Proactiveinvestors United Kingdom articles http://www.miningcapital.com Proactiveinvestors United Kingdom articles RSS feed en Wed, 28 Jun 2017 11:23:38 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) Ironveld eyeing up production and profitabilty by Q1 next year - CEO Peter Cox http://www.miningcapital.com/companies/stocktube/7705/ironveld-eyeing-up-production-and-profitabilty-by-q1-next-year-ceo-peter-cox-7705.html Peter Cox, chief executive of Ironveld (LON:IRON) talks Proactive's Andrew Scott through the latest developments at their High Purity Iron, Vanadium and Titanium Project in the Northern
Limb of the Bushveld Complex in Limpopo Province, South Africa.

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

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Tue, 27 Jun 2017 16:07:00 +0100 http://www.miningcapital.com/companies/stocktube/7705/ironveld-eyeing-up-production-and-profitabilty-by-q1-next-year-ceo-peter-cox-7705.html
European Metals' Keith Coughlan talks through 'excellent' Cinovec maiden ore reserve http://www.miningcapital.com/companies/stocktube/7704/european-metals-keith-coughlan-talks-through-excellent-cinovec-maiden-ore-reserve-7704.html Keith Coughlan, managing director of European Metals Holdings Limited (LON:EMH, ASX:EMH) tells Proactive they've declared a maiden ore reserve for the Cinovec lithium-tin deposit in the Czech Republic as well as securing a A$2mln interim funding package that will “maintain momentum” behind the project.

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Tue, 27 Jun 2017 15:54:00 +0100 http://www.miningcapital.com/companies/stocktube/7704/european-metals-keith-coughlan-talks-through-excellent-cinovec-maiden-ore-reserve-7704.html
Savannah Resources gives green light to Mina do Barroso drilling after 'very very positive' test work http://www.miningcapital.com/companies/stocktube/7696/savannah-resources-gives-green-light-to-mina-do-barroso-drilling-after-very-very-positive-test-work-7696.html David Archer, chief executive of Savannah Resources Plc (LON:SAV) tells Proactive they're to press ahead with a drilling programme at their Mina do Barroso project in northern Portugal after metallurgical test work indicated the potential for high grade lithium.

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Mon, 26 Jun 2017 11:49:00 +0100 http://www.miningcapital.com/companies/stocktube/7696/savannah-resources-gives-green-light-to-mina-do-barroso-drilling-after-very-very-positive-test-work-7696.html
Strategic Minerals gets hands-on at Hanns Camp as exploration kicks off http://www.miningcapital.com/companies/stocktube/7691/strategic-minerals-gets-hands-on-at-hanns-camp-as-exploration-kicks-off-7691.html Strategic Minerals Plc (LON:SML) managing director John Peters and chairman Alan Broome discuss with Proactive's Andrew Scott their three stage exploration programme by subsidiary Central Australian Rare Earths (CARE) in Western Australia.

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

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

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

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Mon, 26 Jun 2017 08:44:00 +0100 http://www.miningcapital.com/companies/stocktube/7691/strategic-minerals-gets-hands-on-at-hanns-camp-as-exploration-kicks-off-7691.html
Anglo Pacific to give investors more regular income with quarterly dividend http://www.miningcapital.com/companies/stocktube/7690/anglo-pacific-to-give-investors-more-regular-income-with-quarterly-dividend-7690.html Julian Treger, chief executive of Anglo Pacific Group plc (LON:APF TSE:APY) tells Proactive they're moving to a quarterly dividend payment as well as choosing to pay dividends more rapidly than they have previously.

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Mon, 26 Jun 2017 08:35:00 +0100 http://www.miningcapital.com/companies/stocktube/7690/anglo-pacific-to-give-investors-more-regular-income-with-quarterly-dividend-7690.html
Capital Network's Sam Catalano on Thor Mining http://www.miningcapital.com/companies/stocktube/7687/capital-network-s-sam-catalano-on-thor-mining-7687.html Sam Catalano, Capital Network's mining analyst talks through Thor Mining PLC's (LON:THR) key assets as well as strategy and outlook.

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Fri, 23 Jun 2017 13:45:00 +0100 http://www.miningcapital.com/companies/stocktube/7687/capital-network-s-sam-catalano-on-thor-mining-7687.html
Petropavlovsk waves goodbye to mining legend Peter Hambro http://www.miningcapital.com/companies/stocktube/7683/petropavlovsk-waves-goodbye-to-mining-legend-peter-hambro-7683.html Mining Capital's Alastair Ford reports on Peter Hambro, chairman of Petropavlovsk PLC (LON:POG), being voted off the board of the company he founded 23 years ago.

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Thu, 22 Jun 2017 16:04:00 +0100 http://www.miningcapital.com/companies/stocktube/7683/petropavlovsk-waves-goodbye-to-mining-legend-peter-hambro-7683.html
Shanta Gold now set up 'for many years to come' after series of transactions http://www.miningcapital.com/companies/stocktube/7682/shanta-gold-now-set-up-for-many-years-to-come-after-series-of-transactions-7682.html Toby Bradbury, chief executive of Shanta Gold Ltd (LON:SHG) talks Proactive through their acquisition of Vancouver-based Helio Resource Corp, the raising of US$14mln from investors, and their debt restructuring deal.

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

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Thu, 22 Jun 2017 15:48:00 +0100 http://www.miningcapital.com/companies/stocktube/7682/shanta-gold-now-set-up-for-many-years-to-come-after-series-of-transactions-7682.html
Berkeley Energia finalising costs as 'exciting' Salamanca construction ramps up http://www.miningcapital.com/companies/stocktube/7680/berkeley-energia-finalising-costs-as-exciting-salamanca-construction-ramps-up-7680.html Paul Atherley, managing director of Berkeley Energia Limited (LON:BKY) updates Proactive on construction and progress at their Salamanca uranium project in Spain.

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

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Thu, 22 Jun 2017 12:04:00 +0100 http://www.miningcapital.com/companies/stocktube/7680/berkeley-energia-finalising-costs-as-exciting-salamanca-construction-ramps-up-7680.html
'It's nice to be active again' - Ortac CEO Vassilios Carellas http://www.miningcapital.com/companies/stocktube/7679/-it-s-nice-to-be-active-again-ortac-ceo-vassilios-carellas-7679.html Vassilios Carellas, chief executive of Ortac Resources Limited (LON:OTC), talks Proactive through their increasing focus on projects in Africa - particularly Misisi in the Democratic Republic of Congo that already boasts a resource of well over a million ounces.

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

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Thu, 22 Jun 2017 11:02:00 +0100 http://www.miningcapital.com/companies/stocktube/7679/-it-s-nice-to-be-active-again-ortac-ceo-vassilios-carellas-7679.html
Tullow Oil, Tower Resources, Xcite Energy http://www.miningcapital.com/columns/sp-angel/26395/tullow-oil-tower-resources-xcite-energy-26395.html Headlines

Tullow Oil (LON:TLW – 288p) – RBL Relief
Tower Resources (LON:TRP – 2.38p) – Best of Both
Xcite Energy (LON:XEL – 1.58p) – Self Inflicted, But a Salutatory Lesson

In Brief

Tullow Oil (LON:TLW – 288p) – RBL Relief: While there is an argument for saying that Tullow's success at securing the continuation of its RBL facility is to be expected, there has been concern that either the terms would be restrictive, or the headline amount would decline. We believe that the shares will rally on the back of today's news, not only because of the removal of uncertainty, but also the fact that in some way, it is a vindication of the Company's finances, offering and team.
Tower Resources (LON:TRP – 2.38p) – Best of Both: Today's news that the Company's board has been significantly restructured is a reflection of the times currently facing exploration companies and typical of the management team. We believe in putting shareholder value first, Management has demonstrated their commitment to the longer term success of the Company, ensuring that in as far as possible, the prospectivity offered by the Company's acreage is retained. Furthermore, there is possibility that in moving to part time roles the Directors' inevitable involvement with other companies could generate further opportunity for Tower and its shareholders. We believe that shareholders should thank management for the steps that they have taken for the benefit of the Company.
Xcite Energy (LON:XEL – 1.58p) – Self Inflicted, But a Salutatory Lesson: We wish it could have been different, but the seeds of this destruction were sown the day Management executed the agreements for the debt without having cash flows to cover the cost. Management must take full responsibility for this failure, and for not adopting an alternative strategy when it was clear that their strategy clearly wasn’t working. We can see no winners in this as the shareholders have lost their investment and creditors will not get value for the perfection of the security package, as the issues with the asset's development don’t magically disappear. There is at least some comfort for the sector, as the failures at Xcite are nothing to do with systemic risk, arising from things like drilling operations, subsurface uncertainty, or oil market volatility, but self-inflicted by a management team who exposed the Company's owners to excessive financial risk.

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06/28/17 http://www.miningcapital.com/columns/sp-angel/26395/tullow-oil-tower-resources-xcite-energy-26395.html
Today's Market View - Coal of Africa Birimian Limited FinnAust Mining Golden Star Resources http://www.miningcapital.com/columns/sp-angel/26397/today-s-market-view-coal-of-africa-birimian-limited-finnaust-mining-golden-star-resources-26397.html Coal of Africa (LON:CZA) – September quarter highlights search for a cash generating asset
Birimian Limited (ASX:BGS) – high-grade lithium resource reported at Goulamina within the Bougouni license in Mali
FinnAust Mining* (LON:FAM) BUY Target Price 15p – Huntsman raise price for titanium dioxide pigment effective Jan 2017
Golden Star Resources (CVE:GSR) – Mining Lease for Mampon deposit

FTSE 100 is off today with nearly all sectors in the red amid an increase in sovereign bond yields.
Sovereign bonds are being sold off on the back of reports of accelerating inflation in Eurozone countries, positive UK GDP numbers with the US expected to release its numbers later today (expectations for a stronger economic growth in Q3).
US 10y bond yields hit 1.87% this morning, the highest since May/16; UK 10y yields were up at 1.30% today, the highest since Brexit; German 10y yields came at 0.22%, the highest since May/16 as well.
The US$ held near a seven month high with gold little changed at $1,267/oz ahead of US Q3 GDP data.
Brent is flat this morning with OPEC members meeting in Vienna today to discuss the breakdown of the proposed production cuts. Non-OPEC producers will join discussions on Saturday.
Iron ore futures prices extended gains to five days now climbing 2.1% today amid gains in coking coal and steel prices.

Economic News
US – Core capital goods orders fell more than forecast in Sep pointing to slowdown in business investment towards the end of Q3 following a strong start to the quarter.
Weekly jobless claims are continuing to linger around the lowest level in several decades with a four-week average at 253k.
Claims average 250k in four weeks ending Oct 7 marking the lowest reading since late 1973.
First reading of the Q3 GDP is out later today with estimates for growth to have rebounded from a weak H1/16 driven by a recovery in business investment and continuing strength in consumer spending.

Germany – Region level data point to an increase in inflation rate through Oct with nationwide numbers out later today.
Estimates are for inflation to come in at 0.1%mom/0.7%yoy, up from 0.0%mom/0.5%yoy in Sep.
A revision in inflation expectations may finally allow the ECB to consider winding down its monetary easing programme.
Bund yields have been edging higher recently hovering around levels last seen in May.

UK – Economy expanded at a faster than expected rate in Q3 driven by a stronger growth in services (+3.0%yoy v 2.7%yoy).
Manufacturing growth slowed to 1.2%yoy, down from 1.6%yoy in Q2, while construction came out as a drag on growth coming in at -0.2%yoy v +0.4%yoy in Q2.
Q3 GDP (%qoq): 0.5 v 0.7 in Q2 and 0.3 forecast.
Q3 GDP (%yoy): 2.3 v 2.1 in Q2 and 2.1 forecast.
Positive GDP numbers pushed yields on 10 year gilts to the highest since referendum results on the back of expectations for the BoE to avoid further easing in the near term.
Brexit effect is expected to take time and forecast to slow  economic growth rate to 0.9% next year, half the rate estimated for this year, led by a decline in business investments and a slower private consumption.

France – Quarterly growth slightly underperformed expectations in Q3 with a slower pace of expansion led by weaker growth in private spending and business investments.
Q3 GDP (%qoq): 0.2 v -0.1 in Q1 and 0.3 forecast.
Q3 GDP (%yoy): 1.1 v 1.3 in Q1 and 1.2 forecast.
Positive consumer confidence readings in Oct signal a potential acceleration in household spending in the final quarter with the index hitting the mark reached in May this year which was the highest reading since Oct/07.
A separate report on inflation showed consumer prices returned to growth in Oct after a one month of negative change as the effect of lower oil prices fall away.
CPI (Harmonised, %mom): 0.1 v -0.2 in Sep and 0.2 forecast.
CPI (Harmonised, %yoy): 0.5 v 0.5 in Sep and 0.6 forecast.

Spain – GDP slowed 0.2pp to 3.2% in Q3 with growth continued to be driven by consumer and export sectors strength.
Q3 GDP (%qoq): 0.7 v 0.8 in Q1 and 0.7 forecast.
Q3 GDP (%yoy): 3.2 v 3.2 in Q1 and 3.1 forecast.
One of the fastest growing economies in the Eurozone posted an acceleration in inflation to 0.8%mom/0.5%yoy in Oct with the rise “mainly explained by the increase in the prices of electricity and fuels”.

Currencies
US$1.0905/eur vs 1.0911/eur yesterday.   Yen 105.31/$ vs 104.69/$.   SAr 13.846/$ vs 13.938/$.   $1.214/gbp vs $1.222/gbp.
0.758/aud vs 0.761/aud.   CNY 6.780/$ vs 6.780/$.

Commodity News
Precious metals:
Gold US$1,266/oz vs US$1,268/oz last week –
     Gold ETFs 65.5moz vs 65.4moz last week – significant fall in ETF holdings
Platinum US$967/oz vs US$962/oz last week
Palladium US$615/oz vs US$622/oz last week
Silver US$17.59/oz vs US$17.64/oz last week

Base metals:  
Copper US$ 4,807/t vs US$4,759/t last week –
Aluminium US$ 1,706/t vs US$1,678/t last week –
Nickel US$ 10,420/t vs US$10,195/t last week
Zinc US$ 2,373/t vs US$2,354/t last week – iron water pipes increasingly coated in zinc to extend life to >100 years.
The use of zinc to coat iron water pipes is growing due to its ability to extend life spans.  The zinc serves to corrode faster than the iron causing its to dissolve sooner and defer corrosion of the iron.  A polythene ecasement keeps bacterial away from the piping to minimize organic factors which cause corrosion.
Longer lifespans is good news for road users with less roadworks needed bad news for contractors in the longer term who enjoy digging holes in roads.
Lead US$ 2,064/t vs US$2,063/t last week
Tin US$ 20,530/t vs US$20,460/t last week

Energy:
Oil US$50.5/bbl vs US$50.3/bbl last week
Natural Gas US$3.047/mmbtu vs US$2.723/mmbtu last week – big change
Uranium US$19.70/lb vs US$19.70/lb last week

Bulk:   
Iron ore 62% Fe spot (cfr Tianjin) US$60.8/t vs US$60.1/t
Chinese steel rebar 25mm US$410.0/t vs US$410.9/t – steel exports out of China rise by 2.4% in the first nine months of the year to 85mt
Chinese steel producers continue to raise exports according to the China Iron & Steel Association.
Export growth was mainly into emerging Asian markets where construction demand is high.
Belt and Road Initiatives are expected to continue to increase demand for Chinese steel.
The association reports that the 373 CISA-member steel smelters (~80% of capacity) reported Rmb25m ($3.7m) in profit marking a recovery from heavy losses last year by cutting costs though this profit generation is said to be still very vulnerable.
Q4 demand will be led by real estate, construction and machinery manufacturing
Machinery manufacturing, such as automobile production, which has been growing by roughly 10 percent year-on-year in recent years, is also a key engine of steel demand. Yet the demand won't be robust in the rest of the year.

Thermal coal (1st year forward cif ARA) US$69.8/t vs US$71.0/t last week
Premium hard coking coal Aus fob US$252.4/t vs US$249.1/t

Other:
Tungsten - APT European prices $190-198/mtu vs $191-197/mtu unch last week

Company News

Coal of Africa (LON:CZA) 3.2pence, Mkt Cap £62.5m –September quarter highlights search for a cash generating asset
Coal of Africa reports that the Integrated Water Use Licence for its Makhado coal project in the Limpopo Provicen of S Africa remains suspended following an appeal by a group called the Vhembe Mineral Resources Forum to Department of Water and Sanitation. The appeal was announced in April this year and though discussions are reported to be continuing, there does not appear to be much sign that a resolution is imminent while the appeal process follows its course.
When the regulatory issues have been resolved, the Makhado project will require a 26 month construction period followed by a 4 month period to ramp production up to a planned production of 5.5mtpa of saleable coal.
Elsewhere, the company’s Mooiplaats thermal coal mine remains on care and maintenance while discussions with potential purchasers proceed and a decision on whether to proceed with the plant modification project awaits the outcome of an application to divert a non-perennial stream.
The company’s current “focus is to obtain a cash generating asset for the group. This will allow the Company access to sufficient funds over time to cover company overheads, pre production development costs for the Makhado Project and all regulatory charges to ensure the continuation of full compliance on all the current assets.”
The company notes that “the coal commodity market has experienced a sensational recovery during CY 2016” with a year to date increase of 142% to over US$210/tonne and a 56% rise in the thermal coal price.
Conclusion: It appears that there has been little progress in advancing the company’s projects while management addresses the regulatory obstacles,  which must be particularly frustrating at a time when the company is observing a significant turnaround in coal commodity prices.

Birimian Limited (ASX:BGS) A$0.35, mkt cap A$63.6m – high-grade lithium resource reported at Goulamina within the Bougouni license in Mali
Birimian reports a high tonnage and high-grade lithium deposit at Goulamina within the Bougouni lithium project in Mali
The new JORC resource contains 15.5mt grading 1.48% Li2O for 229,000t of contained lithium oxide
High grade near surface should allow for early cash flow generation.
Further drilling is expected to add to the resource through resource extensions with 1.67% seen in the West Zone
This resource grade ranks Bougouni grade as the fifth highest on our list of known hard rock lithium resources and no. 15 in terms of resource size though it looks like it will become a larger project..
There is little difference in the grade and tonnage of the resource by varying the cut off grades from 0-0.6/0.7% Li2O suggesting this is a robust resource.
The resource looks very professionally done and presented by Cube Consulting with support by CSA Global who did work on a preliminary mining study.
The company press release contains full details of the JORC resource along with pictures of the block model, cross sections, plan views and a particularly grade/tonnage curve. See:
http://www.birimian.com/pdfs/MaidenResourceAtGoulaminaConfirmsLithiumDeposit27Oct16.pdf

FinnAust Mining* (LON:FAM) 6.5p, Mkt Cap £32.1m – Huntsman raise price for titanium dioxide pigment effective Jan 2017
BUY Target Price 15p
·        Huntsman increased the price of titanium dioxide pigment effective from January 2017 by US$0.07/lb
Prices will rise by €150/t or $160/t t in the EMEA, APAC and Latin America regions and $0.07/lb in North America.
·        The price move should translate into higher prices for titanium mineral sand concentrates
We recently published an initiation note on FinnAust see link for full note click here for full note
*SP Angel act as nomad and broker to FinnAust

Golden Star Resources (CVE:GSR) C$1.17, Mkt Cap C$385m – Mining Lease for Mampon deposit
Golden Star reports that it has secured the mining lease for the high grade oxide gold deposit at Mampon in Ghana. Mampon which contains a 45,000 oz resource at a grade of 4.6g/t gold and is located approximately 80km north, via existing good quality roads, of the company’s processing plant at Bogoso.
The ability to blend this higher grade material with material from the company’s Prestea open pits which are being used “to bridge the gap between the Bogoso refractory operations ceasing production and the commencement of production from the high grade Prestea Underground Gold Mine … which is expected to occur in the second quarter of 2017.” should extend the life of the open mining operations and perhaps help to contain costs during the transition period.
The company notes that the life of the open pits at Prestea has already been extended until the second half of 2017 from the original expectation that they would become exhausted by the end of Q3 2016.
Additional production from Mampon had not been included in the company’s published guidance that 2016 production is expected to fall in the range 180,000 -205,000 at costs between US$815-925/oz.
Golden Star is moving into high grade non-refractory underground mining operations at both Prestea and Wassa which the company expects to increase annual gold production to around 280,000oz pa at cash costs of US$695/oz and AISC of US$903/oz for the five year period from 2017 onwards.
During H1 2016, the company produced 95,677 oz of gold at a cash cost of US$826/oz.
Conclusion: The company is in the process of a strategic shift into high grade underground mining at Prestea and Wassa as it phases out production of lower grade refractory open-pit ore. In our opinion, securing the licence for Mampon provides a readily mineable, source of high grade oxide feed to help smooth the transition and maintain production.

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06/28/17 http://www.miningcapital.com/columns/sp-angel/26397/today-s-market-view-coal-of-africa-birimian-limited-finnaust-mining-golden-star-resources-26397.html