, down 5% YoY to 17mmboe on a 100% basis. This was due to largely to the natural decline of the fields. Iron ore production was largely unchanged at 3.2mnt, however, realised prices were lower YoY due to a widening in the spread for low quality iron ore.

]]> VSA Capital Market Movers - Antofagasta Plc, BHP Billiton plc Tue, 22 Aug 2017 08:42:00 +0100 Antofagasta (LON:ANTO)

Antofagasta (LON:ANTO) has released strong results on the back of stronger copper prices, output and robust cost control. Revenue of US$2bn was up 42% YoY as copper sold increased 14% to 310kt YoY while copper prices averaged 25% higher. Unit costs of US$1.56/lb were down 2.5% YoY. EBITDA was consequently up strongly by 88% YoY to US$1.1bn. Net income of US$455m was up 187% YoY while the interim dividend of USc10.3/sh. was more than double that of 2016.

Delayed shipments from H2 2016 at Centinela offset the impact of port disruption at Los Pelambres. Production is expected to increase further in H2 with full year guidance of 685-720kt. This is primarily expected to come from the ramp up at Centinela.


BHP Billiton (LON:BLT)

BHP Billiton (LON:BLT) has released strong results for full year FY 2017. Revenue of US$38.3bn was up 24% YoY while underlying EBITDA of US$20.3bn was up 64% YoY. This was primarily driven by stronger earnings in from bulk materials and copper although petroleum earnings were also stronger. Iron ore EBITDA increased by 62% to US$9bn while coal EBITDA was up five-fold to US$3.8bn. The full year dividend of USc83/sh. was up from USc30/sh. in 2016 with an H2 contribution in 2017 of USc43/sh.

FY 2018 production guidance is for increases across the board bar the petroleum division which has been declared non-core and available for sale. Iron ore production is expected to increase on an attributable basis from 231mnt to between 239-243mnt with cash costs down from US$14.6/t to below US$14/t. Copper production is expected to increase from 1.3mnt to between 1.66-1.79mnt as production is normalised at Escondida, however, cash costs are expected to increase to US$1/lb (up 8% YoY). Coal costs are guided as flat YoY although met coal production is expected to increase from 40mnt to 44-46mnt whilst thermal coal production is expected to increase by 7% YoY to 29mnt. Petroleum output is expected to fall from 208mmboe to between 180-190mmboe.

]]> VSA Capital Market Movers - Sula Iron and Gold PLC Mon, 21 Aug 2017 07:50:00 +0100 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (SULA LN) has announced an equity subscription to raise £900k at a price of 0.146p/sh. The investment by Riverfort Global Capital will be structured so that an initial £400k is received by SULA with subsequent investment made in monthly instalments. Accordingly, 616m new shares will be issued taking the share capital to 3.1bn implying dilution of 24.6% with Riverfort holding 19.77% of the enlarged share capital. A formula has been determined to account for future fluctuations in the share price which will mean that share dilution from this investment will not increase. SULA has also announced that the Board will take a 50% reduction in salaries until December 2017. This along with the new investment should provide sufficient capital to advance exploration into 2018.

Operationally, SULA has announced that the remaining samples collected in the Phase 3 drilling have left Sierra Leone for analysis. The results are expected to be received in mid to late September for the remaining eight holes. Depending on the results it may be possible to complete a maiden JORC resource at Sanama Hill.

We reiterate our Speculative Buy recommendation although adjust our target price to 1.2p/sh. to reflect the dilution.

]]> Civil War, Gold and Donald Trump Fri, 18 Aug 2017 11:24:00 +0100 VSA Capital Market Movers - Goldplat plc, Kaz Minerals Thu, 17 Aug 2017 07:36:00 +0100 Goldplat (LON:GDP)

Goldplat (GDP LN) has announced that it will hold a shareholder conference call whereby shareholders and interested investors are invited to email questions to the Board which will be address in a Q&A session.

The call will be held at 12pm UK time on Wednesday 23 August 2017.

Questions should be sent in advance of the call to:

To participate in the call please dial 0808 109 0701 or if outside the UK using +44 (0)20 3003 2701

KAZ Minerals (LON:KAZ)

KAZ Mineral (KAZ LN) has reported strong results for H1 2017 with strong increases in revenue and earnings on the back of increased output and higher prices. Copper production of 118kt of copper was up 109% YoY as the primary sulphide concentrator at Bozshakol reached 93% of capacity. While at Aktogay where the ramp up was faster the plant is running at full capacity.

EBITDA of US$429m was up 273% YoY driven primarily by higher prices and output although unit costs were also down 18% YoY to USc64/lb after by-product credits. As a result of the strong H1 performance, Akotgay unit cost guidance has been reduced to USc110-130/lb and at Bozshakol to USc115-135/lb on a before by product credit basis. Net income of US$195m was up 157%.

Copper fundamentals have not been as supportive in recent months with Chinese imports disappointing. That said, copper prices have been more moving higher in dollar terms owing largely to recent US political events. There is further downside potential in our view for the dollar with the Fed likely to face difficulty winding down its balance sheet and continuing its implied rate of rate hikes. This is likely to benefit commodity prices across the board. KAZ has traditionally been a highly operationally leveraged producer, however, the current transition to low cost mining is likely to change this and reduce future share price volatility on the back of more stable earnings and stronger free cash flow.

]]> VSA Capital Market Movers - Obtala Ltd, Hochschild Mining Wed, 16 Aug 2017 07:35:00 +0100 Obtala Limited (LON:OBT): 2016 - A Year of Strategic Change

On Friday 30 June 2017, African forestry and agriculture business Obtala Limited (LON:OBT)# released its results for the year ended 31 December 2016. Since then, OBT has made a number of additional announcements, which we cover in this note. 2016 was a year of strategic review and change for OBT, with a new chairman arriving in the middle of the year with a mandate to effect change and transform the company into a leading agriculture and forestry company in Africa. Shareholders have shown considerable support since then, providing the group with cUS$27m in various funding rounds.

WoodBois Acquisition Complete

OBT now has to execute its plan successfully, with the first stage being the successfully integration of its US$14.6m acquisition WoodBois International into the group, the completion of which was announced on 3 July. As a reminder, WoodBois operates a significant wood trading business headquartered in Copenhagen with a trading hub in Côte d'Ivoire, a forestry concession in Gabon with a sawmill, as well as a veneer factory under construction, which is scheduled for completion in H2. This acquisition should provide the business with an opportunity to significantly expand its sub-Saharan African forestry business.

Agriculture Profit Share Increases

On 4 July, OBT made a complex announcement concerning ownership of the land, processing assets and economic benefit on its two farms in Tanzania – Magole and Wami. The end result is that OBT’s economic ownership of Magole has increased to 71.2% from 60% and has increased to 67.5% from 52.5% for Wami. In addition, OBT’s effective economic stake of the processing assets at Magole is now 75%, up from 60% previously.

Recommendation and Target Price

We have made a number of changes to our forecasts, including converting them to US dollar from British pound, reflecting the company’s decision to switch its presentational currency to the former. We maintain our BUY recommendation and DCF-derived target price of 36p.


Hochschild Mining (LON:HOC)

Hochschild Mining (LON:HOC) has reported weak results despite rising production. H1 2017 production of 17.9mnoz on an attributable equivalent ounces basis was up 5% YoY with a 9% YoY increase in silver production to 8.9mnoz and 3% increase in gold production to 121koz.  Revenue of US$341m was flat YoY.

Adjusted EBITDA was, however, down 20% YoY to US$136m while profit before exceptionals was down 49% YoY to US$18.2m. The earnings weakness was largely due to unplanned stoppages in Q1 2017 and unit costs were up 35% YoY to US$6.6/oz at Inmaculada where the stoppage took place. Full year cost guidance at Inmaculada is for AISC of US$9.5-10/oz (US$8.8/oz in H1 2017) indicating further cost inflation. The revised mine plan at Arcata following a number of reduced stopes and narrower veins also impacted costs negatively and AISC were up 35% YoY to US$17.6/oz with full year guidance now increased to US$17/oz.

The interim results demonstrate cost inflation across the group’s key assets which has negatively impacted performance during the recent period. HOC does remain on track for 37mnoz while AISC guidance of US$12-12.7/oz remains unchanged. The cost inflation at Inmaculada, Arcata and San Jose has been partially offset by stronger performance at Pallancata where guidance was reduced enabling HOC to maintain its full year target.

]]> VSA Capital Market Movers - Egdon Resources Plc Mon, 14 Aug 2017 07:55:00 +0100 Egdon Resources (LON:EDR)

Egdon Resources (EDR) has this morning provided the market with an extensive review of its operations after making significant progress across its entire portfolio since the start of the year and ahead of a potentially key period for the company to year end.

Unconventional Resources

We view the UK shale gas industry as one of the key value drivers to EDR’s share price and it has built up an impressive portfolio across its core area in the north of England of c201,000 net acres.

H2 2017 will see a number of catalysts for both the industry and EDR, of particular interest to investors will be the news that IGas (IGAS) intends to drill the potentially play opening Gainsborough Trough exploration well Springs Road-1 (PEDL140, Egdon 14.5% carried) later in 2017. This is a key well for EDR, which will see it drilling a thick Lower Carboniferous tight sand and shale sequence. This will be extensively logged and cored to provide a full suite of modern data with which to evaluate the play properly. Other shale catalysts are summarised below;

• Cuadrilla plans to drill and hydraulically fracture two horizontal wells at Preston New Road

• Hydraulic fracturing and testing operations by Third Energy at Kirby Misperton-8 (“KM-8”), this onshore well will have potential read through to the neighbouring Cloughton gas discovery (EDR 17.5%) and Resolution Prospect (EDR 100%).

• 3D seismic acquisition by INEOS in the East Midlands including over parts of EDR’s PEDL001 and PEDL130 licences

• We also note IGAS has applied for planning permission to test gas shows in the Pentre Chert in the 2014 Ellesmere Port-1 exploration well, located very close to PEDL 191 (EDR 100%), and is a newly identified potential gas play

Conventional Resources Exploration and Appraisal

EDR’s next drilling activity is likely to be the Holmwood-1 conventional exploration well in Weald Basin licence PEDL143 (EDR 18.4%) where the operator, Europa Oil and Gas (EOG), has advised that they expect to commence operations later in 2017 once approvals are in place. This well will test the Portland sandstone, Kimmeridge Clay and Corallian targets, in an analogous trap configuration to the Horse Hill-1 oil discovery and tested 323bopd from the Portland Sandstone and 1,365bopd in total from two intervals in the Kimmeridge Limestone. Further catalysts on the conventional portfolio are summarised below;

• Licence extensions for both Biscathorpe (7.4mmbbls net-prospective resource) and North Kelsey (5.2mmbbls net-prospective resources) to 30 June 2018, drilling operations at Biscathorpe-2 are expected to commence in early 2018 whilst EDR hopes to drill North Kelsey in mid-2018

• EDR continues to make progress on the Resolution Prospect (160BCF, 100% WI) and plans to acquire a new 3D seismic survey during 2018 to confirm the potential resource volumes and enable optimisation of the planning for an offshore appraisal well. EDR continues to seek an industry partner and/or investors to share the forward costs

• EDR completed its withdrawal from its French licences and is now solely focussed on the UK

Producing Assets

Full year guidance remains in-line with previous expectations of 100-110boepd this is despite the timing of the maintenance shut-downs changing from 2016 to 2017 meaning only 9 months of production from Ceres contributed to production in the 2016/17 financial year. The Keddington and Avington oil fields also continue to produce in-line with expectations.

On 10 July 2017 EDR announced that it will acquire a 100% WI and take on operatorship of the Fiskerton Airfield Oil Field from Cirque Energy for a cash consideration of US$750k (c£590k). This will be paid for out of existing cash resources and will have an effective date of 1 January 2017. EDR estimate that 100,000bbls of high quality 32.5°API oil remain recoverable from the existing wells.

Finally EDR has experienced difficulty with the Wressle Oil Field and was refused planning for the second time by North Lincolnshire County Council 2 July 2017. This decision was taken despite the project receiving a positive recommendation from planning officers on both occasions. EDR will now submit an appeal against the second refusal and seek to co-join it with the appeal it has already made against the original refusal which is due to be heard in November 2017, the outcome of which we now expect early next year. We have updated our forecasts accordingly and now do not expect production from Wressle until H2 2018. In the case of a successful outcome this would add 125bopd to EDR’s production.

VSA Comment

We remain impressed by the progress EDR continues to make. Although we believe EDR’s investment case is turning increasingly towards the UK shale gas industry, we note the company continues to make good progress on its conventional fields by adding immediate production at Fiskerton Airport, for a relatively modest fee, and it has now provided updated timing on Biscathorpe. Holmwood has the potential to provide significant upside with little downside risk to EDR as it is mostly carried by UKOG on this well where the CPR estimates mean un-risked prospective resources of 5.6mmbbls, which would make it one of the largest onshore oil fields in the UK, if successful. We maintain our BUY recommendation and 35.5p TP, which we recently updated.

]]> VSA Capital Market Movers - Glencore International Thu, 10 Aug 2017 07:45:00 +0100 Glencore (LON:GLEN)

Glencore (LON:GLEN) has announced strong interim earnings reversing a loss of US$369m in H1 2016 to a net profit of US$2.45bn. Full year net profit for 2016 was US$1.38bn. Revenue of US$100bn was up 44% YoY whilst EBITDA of US$6.7bn was 68% YoY. The stronger earnings were primarily driven by the recovery in commodity prices, particularly base metals. Although commodity prices in dollar terms benefitted from the recent depreciation the positive earnings impact was partially offset by the consequent strength of EM currencies where GLEN’s operations are based.

Capital expenditure of US$1.7bn was up 7% YoY in H1 while net debt fell a further 11% YoY to US$13.9bn.

With the strong rally in cobalt prices, 115% YoY, GLEN has highlighted its positioning for the growing focus on electric vehicles and battery storage. Although production of 12.7kt in H1 2017 makes GLEN one of the largest global producers of the metal, production was flat YoY. Ramping up production in this small market is challenging and quality assets are scarce. The impact of soaring prices which impact the cost of batteries is likely to show that the fight for preferred battery chemistries remains wide open.

]]> VSA Capital Market Movers - Carr's Group Plc Mon, 07 Aug 2017 07:16:00 +0100 Carr’s Acquires US Nuclear Engineering Firm

Carr’s Group (LON:CARR) the agricultural, food and engineering group, has announced the acquisition of ESI Holding Company, the holding company of US-based nuclear engineering firm NuVision Engineering.

• NuVision supplies engineering services and products to the commercial nuclear and power plant industries, government waste remediation facilities and waste clean-up sector

• Initial cash consideration of US$11.5m (£8.8m), with a total cash consideration of up to US$20m (£15.4m) payable, dependent on future financial performance

• Initial consideration financed through £6.0m of new and £2.8m of existing undrawn debt facilities with the balance paid through NuVision's future retained earnings

• NuVision had revenues of US$8.8m and an adjusted EBITDA of US$2.3m for the year to 31 March 2017. For comparison purposes, CARR’s group EBITDA in FY 2016 was cUS$22m with its engineering division contributing cUS$4.7m of this.

VSA Comment

CARR has long harboured ambitions to expand into the US nuclear engineering services market, a sector dominated by domestic businesses. This acquisition provides the company with the platform to do that. Current clients of NuVision include the US Department of Energy, major nuclear suppliers and public utilities in the country.

We see synergies with CARR’s German engineering business Wälischmiller, which will be able to supply its remote handling products into upcoming projects and an area that is currently trading ahead of expectations.

There are also opportunities for collaboration with CARR’s UK engineering business Bendalls, which has worked in the past with NuVision and is due to do so again on a recently signed major nuclear contract.

We would anticipate an initial year of consolidation, before significant collaborative benefits begin to be realised from year two onwards.  

This is a highly complementary acquisition of a high-tech engineering firm, providing the group with a platform to develop into the extremely important US nuclear sector, bringing specialised IP and innovative technology into the group to complement CARR’s existing remote handling and engineering operations.

At 8.7x EBITDA/2.3x Sales (assuming total consideration conditions are reached), the acquisition is more expensive than a traditional CARR’s acquisition. However, we believe the strategic rationale for the acquisition more than makes up for this. We would also note that more than 40% of the total consideration is based on future financial performance, which means the existing management team has considerable motivation to continue to deliver over the next few years.

]]> The conflict between liberty and democracy will keep the gold price high for decades Fri, 04 Aug 2017 13:27:00 +0100 VSA Capital Market Movers - Millennial Lithium, Vedanta Resources Fri, 04 Aug 2017 07:36:00 +0100 Millennial Lithium (CVE:ML)

The latest drill hole completed at Pastos Grandes salar has proved the best to date. Reported late yesterday, hole PGMW17-05/5c, drilled in the southern part of the surface salar has been completed to a depth of 601m with a continuous brine bearing interval from 382m to 593m grading 545 mg/L Li. A 33m interval uphole starting at 27.5m also carried brine at 523mg/L Li.

The host sediments in both intervals is poorly consolidated sands and constitutes the deepest confirmation and thickest interval of brine yet encountered in the basin. The magnesium to lithium ratio is improved at 6.0. Potassium values range from 4680 mg/L to 6186 mg/L and average 5847 mg/L. The hole was stopped due to reaching depth capacity of the drill rig.

We view these results as very exciting. The grade of lithium is increasing with depth in the basin, brine bearing thickness is increasing without degradation of apparent porosity and permeability, and the chemistry of the brine is improving for the economics of lithium extraction. With three rigs now working the basin for ML, we expect more good drilling news to come as the company works toward a first compliant resource declaration later this quarter or in October. The size of that lithium resource gets bigger with every drill hole completed.

We retain our SPEC BUY recommendation.


Vedanta (LON:VED)

Vedanta (LON:VED) is offering US$1.0b in bonds with maturity in 2024 with a 6.125% coupon in order to re-purchase two different existing bond series that have a shorter duration and a higher coupon rate. The total value of the existing bonds eligible for redemption is US$1.67b with the majority of it being at a coupon rate over 8%.

As separately announced today, after cancelation of those bonds already tendered under the offer, US$252,259,000 of the 2019 bonds and US$670,157,000 of the 2021 bonds will remain outstanding.

]]> VSA Capital Market Movers - Centamin PLC Randgold Resources, Sula Iron and Gold PLC Thu, 03 Aug 2017 07:35:00 +0100 Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (SULA LN) has announced positive initial results from the Phase 2 drilling programme. The first three results, all from Sanama Hill, extend the continuity of gold mineralisation down dip and along strike. Highlights include 1.6m at 6.9g/t Au from 257.4m including 1m at 10.2g/t Au as well as 1.2m at 2.5g/t Au from surface and 3m at 2.8g/t Au from 294m which includes 5.7g/t Au over 1.1m. The results are broadly in line with previous findings at Sanama Hill and the mineralisation remains open at depth.

The drill programme consisted of 14 holes and the remaining samples are due to be shipped from Sierra Leone within the next week while a significant soil sampling programme has also been carried out with analysis also due to be carried out shortly. The additional drilling along with the soil sampling programme will further enhance SULA’s understanding of the structural geology which will benefit future drill targeting.

In addition Equity Drilling have elected to receive 50% of their payment in equity; consequently SULA will issue 67.3mn shares at 0.225p/sh.

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

Centamin (LON:CEY)

Centamin (CEY LN) has announced results for Q2 2017, largely in line with expectations as the short transition period continues. Whilst gold production in Q2 was up 14% QoQ, it was down 11% YoY to 124.6koz. Revenue of US$151m was up 7.5% QoQ and down 16% YoY largely due to production differences.

EBITDA of US$66m was up 24% QoQ although down 31% YoY. Changes in the grade profile have been the key to recent results and the higher production in Q2 2017 was due to a recovery in grades as well as an increase in throughput. The recovery in grades also benefitted costs in part, however, cash costs of US$609/oz (down 17% QoQ and up 32% YoY) remain above the full year target of US$580/oz. AISC of US$829/oz, up 24% YoY and down 7% QoQ, were also above the full year target of US$780/oz.

CEY announced an interim dividend of 2.5 US cents per share, up 25% YoY. H2 is guided to be stronger with production weighted towards this period driven by access to higher grade areas. This should benefit cash costs also.

Randgold (LON:RRS)

Randgold (LON:RRS) has announced strong results for Q2 2017 with revenue up and costs down. Production of 341koz was up 6% QoQ and 21% YoY while revenue of US$422m was up 3% QoQ and 19% YoY.

Total cash costs of US$572/oz were down 8% QoQ and 21% YoY due primarily to an increase in throughput at Loulo-Gounkoto and Tongon. This offset some weakness at Kibali where total cash costs were up 2% QoQ and 4% YoY to US$859/oz owing to stoppages and a higher strip ratio. Overall profit from mining was up 14% QoQ and 53% YoY. Net income of US$84m was up 20% QoQ and 71% YoY. RRS is now guiding towards the top end of its production range for 2017 at less than US$600/oz.

]]> VSA Capital Market Movers - Rio Tinto Wed, 02 Aug 2017 08:07:00 +0100 Rio Tinto (LON:RIO)

Rio Tinto has released strong results largely driven by higher commodity prices. Group revenue of US$19.9bn was up 22% YoY with iron ore revenue up 38% to US$8.8bn and aluminium revenue up 18% YoY to US$5.4bn. Indeed, it has been RIO’s higher exposure to the strong performance of aluminium prices which has driven the relative outperformance of the shares versus peers in the past few months.

Group EBITDA of US$9bn up 68% YoY was primarily driven by the stronger top line with a 63% YoY increase in iron ore EBITDA to US$5.6bn and a 55% YoY increase in aluminium EBITDA to US$1.7bn. Copper and diamonds posted a modest increase in EBITDA of 16% YoY to US$771bn as stronger copper pricing was offset by weak operational performance. The energy and minerals division also performed strongly, again largely due to the stronger top line which was up 30% to US$3.9bn directly translating to a strong EBITDA increase of 170% YoY to US$1.4bn.

Capex was up by a third YoY to US$1.8bn as spending on capital projects ramped up, we also not a 10% increase in exploration expenditure to US$85mn. Net debt was down US$2bn to US$7.6bn owing to the strong earnings performance which drove free cash flow generation. The shares were also supported in the recent period by the US$252mn share repurchase programme. Furthermore, RIO announced a dividend of US$1.1/sh. up from US$0.45/sh.

]]> VSA Morning Agri Comment - NWF Group plc Tue, 01 Aug 2017 07:27:00 +0100 NWF Group: FY 2017 Results

UK-focused specialist agricultural and distribution business NWF Group (LON:NWF) has released results for the year ended 31 May 2017 (FY 2017).

• Group results: Revenues £555.8m, +19.3% YoY (FY 2016: £465.9m) and an adjusted operating profit £9.0m, +3.4% YoY (FY 2016: £8.7m)

• FY 2017 FactSet consensus was for revenues of £539.4m and an adjusted operating profit of £9.0m

• Feeds Division: Operating profit £1.5m, -28.6% YoY (FY 2016: £2.1m)

• Fuels Division: Operating profit £4.5m, +15.4% YoY (FY 2016: £3.9m)

• Food Division: Operating profit £3.0m, +11.1% YoY (FY 2016: £2.7m)

• Net debt at 31 May 2017: £13.0m (31 May 2016: £9.9m)

• Final dividend of 5.0p delivers a full year dividend of 6.0p, +5.3% YoY (FY 2016: 5.7p).

VSA Comment

NWF delivered a strong recovery in the second half, which saw its operating profit improve from being more than 20% behind YoY in H1 (mainly due to a very poor Q1) to posting an increase of 3.4% YoY over the FY, supporting the Board’s assertions at the half year stage that its full-year result would indeed still be in-line with expectations.

This was particularly impressive in its feeds division, which swung from a small H1 loss to an operating profit for the FY, and its fuels division, which posted a 20% YoY operating profit decrease in H1 but a 15% YoY increase over the FY. The turnaround in fuels was due to a revised sales & marketing strategy and new outlets exceeding expectations (FY volumes were 513 million litres, +8.2% YoY).

In feeds, the group achieved the improvement despite having significant margin pressure, as commodity costs increased in H2 (feed wheat ended the FY at c£140/t from c£100/t at the start of the FY in June 2016) with increased prices difficult to pass through to farmers in the key winter period. NWF’s total feed volumes for FY 2017 were 589,000t, +1.6% YoY, in-line with the wider UK market, +1.5% YoY, which also showed a significant recovery in NWF’s second half (-0.9% in H1, +3.4% in H2).

Despite the group having £9.4m of capital expenditure during the year, including £5.2m spent on a significant mill development programme in the Cheshire and Northern mills, net debt was kept at 1x EBITDA.

We believe the outlook for the group looks quite positive with solid performance expected to continue in its food division (having showed considerable resilience in FY 2017 following the previously announced lower contracted volumes with a major customer), an improving dairy market likely to spur compound feed volumes, and the operational improvements in its fuels division made in H2 likely to be sustained.

As usual, the main risk for the coming year is the potential for a warm winter and/or a rapid decrease in input commodity prices after NWF’s key commodity buying period for the winter in August and September. Of course, the first is impossible to predict but the second feels unlikely this year given the continued weakness of the GBP.

]]> VSA Capital Market Movers - Fresnillo Tue, 01 Aug 2017 07:26:00 +0100 Fresnillo (LON:FRES)

Fresnillo (LON:FRES) has announced strong results on the back of production increases. Silver production of 28mnoz was up 11.2% YoY in H1 and revenue of US$1,070m was up 11.5% YoY. Gold production of 446koz was broadly unchanged. The incremental production came primarily from the San Julian phase 1 ramp up.

EBITDA of US$523m was up 10% YoY due largely to the stronger top line as production costs were up at all assets bar Cienega. The key driver which resulted in a 14% increase in production costs to US$343m was the additional cost of the ramp up at San Julian. We also note a 23% increase in exploration costs to US$64m. Net income of US$310m was up 87% YoY owing to the stronger earnings and reduced non-cash charges. FRES increased the interim dividend by 23% YoY to 10.6c/sh. FRES maintained guidance for 58-61mnoz silver in 2017.