Rockfire Resources soars as it strikes “bonanza” grade gold at Double Event prospect Mon, 19 Nov 2018 08:44:00 +0000 Oriole Resources starts early exploration of Cameroon prospects Mon, 19 Nov 2018 08:37:00 +0000 Vast starts drilling at Zagra in Romania Mon, 19 Nov 2018 08:31:00 +0000 Amur outlines strategic plan for the development of Kun-Manie Mon, 19 Nov 2018 08:20:00 +0000 Cradle Arc ticks up as it hails “vote of confidence” in Mowana project with working capital extension Mon, 19 Nov 2018 08:16:00 +0000 Greatland Gold lauds exceptional assay results from first drill hole on Havieron licence at Paterson Mon, 19 Nov 2018 08:08:00 +0000 Galantas announces placement to raise up to £4mln, receives expressions of interest Mon, 19 Nov 2018 08:00:00 +0000 NQ Minerals signs off-take agreement with Traxys to cover first five years of production from Hellyer Mon, 19 Nov 2018 07:46:00 +0000 Gold Road Resources intersects high-grade gold at Gilmour deposit, confirms continuity Mon, 19 Nov 2018 06:26:00 +0000 Galena Mining director Tony James buys shares through on-market trades Mon, 19 Nov 2018 05:45:00 +0000 Core Lithium “deeply saddened” to advise of sudden passing of CFO Mon, 19 Nov 2018 05:13:00 +0000 Bulls, Bears & Brokers: DJ Carmichael's Davide Bosio on the ones to watch right now Mon, 19 Nov 2018 05:00:00 +0000 Davide Bosio, managing director, CEO & head of corporate finance at DJ Carmichael, speaks to Proactive Investors about the companies and sectors that have grabbed his attention in the past week.

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

]]> Meteoric Resources divests non-core Canadian assets for more than $1.5 million Mon, 19 Nov 2018 04:53:00 +0000 Red River Resources Limited has more strong base and precious metals results underground at Thalanga Mon, 19 Nov 2018 04:11:00 +0000 TopTung to acquire three advanced nickel-copper projects in Canada, aims for production Mon, 19 Nov 2018 04:08:00 +0000 De Grey Mining appoints Peter Hood as non-executive director Mon, 19 Nov 2018 02:43:00 +0000 Reward Minerals advancing Lake Disappointment SOP Project on multiple fronts Mon, 19 Nov 2018 02:13:00 +0000 Reward Minerals Ltd (ASX:RWD) chief executive Greg Cochran updates Proactive Investors on the company's flagship Sulphate of Potash (SOP) project at Western Australia's Lake Disappointment, known as the LD Project. An updated Environmental Review Document has recently been submitted to the state's Environmental Protection Authority.

The company is conducting infill drilling, advancing long term evaporation / seepage work, and developing the process flow sheet; works which will eventually flow into a definitive feasibility study.

]]> PolarX 'coming up with the goods' at Mars prospect in Alaska Range Project Mon, 19 Nov 2018 02:00:00 +0000 PolarX Ltd (ASX:PXX) managing director Frazer Tabeart details for Proactive Investors just-announced results from soil and rock chip sampling on the Mars Prospect within the company's Alaska Range Copper-Gold Project in the USA.

"Mars sits at the far Western end of a 12 kilometre long mineralised corridor, which these results really firm up. The results show that we've got a coherent anomaly covering about 2000 metres by almost 1500 metres in size, with multi-elements... what's really impressed us is the fact that it coincides with a magnetic anomaly and also an IP anomaly," says Tabeart.

About 50% of results from a recent drilling campaign are outstanding and expected to be announced in the next two to three weeks. Earlier, a high-resolution aeromagnetic survey shed more light on the porphyry copper-gold potential around the existing Zackly inferred resource.

A resource update is expected later this year, while a substantial drilling campaign, other exploration works, and further resource update are slated for next year.

]]> Archer Exploration outlines drill program testing copper gold targets Mon, 19 Nov 2018 01:55:00 +0000 Galan Lithium enters underwriting agreement to raise funds for Candelas drilling Mon, 19 Nov 2018 01:39:00 +0000 King River Copper reveals improved process route for vanadium recovery at Speewah Mon, 19 Nov 2018 01:37:00 +0000 Ironbark Zinc granted trading halt with capital raising news pending Mon, 19 Nov 2018 01:23:00 +0000 Anson Resources finalises location of pilot plant for Paradox Lithium Project Mon, 19 Nov 2018 00:18:00 +0000 Antipa Minerals chasing 'game changing opportunity' near Rio Tinto in Paterson Province Mon, 19 Nov 2018 00:06:00 +0000 Antipa Minerals Ltd (ASX:AZY) executive chairman Stephen Power tells Proactive Investors that seven years focused on the Paterson Province of Western Australia have given the explorer "first mover advantages." The neighbourhood is attracting increased attention on the back of rumours of a major discovery by Rio Tinto Exploration (ASX:RIO).

Antipa has a farm in and joint venture agreement with Rio Tinto on its Citadel Project. It solely holds exploration licenses on between five and five and a half thousand square kilometres of land notable for its shallow cover.

This year the company has conducted reverse circulation (RC) and aircore drilling, a Gradient Array Induced Polarisation (GAIP) survey, and also an aerial electromagnetic (AEM) survey that has identified eleven high priority targets for drilling next year.

]]> White Cliff Minerals new assays feature 40 metres at 0.22% cobalt and 1.75% nickel Sun, 18 Nov 2018 23:56:00 +0000 PolarX closing in on potential copper-gold discovery at Mars Sun, 18 Nov 2018 22:43:00 +0000 Legend Mining survey reveals multiple new targets at Area D Sun, 18 Nov 2018 21:47:00 +0000 Tulkubash 'just at the beginning of its growth story' - Chaarat Gold's Dusty Nichol Fri, 16 Nov 2018 15:27:00 +0000 Chaarat Gold Holdings Limited's (LON:CGH) Dusty Nichol updates on drilling at the Tulkubash project in the Kyrgyz Republic.

Since the beginning of September, Chaarat's carried out another 9,000 metres of drilling at Tulkubash, which has an existing resource of 1.5mln ounces of gold.

Among the latest round of results was a 7m intercept grading 3.96 grams per tonne (g/t) of gold (Au) from a depth of 43.5m, as well as a 14m intercept at 0.83 g/t Au from 19.5m.

]]> Brexit turmoil drives investors towards metals and miners Fri, 16 Nov 2018 15:19:00 +0000 Explorex Resources updates subscriber guidance on previously announced financing Fri, 16 Nov 2018 14:11:00 +0000 China Nonferrous Gold on track to complete infrastructure projects at Pakrut in fourth quarter Fri, 16 Nov 2018 13:58:00 +0000 Excitement builds at Alba Mineral Resources as Horse Hill production tests impress Fri, 16 Nov 2018 12:52:00 +0000 George Frangeskides, executive chairman of Alba Mineral Resources Plc (LON:ALBA), tells Proactive London's Andrew Scott he's very encouraged following the release of the latest data out of the Horse Hill production testing campaign.

Stats have indicated the so-called ‘Gatwick Gusher’ project’s Kimmeridge zones can be “commercially viable”, according to the project’s operator.

It was revealed that the KL3 zone, one of the multiple zones in the targeted Kimmeridge play, had initially produced oil at a rate of 771 barrels of oil per day, and, marked a peak rate of 909 bopd, before reducing to averaging a rate of 342 bopd over the full test period.

]]> Regency Mines' Andrew Bell 'relieved' as Mambare project now in position to advance Fri, 16 Nov 2018 12:47:00 +0000 Andrew Bell, chairman of Regency Mines PLC (LON:RGM), tells Proactive London's Andrew Scott they're to take over the legwork on the Mambare cobalt/ nickel project in Papua New Guinea.

He says the renewal application has been recommended for approval by the Mining Advisory Council in Papua New Guinea and awaits Ministerial signature.

A rejigging of the joint venture arrangement will see partner Direct Nickel’s (DNip) 50% stake moved into a special purpose vehicle.

]]> Oracle Power encouraged by stance of new Pakistani government Fri, 16 Nov 2018 12:00:00 +0000 Afarak boss pleased with performance of speciality alloys division so far this year Fri, 16 Nov 2018 10:45:00 +0000 Kier confident it will meet its full-year expectations, with results being weighted towards the second half Fri, 16 Nov 2018 09:36:00 +0000 Karelian Diamond Resources boasts of “significant progress” as it followed up exploration successes Fri, 16 Nov 2018 08:31:00 +0000 Metal Tiger completes sale of T3 project and creation of new joint venture Fri, 16 Nov 2018 08:15:00 +0000 Ausgold intersects high-grade gold at Katanning project, extends exploration potential Fri, 16 Nov 2018 06:26:00 +0000 Canyon Resources identifies high-grade bauxite trend at Minim Martap project Fri, 16 Nov 2018 05:52:00 +0000 Tyranna Resources eyes Challenger-type gold opportunities in the Western Gawler Craton Fri, 16 Nov 2018 05:05:00 +0000 Meteoric Resources NL shares enter a halt on asset divestment news Fri, 16 Nov 2018 04:42:00 +0000 Neometals begins feasibility study update for Barrambie as vanadium prices rise Fri, 16 Nov 2018 02:59:00 +0000 FYI Resources welcomes start to GR Engineering-led DFS due mid-2019 Fri, 16 Nov 2018 01:57:00 +0000 Blackham Resources valued 4X its current price by Alternative Resource Capital Fri, 16 Nov 2018 01:50:00 +0000 Australian Mines welcomes new CFO from Fortescue Fri, 16 Nov 2018 01:07:00 +0000 Hexagon Resources 'absolutely focused on commercialisation,' financing graphite project Fri, 16 Nov 2018 00:48:00 +0000 Hexagon Resources Ltd (ASX:HXG) managing director Mike Rosenstreich introduces Provocative Investors to the graphite company's vertically integrated operations, discussing the McIntosh project in Western Australia as well as processing test work that has achieved high nines purity levels.

"It's exciting to have a foot in both that traditional application [the steel industry], but also the high-growth topical aspect of energy storage [batteries]... the thing that enables us to have that dual focus is the quality of the graphite at McIntosh," says Rosenstreich.

He continues, "We recognise that graphite's not a commodity: it's an industrial mineral. The secret to getting an industrial mineral up and commercialised is to find the markets for it. Rather than spend a lot of money on drilling and building the biggest resource, which is a very mining company approach, we've been focusing our funding on understanding the markets and understanding the technical attributes of our material; and then working from that customer and technical understanding of the market back into the resource."

]]> Podium Minerals' Parks Reef Project has 'very high resource potential' over 15km of strike Fri, 16 Nov 2018 00:37:00 +0000 Podium Minerals Ltd (ASX:POD) CEO Tom Stynes recaps for Proactive Investors development of the flagship Parks Reef project, within Western Australia's Weld Range Complex. The exploration and resources development company additionally holds early stage exploration opportunities in the surrounding area, as well as a gold prospect in the Northern Territory known as the Highlander Project.

The Parks Reef project boasts 15 kilometres of strike, with inferred minerals resources of 340,000 ounces of combined platinum, palladium and gold, plus 14,300 tonnes of copper, and 11,400 tonnes of nickel. Podium's work so far points to mineralisation widths of 15 metres or more. It has conducted two drilling campaigns over a combined four plus kilometres of strike, with resource upgrades potentially coming in Q1 next year.

]]> Arafura Resources share purchase plan is underwritten to $3 million Thu, 15 Nov 2018 22:40:00 +0000 Peninsula Energy notes production successes ahead of start to uranium extraction trials Thu, 15 Nov 2018 21:30:00 +0000 Telson Mining to use Albion Process for gold and silver recoveries at Campo Morado Thu, 15 Nov 2018 20:49:00 +0000 Telson Mining (CVE:TSN) President Ralph Shearing joined Steve Darling from Proactive Investors with news Telson Mining has retained Glencore technologies for its Albion Process testing.

Shearing says they are hoping to use this technology to increase recoveries for gold and silver. If the testing is successful, Telson is hoping to fast-track funding and installation of the Albion Process recovery equipment. Results from the testing is expected to be back with in 15 weeks of the sample arriving. 

]]> Hannan Metals moves drilling onto prospective Kilmurry target at Clare zinc project Thu, 15 Nov 2018 20:45:00 +0000 Telson Mining will generate C$36mln free cash flow per year once its two Mexican mines are up and running Thu, 15 Nov 2018 20:45:00 +0000 Go Cobalt Mining has a Monster property and cash in the bank to continue exploration Thu, 15 Nov 2018 20:23:00 +0000 Go Cobalt (CSE:GOCO) CEO Scott Sheldon joined Steve Darling in the Vancouver studio of Proactive Investors to share news the company is continuing exploration on its Monster property in the Yukon. So far this year the work included surface work in the Arena and Bloom areas.

Sheldon also shared details that more work is scheduled after winter and they have money in the bank for that work. 

]]> As lithium supply catches up with demand, 4 players are riding the surge Thu, 15 Nov 2018 19:55:00 +0000 MGX Minerals increases stake in engineering partner PurLucid Treatment to 60% Thu, 15 Nov 2018 17:50:00 +0000 LithiumOre gears up for lithium drill program at its Western Nevada Basin Project Thu, 15 Nov 2018 17:43:00 +0000 LithiumOre Corp (OTCQB:ORRP) CEO Doug Cole sits down with Proactive Investors' Christine Corrado in the New York studio to discuss the lithium miner's drill plan at its Western Nevada Basin Project.

Cole says the company should be drilling its first hole within its aquifer, searching for lithium, in the next two to three weeks.

]]> Pacton Gold launches sampling and mapping work at Boodalyerrie ahead of drill program Thu, 15 Nov 2018 17:43:00 +0000 Telson Mining hires Glencore to do leach testing for Mexico gold and silver recovery Thu, 15 Nov 2018 17:19:00 +0000 Lydian International works to remove illegal blockades; names new chairman Thu, 15 Nov 2018 17:17:00 +0000 Caledonia Mining definitely interested in more assets in Zimbabwe though no bids yet Thu, 15 Nov 2018 16:16:00 +0000 Mark Learmonth, Caledonia Mining PLC’s (LON:CMCL) finance director, says it is interested in acquiring more assets in Zimbabwe, though it is premature to say it has bid for any.

The government is looking at disposing of dormant assets, but Learmonth says that if the prices are right there are plenty of privately-owned assets.

Caledonia is also keen to increase its stake in the Blanket mine from 64% currently now that indigenisation rules have been relaxed.

Grades have improved at Blanket in November, which bodes well for a strong end to year, he adds.

]]> Endeavour Mining hails maiden resource for Kari Pump discovery at Houndé mine, which confirms its world-class status Thu, 15 Nov 2018 16:08:00 +0000 Explorex Resources signs deal for cobalt, nickel and copper deposit in Finland Thu, 15 Nov 2018 15:57:00 +0000 Bellzone Mining warns it could go bust if it can’t find more money soon Thu, 15 Nov 2018 15:44:00 +0000 Fireweed Zinc announces results of first drill hole at project in Yukon Thu, 15 Nov 2018 15:37:00 +0000 Minera Alamos confirms potential for new porphyry system at Santana project Thu, 15 Nov 2018 15:12:00 +0000 Zinc One Resources announces results of drilling at Peru project Thu, 15 Nov 2018 14:26:00 +0000 Mandalay Resources reports high-grade intercepts in Australia gold exploration Thu, 15 Nov 2018 14:22:00 +0000 Great Bear Resources closes C$3.5M private placement to expand gold exploration Thu, 15 Nov 2018 13:55:00 +0000 African Battery Metals begins exploration efforts on Cameroon licences Thu, 15 Nov 2018 12:38:00 +0000 Roger Murphy, chief executive of African Battery Metals PLC (LON:ABM), tells Proactive London's Andrew Scott exploration work's begun in Cameroon on the licences acquired with the purchase of Cobalt Blue in August.

These licences back on to the huge but undeveloped Nkamouna cobalt prospect.

Murphy also updates on work in the DRC saying they've started to assess other targets at the Kisinka prospect after auger results on two tracts indicated minimal amounts of cobalt and copper.

Plus he adds some extra detail around geological work which has begun on their recently acquired Lizetta II nickel, cobalt and chrome exploration project in Ivory Coast.

]]> Bluebird Merchant raises funds at a premium to develop Korean mines Thu, 15 Nov 2018 11:10:00 +0000 Kodal Minerals jumps as drilling at Sogola-Baoule prospect confirms geological model Thu, 15 Nov 2018 10:35:00 +0000 Shanta Gold Limited's Eric Zurrin confident on a strong finish to 2018 Thu, 15 Nov 2018 10:32:00 +0000 Eric Zurrin, chief executive of Shanta Gold Limited (LON:SHG), tells Proactive London's Andrew Scott Q4 is shaping up to be their best period after a strong October.

''It was our best month of the year in terms of production and tonnage through the plant ... we've decided to increase throughput and so far it's working really well''.

''We're on track for both our 80,000oz of production and our $750 AISC ... and hopefully we can do a bit better than that'', Zurrin says.

]]> VSA Capital Market Movers - M2 Cobalt (CVE:MC) Thu, 15 Nov 2018 10:17:00 +0000 M2 Cobalt (CVE:MC)


M2 Cobalt announces it will be mobilizing a second drill rig shortly to begin testing Cu-Ni-Co targets identified upon the Bombo license at Bujagali in Uganda.

Three key target areas (Bombo, Bombo NW, and Bombo Central) with highly anomalous soils and trench results containing nickel, copper, and cobalt will be tested in coming days. An IP geophysical survey will be completed prior to drilling to help pinpoint the placement of the sites for drill collars. Helicopter borne VTEM geophysics preceded this.  All three areas are coincident geochemical and geophysical anomalies.

The Bombo target is a 1km by 1.15km size target, the Bombo NW area is a 950m by 650m anomaly, and the Bombo Central area is still open ended and of undetermined limits.

Drilling is already underway at the Kilembe project area with the first drill rig.

We’re happy to see the exploration work proceeding into the discovery and definition stages on these exciting Uganda properties.  Initial drill results should be rather rapid to be released we believe, particularly if indicative of strong mineralization present.

We re-iterate our SPEC BUY recommendation.

]]> VSA Capital Market Movers - Genus: AGM Statement Thu, 15 Nov 2018 10:16:00 +0000 Genus: AGM Statement

Genus (LON:GNS), the developer and marketer of animal breeding and genetic products for the porcine and bovine industries, has announced a trading update for the period 1 July to 14 November 2018, ahead of its AGM later today.

  • Continued good progress in Genus ABS (beef and dairy). Genus ABS revenue and adjusted operating profit higher YoY.
  • Genus PIC (porcine) volumes grew in North America, Latin America and Europe but the impact of African Swine Fever impacted Asian volumes. Genus PIC revenue and adjusted operating profit lower YoY.
  • Group adjusted PBT for the first four months of the year lower YoY.
  • Board expects to perform in-line with its growth expectations for FY 2019 (Y/E June 2019). FactSet consensus is currently revenues of £493.9m, +5% YoY and adjusted operating profit of £64.1m, +11%.

VSA Comment

GNS’s bovine division continues to build on its significant turnaround, which was originally evidenced in its H2 2017 results (CY H1 2017). However, focus this year will surely be more on its porcine division, where the spread of African Swine Fever (ASF) will continue to have an impact on the global pork market.

The 50th reported case of ASF in China was confirmed last Monday but the true scale of the issue is likely much larger. Approximately 45% of the Chinese pig herd is currently located in ASF states, with a further 53% in neighbouring states. Over the weekend, ASF was confirmed in animal feed produced by the Tangrenshen Group, confirming what many had suspected that the disease had entered the feed supply.

For GNS specifically, ASF is impacting the ability of Genus PIC to fulfil customer orders in the country due to restrictions on pig movements. The resulting lower Chinese pig prices (as farmers rush to slaughter animals before restrictions are put in place/forced slaughter occurs) will also impact market demand and share of profitability from its Besun JV (China sales typically make up around 10% of its total porcine division profit).

However, there are some positives for GNS from the outbreak. Over the longer-term it is likely to accelerate the modernisation and consolidation of the Chinese pig farming sector in a similar way to what has occurred in Russia since its own outbreak 10 years ago (although the Russian case does also demonstrate that this outbreak will likely not be over quickly). This will provide a longer-term benefit for GNS as larger customers are much more economic for the company. Pork imports should also increase from outside of China, which should benefit GNS’ customers in other regions.

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]]> VSA Capital Market Movers - redT energy: Management Team Update Thu, 15 Nov 2018 10:10:00 +0000 redT energy#: Management Team Update

redT energy (LON:RED)#, an energy storage solutions company, has announced the appointment of Ed Porter as Energy Assets Director and the stepping down of David Stewart as Chief Operating Officer.


  • Ed will take responsibility for business development activity for new grid-scale energy storage projects and will lead the asset and revenue optimisation efforts for redT’s energy storage assets under management. He joins from Gazprom where he was most recently Power Portfolio Manager, responsible for 1GW of UK assets under management.
  • David will remain as Non-Executive Director until 7 January 2019. His executive duties will be assumed by Paul Docherty, Operations Director and Jean-Louis Cols, Technology Director.

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]]> Metal Tiger releases A1 Dome drilling results as it updates on Kalahari joint venture Thu, 15 Nov 2018 09:45:00 +0000 Bovis Homes is seeing more part-exchange deals as Brexit uncertainty bites Thu, 15 Nov 2018 08:57:00 +0000 Chaarat Gold encouraged by latest drill results at Tulkubash; secures US$10mln loan Thu, 15 Nov 2018 08:55:00 +0000 Alba Mineral Resources “very encouraged” as test data suggests Horse Hill’s high impact Kimmeridge zones can be commercial Thu, 15 Nov 2018 07:50:00 +0000 Ventnor Resources enters option agreement for sale of Biranup project Thu, 15 Nov 2018 05:12:00 +0000 Delecta Limited MD outlines attraction of Highline Copper-Cobalt Project Thu, 15 Nov 2018 04:16:00 +0000 Delecta Limited (ASX:DLC) managing director Malcolm Day tells Proactive Investors that due diligence works on the Highline Copper-Cobalt Project in the Goodsprings district of Nevada, USA, are progressing well. The company is currently utilising a 90-day option period to complete a geological review, and is looking to complete acquisition of the project next month.

Neighbours Tyranna Resources (ASX:TYX) and New World Cobalt (ASX:NWC) will be drilling their projects in Q1 of 2019, and assay results from those campaigns will be analysed to help Delecta with targeting for a drilling campaign.

Day highlights the "quite extraordinary historical results from the Highline Mine," reminding that modern exploration techniques are yet to be applied.

]]> Metalicity secures options within preferred terrain for its nickel-copper strategy Thu, 15 Nov 2018 04:12:00 +0000 Neometals reveals spodumene concentrate pricing for Mt Marion Lithium Operation Thu, 15 Nov 2018 04:11:00 +0000 De Grey Mining’s drilling confirms high-grade lithium, caesium and tantalum at King Col Thu, 15 Nov 2018 02:42:00 +0000 ioneer strengthens team through appointment of experienced finance executive Thu, 15 Nov 2018 02:14:00 +0000 Danakali welcomes lifting of UN sanctions and arms embargo on Eritrea Thu, 15 Nov 2018 01:25:00 +0000 Arrow Minerals hones in on new targets at Malinda Thu, 15 Nov 2018 01:25:00 +0000 Predictive Discovery receives cash injection, news flow expected Thu, 15 Nov 2018 00:29:00 +0000 Accelerate Resources 'seeing the smoking gun, continuing search to find the fire' Thu, 15 Nov 2018 00:25:00 +0000 Accelerate Resources Ltd (ASX:AX8) executive director Andrew Haythorpe catches up with Proactive Investors on the Mount Read Project in Tasmania, where a second phase drill program is underway. 

"In all of the drilling that we've done so far we've found strong indications of mineralisation, be it nickel and cobalt to the North, and copper-gold-cobalt in the Thomas Creek area to the South," says Haythorpe.

An airborne survey is scheduled for December, which will be partly funded by the Tasmanian government under the Exploration Drilling Grant Initiative (EDGI) Program.

]]> Peel Mining intersects ultra-high-grade 18.2 metres at 40.3% zinc at Southern Nights Wed, 14 Nov 2018 22:43:00 +0000 Triton Minerals positioning to fulfil growing global demand for large flake graphite Wed, 14 Nov 2018 22:15:00 +0000 Triton Minerals Ltd (ASX:TON) managing director Peter Canterbury tells Proactive Investors that the Mozambique-focused graphite explorer is working to take it's flagship Ancuabe project into production in 2020, in addition to having two projects in the Balama District that are also earmarked to eventually supply global graphite markets.

The Ancuabe project has been fast-tracked, with a definitive feasibility study published last year, offtake agreements in place for 50% of production and MoU's in place for a further 25%, and an EPC contractor appointed. The project is in its final financing stage, with construction slated to commence in May 2019.

]]> Otis Gold has money in the bank and looking to move Oakley and Kilgore projects forward Wed, 14 Nov 2018 20:49:00 +0000 Otis Gold (CVE:OOO) Preident and CEO Craig Lindsay joined Steve Darling in the Vancouver office of Proactive Investors to share news they have sold off one of their assets and now have enough money in the treasury to keep the company moving forward in 2019. Lindsay also updated its two key projects,  Oakley and Kilgore. That update included some exploratory results from the Cold Creek area on Oakley and also an interesting area of Kilgore called Gold Knob. 

]]> Energy Fuels is making a bold bet on uranium and vanadium — investors are taking notice Wed, 14 Nov 2018 19:30:00 +0000 Jaxon Mining says it's shipped 43 samples to lab from Red Spring project, British Columbia Wed, 14 Nov 2018 18:15:00 +0000 Fireweed Zinc releases strong first results from End Zone of Macmillan Pass Project Wed, 14 Nov 2018 17:55:00 +0000 Fireweed Zinc (CVE:FWZ) CEO Brandon MacDonald joined Steve Darling in the Vancouver office of Proactive Investors with first drilling results from the End Zone part of the Macmillan Pass Project in the Yukon.  The first hole results came in very strong and has left MacDonald excited about getting the next three hole results which are expected in the next few weeks. MacDonald also talked about a decision he made this summer that will have a positive effect on the company in 2019.

]]> Golden Arrow Resources delivering on two fronts, says executive chairman Wed, 14 Nov 2018 17:19:00 +0000 Primary Energy Metals agrees to buy uranium-claims holder Prost Vanadium Wed, 14 Nov 2018 16:55:00 +0000 MGX Minerals receives patent acceptance for water treatment technology Wed, 14 Nov 2018 16:02:00 +0000 Polymetal boasts being 'investor-oriented and always delivering on promises'. Wed, 14 Nov 2018 15:40:00 +0000 Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) a is a top-20 global gold producer/top-5 global silver producer with assets in Russia, Kazakhstan and Armenia. Their CFO Maxim Nazimok talks to Proactive London about their future growth strategy.
Nazimok says his group combines strong growth with a robust dividend yield for investors and shares will be added to the MSCI Russia Index for the first time since its listing on the Moscow Exchange in June 2013.

]]> IAMGOLD reports strike at Rosebel gold mine in Suriname, calls it a 'force majeur' Wed, 14 Nov 2018 15:38:00 +0000 Anglo Pacific set for potential increase in royalty income as vanadium profits jump at the Maracás Menchen mine Wed, 14 Nov 2018 15:24:00 +0000 Oriole put HMRC battle behind them and now plan for growth Wed, 14 Nov 2018 15:23:00 +0000 Oriole Resources' (LON:ORR) Tim Livesey and Bob Smeeton tell Proactive London how their protracted and ultimately victorious battle with HMRC over a VAT demand is now thankfully behind them and they're looking forward to focussing on growth in Senegal and Cameroon.  HMRC, have said they now recognise that supporting overseas exploration activity constitutes an economic activity as far as Oriole Resources PLC  is concerned and the VAT demand will now be refunded.

]]> BlueBird Battery Metals starts exploration at Ashburton cobalt project in Australia Wed, 14 Nov 2018 15:09:00 +0000 Global Energy Metals partner Marquee close to China deal on Werner Lake cobalt output Wed, 14 Nov 2018 14:29:00 +0000 Barsele Minerals encouraged by latest holes at flagship Swedish project Wed, 14 Nov 2018 14:23:00 +0000 FURA Gems says initial core drilling at Coscuez emerald project in Colombia shows promising results Wed, 14 Nov 2018 13:21:00 +0000 Vast Resources reports further encouraging progress with regards to stakeholder engagement relating to the Heritage Concession in Zimbabwe Wed, 14 Nov 2018 12:52:00 +0000 Galileo Resources updates on modelling from drilling results at Star Zinc project Wed, 14 Nov 2018 12:30:00 +0000 NQ Minerals Hellyer Project in Tasmania progressing well Wed, 14 Nov 2018 11:58:00 +0000 Roger Jackson Executive Director of NQ Minerals PLC (LON:NQMI) tells Proactive London that NQ Minerals is on track with metallurgy, commissioning and solid production rates now at their main Hellyer project in Tasmania.
NQ Minerals has produced its first lead, gold and silver concentrate after a successfully implementing a major refurbishment programme.
Corporately, they're comfortable producing now on a ten year revenue earner and NQ Minerals now want to move over the next few months towards getting themselves up to the London Stock Exchange Standard List, which is their next major focus. 

]]> Rockfire Resources shares jump as it completes drilling programme at Double Event prospect Wed, 14 Nov 2018 10:52:00 +0000 Rio Tinto shares sink as Liberum downgrades to ‘Sell’ amid faltering steel prices Wed, 14 Nov 2018 10:01:00 +0000 African Battery Minerals redraws plans for Kisinka as work starts in Cameroon Wed, 14 Nov 2018 09:44:00 +0000 Regency Mines dusts off plans for Mambare project as partner restructures Wed, 14 Nov 2018 09:07:00 +0000 Caledonia Mining shows quarter-on-quarter improvement Wed, 14 Nov 2018 08:36:00 +0000 Asiamet Resources rises as it begins additional drilling at BKM copper project Wed, 14 Nov 2018 08:10:00 +0000 Bannerman Resources confident of 2019 uranium bull market amid spot price volatility Wed, 14 Nov 2018 08:08:00 +0000 Arc Minerals reveals significantly higher grade cobalt results from shallow drilling at Kalaba Cobalt-Copper Project oxide portion Wed, 14 Nov 2018 07:48:00 +0000 Santa Fe Minerals confirms priority vanadium, gold targets at Challa Project Wed, 14 Nov 2018 05:49:00 +0000 Lithium Australia to develop advanced silicon anodes for lithium-ion batteries Wed, 14 Nov 2018 04:30:00 +0000 Peninsula Energy will be testing new lixiviant on field-scale basis before end of year Wed, 14 Nov 2018 03:01:00 +0000 Peninsula Energy Ltd (ASX:PEN) managing director and CEO Wayne Heili speaks to Proactive Investors about the significance of receiving approval from the Wyoming Department of Environmental Quality (WDEQ) to perform field trials for the uranium mining company's new low pH lixiviant initiative.

"The field-scale testing will allow us to understand the technical parameters, the costs, and really the entire outcome of the proposed new lixiviant; far better than we can understand it thorough laboratory-scale testing," explains Heili.

]]> Altech Chemicals marks key milestone towards commencing high purity alumina plant construction Wed, 14 Nov 2018 02:48:00 +0000 Lithium Australia adding to its circular economy with new anode material program Wed, 14 Nov 2018 02:15:00 +0000 Adrian Griffin, managing director of Lithium Australia NL (ASX:LIT), speaks to Proactive Investors ahead of presenting at the Technology and Low Emission Minerals Conference in Perth, Western Australia.

Griffin updates on the integrated lithium company's operations, in the context of market movements and opportunities.

Lithium Australia announced today that it is embarking on a program to produce advanced anode materials, to complement the   lithium-ion phosphate cathode powder it already produces through its subsidiary VSPC Ltd.

]]> Kin Mining secures $8 million through binding commitments Wed, 14 Nov 2018 01:57:00 +0000 Anson Resources shares rise after achieving high lithium recoveries from brine in the US Wed, 14 Nov 2018 01:44:00 +0000 Marquee Resources shakes hands on cobalt-copper offtake sparking surge in shares Wed, 14 Nov 2018 01:30:00 +0000 Walkabout Resources directors show confidence in graphite strategy with share purchases Wed, 14 Nov 2018 01:16:00 +0000 Intermin Resources drill results pave way for new maiden resource Wed, 14 Nov 2018 01:13:00 +0000 Bellevue Gold set to welcome third drill rig to site, assays pending Tue, 13 Nov 2018 23:58:00 +0000 Argosy Minerals publishing PEA on lithium carbonate project by next week Tue, 13 Nov 2018 22:15:00 +0000 Argosy Minerals Limited (ASX:AGY) managing director Jerko Zuvela speaks to Proactive Investors about the resource upgrade at the Rincon Lithium Project in Argentina, including the recent acquisition of neighbouring tenements.

All of this progress will be reflected in the preliminary economic assessment (PEA) on the lithium carbonate project, which is due out in a matter of days.

]]> Sovereign Metals' graphite project will have 'one of the lowest operating costs globally' Tue, 13 Nov 2018 21:45:00 +0000 Sovereign Metals Ltd (ASX:SVM) managing director Julian Stephens tells Proactive Investors that the style of mineralisation at its Malingunde Graphite Project in Malawi means it will have "one of the lowest operating costs globally," as laid out in the PFS published last week.

On the downstream end, loss on ignition processing has delivered a very high purity product suitable for the growing battery, high-tech and speciality markets.

]]> VR Resources ready to start drilling at Junction project in Nevada Tue, 13 Nov 2018 19:09:00 +0000 VR Resources (CVE:VRR) President and CEO Michael Gunning joined Steve Darling in the Vancouver studio of Proactive Investors to announce his company is getting ready to start drilling on their Junction property in Nevada. VR acquired that property about a year ago and so far they have done mostly surface and some aerial work in preparation for this drilling. Gunning says the drilling program will last about 4 weeks and will be targeting the Wilder Creek and Denio Summit areas. Gunning also said they may be able to come to market with some results before Christmas. 

]]> Premier African talks share conversions, RHA and KME Tue, 13 Nov 2018 14:28:00 +0000 Premier African Minerals PLC (LON:PREM) boss George Roach directly addresses investors on the three major newsflows for his company, talking to Proactive Investors London.
Clarifying current shareholder discussions on the Prem share conversion, Roach also speaks plainly about the RHA project and ongoing dealings with the Zimbabwe government, not to mention fleshing out detail on the KME deal.

]]> Peninsula Mines advancing battery, base, and precious metals projects in South Korea Tue, 13 Nov 2018 03:20:00 +0000 Jon Dugdale, managing director of Peninsula Mines Ltd (ASX:PSM), talks to Proactive Investors about how cash recently raised will be put to work to advance the the flagship Gapyeong Flake Graphite Project in South Korea. The company is drilling on site whilst concurrently conducting metallurgical test work.

Dugdale also provides updates on the company's base and precious metals projects in the country.

]]> Azumah Resources managing director discusses drilling, upcoming feasibility update Tue, 13 Nov 2018 01:49:00 +0000 Azumah Resources Ltd (ASX:AZM) managing director Steve Stone speaks with Proactive Investors about the 40,000 metre, $4 million resource upgrade drill program that's happening now in multiple target areas at the Wa Gold Project in Ghana.

A feasibility update is due in the coming weeks. Stone says, "We're looking at building a bigger, better project. From the work that we've been doing our capital costs are going to come down, our operating costs are going to come down, so we're going to be delivering next year a very robust project, and I think the market will be pleased with that. We'll be giving a fair indication of what those numbers will be when we do the interim update in the next few weeks."

]]> Positive early signs in WA for Trans Pacific Energy Group Tue, 13 Nov 2018 00:41:00 +0000 Trans Pacific Energy Group CEO Arthur Darivas says the company is heavily focused on Western Australian projects such as Lake Yingarlgooda.

Darivas tells Proactive Investors the company's Kathleen Valley Project and Devil's Creek are also promising, and its assets could produce some positive drill results as early as December.

]]> Arafura Resources CEO updates on DFS, separation plant, and share purchase plan Mon, 12 Nov 2018 23:32:00 +0000 Arafura Resources Ltd (ASX:ARU) CEO Gavin Lockyer details for Proactive Investors the company's $3 million Share Purchase Plan to advance its wholly-owned Nolans Neodymium Praseodymium (NdPr) Project in Australia's Northern Territory.

"The capital raising is so we can seamlessly move from our [definitive] feasibility study, which is due to be completed at the end of this year, into the next phase of project execution," explains Lockyer.

He also discusses the decision to construct a Separation Plant on site, rather than overseas which had previously been the plan.

]]> 'It's good to be second' developing in Hombre Muerto neighbourhood for Galan Lithium Mon, 12 Nov 2018 22:15:00 +0000 Galan Lithium Ltd (ASX:GLN) advisor Clive Jones talks Proactive Investors through survey results that have "far exceeded expectations" at the Candelas channel in the young company's Hombre Muerto Lithium Project in Argentina's Catamarca province.

The results of gravity and resistivity surveys have produced quite a large target, which Galan plans to start drilling before the end of the year.

]]> Archer Exploration's CEO discusses advanced materials in reliable energy Mon, 12 Nov 2018 22:00:00 +0000 Archer Exploration Ltd (ASX:AXE) has a fresh strategic focus on advanced materials, deployed through the three verticals of quantum computing, human health and reliable energy. Supply of the mineral resources necessary is secured through the company's existing portfolio of exploration projects.

In the second video of a three-part series on each of the business channels, CEO Mohammad Choucair speaks to Proactive Investors about reliable energy.

"At Archer we see materials as being the core of reliable energy. The materials that we want to focus on are those that are able to both manage and harness heat, light and electricity; and doing that in a way where we can prepare for future economies that move away from polluting fossil fuels," says Choucair.

]]> West Wits Mining commences Australian roadshow Mon, 12 Nov 2018 21:45:00 +0000 West Wits Mining Limited’s (ASX:WWI) chairman Michael Quinert and non-executive director Hulme Scholes kick off an Australian roadshow with a visit to Proactive Investors' Sydney studio.

The company seeks to raise up to $1 million through a share purchase plan to advance its gold project in South Africa's prolific Witwatersrand Basin.

Additionally, the company is developing its Mt Cecelia Project in Western Australia's Pilbara region.

]]> Mining Capital's Al Ford talks Global Trade Wars Mon, 12 Nov 2018 16:02:00 +0000 As the US economy picks up pace, the predicted slow down in China is starting to what happens now to trade tariffs and that war of words between Presidents Trump and Xi Xin Ping?
Alastair Ford, long time analyst of the s-called 'Trump-effect' talks about how this dynamic affects the mining space and conjectures there's still a long way to go.

]]> VSA Capital Market Movers - Columbus Energy Resources: Building the Foundations Mon, 12 Nov 2018 12:22:00 +0000 Columbus Energy Resources: Building the Foundations

Acquisition and Fundraise 

Having recently completed a £2.5m fundraise and closed the Steeldrum acquisition, Columbus Energy Resources (LON:CERP) has diversified its production base setting the company up for a strong 2019F where CERP will begin to test the full potential of the South West Peninsula. The acquisition brings immediate production along with upside potential from low cost optimisation as well as new drilling. The shares have been range bound recently, however, we believe that CERP now has a stronger platform for achieving its combined organic and acquisitive growth strategy which will deliver the expected rerating, in our view.

Q3 2018 Update; Focus on Profitable Barrels

The acquisition of Steeldrum resulted in a 33% QoQ increase in production to 735bopd alongside the continued ramp up at Goudron. Although the Goudron ramp up has been slower than expected we highlight that CERP have been prioritising adding profitable barrels which provide a stable footing for cash flow generation over the longer term rather than the short termism approach of chasing production targets at the expense of cash resources. We expect CERP to reach its 1,000bopd in 2018 and the ramp up to continue averaging 1,300bopd through 2019F.  

Steeldrum Completed

Completion of the Steeldrum acquisition diversifies CERP’s production base with immediate additional production of 200-250bopd with near term upside potential, including new production from the Snowcap well in the Cory Moruga field during Q4 2018. With 2P reserves of 5.6mmbbl the implied all share transaction is valued at just U$1/bbl highlighting Leo Koot’s deal making credentials which bodes well for the planned growth strategy. Additionally, through a subsidiary of Steeldrum, which will be carved out of the transaction, means that CERP will have preferential access to two drill rigs suitable for the SWP exploration programme now intended to commence in mid-2019.

Recommendation and Target Price


We have adjusted our risked valuation in order to reflect the impact of increased share capital from the Steeldrum acquisition and the recent fundraise. Our earnings estimates are updated to reflect the acquisition and updated timeline for SWP development and we remain convinced of the considerable upside potential in the shares with production growth and drilling upcoming in the next period. 

We reiterate our Buy recommendation although adjust our target price to 21.4p.

]]> VSA Capital Market Movers - Carr's Group Mon, 12 Nov 2018 10:34:00 +0000 Carr’s Group: FY 2018 Results

Carr’s Group (LON:CARR), the agricultural and engineering group, has released results for the year ended 2 September 2018 (FY 2018).

  • Revenue: £403.2m, +17% YoY, (FY 2017: £346.2m), FactSet consensus was £380.7m
  • Adjusted PBT: £16.6m, +45% YoY (FY 2017: £11.4m), FactSet consensus was £16.2m
  • Total Dividend for FY 2018: 4.5p, +13% YoY (FY 2017: 4.0p)
  • Agriculture: Revenue £359.6m, +14% YoY, adjusted EBIT £13.4m, +17% YoY (FY 2017: Revenue £315.9m, adjusted EBIT £11.5m)
  • Engineering: Revenue £43.6m, +43% YoY, adjusted EBIT £4.1m, +580% YoY (FY 2017: Revenue £30.4m, adjusted EBIT £0.6m)
  • Net Debt: £15.4m (2017: £14.1m)

VSA Comment

Following a tough FY 2017, it was clear from an early stage that CARR would deliver a much-improved result in FY 2018. This was confirmed most recently in its mid-July trading update, which highlighted that the group was trading significantly ahead YoY (and slightly ahead of expectations) in both its agriculture and engineering divisions. These results are even slightly ahead of the updated consensus expectations following the July trading update, highlighting just how strongly the company ended the year.  

In engineering, the group began to deliver on its delayed large UK manufacturing contract, secured substantial remote handling contracts into the Chinese market, and benefited from the first full year of consolidation of its US nuclear business, NuVision.

In agriculture, underlying conditions in both the US and UK were much more positive, with US feedblock volumes bouncing back particularly strongly and faster than anticipated, as US cattle prices recovered and CARR’s new feed block plant in Shelbyville, Tennessee began operations. US feed block volumes increased 18% in FY 2018, compared to a 4.1% decrease in FY 2017.

On top of this marked improvement in the US, the two bright spots from FY 2017, increasing UK feed volumes and UK machinery sales, both continued in FY 2018. The UK compound feed market increased 9% over CARR’s FY 2018 period (source: AHDB) in-line with the YoY increase for CARR’s own manufactured feed volumes (vs. 4% and 11% respectively last year) with CARR’s UK feedblock volumes increasing by 9%. CARR’s UK machinery sales increased 8% YoY to a record level, following a 28% YoY increase last year.

In terms of its outlook, although global milk prices are looking a little fragile with a sixth straight decrease reported in the last GlobalDairyTrade auction in New Zealand, UK pricing remains high with DEFRA revealing the average UK milk price increased to 30.6ppl in September. Although several UK milk processors have announced a 1ppl cut for supplier farmers from December and the New Zealand auctions point to weaker global pricing ahead, it is clear the UK dairy sector remains in pretty good shape. US cattle prices have come off a little in the last month but remain at elevated levels. We believe CARR’s US and UK operations should be supported in both markets in FY 2019.

In terms of new operational activities in FY 2019, we expect that management will be focused on improving sales distribution, manufacturing efficiencies and international growth at its recently acquired trace element supplement business Animax, as well as deciding on whether to build its own feed block plant in New Zealand, as sales volumes through distributors continue to increase in that country.  

Current FactSet consensus forecast for FY 2019 (Y/E 1 September 2019) is for revenue of £399m and an EBITDA of £20.3m.

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]]> Kopore well positioned in 'under-explored' Kalahari copper belt Mon, 12 Nov 2018 09:12:00 +0000 Kopore Metals Ltd (ASX:KMT) has increased its footprint in the Kalahari Copper Belt, located in Botswana saying the area is an emerging, under-explored region just waiting for discovery.
Kopore MD Grant Ferguson tells Proactive Investors in London about their journey from listing to bare fields and what the plans are for 2019.
The belt stretches for 1,000 kilometres and consists of folded and metamorphosed meta-sedimentary rocks along the north-west edge of the Kalahari Crato. Kopore Metals is a junior Australian-listed company, a copper explorer in Botswana and Namibia working its prospecting portfolio 'with much success recently', according to Ferguson.

]]> Technology Metals advancing offtake discussions whilst working to expand resource Mon, 12 Nov 2018 02:37:00 +0000 Ian Prentice, executive director of Technology Metals Australia Ltd (ASX:TMT), speaks to Proactive Investors about 3,700 metres of RC drilling results from the Gabanintha Vanadium Project in Western Australia. 3,000 metres of diamond drilling results will be reported as assays come back from the lab over the coming weeks.

"What it's delivered for us is what we'd hoped and what we'd expected: we're getting good extension of mineralisation at depth, really consistent grade and width; and also along strike to the South. So, when we look at the current indicated resource in that part of the deposit we've now got some significant extensions from this drilling, and that will all flow through to the new resource estimate in January," Prentice says.

]]> Trans Pacific Energy about to drill most advanced battery metals project Sun, 11 Nov 2018 22:15:00 +0000 Trans Pacific Energy Group CEO Arthur Darivas tells Proactive Investors that the battery metals explorer and developer will be drilling four targets at it's Lake Yindarlgooda project in Western Australia. It is the company's most advanced and flagship asset, amongst six lead projects.

The drilling campaign will comprise 15 RC drill holes of 50 - 120 metres. The goal is to put together an inferred JORC resource before the end of this year.

]]> MGX Minerals is a diversified company that is about to turn revenue positive Fri, 09 Nov 2018 22:41:00 +0000 MGX Minerals (CSE:MXG) President and CEO Jared Lazerson joined Steve Darling from Proactive Investors in Vancouver with news MGX is about to start making money. Lazerson says they have seen growth coming from their renewables side.

Lazerson also talked about what is ahead for the company as they close 2018 and look for more expansion in 2019. 

]]> What now for interest rates and metals prices, now that the Mid-Terms are out of the way? Fri, 09 Nov 2018 12:37:00 +0000 Mining Capital's Alastair Ford talks US mid-terms knockons in the metals space Fri, 09 Nov 2018 10:18:00 +0000 The US mid-terms have left American politics shaken up but does that mean the same for the global metals market? Alastair Ford talks to Proactive Investors London and says it isn't necessarily so...but warns the Trump effect is still reverberating in the global trade wars space.

Al moves from train wreck politics to an actual runaway train wreck of mining cargo in Oz to round off his weekly update.

]]> Walkabout Resources funded to 'move to the next level' with Lindi project Fri, 09 Nov 2018 04:16:00 +0000 Walkabout Resources Ltd (ASX:WKT) chairman Trevor Benson details for Proactive Investors the underwritten share placement plan which has netted the company $3 million to fast-track development of the Lindi Jumbo Graphite Project; the highest grade graphite project in East Africa.

Recent results from drilling there will be modelled into to a resource upgrade, probably in December, and potentially a reserve upgrade after that.

]]> Precipitate Gold Corp sees great potential with new asset Pueblo Grande Thu, 08 Nov 2018 20:23:00 +0000 Precipitate Gold Corp (CVE:PRG) President and CEO Jeffrey Wilson joined Steve Darling in the Vancouver office of Proactive Investors to chat about their new 100 percent owned project Pueblo Grande in the Dominican Republic. 

Wilson talked about the structure of the deal and how the company will start to move that project forward. Wilson also shared some information about the staff at Precipitate gold and how their experience will be a huge asset.  

]]> VSA CAPITAL MARKET MOVERS - NuLegacy Gold Thu, 08 Nov 2018 10:41:00 +0000 NuLegacy Gold (CVE:NUG


NuLegacy (NUG CN) has announced that it has staked additional acreage contiguous to its Red Hill property in Nevada. The additional 64 claims cover 5.1km2 taking the total land package to 108km2. It is a rare opportunity that such claims become available and it strengthens NUG’s position in close proximity to the south of Barrick’s (ABX US) Goldrush deposit (10mnoz).  

Within the Red Hill license area NUG has identified both Carlin style gold and epithermal gold-silver mineralisation and this new area which covers the Coal Canyon window is also prospective for both types of mineralisation. The Coal Canyon area is host to the carbonate sedimentary rocks strongly associated with the major gold formations in the region; Horse Canyon, Wenban, Roberts Mountains and Hanson Creek Formations. This additional acreage therefore strongly ties in with the existing land package strengthening the company’s exploration position in the region. 

We reiterate our Speculative Buy recommendation.  

]]> One World Lithium project Salar del Diablo is fully funded and drilling is ready to begin Thu, 08 Nov 2018 05:54:00 +0000 One World Lithium (CSE:OWLI) founding shareholder and advisor  to the Company’s Board of Directors Tim Brock joined Steve Darling from Proactive Investors in Vancouver to provide and update on their Lithium project Salar del Diablo in Mexico.  Brock say they are getting ready to start the drilling program.

According to Brock, they are fully funded for this drilling program and are in the process if picking a driller and getting the necessary permits. They hope to have drills in the ground in Q-1 of 2019.

]]> Trans Pacific Energy CEO explains why demand for battery metals continues to soar Thu, 08 Nov 2018 02:04:00 +0000 Trans Pacific Energy Group CEO Arthur Darivas tells Proactive Investors that soaring international demand for battery metals is being driven not just by the adoption of Electric Vehicles, but also by energy-hungry home and commercial users.

The battery metals start-up is leveraged to several commodities through its various projects in Western Australia and Argentina.

]]> Infinity Lithium leveraging Banio Potash Project to advance San Jose Lithium Project Thu, 08 Nov 2018 01:00:00 +0000 Infinity Lithium Corporation Ltd (ASX:INF) (FRA:3PM) (STU:3PM) director Adrian Byass speaks to Proactive Investors about the Banio Potash Project in Southern Gabon, where a 1.67 billion tonne maiden resource was revealed this week, explaining the various options open to monetise it in order to focus on the company's core strategy of developing the San Jose Lithium-Tin Project in Spain.

Byass explains, "the company's quite clear in its focus; it's very rare that you have a curse of riches, in that we have two excellent projects which both could be advanced. But the returns and the market growth and the real appetite for the San Jose project within Europe means that we can't do anything but advance that as fast and as hard as we can."

]]> 'Grade Is King' as St.George Mining's drilling programme progresses Wed, 07 Nov 2018 14:34:00 +0000 Executive Chairman John Prineas tells Proactive Investors London why St.George Mining's (ASX:SGQ) drilling of high grade deposits at their Western Australia asset has investors sitting up. News here too on the increasing importance of nickel copper sulphides in the development of energy storage in EVs (electric vehicles) on world markets and why therefore St.George is well placed to excel as a major player, particularly after fronting a European Investment Community event at the London Metals Exchange last month.

]]> Europe's biggest Lithium Mine just got bigger says Savannah Wed, 07 Nov 2018 14:14:00 +0000 Savannah Resources (AIM: SAV) boss David Archer talks Proactive through the significance of it's latest major deposit uncovered at the Mina Do Barosso mining lease in Portugal, which he says looks like being the most significant Lithium Mine in Europe. News here too on potential off-take and commercial partnerships they're considering plus why the European Commission is keen to stabilise the supply of Lithium across the region and how that feeds into both the European economy and Savannah's own accretive Lithium development story.

]]> VSA Capital Market Movers - Lake Resources Wed, 07 Nov 2018 10:01:00 +0000 Lake Resources (ASX:LKE)


Lake Resources (ASX:LKE) has announced an exploration target in relation to its Kachi project, highlighting its significant scalable potential. The exploration target has a range of 8 -17mnt lithium carbonate equivalent (LCE) meaning LKE has 100% ownership of one of the largest lithium projects globally. However, the initial maiden resource is likely to focus on a smaller higher confidence area within the exploration target which currently has a range of 1.6-3.4mnt LCE. The grades used to determine the target range from 250-310mg/l Li in the upper range scenario and 150-210mg/l Li in the lower range scenario.

The current target extends only to the depth of drilling. In the key western zone where grades have been strongest seismic work suggests that the basin extends to a depth of 700-800m while drilling to date has only tested to maximum depths of around 400m. LKE therefore plans to carry out additional drilling before announcing a maiden resource. In addition, samples have also been collected to carry out porosity tests to determine specific yield. LKE has also expanded its footprint of mining licenses with applications for a further 15,000ha of mining lease area, an increase of 25%.

The higher confidence zone where drilling to date has been concentrated and has yielded stronger grades provides a strong starting point in our view for assessing potential economics and the scale of this target in terms of contained LCE is comparable to other developing lithium brine projects which have already gained offtakers. Given the size of the lithium market currently and the growth potential longer term we see this optionality to extend into the wider target area as highly attractive for strategic investors and offtakers.

The grade range when taken as a standalone figure is towards the lower end of the peer group, however, it is important to consider grade in the context of other factors such as impurities and Kachi has very low magnesium content of as low as 3.8. In comparison we highlight Lithium X purchased by Tibet Summit Resources for US$206m which has grades of around 387mg/l Li with a magnesium ratio of 5.5. Furthermore, LKE test results from work with Lilac Solutions yielded lithium recoveries of 70-80% which is potentially transformative for grades and costs when compared to an average 50% for traditional processes.

This announcement provides the first quantitative assessment for Kachi, clearly demonstrating its potential scale. LKE will now work towards a maiden resource which fits more in line with the near term demands of the lithium market.  Currently, lithium projects globally are valued on around US$70/t on an EV/t LCE basis. This exploration target implies that LKE is currently valued on US$10-20/t for the high confidence zone and US$2-4/t for the wider target. This excludes LKE’s other projects and shows how much value potential exists.

We reiterate our Speculative Buy recommendation. 

]]> Artemis Resources' exploration work 'dispels myths about the Pilbara' Wed, 07 Nov 2018 04:15:00 +0000 Artemis Resources (ASX:ARV) (FRA:ATY) (OTC:ARTFF) chief executive Wayne Bramwell speaks to Proactive Investors about Monday's announcement regarding the discovery of three new gold targets in the West Pilbara. Exploration works have furthermore identified new extensions at the existing Silica Hills and Nickol River targets.

Bramwell also discusses last week's announcement of three new cobalt targets, also in the West Pilbara region, identified using the same geochemical data sets.

]]> Global Energy Metals sees positive results from tests at Cobalt Project in Australia Tue, 06 Nov 2018 20:25:00 +0000 Global Energy Metals (CVE:GEMC) President and CEO Mitchell Smith and Vice President of Projects Paul Sarjeant joined Steve Darling from Proactive Investors to talk about their positive results from an initial metallurgical program conducted over the northern quartzite zone of the Millennium Cobalt Project in Australia. 

Smith and Sarjeant also talked about Global's  binding agreement with joint venture partner Hammer Metals to acquire the balance of the interest in the Millennium Cobalt Project as well as the Mt. Dorothy Cobalt Project and the Cobalt Ridge Project

]]> Telson Mining completes 5 million dollars in additional funding for projects in Mexico Tue, 06 Nov 2018 16:43:00 +0000 Teslon Mining (CVE:TSN) President Ralph Shearing joined Steve Darling from Proactive Investors in Vancouver to bring news, Telson has received 5 million dollars in financing from Trafigura in Mexico. The money will be used for the Tahuehueto Mine project. This 5 million, when combined with the proceeds of recently closed 6.8 million, will be used to complete the construction of the Mine.

Shearing also shared details of the type of mining they are doing in Mexico and brought in some sample rocks to explain. 

]]> Kazera Global encouraged by tantalum and lithium mineralisation at Namibia project Tue, 06 Nov 2018 16:02:00 +0000 Larry Johnson, chief executive of Kazera Global PLC (LON:KZG) tells Proactive's Andrew Scott they've now drilled and assayed 360 cores with further cores and channel sampling sent for assay at the Namibia Tantalite mine in Namibia.

He says they're drilling further boreholes to test the tantalum and lithium bearing pegmatites at locations they've termed Homestead and Purple Haze.

]]> Caledonia Mining 'putting itself forward' as Zimbabwe sells gold assets Tue, 06 Nov 2018 14:47:00 +0000 Caledonia Mining Corporation PLC's (LON:CMCL) Mark Learmonth tells Proactive London's Andrew Scott they're to move ahead with the acquisition of a further 15% of the Blanket gold mine in Zimbabwe from local investment group Femiro.

The terms of the deal were first set out in a memorandum of understanding in August.

Separately, Learmonth adds that they've put themselves forward and made bids on a number of state-owned gold assets the government's looking to offload to raise cash.

Plus he discusses the ongoing shortage of foreign exchange in the country saying that it hasn't impacted operations at Blanket.

]]> Galantas Gold confirms first shipment with good progress made towards full production Tue, 06 Nov 2018 11:54:00 +0000 Roland Phelps, president and chief executive of Galantas Gold Corp (LON:GAL), caught up with Proactive Investors following the announcement they'd delivered their first consignment of concentrate from the Omagh gold mine in Northern Ireland.

The concentrate will be shipped to Glencore's (LON:GLEN) New Brunswick smelter.

This first 25-tonne batch was produced from development ore on the Kearney vein.

]]> W Resources CEO Michael Masterman updates on tungsten projects and markets Tue, 06 Nov 2018 07:00:00 +0000 W Resources (LON:WRES) CEO Michael Masterman updates Proactive Investors on the emerging producer's flagship La Parrilla tungsten and tin project in Spain, as well as its Portuguese Régua tungsten and Tarouca tungsten and tin projects.

Demand for tungsten is being driven by strong US and Chinese consumption, whilst supply has been affected by recent mine closures.

Masterman says, "La Parrilla is very nicely timed in terms of coming into the market; being able to supply those shortfalls and also make sure that we can keep the market with long term stable supply."

]]> Base Resources 'unique in sector' with 'defined earnings engine and future growth' Tue, 06 Nov 2018 04:16:00 +0000 Tim Carstens, managing director of Base Resources Limited (ASX:BSE, LON:BSE), speaks to Proactive Investors about the profitable mineral sands company's wholly-owned Kwale project in Kenya, and Toliara project in Madagascar.

"We've got a business model that's been very successful in Kenya and we believe has application generally in Africa. We've got a fantastic project to move onto in Toliara that's going to provide a real long life and similar earnings profile to Kwale. We've got a team that's done it before, and we've got the financial platform to execute it and execute it well," says Carstens.

]]> Enertopia Corp receives permits and prepares to start phase 1 drilling Mon, 05 Nov 2018 21:04:00 +0000 Enertopia Corp (CSE:TOP) President and CEO Robert McAllister joined Steve Darling from Proactive Investors on Skype with news that Enertopia has received permits from the Bureau of Land Management  and can start phase one of their drilling program at their flagship lithium project in Clayton Valley, Nevada.

The first phase will consist of 5 holes ranging in depth from 4-5 hundred metres and should commence in mid December.    

]]> DRDGOLD updates yearly achievements and Far West Gold Recoveries Project Mon, 05 Nov 2018 19:24:00 +0000 DRDGOLD Ltd (NYSE:DRD) (JSE:DRD) CEO Niël Pretorius tells Proactive the South African gold producer published its annual report for 2018 and has made significant progress cutting costs and producing more gold this year.

Pretorius says that the company is "set up nicely" for expanding and upgrading its facilities in its Far West Gold Recoveries Project, with plans to add approximately 120 kg of gold a month to the overall production in the first quarter of 2019.

]]> European Metals kicks off DFS drilling at Cinovec Lithium-Tin project Mon, 05 Nov 2018 09:58:00 +0000 Keith Coughlan, managing director at European Metals Holdings Limited (LON:EMH), caught up with Proactive London's Andrew Scott to discuss the start of a drilling campaign at the Cinovec Lithium-Tin project in the Czech Republic.

Coughlan says the first hole of the drilling programme, CIS-10, had been completed at 340 metres, with a total of eight holes to be drilled in the campaign for 2,560 metres

]]> Metal Tiger CEO and Kalahari Metals director discuss phase 1 exploration programme Mon, 05 Nov 2018 09:47:00 +0000 Michael McNeilly, chief executive of Metal Tiger PLC (LON:MTR) and  Kalahari Metals Limited (KML) director Adam Wooldridge discuss with Proactive London's Andrew Scott the completion of the Phase 1 exploration programme.

Drilling at the Ngami Copper Project is to be allowed to proceed under an Environmental Management Plan (EMP) as agreed with the Botswana Department of Environmental Affairs. The timeframe to complete the EMP process is normally four months.

The Okavango copper project, on the other hand, will require a more detailed Environmental Impact Assessment (EIA) to be produced prior to permission to drill being granted.

The timeframe to complete the more detailed EIA process, through to grant, is normally nine months.

]]> Chaarat Gold's Artem Volynets discusses Centerra bid and expansion plans Fri, 02 Nov 2018 14:15:00 +0000 Artem Volynets, chief executive of Chaarat Gold Holdings Limited (LON:CGH), caught up with Proactive London's Andrew Scott after  withdrawing their proposed offer to buy Centerra Gold, the owner of the Kumtor mine in Kyrgyzstan.

Back in the spring, Chaarat approached Centerra about acquiring Kumtor, one of the largest gold mines in Central Asia which produced 500,000 ounces of the precious metal last year.

After being knocked back, Chaarat returned with an offer to buy out Centerra as a whole, rather than just the asset.

]]> Goldplat Plc 'back to normal recovery rates' after challenging few quarters Fri, 02 Nov 2018 14:02:00 +0000 Gerard Kisbey-Green, chief executive of Goldplat plc (LON:GDP), tells Proactive London's Andrew Scott he's confident their strategic initiatives will yield improved results going forward despite a tough quarter.

Kisbey-Green adds they've made good progress in terms of plans to secure funding for an expansion of the Kilimapesa mine.

A strategy had also been implemented to put the mine on care and maintenance by the end of November 2018 should a transaction to secure funding not be in progress.

]]> US mid-terms enter final stretch, with truth, justice and the American way almost completely hidden from view Fri, 02 Nov 2018 13:53:00 +0000 VSA CAPITAL MARKET MOVERS - Lake Resources Fri, 02 Nov 2018 11:41:00 +0000 Lake Resources (ASX:LKE)

Lake Resources (LKE AU) has announced that it is making progress with drilling at Cauchari with two rigs now on site. The diamond drill rig has completed around 110m of the first hole while the rotary rig which is drilling pre collar holes to a depth of 100m has moved onto hole two. This is due to the gravels near surface and this approach prevents caving before entering the brine sequence. The first two holes are 2,500m apart which highlights the scale of this license area. LKE’s Cauchari license is adjacent to licenses held by Ganfeng and Lithium Americas (LAC CN), and Advantage Lithium (AAL CN) and Orocobre (ORE AU) where drilling has yielded grades of 600-705mg/l Li.

We also note that LKE has secured an additional A$0.5m via an unsecured lending facility from an existing shareholder which will support near term exploration activity. Furthermore, LKE has reported positive progress regarding identifying long term strategic investors in Asia.

Lithium stocks globally have despite improving fundamentals remained range bound within recent weeks. However, fundamentals appear to be strengthening in line with our outlook that the risk of oversupply is overblown. SQM (SQM US) upgraded Q3 2018 guidance announcing that pricing would be flat as well as highlighting the challenges they face in ramping up production at the Salar de Atacama. Although we have highlighted that the off-contract price in China should not be seen as a market bell whether we note that the MB index was up 3% last week which should support sentiment given how its decline has impacted lithium shares over recent months.

Yesterday’s comments from Trump regarding trade talks with China resulted in a sharp rally which seemed to benefit lithium stocks globally and sharp daily moves such as this highlight to us the oversold nature of the sector currently and that a sustained recovery in sentiment is likely to result in a significant rally benefitting ex-Chile projects in particular.

We reiterate our Speculative Buy recommendation.

]]> Mining Capital’s Alastair Ford on impacts of 'sound and fury' in international politics Fri, 02 Nov 2018 10:00:00 +0000 Mining Capital's Alastair Ford catches up with Proactive's Danielle Doporto, discussing elections in Brazil and the US, the proliferation of strong man regimes, and their effects on currency and gold markets.

Ford also speaks on recent news from Horizonte Minerals (LON:HZM), Endeavour Mining (TSE:EDV) and Chaarat Gold Holdings (LON:CGH).

]]> Artemis Resources sees Carlow Castle as "the top of the pack" Thu, 01 Nov 2018 22:09:00 +0000 Wayne Bramwell says Artemis Resources (ARV) has affirmed its belief Carlow Castle is Australia's best emerging cobalt project, and says the project may have other discoveries.

Bramwell also says refurbishing Radio Hill this year with a new gold circuit makes sense given its strategic location and a better commodity price environment.

]]> New Hazer Group CEO says pilot project tripled production expectations Thu, 01 Nov 2018 22:00:00 +0000 New Hazer (ASX: HZR) CEO Geoff Ward says getting involved with graphite and hydrogen markets is a "fascinating and exciting opportunity".

The veteran oil and gas executive says Hazer's technology produces two valuable products at low cost, and a recent pilot project exceeded expected production.

]]> LithiumOre shares get Buy rating from Riedel Research Group Thu, 01 Nov 2018 18:47:00 +0000 Riedel Research Group CEO David Riedel tells Proactive Investors that Nevada-based mining company LithiumOre (OTCQB:ORRP) is really positioning itself to be a 'substantial' player, saying it is undervalued. He rates the shares a Buy in the Lithium and Battery Metals Monthly.

Riedel points out that the lithium-miner utilizes a battery metals extraction technology that has the potential to cut evaporation pond processing time to one week or less from 18 months.

]]> World Gold Council says stable demand in Q3 'masks two divergent flows' Thu, 01 Nov 2018 15:02:00 +0000 Alistair Hewitt from the World Gold Council joins Proactive Investors to review Q3 gold demand trends.

He observes, "overall demand has been fairly stable, but that masks two divergent flows. On the one hand we've seen significant   outflows from gold-backed exchange traded funds (ETFs)... and that contributed to softness in the gold price, but the consumers really did respond; we saw significant growth in bar and coin demand, in jewellery demand, and really interestingly there was very strong central bank buying as well."

]]> VSA CAPITAL MARKET MOVERS - Edgon Resources: FY 2018 Results Thu, 01 Nov 2018 14:20:00 +0000

Egdon Resources#: FY 2018 Results

For the full report, please click here. 

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Financial Performance

Egdon Resources (LON:EDR) has announced full year results for 2018. Production in H2 FY 2018 was 70bopd, down 41% YoY, resulting in full year production of 84boepd, down 20% YoY. The impact on production was due to the timing of maintenance at Ceres as previously announced. Gross revenue was flat YoY at £1m although due to an accrued revenue write off net revenue of £0.78m was 25% lower YoY.

Total cost of sales were up 11% YoY due to an increase in net one offs with pre license and exploration costs of £1m more than offsetting impairment reversals of £0.65m, both having been immaterial in the prior year. Direct production costs of £0.82m were up 9% YoY. The net loss therefore widened from £1.7m to £2.0m. Capex of £1.8m was up from £1m YoY in the prior year. EDR finished the year with a robust cash position of £2.8m and continues to be debt free.   

Key Catalysts in FY 2019

With primary production now back online at Ceres, the company has guided to 125boepd in H1 2019 from Ceres alone and group production of 150-180boepd. We therefore anticipate a more than doubling in full year average production to 210boepd and a return to profit for EDR of £0.8m. In addition, an appraisal well is due to be drilled at Biscathorpe in the coming period which is a major step for EDR, who is operator, while at Springs Road IGas (IGAS LN) has completed site construction and is due to drill in early calendar 2019.

Developments for UK Shale

Cuadrilla have now begun testing at Preston New Road. Results are likely to be announced in late 2018 or early 2019. We note that three stoppages have already been forced due to the low 0.5ML limit, however, these remain well below what could be felt at surface.

Recommendation and Target Price

With a positive near term earnings outlook and upcoming drilling there are key near term catalysts which we believe can drive a rerating of the shares to breakout from the recent rangebound trading. We reiterate our Buy recommendation and target price of 50p.

Oliver O'Donnell, CFA, Natural Resources & China | T: +44 (0)20 3617 5180 | E:

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]]> Price volatility for rare earth minerals is expected due to shifting demand and supply Thu, 01 Nov 2018 12:21:00 +0000 Nils Backeberg, senior analyst at Roskill, educates Proactive Investors on today's markets for rare earth minerals, with particular attention to factors influencing demand and thus prices.

Roskill will be publishing a report on rare earths later this month.

]]> Thor Mining focused on financing Molyhil and exploration at nearby Bonya tenements Thu, 01 Nov 2018 11:17:00 +0000 Mick Billing, executive chairman of Thor Mining PLC (LON:THR), tells Proactive London's Andrew Scott a big focus for them at the moment is on financing the Molyhil tungsten project following the recent definitive feasibility study (DFS) upgrade.

The DFS upgrade indicated a net present value for the project of A$101mln and an internal rate of return of 59%.

At Pilot Mountain, in Nevada, metallurgical work is being undertaken as part of a pre-feasibility study.

]]> Sunrise Resources chairman spells out steps towards production at CS Project Thu, 01 Nov 2018 10:04:00 +0000 Patrick Cheetham, executive chairman of Sunrise Resources Plc (LON:SRES) tells Proactive London's Andrew Scott they've discovered further extensive areas of perlite at their NewPerl pozzolan-perlite project in Nevada.

NewPerl is located 85 kilometres away from the company’s flagship CS pozzolan-perlite project.

Cheetham also discusses the completion of commercial trials on bulk samples taken from the CS project.

Two tons of raw perlite have been successfully expanded in a commercial production furnace to produce horticultural grade perlite suitable for the cannabis industry.

]]> Global Geoscience says US lithium project will be cheapest in the world Wed, 31 Oct 2018 22:16:00 +0000 Global Geoscience chairman James Calaway says a new pre feasibility study shows Rhyolite Ridge will become the "lowest cost lithium producer on the planet".

Calaway says the company's boric acid production cuts their lithium costs and also opens the door to a boron market that is as large as that for lithium.

]]> Telson Mining signs Renewable Power purchase agreement leading to big cost savings Wed, 31 Oct 2018 19:54:00 +0000 Telson Mining (CVE:TSN) President Ralph Shearing joined Steve Darling from Proactive Investors to share news Telson has entered in to a green energy agreement for their Campo Morado mine in Mexico. The deal is for 42.00 GWh of power per year at a set rate that will save the company a significant amount of money.

Shearing said with this new rate and set costs it allows them to better plan their capital spend per year and will end up equating to a 3.5 percent decrease in overall operating costs.   

]]> Vast Resources pleased with institutional backing for Blueberry gold project Wed, 31 Oct 2018 16:15:00 +0000 Andrew Prelea, chief executive of Vast Resources PLC (LON:VAST), tells Proactive London's Andrew Scott they've secured the US$1mln it needed from institutional investors to retain its 29.41% stake in the Blueberry gold project in Romania.

Prelea also discusses tranche B of the Mercuria funding as well as his plans for the week ahead while in Zimbabwe.

]]> CanAlaska Uranium is debt free, fully funded and ready to move projects forward Wed, 31 Oct 2018 14:21:00 +0000 CanAlaska Uranium (CVE:CVV) President and CEO Peter Dasler dropped in to the Vancouver office of Proactive Investors with details about their joint venture with Cameco and the West McArthur project.

Dasler also shared details of another project, a diamond exploration play in the Athabasca Basin in which CanAlaska now owns 100 percent. 

]]> Primary Energy Metals see big upside with projects in Utah, Spain and British Columbia Wed, 31 Oct 2018 13:40:00 +0000 Primary Energy Metals (CSE:PRIM) CEO Patrick Morris joined Steve Darling from Proactive Investors in Vancouver to update Primary's projects around the world including Spain.

Morris also provided details of their recent acquisition of 39 mineral claims in various locations in the Province of Quebec totaling almost 986 hectares.

]]> Four hits out of four illustrates potential at Europa Metals' Toral project Wed, 31 Oct 2018 10:58:00 +0000 Laurence Read, executive director at Europa Metals Limited (LON:EUZ), caught up with Proactive London's Andrew Scott to discuss the results of a Phase I drilling programme at Toral.

The reverse circulation (RC) drilling programme performed at the eastern end of the deposit successfully confirmed both the extension of the deposit and the continuity of the mineralised structure.

]]> VSA CAPITAL MARKET MOVERS - DekelOil Wed, 31 Oct 2018 10:37:00 +0000 DekelOil#: Cashew Project Contract

Côte d'Ivoire palm oil producer DekelOil Public Limited (LON:DKL) has announced that Capro CI, a wholly-owned subsidiary of Pearlside Holdings (a vehicle DKL has an option to acquire a 58.5% interest in) has awarded a €6.5m turnkey contract for the construction of its large-scale cashew processing project at Tiébissou in Côte d'Ivoire to Overseas Projects & Services Limited (OPSL).

  • OPSL is a related entity of Oltremare, an established Italian company that is acting as guarantor of OPSL for the contract.
  • OPSL will assume responsibility for engineering, manufacture, delivery, installation and commissioning of the project.
  • Following testing and commissioning of the 10,000t (c€20m sales) per annum facility (expandable to 30,000tpa), delivery of the project to Capro CI is expected in late 2019.

VSA Comment

As we outlined in our initiation report on DKL, we believe (assuming it exercises its option) that this cashew project provides DKL with sensible diversification given its expertise in the processing of agricommodities, smallholder relations and operating in-country.

The structure of the deal also allows DKL to eliminate its exposure to the riskier construction stage of the project, while maintaining an attractive entry price to benefit from the project’s expansion stage.

We estimate the project could deliver an additional €3m in attributable profit to DKL by 2022 (although we are not including this in our forecasts until the option is exercised).

We maintain our BUY recommendation and target price of 12p.

Risers and Fallers (Last Close)


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Obtala Limited





Carr's Group





Origin Enterprises







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Avon Rubber





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]]> Higher vanadium and coal prices again boost Anglo Pacific Group Wed, 31 Oct 2018 08:36:00 +0000 Kevin Flynn, CFO at Anglo Pacific Group PLC (LON:APF), runs through their Q3 update with Proactive London's Andrew Scott.

Higher vanadium and coal prices again boosted the mining royalty specialist.

Income rose 27% to £12.1mln in the three months to September for a nine-month total of £32.9mln (£28.9m).

Brazil-based vanadium producer Maracás Menchen was the best performer, lifting its contribution by 146% to £1.4mln as the price of the steel additive soared.

]]> Thunderstruck Resources strikes gold and extends project at Liwa Creek in Fiji Tue, 30 Oct 2018 19:16:00 +0000 Thunderstruck Resources Ltd (TSX-V:AWE, OTCQB:THURF) Chairman Brien Lundin updates Proactive's Christine Corrado on the gold exploration company's latest developments at its Liwa Creek Gold Prospect in Fiji.

Lundin says the Canadian company has expanded known targets at the site and discovered a possibly significant new gold zone.

]]> Tungsten markets returning to growth after years of low prices Tue, 30 Oct 2018 12:55:00 +0000 Jessica Roberts, head of battery & technology metals at Roskill, talks with Proactive Investors about world tungsten markets ahead of the release in November of a new Tungsten Market Outlook report.

Roberts discusses the outlook for supply, with particular consideration of the impacts from China's toughening environmental regulations.

Meanwhile, the profile for demand seems set to shift with the electric vehicle revolution.

]]> Rainbow Rare Earths targets Murambi production and Kiyenzi resource this quarter Tue, 30 Oct 2018 11:24:00 +0000 Martin Eales, chief executive of Rainbow Rare Earths Ltd (LON:RBW), tells Proactive London's Andrew Scott they exported 350 tonnes of rare-earths concentrate in the three months to 30 September 2018, an increase of 27%.

The grade per tonne of concentrate sold and exported ran at 59% total rare earth elements, confirming once again the status of the company’s Gakara mine in Burundi as one of the highest grade rare earth projects anywhere in the world.

]]> Cervantes touts location advantage amongst gold plays Tue, 30 Oct 2018 05:17:00 +0000 Cervantes chairman Collin Vost says the gold miner's focus on old Western Australian mines pays off in terms of both sovereign risk and access to infrastructure.

Vost also says gold demand remains healthy, and many gold players are fetching strong prices.

]]> Trans Pacific Energy Group announces new board Tue, 30 Oct 2018 03:11:00 +0000 Trans Pacific Energy Group CEO Arthur Darivas says the new board will be participative, and "very much involved with building the future". He says all board members have experience in building scale and size.

Darivas tells Proactive Investors his company's growing focus on Argentina will also benefit from the Latin American experience of both the board and himself.

]]> Trans Pacific Energy says technology crucial to beat supply bottlenecks Tue, 30 Oct 2018 00:25:00 +0000 The production delays encountered by even giant lithium miners such as SQM in Chile show supply bottlenecks are a far bigger concern for the battery metal than demand, says Arthur Darivas from Trans Pacific Energy Group.

The CEO of the Australian battery metals startup tells Proactive his company's extraction technology gives it an edge in how fast it can get lithium to the market.

]]> Archer Exploration's CEO discusses advanced materials in quantum computing Mon, 29 Oct 2018 22:00:00 +0000 Archer Exploration Ltd (ASX:AXE) has a fresh strategic focus on advanced materials, deployed through the three verticals of quantum computing, human health and reliable energy.

In the first video of a three-part series on each of the business channels, CEO Mohammad Choucair speaks to Proactive Investors about quantum computing.

"It has the potential to impact across all sectors reliant on computational power. That can include emerging sectors like artificial intelligence and big data, but also the financial sectors including crypto currencies and new currencies, and also in the pharmaceutical industries in new drug design and development," Choucair explains.

]]> Neighbours boost Legend Mining exploration success Mon, 29 Oct 2018 20:11:00 +0000 Legend Mining (ASX:LEG) MD Mark Wilson says indicators of sulphides mineralisation at its Rockford project in the Fraser Range are particularly exciting given the success of similar results from likes of Independence Group (ASX:IGO).

Wilson also says nickel prices are weak mainly because of general bearish sentiment for all minerals driven by factors such as global trade war concerns, whereas the fundamental demand for battery ingredients remains strong.

]]> Canamex Gold Corp announce GoldUSA and SilverUSA crypto security tokens Mon, 29 Oct 2018 18:59:00 +0000 Canamex Gold Corp (CSE:CSQ) CEO David Vincent and Malta Digital Exchange Executive Chairman Rick Klink joined Steve Darling of Proactive Investors on Skype to talk about Canamex offering security tokens backed by gold and silver royalties and metal streams.

Canamex is now exploring the possibility of listing and trading these GOLDUSA Tokens and SILVERUSA Tokens on the MDX. The Malta Digital Exchange. 

]]> Great Panther Silver looks at Beadell acquisition as transformational move Mon, 29 Oct 2018 18:47:00 +0000 Great Panther Silver (CVE:GPR) President and CEO Jim Bannantine joined Steve Darling in the Vancouver studio of Proactive Investors to talk about why its acquisition of Beadell Resources, an australian gold miner,  will in essence change the face of the company.  

Bannantine says with the assets Beadell has, it increases Great Panther's resource number by 300 percent. It also adds Brazil to Great Panthers other assets in Mexico, Peru.

]]> Horizonte Minerals' Jeremy Martin upbeat on financing prospects for Araguaia Mon, 29 Oct 2018 14:02:00 +0000 Jeremy Martin, chief executive of Horizonte Minerals Plc (LON:HZM), spoke to Proactive London's Andrew Scott following the release of a feasibility study on their Araguaia nickel project in Brazil's Pará State.

The study shows over a 28-year mine life Araguaia will generate US$1.6bn in cash flow, with the potential to go even beyond that.

The feasibility study worked to a design that allows for future construction of a second rotary kiln electric furnace process line, with the potential to double production capacity from 14,500 tonnes per year nickel up to 29,000 tonnes.

]]> VSA CAPITAL MARKET MOVERS - Lake Resources Mon, 29 Oct 2018 09:34:00 +0000 Lake Resources (ASX:LKE)


Lake Resources (LKE AU) has announced strong results from the laboratory testwork in conjunction with Lilac Solutions who have been testing brine samples from the Kachi project in Argentina. The testwork yielded recoveries of 80-90% in just a few hours compared to traditional brine recoveries of around 50% in months for operations in the Salar de Atacama. Lilac utilises an ion exchange extraction technology and the demonstrated yields effectively mean that 300mg/l Li grades using Lilac’s technology produce the same as 600mg/l Li grades using a traditional evaporation approach.

This is potentially transformative for the economics of Kachi and represents a significant first step in exploring this process route. The announcement is particularly significant given the current scrutiny on the environmental impact of traditional evaporation techniques and the knock-on impacts on forecast supply growth from Chile and the Salar de Atacama in particular. Lilac is now assessing the operating costs for this production technique, which directly produces lithium carbonate and/or hydroxide. Costs will of course fundamentally determine the success of the process; however, these initial results are encouraging and Lilac has guided to a competitive position on the global cost curve.

We reiterate our Speculative Buy recommendation. 

]]> Kogi Iron confident of Nigerian steel potential Sun, 28 Oct 2018 21:11:00 +0000 Kogi Iron (ASX: KFE) managing director Martin Wood tells Proactive the company has proved it can process iron ore into steel, and is confident in its community agreements with Nigerian authorities and communities.

Wood also says Nigeria's nascent middle class will drive a strong demand for steel, which the country is currently importing. Kogi Iron will be a "disruptive", superior quality steel provider for rebar customers, says Wood, and a "positive force" for the whole country.

]]> Westhaven Ventures latest drill results show why Shovelnose is a project to watch Fri, 26 Oct 2018 20:10:00 +0100 Westhaven Ventures (CVE:WHN) President and CEO Gareth Thomas joined Steve Darling in the Vancouver studio of Proactive Investors to share details about the companies flagship project Shovelnose. That project is near Merritt, British Columbia.  Thomas shared details of that projects recent very positive drill results and some other positives for this site.

Thomas also talked about the next steps for Westhaven ventures and how being fully funded helps in those goals. 

]]> Minera Alamos announces new discovery hole on Santana project in Mexico Fri, 26 Oct 2018 19:16:00 +0100 Minera Alamos (CVE:MAI) President Doug Ramshaw joined Steve Darling from Proactive Investors on Skype to bring news about a new discovery hole at their project in Sonoro, Mexico. The new hole was drilled about 200 metres north of the known mineralization at Santana.

Ramshaw also discussed what this new area means for the company moving forward.

]]> How high will the gold price go in the face of the current equity market correction? Fri, 26 Oct 2018 11:55:00 +0100 Global Geoscience sees boron driving world best lithium cost savings Fri, 26 Oct 2018 01:54:00 +0100 Bernard Rowe from Global Geoscience (ASX:GSC) says "boring" boron is a high demand product and also helps cut its lithium carbonate production costs to world class standards.

The managing director of the lithium boron player says its Pre Feasability Study has been extremely promising and Global Geoscience is well placed to supply lithium to the US energy storage industry.

]]> Bulls, Bears & Brokers: Alto Capital's Tony Locantro assesses high trading volumes Fri, 26 Oct 2018 01:00:00 +0100 Tony Locantro, stock market commentator and investment manager at Alto Capital, speaks to Proactive Investors about the current volatility on the stock markets as well as the risks and rewards of the high trading volumes being seen on the ASX.

Watch our full video interview to hear Tony's Tips this week.

]]> LithiumOre poised to begin drilling at Western Nevada Basin Project Thu, 25 Oct 2018 17:54:00 +0100 LithiumOre CEO Corp Doug Cole (OTCQB:ORRP) speaks to Proactive Investors about the lithium exploration and development company's ongoing exploration into its Western Nevada Basin Project.

Cole says the company is poised to begin drilling in the next 30 days. The company hopes to be producing 10,000 metric tonnes of lithium by end of the second quarter 2019.

]]> Oriole Resources 'very excited' by results from Dalafin drill programme Thu, 25 Oct 2018 13:38:00 +0100 Tim Livesey, chief executive of Oriole Resources PLC (LON:ORR), discusses with Proactive London encouraging gold intercepts from a drill programme at Dalafin in Senegal.

The campaign was carried out by partner IAMGOLD and identified broad zones of anomalous gold mineralisation as well as higher grade samples that could indicate a feeder zone at depth.

]]> Eurasia Mining potentially able to double production next year at West Kytlim Thu, 25 Oct 2018 12:33:00 +0100 Eurasia Mining plc's (LON:EUA) Christian Schaffalitzky updates Proactive London on recent reserve upgrade drilling at West Kytlim in Russia.

A new calculation for the total contained platinum for the Kluchiki Area, where mining started in August, has now been submitted for approval.

Operations at the Kluchiki open pit point to bonanza grade ore pockets as the coarser fractions of platinum not captured during sample tests are picked up during mining.

]]> Capital Drilling reports strong growth with significant contract wins Thu, 25 Oct 2018 10:07:00 +0100 Jamie Boyton, chairman of Capital Drilling Ltd (LON:CAPD), caught up with Proactive London's Andrew Scott to discuss the company's recent Q3 update as well as this week's news around an important contract extension at Centamin’s Sukari gold mine, in Egypt and a new drilling contract with Canadian-based Sama Resources Inc. at its Yepleu property in Côte d'Ivoire.

The deal with Sama Resources is Capital Drilling's first in the country following its strategic expansion into West Africa where the company now has 31 rigs, representing a third of its rig fleet.

]]> Minotaur Exploration ramps up drilling, affirms joint venture strategy Thu, 25 Oct 2018 00:54:00 +0100 Andrew Woskett from Minotaur Exploration (ASX: MEP) says investors can expect plenty of news flow in the near future, with round the clock drilling driving activity.

The Adelaide-based explorer's managing director also says Minotaur's joint venture strategy is paying off. The company has just reported consistent, high-grade copper for its Eloise joint venture with OZ Minerals.

]]> Yandal Resources working to float on ASX before end of this year Wed, 24 Oct 2018 22:00:00 +0100 Yandal Resources Limited (ASX:YRL) managing director Lorry Hughes tells Proactive Investors that the company is targeting an IPO before Christmas.

The gold explorer has high hopes for its infrastructure-rich strategic location in Western Australia, which is within trucking distance of Northern Star's high profile Jundee deposit.

]]> VSA CAPITAL MARKET MOVERS - Lake Resources Mon, 22 Oct 2018 13:24:00 +0100

VSA Morning Miner, 22/10/18

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Lake Resources (ASX:LKE)

Lake Resources (LKE AU)# has announced the results of further drilling at Kachi as it approaches declaration of a maiden resource. This is now expected in late October, early November with an exploration target expected to be announced ahead of this.
The additional three holes each demonstrated robust grades and were all focused on the north western area of the salar. Hole K03R03 yielded 306mg/l Li from 213m and nearby hole K03R12 yielded 42m at 267mg/l Li from 358m. K08R14 intercepted 326mg/l Li from 301m. These results confirm initial findings that this area of the salar has the stronger grades of lithium bearing brines as well as robust and consistent thickness and we anticipate that this area will be the focus of the resource estimate.
As well as the confirmation of consistent grades across this part of the salar the results have also demonstrated consistently low magnesium ratios in line with top tier projects. In this latest round of drilling the magnesium lithium ratio ranged between 3.8-4.4.

With further results due from the remaining outstanding drill holes from this round there is likely to be further encouraging news flow as LKE approaches announcing its maiden resource at Kachi. In addition, we await results from Cauchari where drilling is also underway.
We reiterate our Speculative Buy recommendation.


]]> VSA CAPITAL MARKET MOVERS - Lake Resources Mon, 22 Oct 2018 13:24:00 +0100

VSA Morning Miner, 22/10/18

Click here for PDF version

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Lake Resources (ASX:LKE)

Lake Resources (LKE AU)# has announced the results of further drilling at Kachi as it approaches declaration of a maiden resource. This is now expected in late October, early November with an exploration target expected to be announced ahead of this.
The additional three holes each demonstrated robust grades and were all focused on the north western area of the salar. Hole K03R03 yielded 306mg/l Li from 213m and nearby hole K03R12 yielded 42m at 267mg/l Li from 358m. K08R14 intercepted 326mg/l Li from 301m. These results confirm initial findings that this area of the salar has the stronger grades of lithium bearing brines as well as robust and consistent thickness and we anticipate that this area will be the focus of the resource estimate.
As well as the confirmation of consistent grades across this part of the salar the results have also demonstrated consistently low magnesium ratios in line with top tier projects. In this latest round of drilling the magnesium lithium ratio ranged between 3.8-4.4.

With further results due from the remaining outstanding drill holes from this round there is likely to be further encouraging news flow as LKE approaches announcing its maiden resource at Kachi. In addition, we await results from Cauchari where drilling is also underway.
We reiterate our Speculative Buy recommendation.


]]> US booms and mid-terms loom, with culture wars taking centre stage Sat, 20 Oct 2018 06:00:00 +0100 VSA CAPITAL MARKET MOVERS - M2 Cobalt Thu, 18 Oct 2018 08:18:00 +0100

VSA Morning Miner, 18/10/18

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M2 Cobalt (CVE:MC)

M2 Cobalt (MC CN) has announced that drilling is underway having secured a contract for up to 3km of diamond core drilling with an East African drilling company. Having identified multiple large scale targets and three distinct styles of mineralisation the drilling will assess key targets across the license areas to assess the potential and identify future targets for follow up drilling.

We anticipate that drilling will focus on the VMS style mineralisation identified at Kilembe which represent lower risk targets, in our view, given the proximity to the prior producing Kilembe mine. VTEM surveys identified at least two strongly conductive zones which we expect will be a high initial priority. Drilling will also be targeted at the Bujagali licenses where, M2 yesterday announced it had significantly enhanced its exploration area into a continuous land package. At Bujagali the Phase 1 work yielded multiple large-scale targets indicating a regional scale play of primarily Katanga style copper cobalt mineralisation. In addition, M2 also identified ultramafic nickel, copper and cobalt at the Bombo target.

With the announcement of the start of drilling this is a key period for M2. Initial assay results are expected in the coming weeks which represent key potential catalysts for the stock.

We reiterate our Speculative Buy recommendation.



]]> VSA CAPITAL MARKET MOVERS - M2 Cobalt Wed, 17 Oct 2018 08:24:00 +0100 M2 Cobalt (CVE:MC)

M2 Cobalt (MC CN) has announced that it has acquired an additional four exploration licenses covering 850km2. Three licenses (515kmm2) are located in the area surrounding the Kilembe licenses while the fourth (335km2) is contiguous with one of the licenses in the Bujagali area.  The decision to include these additional license areas is based on a combination of historic findings and the recent successful Phase 1 work and M2 now has a very significant footprint of 1,564km2 across seven licenses. 

The consideration for the acquisition paid to Olympic, a private Ugandan company, consists of an upfront payment of US$150k and 350k shares in M2 on approval by the TSX-V. Latterly M2 will pay US$400k and 450k shares on the earlier of May 31 2019 or when the company raises a minimum of US$3m in new equity. All issued shares are subject to a four-month hold. Based on the last close the total value of the acquisition was US$810k which represents a highly attractive price, in our view, given the initial license areas were acquired for around US$2m.

The acquisition allows M2 to take full advantage of the developing regional play at the Bujagali licenses where the company recently announced that it has now discovered five large scale cobalt anomalies. The acquisition of the additional license area means a significantly increased and continuous land package which follows a major thrust and fold belt on which the anomalies have been identified. The work to date has demonstrated the potential for Katanga style sedimentary copper cobalt mineralisation and this is a key additional license which enables the company to fully exploit the area’s potential and we anticipate that M2 will carry out similar methodical geochemical and geophysical sampling across the new license.

At Kilembe two of the three new licenses are contiguous with the company’s existing licenses on the Western extent of the Eastern branch of the Great Rift Valley in close proximity to the past producing Kilembe mine. These additional licenses therefore strengthen the company’s presence in the region. The third license presents a new opportunity and is located on the Eastern escarpment of the Great Rift Valley on the opposite side to Kilembe. With examples of historic base metal workings there are known occurrences of mineralisation within this new license. The Great Rift Valley formed as the two plates drifted apart and the geology and mineralisation is therefore anticipated to be mirrored on opposite sides of the valley indicating significant potential akin to Kilembe.

We reiterate our Speculative Buy recommendation.

]]> Equity rout puts precious metals back into the spotlight Fri, 12 Oct 2018 13:01:00 +0100 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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]]> 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 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. 

]]> 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.

]]> What next for the gold price? Fri, 28 Sep 2018 13:09:00 +0100 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. 

]]> 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 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.

]]> 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).

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]]> 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