Telson Mining nearing completion of set up infrastructure at Tahuehueto Project. Mon, 15 Oct 2018 22:40:00 +0100 Telson Mining (CVE:TSN) President Ralph Shearing dropped in to the Proactive Investors Vancouver studio to update on the set up of the their flagship project Tahueheto. The company also has another project as well, Campo Morado.

Shearing shared news of a new vein named Enmedio and also has details of another 5 million of funding and when they will get access to it. 

]]> EganStreet Resources receives debt funding proposals for Rothsay gold development Mon, 15 Oct 2018 22:00:00 +0100 Fireweed Zinc provides update on Macmillan Pass project's Tom West Zone Mon, 15 Oct 2018 21:14:00 +0100 Fireweed Zinc (CVE:FWZ) CEO Brandon MacDonald joined Steve Darling int he Vancouver studio of Proactive Investors with an update on their latest drilling results from the Macmillan pass project in the Yukon.

MacDonald updated 3 new drill holes that were very encouraging including holes 5 , 8 and 3.

]]> Great Bear Resources boosted as it finds more high-priority drill targets at Dixie Mon, 15 Oct 2018 18:48:00 +0100 Telson Mining says Tahuehueto mine assays confirm project's potential Mon, 15 Oct 2018 17:08:00 +0100 Orsu Metals shares tick north as it unveils more encouraging drill assays from Sergeevskoe gold project Mon, 15 Oct 2018 15:52:00 +0100 Ariana Resources sets new production records at Kiziltepe Mon, 15 Oct 2018 15:05:00 +0100 Kerim Sener, managing director at Ariana Resources plc (LON:AAU) tells Proactive London's Andrew Scott they produced a record 7,588 ounces of gold in the third quarter of 2018 - up significantly from the 7,171 ounces produced in the second quarter.

Total ore processed for the quarter was 46,214 tonnes at an average head grade to the plant of 4.43 g/t gold.

Sener adds they're expecting to exceed full-year production guidance of 20,000 ounces of gold, having achieved a total of 19,625 ounces by the end of the third quarter.

]]> Tinka Resources outlines Ayawilca's credentials as it unveils another batch of drill assays Mon, 15 Oct 2018 14:58:00 +0100 BlueBird Battery Metals gets off to flying start at Canegrass, with first hole hitting highest grade to date Mon, 15 Oct 2018 14:50:00 +0100 Pacton Gold finds gold nuggets in the Egina area of Friendly creek tenements Mon, 15 Oct 2018 13:48:00 +0100 Kavango Resources encouraged with initial results from Botswana survey Mon, 15 Oct 2018 11:55:00 +0100 Michael Foster, chief executive of Kavango Resources Plc (LON:KAV), spoke to Proactive London’s Andrew Scott as the first phase of its airborne electromagnetic geophysical survey at the KSZ project in southwest Botswana wrapped up.

The survey has identified 26 conductive anomalies across 2,000 line kilometres in the Hukuntsi area of the KSZ project.

]]> Bacanora confident about funding and long term prospects for lithium Mon, 15 Oct 2018 08:21:00 +0100 Galantas Gold Corporation appoints corporate finance expert to board Mon, 15 Oct 2018 07:35:00 +0100 Ariana Resources set to exceed production guidance after record-breaking third quarter Mon, 15 Oct 2018 07:34:00 +0100 Anglo Pacific Group makes major royalty deal with a bigger move into Canada Mon, 15 Oct 2018 07:28:00 +0100 Anglo Pacific Group (TSE:APY) CEO Julian Treger joined Steve Darling from Proactive Investors Canada on Skype from London to talk about their recent royalty deal with the Labrador Iron Ore Royalty Corp. That gives Anglo a big play in Canada.

Treger also talked about well the company is doing and what shareholders can expect for the rest of this year and the start of 2019.

]]> Cradle Arc renews licence on ground south of Mowana that could contain 50mln tonnes of ore Mon, 15 Oct 2018 07:25:00 +0100 Premier African says answer on RHA restructuring pushed back to end of month Mon, 15 Oct 2018 07:14:00 +0100 Kavango identifies multiple targets on the KSZ project in Botswana Mon, 15 Oct 2018 07:11:00 +0100 Galileo completes second phase of drilling at Star Zinc project, high grades keep coming Mon, 15 Oct 2018 06:50:00 +0100 Metro Mining doubles ore shipment from Bauxite Hills as Chinese domestic supply tightens Mon, 15 Oct 2018 05:04:00 +0100 Arafura Resources signs MoU for supply of NdPr oxide to major Chinese manufacturer Mon, 15 Oct 2018 03:53:00 +0100 King River Copper nears Speewah vanadium scoping study completion, metallurgical tests ongoing Mon, 15 Oct 2018 03:28:00 +0100 Bryah Resources expects Bryah Basin drilling results, trading halt granted Mon, 15 Oct 2018 03:26:00 +0100 Rimfire Pacific Mining to assess potential high grade zones at Sorpresa Mon, 15 Oct 2018 03:15:00 +0100 Corazon Mining 'bullish on battery metals,' advancing Australian and Canadian projects Mon, 15 Oct 2018 03:00:00 +0100 Corazon Mining Ltd (ASX:CZN) managing director Brett Smith updates Proactive Investors on the Lynn Lake Nickel-Copper-Cobalt Project in Canada, and the flagship Mt Gilmore Cobalt-Copper-Gold Project in NSW, Australia.

Smith also discusses drivers and key indicators relating to battery metals markets.

]]> Orion Minerals likely to boost 29.4-million-tonne Prieska zinc-copper resource by December Mon, 15 Oct 2018 02:46:00 +0100 Alkane Resources granted trading halt with news of equity investment pending Mon, 15 Oct 2018 02:29:00 +0100 New Age Exploration makes changes to the board and management Mon, 15 Oct 2018 01:24:00 +0100 Alto Metals intersects 40 metres at 3.5 g/t gold at Sandstone, confirms geological models Mon, 15 Oct 2018 01:21:00 +0100 Australian Mines' Sconi project being assessed by government infrastructure fund Mon, 15 Oct 2018 00:43:00 +0100 Bulls, Bears & Brokers: DJ Carmichael's Davide Bosio sees Fintech sector hotting up Mon, 15 Oct 2018 00:30:00 +0100 Davide Bosio, managing director, CEO & head of corporate finance at DJ Carmichael, speaks to Proactive Investors about the past couple weeks of raisings, rumours and roadshows.

To hear Bosio's insights watch our full video interview.

]]> Stonewall Resources Theta Hill scoping study supports open cut gold mine Sun, 14 Oct 2018 23:56:00 +0100 Galena Mining strengthens board with operational experience as Abra moves to development Sun, 14 Oct 2018 23:39:00 +0100 Artemis Resources drills more high-grade cobalt at Carlow Castle Sun, 14 Oct 2018 23:08:00 +0100 De Grey Mining hits 56-metre intersection at 3.04 g/t gold at Pilbara project Sun, 14 Oct 2018 22:50:00 +0100 Great Panther Silver on track to meet 2018 production guidance, despite reduced Q3 output Fri, 12 Oct 2018 18:00:00 +0100 Leading Edge Materials joins Sweden's association of mines, mineral and metal producers Fri, 12 Oct 2018 17:50:00 +0100 Voltaic Minerals to buy cobalt group with assets in Montana Fri, 12 Oct 2018 17:00:00 +0100 Golden Arrow Resources pleased as Chinchillas ramps up to full production Fri, 12 Oct 2018 16:11:00 +0100 Equity rout puts precious metals back into the spotlight Fri, 12 Oct 2018 13:01:00 +0100 Musgrave Minerals leverages Westgold agreement for near-term development opportunity Fri, 12 Oct 2018 12:30:00 +0100 Musgrave Minerals Ltd (ASX:MGV) managing director Robert Waugh updates Proactive Investors on the near-producer’s gold mining agreement with Westgold Resources Ltd (ASX:WGX) and its exploration activities near Cue in Western Australia.

Westgold announced in May that it had acquired a 15% equity interest in Musgrave through a placement of $3.36 million, enabling it to further expand its exploration in the region.

“We’re looking at near-term development and obviously with Westgold being our major shareholder there’s opportunity there to get to a near-term development scenario position … at our known resources,” Waugh says.

He continues, “the focus for that will be really Break of Day and Lena down at the Moyagee Project which is about 30 kilometres south of Cue.”

]]> Australian Bauxite’s patented technology to produce high-grade, high-value aluminium products Fri, 12 Oct 2018 12:30:00 +0100 Australian Bauxite Ltd (ASX:ABX) marketing and investor relations manager Julie Young speaks to Proactive Investors about the bauxite producer’s operations and the development of its patented process technology.

The patented technology is held by ABX subsidiary ALCORE Limited and can convert raw bauxite – which sells for about US$50 a tonne – to high-grade products, which command a price of about US$1,000 per tonne.

“With ALCORE, we have 4 interested customers – we’ve proceeded to a production plant for ALCORE and we will be sending out at the end of year samples to our 4 interested parties for them to be able to assess our product which is basically aluminium fluoride,” Young says.

She continues, “aluminium fluoride is utilised in aluminium smelters and also will be utilised in lithium-ion batteries so we’re going to see aluminium fluoride increasing in demand.”

]]> RNC Minerals unearths possibly biggest ever gold-rich stones in Australia Fri, 12 Oct 2018 11:32:00 +0100 Mark Selby, President and CEO of RNC Minerals (TSE:RNX) spoke to Proactive London's Andrew Scott after announcing the first specimen slab from the top of the Father's Day Vein discovery area has been recovered at their Beta Hunt Mine in Western Australia.

Selby says the slab, weighing around 90kg, is thought to contain approximately 1,000 ounces of gold.

RNC reckons the gold-rich stones are among the biggest of their kind ever unearthed in Australia.

'We think we've made one of the great gold discoveries of this decade .. if not this century so far'', Selby says.

]]> Cash begins to flow as Red Rock Resources receives US$659,000 dividend from Jupiter Mines Fri, 12 Oct 2018 11:00:00 +0100 Demise of Wolf Minerals Ltd 'a blow for UK mining' - Alastair Ford Fri, 12 Oct 2018 10:04:00 +0100 Mining Capital's Alastair Ford discusses the collapse this week of Wolf Minerals Limited (LON:WLFE) (ASX:WLF).

Ford says what really did it for Wolf was simply that the economics of production at Hemerdon never really stacked up.

He adds that its major investor RCF will now be staring at a massive loss.

]]> Strategic Minerals Plc begins exploration drilling at Leigh Creek Fri, 12 Oct 2018 09:06:00 +0100 John Peters, managing director at Strategic Minerals Plc (LON:SML) skyped into the Proactive London studio following the announcement they've started drilling to expand the resource at Leigh Creek in Australia.

It's the first exploration to be undertaken at the former copper mine for forty years.

]]> Strategic Minerals' plan comes together as Leigh Creek joins fold Fri, 12 Oct 2018 07:53:00 +0100 Strategic Minerals kicks-off first exploration at Leigh Creek for forty years Fri, 12 Oct 2018 06:57:00 +0100 European Lithium makes steady progress in advancing Wolfsberg Lithium Project Fri, 12 Oct 2018 06:10:00 +0100 King River Copper lights Remarkable rocket under share price Fri, 12 Oct 2018 05:43:00 +0100 Kogi Iron gains support from Nigerian minister and other stakeholders to build cast steel project Fri, 12 Oct 2018 02:57:00 +0100 99% iron recovery.]]> Azumah Resources’ Ghana joint venture leveraged for transition to gold producer Fri, 12 Oct 2018 02:14:00 +0100 Aeris Resources completes retail entitlement offer to raise a total of $35.1 million Fri, 12 Oct 2018 01:33:00 +0100 White Cliff Minerals has capital raising news pending, granted trading halt Fri, 12 Oct 2018 01:16:00 +0100 Red River Resources has record September quarter at zinc mine Fri, 12 Oct 2018 00:57:00 +0100 Great Boulder Resources closes in on higher-grade nickel at Eastern Mafic Thu, 11 Oct 2018 23:41:00 +0100 Core Exploration boosts Napperby uranium deposit Thu, 11 Oct 2018 23:33:00 +0100 Australian Mines’ demonstration plant informs future Sconi development Thu, 11 Oct 2018 23:02:00 +0100 Australian Mines Ltd (ASX:AUZ) chief operating officer Tim Maclean talks Proactive Investors through processing works at the company's demonstration plant, and provides updates on the Sconi Cobalt-Nickel-Scandium Project's bankable feasibility study (BFS).

The latest progress also bodes well for the Flemington Cobalt-Scandium-Nickel project, which has similar geology.

]]> Golden Arrow broadens reach to Chile, signs agreement to acquire copper-gold project Thu, 11 Oct 2018 21:11:00 +0100 Fear bolsters gold stocks as volatile markets generate safe-haven buying Thu, 11 Oct 2018 20:13:00 +0100 Arctic Star Exploration increases Diagras property with eight new claims Thu, 11 Oct 2018 19:44:00 +0100 MGX Minerals Inc says sample from BC property shows suitability for silicon production Thu, 11 Oct 2018 18:08:00 +0100 Minera Alamos shares boosted as it posts encouraging drill results from Santana gold project Thu, 11 Oct 2018 17:21:00 +0100 Viscount Mining’s US gold and silver assets offer huge potential upside Thu, 11 Oct 2018 16:14:00 +0100 IPO Roundup: Allogene IPO prices above high end of range, Livent pricing comes up short, while Audentes Therapeutics debuts Thu, 11 Oct 2018 15:00:00 +0100 Vast Resources unveils further drilling results from Blueberry project Thu, 11 Oct 2018 14:54:00 +0100 Fremont Gold's new CEO has big vision and big plans for company Thu, 11 Oct 2018 14:23:00 +0100 Fremont Gold Ltd (CVE:FRE) New CEO Blaine Monaghan dropped in to the Vancouver studio of Proactive Investors to discuss his new role and provide an update on their many projects in Nevada.

Monaghan also updated some exploratory results from work that was done on their Alkali claim. 

]]> Danakali's Colluli asset is recognised as the world’s superlative potash deposit, Daniel Stewart says Thu, 11 Oct 2018 14:12:00 +0100 Pembridge Resources to renegotiate Minto acquisition terms amid difficult market conditions Thu, 11 Oct 2018 13:36:00 +0100 Pacton Gold poised to further expand its Pilbara position with Hong Kong project Thu, 11 Oct 2018 13:29:00 +0100 Vast Resources secures important formal award at Baita Plai polymetallic mine Thu, 11 Oct 2018 12:51:00 +0100 Andrew Prelea, chief executive of Vast Resources PLC (LON:VAST), caught up with Proactive's Andrew Scott after receiving an important formal award giving Vast the right to mine at its Baita Plai polymetallic mine in Romania.

Approval from Romania’s National Agency for Mineral Resources (ANRM) was the only thing left standing between Vast and re-opening the mine.

]]> LME Week discussions bode well for Thor Mining Plc Thu, 11 Oct 2018 12:30:00 +0100 Mick Billing, executive chairman of Thor Mining PLC (LON:THR),  caught up with Proactive's Andrew Scott while in London for LME Week 2018.

Billing says he's been encouraged by the level of interest shown at the event in their Molyhil asset.

''We've had a whole bunch of conversations with various, quite sizeable players in the Molybdenum industry this week - they're keen for offtake, they're keen to get the concentrates we'd produce, some are even suggesting they'd envisage a fixed price contract''.

''We've never been there before, the terms I'm not in a position to reveal details about now, but this is quite a big step forward for Molyhil''.

]]> Keller Group under a cloud after it warns on profits Thu, 11 Oct 2018 12:09:00 +0100 Yellow Cake offers investors direct exposure to physical uranium, and all its associated upside Thu, 11 Oct 2018 11:31:00 +0100 Anglo Asian declares maiden dividend which could “nearly double next year” says broker Thu, 11 Oct 2018 09:44:00 +0100 Second batch of rock chip samples confirm gold mineralisation at ECR Minerals' Bailieston project Thu, 11 Oct 2018 09:44:00 +0100 Capital Drilling encouraged by pick up in West African activity Thu, 11 Oct 2018 07:59:00 +0100 Anglo Asian Mining to hit upper end of guidance after strong production quarter Thu, 11 Oct 2018 07:37:00 +0100 Erris Resources appoints mining banker as new chief executive Thu, 11 Oct 2018 07:08:00 +0100 Shanta Gold pleased with results of recent exploration activities Thu, 11 Oct 2018 06:30:00 +0100 Minotaur Exploration’s Andrew Woskett to outline northwest Queensland strategy at CEO Session Thu, 11 Oct 2018 05:20:00 +0100 Perseus Mining 'can now very confidently move forward with funding' Yaouré Gold Project Thu, 11 Oct 2018 04:46:00 +0100 Perseus Mining Limited (ASX:PRU) (TSX:PRU) chief executive Jeff Quartermaine speaks to Proactive Investors about the successful completion of a front-end engineering design (FEED) study for the Yaouré Gold Project, which is set to become the gold producer's third operating mine in West Africa.

Quartermaine also teases on the timing and content of the company's upcoming quarterly report.

]]> Cassini Resources reporting 'really positive news out of West Musgrave project PFS' Thu, 11 Oct 2018 04:40:00 +0100 Cassini Resources Ltd (ASX:CZI) managing director Richard Bevan speaks to Proactive Investors about today's news of joint venture partner OZ Minerals Limited (ASX:OZL) earning its 51% stake of the West Musgrave project in Western Australia.

"I think the key thing is that they've actually met their spend commitment about six months earlier than required, and I think what that does show is their commitment to the project, and also a number of results that we're having through this pre-feasibility stage are really giving us and Oz Minerals some confidence about the project moving forward. So it's a really positive outcome and we're really excited about the next six months," says Bevan.

He also provides updates on the 100% owned West Arunta Zinc Project where drilling is happening now.

]]> Accelerate Resources begins second stage exploration after discovering large copper-cobalt system Thu, 11 Oct 2018 04:02:00 +0100 Egan Street Resources high-grade results likely to add to 401,000 ounce gold bounty at Rothsay Thu, 11 Oct 2018 03:23:00 +0100 Stonewall Resources granted ASX trading halt ahead of scoping study release Thu, 11 Oct 2018 02:53:00 +0100 Cassini Resources partner OZ Minerals earns into 51% of West Musgrave Nickel-Copper Project Thu, 11 Oct 2018 02:30:00 +0100 Emmerson Resources finds widespread alteration with copper-gold potential at Whatling Hill Thu, 11 Oct 2018 02:11:00 +0100 Strategic Elements identifies ring-featured anomalies with potential sulphides Thu, 11 Oct 2018 02:00:00 +0100 Kin Mining identifies new targets for drilling at Leonora Gold Project Thu, 11 Oct 2018 01:32:00 +0100 Perseus Mining completes FEED milestone on Yaouré Gold Project development path Thu, 11 Oct 2018 00:39:00 +0100 Corazon Mining boosts Lynn Lake nickel copper cobalt JORC resource Wed, 10 Oct 2018 23:45:00 +0100 Telson Mining closes $6.84M financing at 39% market premium to advance Tahuehueto mine Wed, 10 Oct 2018 23:30:00 +0100 Khot Infrastructure receives final approval to start trading Blockchain Holdings shares on the Canadian Securities Exchange Wed, 10 Oct 2018 22:56:00 +0100 Galena Mining launches into Abra Base Metals Project DFS to follow-up “excellent” PFS Wed, 10 Oct 2018 22:32:00 +0100 West Wits Mining progresses permits, meets September production target Wed, 10 Oct 2018 21:41:00 +0100 Avrupa Minerals set to retain 100% of Alvito IOCG project Wed, 10 Oct 2018 18:50:00 +0100 Golden Arrow Resources chairman says Chinchillas integration on schedule and on budget; reassures investors Wed, 10 Oct 2018 18:36:00 +0100 Telson Mining closes 6.8 million dollar financing as the comeback story continues Wed, 10 Oct 2018 18:24:00 +0100 Telson Mining (CVE:TSN) President Ralph Shearing joined Steve Darling in the Vancouver Studio of Proactive Investors to share details they have raised almost 7 million dollars that will be used to build the Tahuehueto Mine in Mexico.

Shearing also talked about the much improved state of the company with new management and new investors.  

]]> Montero Mining and Exploration stakes potential new lithium discovery in Chile Wed, 10 Oct 2018 18:06:00 +0100 Orsu Metals celebrates with gold prize for Sergeevskoe project in Russian competition Wed, 10 Oct 2018 17:51:00 +0100 Bonterra Resources to speed up development of mining deposits and Urban Barry Mill Wed, 10 Oct 2018 17:31:00 +0100 Tethyan Resources submits Kizevak samples for metallurgical testing Wed, 10 Oct 2018 16:53:00 +0100 Fireweed Zinc shares nudge higher after latest Macmillan Pass drill assays Wed, 10 Oct 2018 16:03:00 +0100 Fastenal reports sterling 3Q and nine-month results, but shares off as gross profit sags Wed, 10 Oct 2018 15:10:00 +0100 BlueBird Battery Metals welcomes new member to board of directors Wed, 10 Oct 2018 14:49:00 +0100 International Cobalt advances Blackbird Creek project to drill-ready Wed, 10 Oct 2018 14:24:00 +0100 Vast Resources surges as it secures approval to start mining at Baita Plai Wed, 10 Oct 2018 14:08:00 +0100 Alba Mineral Resources says latest Horse Hill results are “highly encouraging” Wed, 10 Oct 2018 14:06:00 +0100 Zinc One Resources files drill results from the Mina Grande Norte zone, which are "beyond expectations" Wed, 10 Oct 2018 13:39:00 +0100 American Manganese set to put technology to test as it receives a tonne of scrap Wed, 10 Oct 2018 13:21:00 +0100 Silver bullet for Wolf, as tungsten prices and debt burden combine to bring in administrators Wed, 10 Oct 2018 13:04:00 +0100 Wolf Minerals ceases trading in London after UK subsidiary enters voluntary administration Wed, 10 Oct 2018 12:13:00 +0100 Tertiary Minerals offers direct exposure to fluorspar, a material deemed strategic and critical by the EU, US and China alike Wed, 10 Oct 2018 09:49:00 +0100 Cobre 'continuing to generate substantial cash' for Strategic Minerals Plc Wed, 10 Oct 2018 08:46:00 +0100 John Peters, managing director of Strategic Minerals Plc (LON:SML), tells Proactive's Andrew Scott that sales volumes at the Cobre magnetite operations in New Mexico, US, remain strong.

Peters says due to the strong sales and the arrangements put in place with Cobre's major client, it generated US$927,000 in cash flow from the assets in the September quarter.

]]> VSA CAPITAL MARKET MOVERS - DekelOil Wed, 10 Oct 2018 08:17:00 +0100 DekelOil Q3 Production and Sales Update

Côte d'Ivoire palm oil producer DekelOil Public Limited (LON:DKL)# has announced a production and sales update for Q3 2018.

  • FFB Collected: 24,938t, +15.3% YoY (Q3 2017: 21,626t)
  • CPO Production: 5,371t, +13.5% YoY (Q3 2017: 4,734t)
  • CPO Sales: 5,471t, -24.2% YoY (Q3 2017: 7,217t)
  • Average CPO Selling Price: €544/t, -16.9% YoY (€655/t)

VSA Comment

Having reported signs of stabilisation in regional fruit availability when it released its H1 2018 results last month, DKL has confirmed this morning that FFB crops have started to recover, recording an increase of more than 15% YoY in Q3. However, this was still below the levels recorded in Q3 2015 and Q3 2016, suggesting further recovery is likely.

DKL entered Q3 with little inventory on hand so was unable to smooth out its CPO sales for one of its quieter quarters (as it has done in previous years). We look forward to its Q4 production figures to confirm further evidence of a recovery in regional cropping levels, prior to its high season early next year.

In terms of palm oil pricing, we are hopeful that the current level of cUS$530/t in Rotterdam represents a bottom in the current cycle, due to an improved crude oil price making palm-based biodiesel more economic, more positive US soybean oil pricing over the last month and much stronger palm oil exports in South East Asia in recent weeks (Malaysian exports increased almost 50% MoM in September). However, we would also highlight that we have now entered the peak production season for South East Asian palm oil production, which may moderate some of these factors.   

DKL has now collected 121,133t of FFB and produced 27,613t of CPO YTD. Assuming the company manages to achieve at least the levels reached in Q4 2017, the company remains on track to reach our forecasts of 147,525t FFB and 33,341t CPO production for FY 2018.

We are currently assuming an average achieved CPO sales price for the year of €523/t. DKL has achieved €548/t YTD (due to achieving a premium over the European benchmark price), so this may provide slight upside to our FY forecasts (depending on Q4 pricing).

We are currently forecasting revenues of €20.2m and net loss of €2.8m for FY 2018. We maintain our BUY recommendation and target price of 12p.

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]]> Magnetic Resources confirms vein-hosted gold mineralisation at Christmas Well Wed, 10 Oct 2018 07:05:00 +0100 Horizonte Minerals' Araguaia feasibility study 'imminent', eyes battery grade nickel at second Brazil project Wed, 10 Oct 2018 06:51:00 +0100 Great Boulder Resources makes steady progress across copper, nickel, cobalt exploration portfolio Wed, 10 Oct 2018 06:01:00 +0100 Fe Limited leveraged to exploration upside at Forrest Project Wed, 10 Oct 2018 02:36:00 +0100 Altech Chemicals prepares to begin HPA plant construction, to run in parallel with finance close Wed, 10 Oct 2018 01:40:00 +0100 Pacific American Coal Ltd awaits results from completed Elko coking coal drilling in Canada Wed, 10 Oct 2018 01:37:00 +0100 Galan Lithium working to prove up potentially large lithium brines project in Argentina Tue, 09 Oct 2018 23:06:00 +0100 Galan Lithium Ltd (ASX:GLN) managing director Juan Pablo Vargas de la Vega updates Proactive Investors on the lithium exploration company’s work defining the Candelas prospect within its Hombre Muerto Lithium Project in Catamarca Province, Argentina.

The company has received promising results from a second resistivity survey conducted at Candelas, identifying conductive and shallow units that are compatible with being saturated with brine.

Permitting procedures to conduct drilling over the project are well advanced and Galan is advancing contracts to commence drilling in the current quarter.

“If we go by the data that is next to us from Galaxy, we potentially have a significantly good project … and soon enough we’re going to be proving it up,” Vargas de la Vega says.

]]> Hannan Metals drilling now only 3km from Ireland's 10th largest resource Tue, 09 Oct 2018 10:04:00 +0100 Hannan Metals Ltd (CVE:HAN) chief executive Michael Hudson speaks to Proactive Investors about 2,000 metres of diamond drilling happening now at the Ballyhickey project within the larger County Clare zinc project in Ireland.

He also discusses bespoke survey works completed to identify the drill targets, as well as global zinc markets.

"We're actually dealing with hundreds of years old information that we've been compiling, [combined] with some of the most modern exploration techniques, and now we're testing them," explains Hudson.

]]> Mawson Resources targeting January 2019 for maiden resource at Rajapalot project Tue, 09 Oct 2018 10:00:00 +0100 Mawson Resources Ltd (TSX:MAW) chairman & CEO Michael Hudson updates Proactive Investors on the Rompas-Rajapalot gold-cobalt project in Finland, where diamond drilling is happening now, with re-assays from an earlier 16 kilometre drilling program still to flow.

Hudson says, "we're aiming to extend the system, so we're looking within two to three kilometres of the great results we achieved last winter, and we've got some very strong targets... There's a lot of things happening in Maswon at the moment, it's a real pivoting time for the project."

]]> Economics looking favourable at St George Mining’s ‘phenomenal’ nickel sulphide project Tue, 09 Oct 2018 09:55:00 +0100 John Prineas, executive chairman of St George Mining Ltd (ASX:SGQ), spoke to Proactive London's Andrew Scott while in the City for LME Week 2018.

''We're currently drilling at the Investigators prospect which has a 1.5km strike ... we have massive nickel sulphides all along that strike, it's not perfectly continuous but that's what we're trying to do now ... drill out that area''.

The Cathedrals, Investigators and Stricklands nickel-copper-cobalt-PGE discoveries are on an exploration licence held in joint venture by St George and Western Areas Ltd (ASX:WSA).

St George has 75% of the JV and is its project manager.

]]> Image Resources’ Perth Basin mineral sands project supported by life-of-mine offtake agreements Tue, 09 Oct 2018 06:03:00 +0100 Image Resources NL (ASX:IMA) managing director Patrick Mutz speaks to Proactive Investors about the emerging mineral sands developer’s portfolio of projects and near-production Boonanarring Project in the North Perth Basin.

“We are just so close to completing construction at Boonanarring,” Mutz says.

He continues, “we’ve been working on it for the last six months, we have been promoting to the market that we will be finishing construction in the fourth quarter of this year – we are now in that quarter and we will actually be launching into first production before the end of the year.

“The project is supported from the standpoint of revenue by an offtake agreement that already spans the life of the mine.”

]]> Technology Metals Australia progressing Gabanintha project DFS on multiple fronts Mon, 08 Oct 2018 23:11:00 +0100 Ian Prentice, executive director of Technology Metals Australia Ltd (ASX:TMT), speaks to Proactive Investors as stage 1 project enhancement drilling wraps at the Gabanintha Vanadium Project, located near Meekatharra in Western Australia. Assay results are due in a matter of weeks, and geotechnical data is also being assessed as part of mine design work.

The vanadium-focused company recently raised A$6 million to advance the Definitive Feasibility Study on Gabanintha, and conduct addition exploration at the 100% owned project.

]]> Spectrum Metals’ gold strategy to acquire and develop brownfields opportunities Mon, 08 Oct 2018 22:42:00 +0100 Spectrum Metals Ltd (ASX:SPX) managing director Paul Adams speaks to Proactive Investors about the exploration company’s gold strategy and work towards bringing the historic First Hit Gold Mine back into production.

The mine was last operated in December 2002 by Barminco Pty Ltd and Barra Resources Ltd (ASX:BAR) and includes substantial underground mining infrastructure. Spectrum’s immediate focus will be to develop a drilling program targeting extensions of high-grade drill intercepts at the near-term development opportunity.

The company has also raised $600,000 at 0.4 cents a share for 150 million shares, with funds to be used for exploration and development of its Western Australian assets.

]]> Walkabout Resources plans capital raising to expedite development of Lindi Jumbo Graphite Project Mon, 08 Oct 2018 22:34:00 +0100 Walkabout Resources Ltd (ASX:WKT) chairman Trevor Benson updates Proactive Investors on the explorer’s underwritten $3-million share purchase plan (SPP) that will open next Friday, October 12.

Funds raised under the SPP will be used to progress development of the Lindi Jumbo Graphite Project in southeastern Tanzania where the company was recently granted a mining licence. With current cash reserves of circa $5 million, the company will have circa $8 million cash at bank upon completion of the SPP before costs.

“With our very strong cash position after this raising we’ll be able to look at alternatives in terms of quasi-debt, debt, soft loans … and we’re looking at a whole raft of different [funding] structures,” Benson says.

]]> Arc Minerals confident it could be sitting on 'something quite significant' at Zamsort Mon, 08 Oct 2018 11:17:00 +0100 Nick von Schirnding, executive chairman of Arc Minerals Limited (LON:ARCM), tells Proactive Investors that recent drilling at their Zamsort project has hit wide zones of copper and cobalt similar to other large deposits in Zambia.

Arc's drilling 11,000m at the Kalaba target at Zamsort and all 46 holes so far have hit metal with thicknesses up to 144m and an average between 60m to 80m.

]]> Tharisa Plc beats expectations setting new production and recovery records Mon, 08 Oct 2018 11:06:00 +0100 Phoevos Pouroulis, chief executive of Tharisa plc (LON:THS), tells Proactive's Andrew Scott the group produced 152,200 ounces of platinum group metals and just under 1.5mln tonnes of chrome concentrate from its operations in South Africa in the year to September 2018 - a significant increase on the previous year, and sets new records.

Recoveries of platinum group metals and chrome were also up.

]]> Plastics Capital PLC mulls name change as sales and profitability improve Mon, 08 Oct 2018 10:22:00 +0100 Faisal Rahmatallah, chairman of Plastics Capital Plc (LON:PLA), spoke to Proactive's Andrew Scott to discuss the group's trading update.

Sales have continued to grow at double-digit percentage rates compared to last year and profitability has improved as the revenue mix shifted towards the higher margin Industrial Division.

Rahmatallah adds that they're now enjoying a tailwind from currency fluctuations.

]]> Guyana Goldstrike releases high grade trenching assays at its Marudi Gold Project, looks to drill program in January Fri, 05 Oct 2018 19:51:00 +0100 Guyana Goldstrike Inc (TSX.V-GYA; OTCMKTS:GYNAF) CEO Peter Berdusco tells Proactive Investors that the gold exploration company released high grade trenching assay results at its Marudi Gold Project in South America.

Marudi is an advanced-stage exploration and development property with a mineral resource estimate, a permitted mining license, and is 95% unexplored.

Investors should look forward to Guyana's drill program in January, where the company expects to report a steady drill assay news-flow.

]]> Para Resources is fully funded and looking to be profitable early in 2019 Fri, 05 Oct 2018 17:37:00 +0100 Para Resources (CVE:PBR) CEO Geoff Hampson joined Steve Darling in the Vancouver Studios of Proactive Investor to update viewers on their two gold projects, one in Colombia and the other in Arizona.

Hampson also shared details of their recent fund raise and also what his long term goals are for Para Resources.

]]> US economic strength has been purchased at the price of a massive monetary expansion, which in turn puts a floor on the gold price Fri, 05 Oct 2018 13:38:00 +0100 Lake Wells Potash Project 'sets Australian Potash apart' Fri, 05 Oct 2018 02:10:00 +0100 Australian Potash Ltd (ASX:APC) executive chairman Matt Shackleton speaks to Proactive Investors about the company's formative and flagship Lake Wells Potash Project, located near Laverton in Western Australia, for which mining leases have recently been granted.

A Definitive Feasibility Study (DFS) on the project is well underway, with samples of Sulphate of Potash (SOP) due to be produced before the end of the year.

In addition to signing a Memorandum of Understanding (MOU) with neighbouring Salt Lake Potash Limited (ASX:SO4) (AIM:SO4) to study the benefits of cost sharing to develop the area, Australian Potash is set to benefit from A$35 million of Federal and State funding for the upgrade of a 100 kilometre section of the Great Central Road between Lake Wells and Laverton.

]]> Low cost exploration converting to maiden silica resources for Ventnor Resources Thu, 04 Oct 2018 23:44:00 +0100 Ventnor Resources Ltd (ASX:VRX) managing director Bruce Maluish updates Proactive Investors on the silica sands-focused company's Arrowsmith and Muchea projects, and also discusses positive test work results that confirm a high-grade product suitable for glassmaking.

A "significant" maiden resource has been announced on Arrowsmith North with more exploration works to come, and announcements of maiden resources for Arrowsmith Central and Muchea are expected soon. Meanwhile, the next round of test work results will be out in a matter of weeks.

]]> Blackstone Minerals 'dealing with something much larger than we thought' Thu, 04 Oct 2018 23:42:00 +0100 Blackstone Minerals (ASX:BSX) managing director Scott Williamson speaks to Proactive Investors about second phase induced polarisation (IP) survey results that have turned up new targets at the Jewel copper-gold-cobalt prospect within the large-scale Little Gem Project in British Columbia, Canada.

"The Jewel mine was a high-grade gold mine with some copper, and we don't think they knew they had some cobalt as well. It's a very high-grade target at surface, but these IP anomalies are significantly larger than anything we've seen before; we're talking something that's up to a kilometre long. So we're dealing with a much larger scale sulphide body... we think that's the source of that high-grade mineralisation... it's clear we're dealing with something much larger than we thought," says Williamson.

]]> Amerigo Resources is profitable and looks to pay dividend in Q-1 2019, while ramping up production Thu, 04 Oct 2018 22:05:00 +0100  Amerigo Resources (CVE:ARG) President and CEO Rob Henderson dropped in to the Vancouver studio of Proactive Investors to talk about Amerigo ramping up production at their copper project in Chile.

Henderson says Amerigo, which mines copper from tailings, will be almost double production by the end of 2018. He also said the company is paying down their debt and hopes to pay a dividend in 2019.  

]]> Verdant Minerals meets with existing and potential investors in New York Thu, 04 Oct 2018 14:49:00 +0100 Verdant Minerals Ltd (ASX:VRM) managing director Chris Tziolis tells Proactive Investors about Verdant's presence in the US and meetings with current and potential investors in the Empire State.

The exploration and development company has a portfolio of fertilizer commodity projects, which are focused in Australia's Northern Territory, and span phosphate, potash and silica.

Tziolis says issues like food demand around the world are creating problems, and fertilizer will create better productivity from agricultural outputs.

]]> VSA CAPITAL MARKET MOVERS - Central Asia Metals Thu, 04 Oct 2018 10:52:00 +0100 Strong Copper Production at Kounrad

Q3 2018 copper production was up 2% YoY and 7% QoQ to 3,938t with 9mo18 production of 10.7kt down 1.7% YoY. This YoY difference over 9mo18 of just 183t of copper was due to a particularly harsh winter which impacted production in Q1 2018. However, Central Asia Metals (LON:CAML)# remains well on track to meet company guidance of 13-14kt copper over the full year and to meet our estimates of 13.75kt.

Robust Output at Sasa

The update also demonstrates a robust quarter at the Sasa mine with zinc production up 4% YoY and QoQ to 5,742t while lead production was unchanged YoY although up 3% QoQ at 7,602t. Sasa was not yet operated by CAML in Q3 2017, however, the comparison to prior periods clearly demonstrates the successful transition of ownership. Production appears on track for our full year zinc forecast of 22.3kt although with 9mo18 lead production of 22kt the risk now appears to be to the upside given our full year forecast of 28.8kt.

Shares Rallying Post Interims

Since the interim results the shares are up 11% on the back of two factors, in our view; the recovery in commodity prices along with CAML’s first full period of results reflecting the successful integration of Sasa. This first full period has provided clarity over both operational performance and the significant positive earnings impact of the acquisition. We believe that the rerating in terms of EV/EBITDA multiple from 4.8x at our initiation in August 2018 to 5.1x currently reflects greater confidence from the market.

Recommendation and Target Price


The quarterly update demonstrates continued robust operational performance with the company well on track to meet full year operational guidance and our estimates. The shares continue to offer attractive value, in our view, particularly with further confirmation that consistent results can also be delivered at Sasa.

We reiterate our Buy recommendation and target price of 309p which implies 27% upside and 33% on a total return basis. 

]]> Jupiter Mines Ltd focused on continuing to deliver hefty dividends to investors Thu, 04 Oct 2018 10:10:00 +0100 Priyank Thapliyal, chief executive of Jupiter Mines Limited (ASX:JMS), runs Proactive's Andrew Scott through the company's background including the de-listing and recent re-listing on the ASX.

''In April we listed the company back on the Australian Securities Exchange, we raised about A$240mln, it was a secondary sale, we now have about 60% of free float and I was told this was one of the biggest mining IPOs in the last 10 years on the ASX and perhaps even globally ... it was a phenomenal success ''.

Jupiter has a 50% stake in the Tshipi manganese asset in South Africa and Thapliyal says it continues to be one of the largest and lowest cost manganese exporters globally.

]]> VSA CAPITAL MARKET MOVERS - Lake Resources Thu, 04 Oct 2018 08:07:00 +0100 Lake Resources (ASX:LKE)#


Lake Resources (ASX:LKE) has announced that it has mobilised a rig to drill its Cauchari lithium brine project in Argentina. Four holes over 1,500m are expected to be drilled over the next four months with first results due towards the end of October. Recent drill results from Advantage Lithium (CVE:AAL) on the north west of its license area adjacent to LKE yielded results of over 600mg/l Li while prior testwork indicated strong flow rates.

Given the strong drilling results from the adjacent properties, on which significant reserves and resources have been confirmed by AAL, Lithium Americas , Ganfeng Lithium and Orocobre (ASX:ORE), LKE carried out seismic lines to understand the extension of these high-grade lithium bearing brine aquifers. The results demonstrated extensions into the LKE license area with the brine bearing sediments estimated to extend to 300-400m depth within LKE’s license area and this testwork has helped to identify suitable drill targets.

In addition to positive newsflow from LKE we also note that the company’s partner Lilac Solutions has announced positive results and the successful production of lithium hydroxide from a 1,000 litre brine bulk sample at Anson Resources (ASN AU) brine project in Utah. Lilac uses an ion exchange extraction technique which dramatically reduces the time taken to produce lithium compared to traditional evaporation techniques. Lilac have agreed to partner with LKE and assess the potential for the process at Kachi.

With a resource announcement upcoming on the Kachi project, today’s announcement regarding drilling at Cauchari and the exercise of the pegmatite option in Ancasti where initial exploration work is due to begin LKE is entering a period of heavy newsflow with significant potential catalysts upcoming as results are announced.

We reiterate our Speculative Buy recommendation.

]]> Alkane Resources "very well placed" to move underground at Tomingley gold mine Thu, 04 Oct 2018 03:15:00 +0100 Alkane Resources Ltd (ASX:ALK) managing director Nic Earner updates Proactive Investors on the move to underground mining operations at the Tomingley gold mine in Central West NSW.

Open cut milling is set to finish in April next year, with underground ore slated to be processed from September or October. The new developments will pave the way for recovery of a further 93,000 ounces of gold, with potential upside from exploration works.

]]> Andromeda Metals' unique high-purity halloysite kaolin has wide range of applications Thu, 04 Oct 2018 02:55:00 +0100 Andromeda Metals (ASX:ADN) managing director James Marsh speaks to Proactive Investors about the company's strategic shift of focus to industrial metals; namely halloysite kaolin and HPA.
"Our plan is to push through the PFS as quickly as possible to get into development, start a direct shipping ore business going, and then the process material," Marsh says.
He continues, "in the meantime we are working on the HPA angle because we know we've got a very good feed material for that."
Along with a variety of HPA end-uses, Andromeda's halloysite kaolin can be used in a range of industrial applications including as a catylst for breaking down petrochemicals and to produce carbon nano-structures for the battery industry.
]]> Bluejay Mining advancing offtake discussions with PFS due Q1 next year Wed, 03 Oct 2018 12:42:00 +0100 Rod McIllree, managing director of Bluejay Mining PLC (LON:JAY), tells Proactive's Andrew Scott they're expecting to publish the pre-feasibility study for its Dundas ilmenite project in Greenland in the first quarter of next year.

He says it's a little later than first planned but the PFS will include a number of engineering optimisations currently being worked on.

Parts of the study will be released as they are completed but the full report will be in 2019.

]]> Latest Redmoor results 'clearly beat' Strategic Minerals Plc's expectations Wed, 03 Oct 2018 11:30:00 +0100 Peter Wale, executive director of Strategic Minerals Plc (LON:SML) tells Proactive's Andrew Scott the latest two assays from drilling at Redmoor have far exceeded expectations.

esults from two further holes from the Phase 1 drilling programme continue to show interception of high-grade zones within the sheeted vein system (SVS).

Wale adds that the results from these holes include the highest-grade, length-averaged results yet and highlight the potential to both increase the resource tonnage and grade at the project.

The phase 2 drilling programme will kick off after completion of the phase 1 programme and will seek to extend further the Redmoor high-grade inferred resource in preparation for the pre-feasibility study (PFS) next year.

]]> Yellow Cake Plc giving investors unique exposure to uranium price Wed, 03 Oct 2018 07:31:00 +0100 Yellow Cake PLC (LON:YCA) made its debut on AIM in July this year raising US$200mln (£151mln).

Yellow Cake – a nickname for uranium – is backed by Bacchus Capital, the corporate finance boutique set up in 2016 by a group of senior bankers led by Peter Bacchus.

Chief executive Andre Liebenberg tells Proactive that their long-term supply contract with Kazatomprom has allowed them to secure a highly significant and strategic position in physical uranium, at a competitive price.

]]> Euro Manganese leveraged to 'neglected element' at 'time of extreme demand growth' Wed, 03 Oct 2018 00:35:00 +0100 Euro Manganese (ASX:EMN) (TSX-V:EMN) CEO Marco Romero speaks to Proactive Investors, as the company becomes "the first ever to do a dual IPO in Canada and Australia."
The company owns a 100% interest in the Chvaletice Manganese Project located in the Czech Republic. Romero explains, ""it is rather unique: this happens to be the largest manganese resource in Europe, it also happens to be waste from an old mining operation which we intend to recycle, get the metals out of it and at the same time - quite wonderfully - remediate the entire site and leave it in better condition that it is in today."
"We are unique, we believe we are in possession here of a winner; a project that stands to be perhaps one of the best, one of the largest producers of very high quality materials in a very green way - just where the market needs it," says Romero.
]]> Minera Alamos finds new target area at Santana Gold Project in Mexico Tue, 02 Oct 2018 19:34:00 +0100 Minera Alamos Inc (CVE:MAI) President Doug Ramshaw dropped in to the Proactive Investors Vancouver studio with an update on their Santana Gold Project in Mexico.

Ramshaw also talked about a new area, about 3 kilometres away from their main site, they are excited about and have done some preliminary work. 

]]> Xebec Adsorption making headway into renewable gas generation business segment Tue, 02 Oct 2018 17:14:00 +0100 Xebec Adsorption Inc (CVE:XBC) CEO Kurt Sorschak sat down for a chat with Proactive Investors at the MicroCap Conference in New York.

The Quebec-based industrials company provides gas purification, generation, and filtration solutions for a variety of gas markets, including natural gas, field gas, helium and oxygen.

]]> AfriTin Mining picks up two more tin and tantalum licences near to Uis mine Tue, 02 Oct 2018 15:07:00 +0100 Anthony Viljoen, chief executive of AfriTin Mining Limited (LON:ATM) skyped into the Proactive studio in London following the announcement they'd bought two more tin and tantalum licences to expand its footprint in Namibia.

AfriTin's buying all of Tantalum Investment from Jan Jonathan Serfontein for £850,000 in shares issued at 3.4p.

Tantalum Investment owns the licences, one of which includes the formerly producing Brandberg West tin and tungsten mine that was in operation until the 1980's.

]]> Red Rock's Bell bemused by market's 'double-discount' valuation Tue, 02 Oct 2018 15:03:00 +0100 Red Rock Resources Plc ‘s (LON:RRR) Andrew Bell is bullish over investee company Jupiter Mines but can’t understand why it is being rated so lowly.

The manganese miner is producing above target, transports costs have fallen while the price of the metal is rising.

A hefty interim dividend has just been announced and with visibility running 1-2 months ahead, Jupiter is a dependable and a high-quality miner, Bell tells Proactive.

Colombia, meanwhile, is set to see 200 tonnes of gold per day produced by the end of the year, which should mean several thousands of dollars per months as a royalty steam to Red Rock.

]]> Brazil Minerals hits gold in 35 drill-holes at project in Brazil Mon, 01 Oct 2018 17:52:00 +0100 Brazil Minerals CEO Marc Fogassa speaks with Proactive Investor's Christine Corrado at the MicroCap Conference in New York.

Brazil Minerals (OTC: BMIX) is focused on mining specific areas for gold and diamonds, and generating projects from its portfolio of
mineral rights for transactions leading to equity positions and/or royalties.

]]> Nouveau Monde Graphite begins producing at demonstration plant Mon, 01 Oct 2018 17:00:00 +0100 Proactive Investor's Christine Corrado speaks with Eric Desaulniers CEO of Nouveau Monde Graphite Inc (OTCQX: NMGRF) (TSX-V:NOU) at the MicroCap Conference in New York.

Nouveau Monde Graphite is a Canada-based mining exploration company. It specializes in exploration and evaluation of mineral properties located in Quebec.

]]> Transition Metals CEO says the time is ripe for investing into mining Mon, 01 Oct 2018 15:54:00 +0100 Transition Metals Corporation (TSXV:XTM) president & CEO Scott McLean speaks to Proactive about its progress through 2018.

Transition Metals  is a multi-commodity project generator focused on the discovery of ore deposits in Canada.

]]> Western Uranium and Vanadium announces name change Mon, 01 Oct 2018 15:31:00 +0100 Western Uranium and Vanadium Corp (CSE: WUC, OTCQX: WSTRF) CEO George Glasier meets with Proactive Investor's Christine Corrado at the MicroCap Conference in New York.

Western Uranium Corporation is a Colorado based uranium and vanadium conventional mining company focused on low cost near-term production of uranium and vanadium in the western United States, and development and application of ablation mining technology.

]]> Greatland Gold's second drill programme at Havieron 'off to exciting start' Mon, 01 Oct 2018 12:11:00 +0100 Gervaise Heddle, chief executive of Greatland Gold plc (LON:GGP), tells Proactive London that intercepted mineralisation in their current drilling programme at the Havieron project in Australia appears visibly similar to core recovered from an earlier hole that yielded 121 metres grading 2.93 grams per tonne gold and 0.23% copper.

The current drilling campaign at Havieron, which commenced on 17 September 2018, consists of up to ten core holes for a total of approximately 6,000 metres.

]]> Rockfire Resources granted permit surrounding Newmont’s Mt Leyshon gold mine Mon, 01 Oct 2018 09:16:00 +0100 David Price, chief executive of Rockfire Resources Plc (LON:ROCK), tells Proactive's Andrew Scott they've been granted a 38 square kilometre permit surrounding Newmont’s Mt Leyshon gold mine.

The grant of the New Leyshon permit means that Rockfire now has permitted ground immediately contiguous to Mt Leyshon on three sides.

]]> European Metals secures key permits as Cinovec project advances Mon, 01 Oct 2018 08:31:00 +0100 Keith Coughlan, managing director of European Metals Holdings LTD (LON:EMH), tells Proactive's Andrew Scott they've secured permits to drill 13 new holes at the Cinovec project in the Czech Republic as part of an ongoing definitive feasibility study.

The drilling is aimed at upgrading a sufficient portion of the existing indicated resource to a measured resource in order to cover the first two years of the scheduled mining plan.

]]> Mining Capital's Alastair Ford talks gold play in the US, Oz & Africa Fri, 28 Sep 2018 15:25:00 +0100 Was the Rangold deal as good as it seemed? When the US Federal Reserve raises rates, how does that affect gold prices in Africa? What are Pan African, ECR Minerals and Greatland Gold up to?

to Al's analysis as he describes how the 'Trump effect' continues ripple across gold interests worldwide.

]]> Strategic Minerals boss delighted with strong first half performance Fri, 28 Sep 2018 15:14:00 +0100 Minerals production and development company Strategic Minerals (LON:SML) chat through its impressive set of figures and say it's all down to one key acquisition at Leigh Creek, now a second income stream for Strategic. 
Managing Director John Peters tells us why that move was "such a bargain" and gives Proactive London updates too on the Cobre mine as well as four other projects, adding up to a busy time for Strategic.
]]> What next for the gold price? Fri, 28 Sep 2018 13:09:00 +0100 Half-year results show SigmaRoc's acquisition strategy clearly works says CEO Vermorken Fri, 28 Sep 2018 10:08:00 +0100 Construction materials group SigmaRoc PLC (LON:SRC) more than doubled half year profits as acquisitions Allen Concrete and Poundfield made their first meaningful contributions.

Max Vermorken, chief executive, told Proactive the results underline the rationale behind its buy and build strategy and more purchases are in the works.

SigmaRoc’s team are very efficient not only in integrating new companies but also retaining their unique qualities, he says.

The group will have no trouble meeting expectations for the full year, adds Vermorken.

]]> Eurasia Mining debt-free as it beats production target for mining season Fri, 28 Sep 2018 08:31:00 +0100 Eurasia Mining plc's (LON:EUA) Christian Schaffalitzky tells Proactive that the company has cleared all debt from its books in the latest set of interim results.

Schaffalitzky adds that the company is "well ahead" of its 100kg target for the mining season, which runs from may to November, having already achieved 150kg.

]]> W Resources' market update from China Tungsten show Fri, 28 Sep 2018 08:00:00 +0100 Speaking from the International Tungsten Association Conference in Chengdu, China, W Resources (LON:WRES) CEO Michael Masterman is knocked back by the enthusiasm of the main players in this emerging market place adding "Tungsten demand globally is booming!"

Demand is high in both Asia and the US with WResources's La Parilla mine in Spain coming on stream for this rapidly growing market.

]]> Peninsula Energy to become globally competitive uranium producer with low-pH ISR operation Fri, 28 Sep 2018 05:47:00 +0100 Peninsula Energy Ltd (ASX:PEN) managing director & CEO Wayne Heili and non-executive chairman John Harrison update Proactive Investors on the uranium company’s recently completed feasibility study for its Lance Project in Wyoming, which supports the project’s transformation to a low-pH in-situ recovery (IRS) uranium operation.
The study shows that Peninsula would become a globally competitive uranium producer by switching its uranium production method to low-pH ISR.
“This is a low-risk, high-opportunity company,” Harrison says.
He continues, “we have the ability to continue producing uranium in the manner that we are. We also have the ability – when we have the regulatory permits – to change it to a low-pH project which will only cost $5 million to convert the existing mine.”
]]> Galena Mining's Abra project has NPV 8 times greater than market cap following PFS Fri, 28 Sep 2018 05:28:00 +0100 Galena Mining Ltd (ASX:G1A) managing director Alex Molyneux updates Proactive Investors on the base metals-focused company’s Abra Lead-Silver Project which has had its world-class potential confirmed through a recently completed pre-feasibility study.
The PFS outlines a 14-year mine life producing a high-value, high-grade lead-silver concentrate containing 91,000 tonnes of lead and 760,000 ounces of silver annually after ramp-up.
“We all know that when projects go into the construction phase and they get commissioned, if they get commissioned well and the work is done right, there’s a huge re-rating in the value of the stock,” Molyneux says.
He continues, “ïn our case our NPV (net present value) has come out at a level that is 8 times the current market cap of the company, we’re on track with our development milestones, I think that’s an opportunity and I’m certainly excited about it myself.”
]]> Australian Vanadium’s baseline PFS indicates potential to become low-cost vanadium producer Fri, 28 Sep 2018 01:38:00 +0100 Australian Vanadium Ltd (ASX:AVL) managing director Vincent Algar updates Proactive Investors on the battery metals company’s development of its Gabanintha Vanadium Project in Western Australia.
A baseline pre-feasibility study has been completed for the project and estimates a net present value (NPV) range for the project that has a top end of US$2.37 billion when assuming a vanadium price of US$20 per pound.
This base case demonstrates robust project fundamentals featuring competitive product costs and financials and will allow AVL to move quickly into piloting and definitive feasibility study (DFS) upon completion.
“Once you start mining in this area you then have an opportunity to either go deeper or go along strike and one thing AVL has got is a lot of strike length to work with, all of which is currently inferred resources,” Algar says. 
]]> Great Bear Resources encouraged by more positive drill results from Dixie Project Fri, 28 Sep 2018 01:17:00 +0100 Great Bear Resources (CVE:GBR) President and CEO Chris Taylor joined Steve Darling in the Proactive Investors Vancouver studios to highlight positive results from their Dixie Project.

Taylor also talked about the companies positive financial situation and what lies ahead in the rest of 2018 and in the 2019.

]]> International Cobalt reports encouraging assays from Raven prospect Thu, 27 Sep 2018 16:12:00 +0100 Tim Johnson, president of International Cobalt Corp (CNSX:CO),  discusses with Proactive's Andrew Scott ''encouraging'' grab sample assays from their recently discovered Raven prospect at the Blackbird Creek project in Idaho, USA.

The company reckons the nature of the mineralization at the site, coupled with the continuity of assays across is "highly suggestive of a local source in close proximity".

]]> Verde Agritech outlines ambitious expansion plans as sales ramp up Thu, 27 Sep 2018 13:52:00 +0100 Cristiano Veloso, president and chief executive of Verde Agritech PLC (TSE:NPK) caught up with Proactive Investors in New York not longer after announcing the start-up of its processing plant - a milestone moment for the company.

Veloso discusses the Super Greensand product and says it offers farmers an economical way to fertilize land but also give back nutrients to food and the soil.

]]> Goldplat hopeful of breakthrough recovery contract in West Africa this year Thu, 27 Sep 2018 13:13:00 +0100 The year just ended was one of consolidation says Gerard Kisbey-Green, chief executive of gold recovery specialist Goldplat plc (LON:GDP).

A lot of effort was put into picking up a large contract in either West Africa or South America and KIsbey-Green can see that work resulting in a deal arising in the next twelve months.

That would return the business at least back to the level of 2017, he said.

At the Kilimapesa gold mine in Kenya, Goldplat is still looking for a partner to help turn it into a 50,000oz per year operation.

]]> Connemara Mining establishes maiden resource estimate at Stonepark venture Thu, 27 Sep 2018 09:49:00 +0100 Connemara Mining Company PLC's (LON:CON) Patrick Cullen tells Proactive that the company has had a "very busy six months" as it reported its results for the half year.

The miner ended the six months to June 2018 with €366,000 in the bank, after turning in a loss of €160,000.

Among the highlights were the establishment of a high-grade maiden resource estimate at the Stonepark zinc joint venture, as well as active exploration and significant progress across four projects.

]]> Tectonic Gold drilling now, results expected to validate decade-long research program Thu, 27 Sep 2018 05:09:00 +0100 Tectonic Gold Plc (NEX:TTAU) CEO Brett Boynton introduces Proactive Investors to the gold exploration company, which recently listed on the NEX Exchange Growth Market.

Boynton explains that the team is focused on large-scale Intrusion Related Gold Systems (IRGS), with a particular interest in the Lachlan Fold Belt in Eastern Australia. The company has pioneered a new exploration approach and toolkit over the past decade, with support from the Australian Federal Government.

A 2,580 metre diamond drilling campaign is underway at the flagship Specimen Hill Project.

]]> It's a transformative time for lithium-producing Tawana Resources Thu, 27 Sep 2018 03:30:00 +0100 Tawana Resources NL (ASX:TAW) managing director Mark Calderwood speaks to Proactive Investors in detail about the ongoing merger process with Bald Hill Mine co-owner Alliance Mineral Assets (SGX:AMAL).

"The two companies are going to merge to make a larger, more streamlined company going forward... we fully intend to stay on the ASX... we will also be Singapore listed... it's a merger of equals," explains Calderwood.

He also provides updates on the development of and production from the Bald Hill Mine in Western Australia.

]]> Tyranna Resources advances exploration work on gold, cobalt and base metal assets Thu, 27 Sep 2018 03:28:00 +0100 Tyranna Resources Ltd (ASX:TYX) managing director Bruno Seneque updates Proactive Investors on the company’s exploration work at its Australian gold projects, as well as the recent acquisition of the Good Springs cobalt and base metals project in Nevada.
Drilling has begun at the Eureka Gold Project 50 kilometres north of Kalgoorlie, where the 2,500-metre, 16-hole program is aiming to upgrade the gold resource to JORC 2012 standard.
“What we want to do is prove up an ore body that we can mine – that’s basically it,” Seneque says.
He continues, “We don’t have to build a process plant, we can mimic what other people have done like Intermin, Genesis. We’re in an environment where there’s a number of mills that are already expressing interest in taking our ore.”
]]> Tinka Resources to update resource and explore new discoveries after drilling 20,000m Thu, 27 Sep 2018 03:00:00 +0100 Tinka Resources Ltd (CVE:TK) chief executive Dr Graham Carman updates Proactive Investors on drilling results flowing from the company's flagship Ayawilca zinc and tin project in Peru. This year alone Tinka has drilled around 20,000 metres across the project area, adding to 46,000 metres drilled since the initial discovery. As a result, new discoveries have been made.

"It's one of the largest zinc resources in the world, in a junior company, and we think it's going to be a mine," says Carman.

A resource update is slated to be announced in a matter of weeks, with a PEA planned for the start of next year.

]]> Nexus Minerals about to do a lot of ground work on newly enlarged Wallbrook Project Thu, 27 Sep 2018 03:00:00 +0100 Nexus Minerals Ltd (ASX:NXM) managing director Andy Tudor updates Proactive Investors on the gold explorer's Wallbrook Project, located in the eastern goldfields of Western Australia.

Additional tenements along strike have recently been acquired, taking the overall project to 250 square kilometres. All assay results are now back from a recent RC drilling program, showing several confirmed high-grade gold hits.

Various ground works will be happening for the rest of the quarter, with drilling slated for the March quarter of next year.

]]> Melbana Energy developing a 'game changer' prospect, in addition to other assets Thu, 27 Sep 2018 02:20:00 +0100 Melbana Energy Ltd (ASX:MAY) CEO Robert Zammit speaks to Proactive Investors about the oil & gas exploration company's interesting and diverse portfolio of assets, spanning two projects in Cuba as well as the large-scale Beehive prospect, and methanol & LNG operations in Australia.

Zammit identifies seven key catalysts for the company moving into 2019, including some significant news that is expected to be announced imminently.

]]> PolarX’s high-grade copper-gold results in Alaska indicate potential for open pit mining Thu, 27 Sep 2018 01:55:00 +0100 PolarX Ltd (ASX:PXX) managing director Frazer Tabeart updates Proactive Investors on recent high-grade copper and gold assay results from its Alaska Range Project in the USA.
The results indicate the potential for flat-lying and thick near-surface mineralisation, suitable for low-cost open pit extraction, and extend the sub-horizontal mineralisation encountered in previous drilling.
“We’ve got 40-50 metres thickness of high-grade mineralisation, almost from surface, and that mineralisation is a little bit of different from what we’ve seen before inasmuch as it’s flat-lying and very thick,” Tabeart says.
He continues, “if we can drill that out over some area we can have a fairly large open-pittable resource, as opposed to an underground mining proposition for the remainder of the resource.”
]]> Lithium Australia to 'close the loop' on battery materials with complements to SiLeach® process Wed, 26 Sep 2018 23:00:00 +0100 Lithium Australia NL (ASX:LIT) managing director Adrian Griffin speaks to Proactive Investors about the company's proprietary SiLeach® process, which has successfully delivered lithium phosphate in pilot plant testing.

Lithium Australia aims to convert mine waste into lithium-ion batteries, a world-first.

Griffin highlights the "positive" ecosystem for research and development (R&D) in Australia during the time the process was pioneered.

He explains, "At the moment, Australia takes about half a percent of the value of the supply chain. If you put enough R&D in, you can actually leverage the outcome and get a lot more of that supply chain, and we should do that because we've got the tiger by the tail.

"We actually control the inputs into the supply chain; what we've got to do is do the research to value-add to those materials. The supply chain, if you look at [projections], by 2025 it's probably going to be worth somewhere between 2 and 5 trillion dollars."

Griffin teases more innovations in the pipeline, and indicates that the company is looking into all geographic options moving forwards to maximise returns, given a recent decision by Australian politicians to remove R&D tax credits.

]]> Archer Exploration positioned to capitalise on range of applications for advanced materials Wed, 26 Sep 2018 22:30:00 +0100 Archer Exploration Ltd (ASX:AXE) CEO Mohammad Choucair explains the company's strategic shift of focus to advanced materials, and describes the emerging opportunities in the electric vehicle, biotech and quantum computing spaces. 

"Archer's in the unique position now to offer shareholders an opportunity to be exposed to really innovative technologies, like quantum computing, and the advanced materials that underpin them; because we're one of only a few companies in Australia - even listed on the ASX - that offer that kind of opportunity," says Choucair.

]]> Avrupa Minerals very encouraged with first-pass drilling at Alvito project Wed, 26 Sep 2018 21:26:00 +0100 Avrupa Minerals Ltd (CVE:AVU) CEO and president Paul Kuhn tells Proactive's Andrew Scott first drilling at the Alvito iron oxide copper-gold (IOCG) project in south Portugal has shown real potential.

The work was funded by OZ Minerals, which is spending A$1 million on exploration to earn 51% of the 300 sq km project. 

Avrupa is the operator of the programme.

The work comprised 18 holes in eight separate targets but most of the drilling was in the Entre Matinhas area.

]]> Nano One looking to produce low cost high performance battery materials Tue, 25 Sep 2018 23:37:00 +0100 Dan Blondal from Nano One Materials Corp (CVE:NNO.V) caught up with Proactive Investors in New York at the LD Micro Conference.

Nano One's mission is to establish its patented technology as a leading platform for the global production of a new generation of nano-structured composite materials.

]]> Mosman Oil and Gas leveraging strategic alliance for project development Tue, 25 Sep 2018 07:29:00 +0100 Mosman Oil And Gas (LON:MNMN) technical director Andy Carroll updates Proactive Investors on the energy company’s strategic alliance with Baja Oil and Gas LLC and developments across the two projects that comprise the partnership, Champion and Challenger.

“One of the big positives on Champion is that Baja had 100% of this project so Mosman was able to increase the percentage we’ve acquired from Baja, so we’ve taken 60% on that project,” Carroll says.

He continues, “we really like it … there is existing infrastructure in the area, we can drill those wells in the near future and existing infrastructure means they can come on production very quickly.

“With Challenger, it’s the redevelopment of an existing oil field … there’s enough information to get a reserve estimate on that area and 3D seismic will show the sweet spots where we think development wells best be located.”

]]> Key Petroleum addresses downturn with contract operations while developing its projects Tue, 25 Sep 2018 06:58:00 +0100 Key Petroleum Ltd (ASX:KEY) managing director Kane Marshall speaks to Proactive Investors about the Perth-based oil and gas company’s projects across the Perth and Cooper Basins as well as its additional contract operator business.
“We’ve actually adapted to the downturn and identified that not only do you need a means to survive, we actually needed to address costs, not only for our own exploration and operation assets but also other operators’”, Marshall says.
He continues, “we have now got about 3 or 4 clients that we have provided services in terms of rehabilitation, remediation, civil earthworks, compliance, and that will fold into our own E&P business as a contract operator.
“We are sort of a vertically-integrated company … but that sets us aside from a lot of our other peers.”
]]> Havilah Resources’ multi-commodity exploration strategy in SA delivers substantial results Tue, 25 Sep 2018 04:15:00 +0100 Havilah Resources Ltd (ASX:HAV) technical director Chris Giles updates Proactive Investors on the junior exploration company’s recent activities and the results of it quarterly report.

Adelaide-based Havilah holds more than 16,000 square kilometres of mineral tenements in the Curnamona Craton in northeastern South Australia, including its flagship Kalkaroo project.

“The good thing about the 100 million tonne ore reserve [at Kalkaroo] is that 90% of it is in the proven category and it was independently determined by RPM Global … as part of the Wanbao pre-feasibility study,” Giles says.

He continues, “so it actually makes Kalkaroo the largest open pit-able undeveloped copper equivalent deposit in Australia so it’s a very significant deposit and a very significant result for us.”

]]> Randgold-Barrick merger "broadly positive" - Mining Capital's Alastair Ford Mon, 24 Sep 2018 13:18:00 +0100 Mining Capital's Alastair Ford tells Proactive that the merger between  FTSE 100 miner Randgold Resources (LON:RRS) and Canadian firm Barrick Gold Corp (NYSE:ABX) has taken the market by surprise but is "on the whole broadly positive".

Ford says that the deal will generate significant cost savings for both groups, as well as bolstering each other's geographical spread.

However, Ford adds that the merger will open a void in the London market, with speculation around who will fill the gap left by Randgold.

]]> Strategic Minerals identifies new nickel sulphide prospects at Hanns Camp Mon, 24 Sep 2018 11:22:00 +0100 Strategic Minerals Plc's (LON:SML) Alan Broome tells Proactive that the firm has identified three new nickel sulphide prospects at its Hanns Camp prospect in Western Australia.

A review of the data by nickel specialist Dr Martin Gole along with the company’s consultant geologist Graeme Purcell has confirmed the potential for lava channel embayment’s in the ultramafic rocks for nickel sulphide mineralisation.

Following the results, the company will conduct ground-based electromagnetic surveys across all three targets, which is expected to be undertaken and reported on within the December 2018 quarter.

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

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

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

]]> Savannah Resources achieves several "important valuation milestones" in first half Mon, 24 Sep 2018 09:19:00 +0100 Savannah Resouces PLC's (LON:SAV) David Archer tells Proactive that the company has increased investment in its assets, particularly its Mina do Barroso (MdB) lithium project in Portugal, over the first half of the current year.

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

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

]]> VSA CAPITAL MARKET MOVERS - Central Asia Metals Mon, 24 Sep 2018 08:51:00 +0100 Higher Commodity Prices and Robust Cost Control

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

Sasa Integration Driving Strong Returns

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

Low Cost Base Protects Against Metals Volatility

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

Recommendation and Target Price


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

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

]]> Metro Mining’s Bauxite Hills Mine in QLD sells all bauxite production for 2018 Sun, 23 Sep 2018 23:00:00 +0100 Metro Mining Ltd (ASX:MMI) managing director & CEO Simon Finnis speaks with Proactive Investors about the bauxite producer’s Bauxite Hills Mine in northern Queensland, which began production in April.

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

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

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

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

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

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

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

]]> The Fed’s forthcoming decisions on rates are likely to have major implications for the mining sector and emerging markets Fri, 21 Sep 2018 13:49:00 +0100 Premier African Minerals's George Roach discusses Zulu DFS options Fri, 21 Sep 2018 11:15:00 +0100 George Roach, chief executive of Premier African Minerals Ltd (LON:PREM) spoke to Proactive's Andrew Scott after announcing they'd been unable to reach final terms with Cadence Minerals Plc to fully fund the Definitive Feasibility Study of the Zulu Lithium and Tantalum Project.

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

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

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

]]> Tantalum prices forecast to decline despite growing market Fri, 21 Sep 2018 07:20:00 +0100 Roskill analyst Stefano di Nardo discusses his Global Industry, Markets & Outlook report for Tantalum through to 2027.

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

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

]]> New Age Exploration delivers high-grade results at Redmoor amid declining tin supply Fri, 21 Sep 2018 06:02:00 +0100 New Age Exploration Ltd (ASX:NAE) managing director & CEO Gary Fietz updates Proactive Investors on the advanced explorer’s recent drilling results from its Redmoor Tin-Tungsten Project in the United Kingdom.
Results of up to 14.10 metres at 1.44% tin equivalent from 420.25 metres, including 2.00 metres at 4.55% highlight increasing grades at depth.
Fietz highlighted a study by the Massachusetts Institute of Technology that showed that tin was the number one metal impacted by new technology, with Tungsten ranking as number seven.
“Often we think of lithium and graphite and sometimes cobalt, we don’t often think of tin as a new technology EV metal but interestingly this study showed tin as number one,” Fietz says.
]]> Bannerman Resources well positioned to leverage nuclear sector recovery Fri, 21 Sep 2018 04:48:00 +0100 Bannerman Resources Ltd (ASX:BMN; NSX:BMN) managing director Brandon Munro updates Proactive Investors on the uranium development company’s position in a deepening deficit within the nuclear sector.

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

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

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

]]> Europa Metals increases resource at Toral project in Spain by 19% Thu, 20 Sep 2018 12:12:00 +0100 Laurence Read, executive director of Europa Metals Ltd (LON:EUZ) (ASX:EUZ), tells Proactive's Andrew Scott they've increased the JORC mineral resources estimate for their 100%-owned Toral lead-zinc-silver project in northern Spain, following a recent re-logging programme of certain historical core samples.

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

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

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

]]> VSA CAPITAL MARKET MOVERS - NuLegacy Gold Thu, 20 Sep 2018 08:05:00 +0100 NuLegacy Gold (CVE:NUG)

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

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

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

We reiterate our Speculative Buy recommendation.

]]> North Korea tipped to be a significant future player in Magnesia industry Thu, 20 Sep 2018 07:33:00 +0100 Roskill's Alison Saxby spoke to Proactive's Andrew Scott following the release of her industry, markets & outlook 2018 report for magnesium compounds.

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

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

]]> Davenport Resources aims to bring unique German potash assets into JORC compliance Thu, 20 Sep 2018 02:15:00 +0100 Davenport Resources Ltd (ASX:DAV) non-executive chairman Patrick McManus speaks to Proactive Investors about the agri-minerals company’s South Harz Potash Project in central Germany.

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

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

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

]]> Peninsula Mines drilling for graphite, gold-silver and zinc at 3 South Korean projects Wed, 19 Sep 2018 23:19:00 +0100 Peninsula Mines Ltd (ASX:PSM) managing director Jon Dugdale updates proactive investors as the South Korea-focused company commences a drill program that will span three projects encompassing battery, base and precious metals.

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

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


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

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

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

We reiterate our Speculative Buy recommendation.

]]> VSA CAPITAL MARKET MOVERS - Novo Lítio Mon, 17 Sep 2018 10:38:00 +0100

Novo Lítio#: Gold Project Acquisition


Acquisition of Highly Prospective Gold Project

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

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

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

Sepeda Update

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


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

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


]]> VSA CAPITAL MARKET MOVERS - redT Energy Mon, 17 Sep 2018 08:42:00 +0100 redT Energy (LON:RED)#

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

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

VSA Comment

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

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

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

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

Results As Expected After July Production Update

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

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

Early Positive Signs for Future Fruit Levels

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

Recommendation and Target Price

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


For full report click here

]]> VSA CAPITAL MARKET MOVERS - redT energy Thu, 13 Sep 2018 08:24:00 +0100 redT energy: H1 2018 Results

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

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

VSA Comment

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

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

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

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

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

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

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

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

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]]> The junior mining sector is showing real signs of life, as the global economy powers on Fri, 07 Sep 2018 12:46:00 +0100 VSA CAPITAL MARKET MOVERS - Genus Thu, 06 Sep 2018 07:57:00 +0100 Genus: FY 2018 Results

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

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

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

VSA Comment

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

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

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

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

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

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

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

Risers and Fallers (Last Close)


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Obtala Limited





Carr's Group





Plant Health Care








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Sirius Minerals










Anglo-Eastern Plantations






]]> VSA CAPITAL MARKET MOVERS - Lake Resources Thu, 06 Sep 2018 07:53:00 +0100 Lake Resources (ASX:LKE)#


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

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

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

We reiterate our Speculative Buy recommendation. 

]]> VSA CAPITAL MARKET MOVERS - Lake Resources Wed, 05 Sep 2018 07:55:00 +0100 Lake Resources (CVE:LKE)#


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

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

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

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

We reiterate our Speculative Buy recommendation.

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


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

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

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

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

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

We reiterate our Speculative Buy recommendation.

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

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

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

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

]]> VSA Capital Market Movers - Altyn, Shefa Yamim.. Mon, 03 Sep 2018 07:59:00 +0100 Altyn (LON:ALTN)

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

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

We reiterate our Buy recommendation and target price of 3.54p

Shefa Yamim (LON:SEFA)

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

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

We reiterate our Speculative Buy recommendation. 

]]> Will the US’s trade deal with Mexico encourage Donald Trump to double down with China? Fri, 31 Aug 2018 13:00:00 +0100 VSA CAPITAL MARKET MOVERS - Egdon Resources Thu, 30 Aug 2018 08:33:00 +0100 Production Update

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

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

Developments for UK Shale

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

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

Recommendation and Target Price

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

]]> VSA CAPITAL MARKET MOVERS - Colombus Energy Resources Thu, 30 Aug 2018 08:27:00 +0100 Columbus Energy Resources (LON:CERP)


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

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

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

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

]]> The intrigue around the proposed rescue package for Noble Group reveals appetite for commodities trading is a strong as ever Fri, 24 Aug 2018 13:00:00 +0100 VSA CAPITAL MARKET MOVERS - Shefa Yamim Thu, 23 Aug 2018 08:04:00 +0100 Shefa Yamim (LON:SEFA)


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

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

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

We reiterate our Speculative Buy recommendation.

]]> VSA CAPITAL MARKET MOVERS - Lithium Americas, Lake Resources, SQM.. Tue, 21 Aug 2018 07:57:00 +0100 Lake Resources (LKE AU)#

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

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

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

We reiterate our Speculative Buy recommendation.

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

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

Emerging Applications – Grid Storage, Electric Vehicles and IoT

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

Battery Technologies

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

Battery Raw Materials

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

VSA Shanghai Office – The Chinese Perspective


- China – Positioning for Global Leadership of the Battery Sector

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

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

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

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

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

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

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

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

]]> VSA CAPITAL MARKET MOVERS - Shefa Yamim Thu, 16 Aug 2018 09:15:00 +0100 Shefa Yamim (LON:SEFA)

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

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

We reiterate our Speculative Buy recommendation.

]]> VSA CAPITAL MARKET MOVERS - NuLegacy Gold Wed, 15 Aug 2018 08:08:00 +0100 NuLegacy Gold (CVE:NUG) (OTCMKTS:NULGF)


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

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

]]> VSA Capital Market Movers - Lake Resources, Ganfeng Lithium, Lithium Americas.. Tue, 14 Aug 2018 08:00:00 +0100 Lake Resources (ASX:LKE)

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

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

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

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

We reiterate our Speculative Buy recommendation.

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

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

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

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

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

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

High Quality Mill Operation

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

Current Share Price Provides Attractive Entry

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

Recommendation and Target Price

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

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

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

Undemanding Valuation

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

Positive Commodity Outlook

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

Recommendation and Target Price

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

]]> VSA CAPITAL MARKET MOVERS - NuLegacy Gold Thu, 02 Aug 2018 07:50:00 +0100 NuLegacy Gold (CVE:NUG

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

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

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

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

We reiterate our Speculative Buy recommendation.  

]]> VSA CAPITAL MARKET MOVERS - Egdon Resources Thu, 02 Aug 2018 07:47:00 +0100 Egdon Resources (LON:EDR)


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

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

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

We reiterate our Buy recommendation and 52p target price.

]]> VSA CAPITAL MARKET MOVERS - Lake Resources, Orocobre, Advantage Lithium.. Wed, 01 Aug 2018 08:03:00 +0100 Lake Resources (ASX:LKE)


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

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

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

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

We reiterate our Speculative Buy recommendation.  

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


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



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

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

redT Signs €50m Project Agreement

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

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

VSA Comment

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 We reiterate our Speculative Buy recommendation.

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

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

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

VSA Comment


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

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

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

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

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

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


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

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

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

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

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


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

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


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

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

We reiterate our Speculative Buy recommendation. 

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

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

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

We reiterate our Speculative Buy recommendation.

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

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

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

VSA Comment

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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


We reiterate our Buy recommendation and 26p target price.

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


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

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

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

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

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

We reiterate our Buy recommendation and 96p target price.

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

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

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

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

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

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

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

FY 2017 Orders to Contribute to FY 2018 Results

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

2018: Focus on Pipeline Conversion; Gen3 Launch

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

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

Recommendation and Target Price


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

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

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

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

Additional Goddard and Abbeydale Blocks

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

Recommendation and Target Price

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We reiterate our Speculative Buy recommendation.

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


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

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

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

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

We reiterate our Buy recommendation and 72p price target. 

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


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

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

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

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

We reiterate our Buy recommendation and 26p target price.  

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

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

We reiterate our Buy recommendation and 48.5p target price.

Independent Oil & Gas (LON:IOG)

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

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

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

We reiterate our Buy recommendation and 72p target price.

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

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

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

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

VSA Comment

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

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

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

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

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

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

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


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

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

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

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

We reiterate our Buy recommendation and 48.5p target price

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

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

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

VSA Comment


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

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

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

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

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


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

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

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

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

The above is fully funded from existing cash resources.

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

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

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

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

We reiterate our Buy recommendation and 26p target price. 

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

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

VSA Comment


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

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

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

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

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

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



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

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

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

We reiterate our Buy recommendation and 17p target price.

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

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

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

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

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

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

We reiterate our Buy recommendation and 48.8p target price.

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

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

We reiterate our Speculative Buy recommendation.

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

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

We reiterate our Buy recommendation and 48.8p target price.