https://www.miningcapital.com/companies/news/212724/great-bear-resources-zooms-higher-as-it-finds-more-gold-at-dixie-project-212724.html Great Bear Resources zooms higher as it finds more gold at Dixie project https://www.miningcapital.com/companies/news/212724/great-bear-resources-zooms-higher-as-it-finds-more-gold-at-dixie-project-212724.html Wed, 16 Jan 2019 19:07:00 +0000 https://www.miningcapital.com/companies/news/212704/ceylon-graphite-looking-to-2019-with-optimism-as-it-eyes-start-of-commercial-production-212704.html Ceylon Graphite looking to 2019 with optimism as it eyes start of commercial production https://www.miningcapital.com/companies/news/212704/ceylon-graphite-looking-to-2019-with-optimism-as-it-eyes-start-of-commercial-production-212704.html Wed, 16 Jan 2019 17:35:00 +0000 https://www.miningcapital.com/companies/news/212711/berkwood-resources-finds-three-large-surface-graphite-outcrops-212711.html Berkwood Resources finds three large surface graphite outcrops https://www.miningcapital.com/companies/news/212711/berkwood-resources-finds-three-large-surface-graphite-outcrops-212711.html Wed, 16 Jan 2019 16:51:00 +0000 https://www.miningcapital.com/companies/news/212717/nordic-gold-shares-shine-as-it-provides-laiva-mine-production-update-212717.html Nordic Gold shares shine as it provides Laiva mine production update https://www.miningcapital.com/companies/news/212717/nordic-gold-shares-shine-as-it-provides-laiva-mine-production-update-212717.html Wed, 16 Jan 2019 15:48:00 +0000 https://www.miningcapital.com/companies/news/212715/xtract-resources-appoints-contractor-to-mine-alluvial-gold-deposits-at-manica-212715.html Xtract Resources appoints contractor to mine alluvial gold deposits at Manica https://www.miningcapital.com/companies/news/212715/xtract-resources-appoints-contractor-to-mine-alluvial-gold-deposits-at-manica-212715.html Wed, 16 Jan 2019 15:27:00 +0000 https://www.miningcapital.com/companies/news/212713/theresa-may-confirms-sirius-minerals-financing-discussions-212713.html Theresa May confirms Sirius Minerals financing discussions https://www.miningcapital.com/companies/news/212713/theresa-may-confirms-sirius-minerals-financing-discussions-212713.html Wed, 16 Jan 2019 14:45:00 +0000 https://www.miningcapital.com/companies/news/212701/medgold-taps-crozier-as-acting-president-and-grants-stock-options-212701.html Medgold taps Crozier as acting president and grants stock options https://www.miningcapital.com/companies/news/212701/medgold-taps-crozier-as-acting-president-and-grants-stock-options-212701.html Wed, 16 Jan 2019 13:28:00 +0000 https://www.miningcapital.com/companies/news/212665/strong-sales-at-cobre-once-again-as-strategic-minerals-gears-up-for-production-at-leigh-creek-212665.html Strong sales at Cobre once again as Strategic Minerals gears up for production at Leigh Creek https://www.miningcapital.com/companies/news/212665/strong-sales-at-cobre-once-again-as-strategic-minerals-gears-up-for-production-at-leigh-creek-212665.html Wed, 16 Jan 2019 12:45:00 +0000 https://www.miningcapital.com/companies/news/212720/rnc-minerals-closes-899-million-financing-212720.html RNC Minerals closes $8.99 million financing https://www.miningcapital.com/companies/news/212720/rnc-minerals-closes-899-million-financing-212720.html Wed, 16 Jan 2019 12:20:00 +0000 https://www.miningcapital.com/companies/news/212718/newrange-gold-submits-300-samples-from-pamlico-gold-project-in-nevada-for-fire-assay-212718.html Newrange Gold submits 300 samples from Pamlico gold project in Nevada for fire assay https://www.miningcapital.com/companies/news/212718/newrange-gold-submits-300-samples-from-pamlico-gold-project-in-nevada-for-fire-assay-212718.html Wed, 16 Jan 2019 12:10:00 +0000 https://www.miningcapital.com/companies/stocktube/11853/berkwood-resources-completes-4th-drill-program-at-lac-gueret-graphite-project-11853.html Berkwood Resources completes 4th drill program at Lac Gueret graphite project https://www.miningcapital.com/companies/stocktube/11853/berkwood-resources-completes-4th-drill-program-at-lac-gueret-graphite-project-11853.html Wed, 16 Jan 2019 12:04:00 +0000 Berkwood Resources (CVE:BKR) President and CEO Tom Yingling joined Steve Darling from Proactive Investors Vancouver to share news that Berkwood has finished up their 4th drill program at their graphite project in Quebec.

Yingling also mentioned outcrop and he tells Proactive more about it and why it's so significant. 

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https://www.miningcapital.com/companies/news/212669/bovis-homes-expects-2018-profits-to-be-slightly-ahead-of-market-consensus-early-signs-on-2019-trading-encouraging-212669.html Bovis Homes expects 2018 profits to be slightly ahead of market consensus, early signs on 2019 trading encouraging https://www.miningcapital.com/companies/news/212669/bovis-homes-expects-2018-profits-to-be-slightly-ahead-of-market-consensus-early-signs-on-2019-trading-encouraging-212669.html Wed, 16 Jan 2019 11:50:00 +0000 https://www.miningcapital.com/companies/news/212692/european-metals-holdings-confirms-receipt-of-purported-indicative-offer-to-purchase-lithium-project-at-cinovec-212692.html European Metals Holdings confirms receipt of purported indicative offer to purchase lithium project at Cinovec https://www.miningcapital.com/companies/news/212692/european-metals-holdings-confirms-receipt-of-purported-indicative-offer-to-purchase-lithium-project-at-cinovec-212692.html Wed, 16 Jan 2019 11:26:00 +0000 https://www.miningcapital.com/companies/news/212714/mgx-minerals-shareholders-vote-in-favor-of-mgx-renewables-spinoff-212714.html MGX Minerals shareholders vote in favor of MGX Renewables spinoff https://www.miningcapital.com/companies/news/212714/mgx-minerals-shareholders-vote-in-favor-of-mgx-renewables-spinoff-212714.html Wed, 16 Jan 2019 10:42:00 +0000 https://www.miningcapital.com/companies/news/212712/otis-gold-says-59-boost-in-indicated-gold-resource-estimate-at-idaho-project-among-2018-milestones-212712.html Otis Gold says 59% boost in indicated gold resource estimate at Idaho project among 2018 milestones https://www.miningcapital.com/companies/news/212712/otis-gold-says-59-boost-in-indicated-gold-resource-estimate-at-idaho-project-among-2018-milestones-212712.html Wed, 16 Jan 2019 09:56:00 +0000 https://www.miningcapital.com/companies/news/212708/mawson-resources-unveils-more-exciting-exploration-results-from-rajapalot-project-in-finland-212708.html Mawson Resources unveils more exciting exploration results from Rajapalot project in Finland https://www.miningcapital.com/companies/news/212708/mawson-resources-unveils-more-exciting-exploration-results-from-rajapalot-project-in-finland-212708.html Wed, 16 Jan 2019 09:20:00 +0000 https://www.miningcapital.com/companies/news/212707/great-panther-says-proxy-advisory-firm-iss-recommends-shareholder-support-for-beadell-deal-212707.html Great Panther says proxy advisory firm ISS recommends shareholder support for Beadell deal https://www.miningcapital.com/companies/news/212707/great-panther-says-proxy-advisory-firm-iss-recommends-shareholder-support-for-beadell-deal-212707.html Wed, 16 Jan 2019 09:14:00 +0000 https://www.miningcapital.com/companies/news/212681/cracks-widen-at-van-elle-as-order-delays-hit-specialist-division-212681.html Cracks widen at Van Elle as order delays hit specialist division https://www.miningcapital.com/companies/news/212681/cracks-widen-at-van-elle-as-order-delays-hit-specialist-division-212681.html Wed, 16 Jan 2019 08:45:00 +0000 https://www.miningcapital.com/companies/news/212703/mandalay-resources-says-4q-gold-output-met-revised-2018-production-guidance-212703.html Mandalay Resources says 4Q gold output met revised 2018 production guidance https://www.miningcapital.com/companies/news/212703/mandalay-resources-says-4q-gold-output-met-revised-2018-production-guidance-212703.html Wed, 16 Jan 2019 08:28:00 +0000 https://www.miningcapital.com/companies/news/212661/alba-mineral-resources-hails-production-test-success-at-horse-hill-oil-project-212661.html Alba Mineral Resources hails production test success at Horse Hill oil project https://www.miningcapital.com/companies/news/212661/alba-mineral-resources-hails-production-test-success-at-horse-hill-oil-project-212661.html Wed, 16 Jan 2019 07:39:00 +0000 https://www.miningcapital.com/companies/news/212657/riversgold-discovers-two-new-prospects-and-receives-strong-gold-results-at-farr-jones-212657.html Riversgold discovers two new prospects and receives strong gold results at Farr-Jones https://www.miningcapital.com/companies/news/212657/riversgold-discovers-two-new-prospects-and-receives-strong-gold-results-at-farr-jones-212657.html Wed, 16 Jan 2019 06:15:00 +0000 https://www.miningcapital.com/companies/news/212655/spectrum-metals-prepares-to-drill-high-priority-targets-at-penny-west-gold-project-212655.html Spectrum Metals prepares to drill high-priority targets at Penny West Gold Project https://www.miningcapital.com/companies/news/212655/spectrum-metals-prepares-to-drill-high-priority-targets-at-penny-west-gold-project-212655.html Wed, 16 Jan 2019 05:28:00 +0000 https://www.miningcapital.com/companies/news/212650/galena-mining-optimises-pfs-ahead-of-publishing-dfs-in-mid-2019-212650.html Galena Mining optimises PFS ahead of publishing DFS in mid-2019 https://www.miningcapital.com/companies/news/212650/galena-mining-optimises-pfs-ahead-of-publishing-dfs-in-mid-2019-212650.html Wed, 16 Jan 2019 04:40:00 +0000 https://www.miningcapital.com/companies/news/212654/core-lithium-completes-3-million-placement-and-begins-drilling-at-finnis-212654.html Core Lithium completes $3 million placement and begins drilling at Finnis https://www.miningcapital.com/companies/news/212654/core-lithium-completes-3-million-placement-and-begins-drilling-at-finnis-212654.html Wed, 16 Jan 2019 04:40:00 +0000 https://www.miningcapital.com/companies/news/212653/golden-rim-resources-intersects-bonanza-gold-grades-up-to-895-gt-in-kouri-drilling-212653.html Golden Rim Resources intersects bonanza gold grades up to 89.5 g/t in Kouri drilling https://www.miningcapital.com/companies/news/212653/golden-rim-resources-intersects-bonanza-gold-grades-up-to-895-gt-in-kouri-drilling-212653.html Wed, 16 Jan 2019 04:28:00 +0000 https://www.miningcapital.com/companies/news/212652/pacific-american-coal-shares-surge-on-upgrading-high-quality-coking-coal-resource-212652.html Pacific American Coal shares surge on upgrading high-quality coking coal resource https://www.miningcapital.com/companies/news/212652/pacific-american-coal-shares-surge-on-upgrading-high-quality-coking-coal-resource-212652.html Wed, 16 Jan 2019 04:21:00 +0000 https://www.miningcapital.com/companies/news/212651/infinity-lithium-corporation-strengthens-board-by-appointing-experienced-industry-executive-212651.html Infinity Lithium Corporation strengthens board by appointing experienced industry executive https://www.miningcapital.com/companies/news/212651/infinity-lithium-corporation-strengthens-board-by-appointing-experienced-industry-executive-212651.html Wed, 16 Jan 2019 03:12:00 +0000 https://www.miningcapital.com/companies/news/212649/legend-mining-eyes-further-positive-exploration-results-across-the-rockford-project-in-2019-212649.html Legend Mining eyes further positive exploration results across the Rockford Project in 2019 https://www.miningcapital.com/companies/news/212649/legend-mining-eyes-further-positive-exploration-results-across-the-rockford-project-in-2019-212649.html Wed, 16 Jan 2019 02:26:00 +0000 https://www.miningcapital.com/companies/news/212648/predictive-discovery-to-commence-10000-metre-drill-program-212648.html Predictive Discovery to commence 10,000-metre drill program https://www.miningcapital.com/companies/news/212648/predictive-discovery-to-commence-10000-metre-drill-program-212648.html Wed, 16 Jan 2019 02:13:00 +0000 https://www.miningcapital.com/companies/stocktube/11859/bulls-bears--brokers-barry-dawes-shares-holistic-analysis-on-gold-11859.html Bulls, Bears & Brokers: Barry Dawes shares holistic analysis on gold https://www.miningcapital.com/companies/stocktube/11859/bulls-bears--brokers-barry-dawes-shares-holistic-analysis-on-gold-11859.html Wed, 16 Jan 2019 02:00:00 +0000 Barry Dawes, geologist and founder & executive chairman of Martin Place Securities, provides Proactive Investors with a comprehensive analysis of trends in global gold markets, and tips his current favourite gold stocks.

Watch our full video interview for all of Dawes Points.

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https://www.miningcapital.com/companies/news/212644/cardinal-resources-aims-for-completed-gold-project-dfs-by-september-quarter-212644.html Cardinal Resources aims for completed gold project DFS by September quarter https://www.miningcapital.com/companies/news/212644/cardinal-resources-aims-for-completed-gold-project-dfs-by-september-quarter-212644.html Wed, 16 Jan 2019 01:20:00 +0000 https://www.miningcapital.com/companies/news/212646/chase-mining-director-charles-thomas-increases-stake-to-57-million-shares-212646.html Chase Mining director Charles Thomas increases stake to 5.7 million shares https://www.miningcapital.com/companies/news/212646/chase-mining-director-charles-thomas-increases-stake-to-57-million-shares-212646.html Wed, 16 Jan 2019 01:08:00 +0000 https://www.miningcapital.com/companies/news/212645/orion-minerals-confirms-ayoba-massive-sulphide-discovery-with-first-assays-212645.html Orion Minerals confirms Ayoba massive sulphide discovery with first assays https://www.miningcapital.com/companies/news/212645/orion-minerals-confirms-ayoba-massive-sulphide-discovery-with-first-assays-212645.html Wed, 16 Jan 2019 01:06:00 +0000 https://www.miningcapital.com/companies/news/212552/bellevue-gold-to-update-resource-estimate-this-quarter-212552.html Bellevue Gold to update resource estimate this quarter https://www.miningcapital.com/companies/news/212552/bellevue-gold-to-update-resource-estimate-this-quarter-212552.html Wed, 16 Jan 2019 00:30:00 +0000 https://www.miningcapital.com/companies/news/212639/golden-arrow-announces-2018-results-for-puna-operations-provides-2019-guidance-212639.html Golden Arrow announces 2018 results for Puna Operations, provides 2019 guidance https://www.miningcapital.com/companies/news/212639/golden-arrow-announces-2018-results-for-puna-operations-provides-2019-guidance-212639.html Tue, 15 Jan 2019 23:56:00 +0000 https://www.miningcapital.com/companies/news/212642/aspire-minings-ovoot-product-can-help-address-forecast-fat-coking-coal-shortage-212642.html Aspire Mining’s Ovoot product can help address forecast ‘fat’ coking coal shortage https://www.miningcapital.com/companies/news/212642/aspire-minings-ovoot-product-can-help-address-forecast-fat-coking-coal-shortage-212642.html Tue, 15 Jan 2019 23:35:00 +0000 https://www.miningcapital.com/companies/news/212641/american-pacific-borate-and-lithium-prepares-for-site-visit-from-fortune-500-company-212641.html American Pacific Borate and Lithium prepares for site visit from Fortune 500 company https://www.miningcapital.com/companies/news/212641/american-pacific-borate-and-lithium-prepares-for-site-visit-from-fortune-500-company-212641.html Tue, 15 Jan 2019 23:22:00 +0000 https://www.miningcapital.com/companies/news/212638/polarx-outlines-rapid-expansion-at-alaska-range-project-212638.html PolarX outlines rapid expansion at Alaska Range Project https://www.miningcapital.com/companies/news/212638/polarx-outlines-rapid-expansion-at-alaska-range-project-212638.html Tue, 15 Jan 2019 22:06:00 +0000 https://www.miningcapital.com/companies/news/212637/alio-gold-forecasts-output-of-its-florida-canyon-mine-to-rise-212637.html Alio Gold forecasts output of its Florida Canyon mine to rise https://www.miningcapital.com/companies/news/212637/alio-gold-forecasts-output-of-its-florida-canyon-mine-to-rise-212637.html Tue, 15 Jan 2019 21:19:00 +0000 https://www.miningcapital.com/companies/news/212527/newmont-minings-10-billion-shopping-spree-shows-consolidation-is-necessary-to-deliver-value-growth-among-gold-miners-212527.html Newmont Mining’s $10 billion shopping spree shows ‘consolidation is necessary’ to deliver value, growth among gold miners https://www.miningcapital.com/companies/news/212527/newmont-minings-10-billion-shopping-spree-shows-consolidation-is-necessary-to-deliver-value-growth-among-gold-miners-212527.html Tue, 15 Jan 2019 19:55:00 +0000 https://www.miningcapital.com/companies/news/212621/millennial-lithium-boosted-as-tests-show-battery-grade-lithium-carbonate-can-be-made-from-pastos-grandes-brine-212621.html Millennial Lithium boosted as tests show battery-grade lithium carbonate can be made from Pastos Grandes brine https://www.miningcapital.com/companies/news/212621/millennial-lithium-boosted-as-tests-show-battery-grade-lithium-carbonate-can-be-made-from-pastos-grandes-brine-212621.html Tue, 15 Jan 2019 19:37:00 +0000 https://www.miningcapital.com/companies/news/212630/latin-american-minerals-poised-for-exploration-at-ontario-uranium-and-rare-earth-property-212630.html Latin American Minerals poised for exploration at Ontario uranium and rare earth property https://www.miningcapital.com/companies/news/212630/latin-american-minerals-poised-for-exploration-at-ontario-uranium-and-rare-earth-property-212630.html Tue, 15 Jan 2019 18:22:00 +0000 https://www.miningcapital.com/companies/news/212626/ashanti-gold-set-to-bring-in-500000-to-advance-kossanto-east-in-mali-212626.html Ashanti Gold set to bring in $500,000 to advance Kossanto East in Mali https://www.miningcapital.com/companies/news/212626/ashanti-gold-set-to-bring-in-500000-to-advance-kossanto-east-in-mali-212626.html Tue, 15 Jan 2019 16:01:00 +0000 https://www.miningcapital.com/companies/stocktube/11819/ximen-mining-is-debt-free-and-has-a-unique-model-to-push-flagship-brett-gold-forward-11819.html Ximen Mining is debt free and has a unique model to push flagship Brett Gold forward https://www.miningcapital.com/companies/stocktube/11819/ximen-mining-is-debt-free-and-has-a-unique-model-to-push-flagship-brett-gold-forward-11819.html Tue, 15 Jan 2019 14:33:00 +0000 Ximen Mining (CVE:XIM-OTYCQB-XXMMF) President and CEO Christopher Anderson joined Steve Darling from Proactive Investors Vancouver to talk about his company, which has 3 projects in British Columbia.

One of those projects is its flagship project called Brett Gold. Anderson told Proactive about this projects colourful past and what they are planning to do on it  this year.  

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https://www.miningcapital.com/companies/stocktube/11849/vast-resources-asking-for-shareholder-support-to-back-debt-funding-plans-11849.html Vast Resources asking for shareholder support to back debt funding plans https://www.miningcapital.com/companies/stocktube/11849/vast-resources-asking-for-shareholder-support-to-back-debt-funding-plans-11849.html Tue, 15 Jan 2019 13:06:00 +0000 Vast Resources PLC's (LON:VAST) CEO Andrew Prelea spoke to Proactive London's Andrew Scott to add detail around a letter sent to shareholders by company chairman urging them to vote in favour of AGM resolutions that allow for new capital raising powers.

''This is a pre-emptive strike after discussing with several debt funders to allow us to provide security for a facility for the production of the diamonds in Zimbabwe'', Prelea says.

''This is not a request for headroom to dilute shareholders ... this is a request to shareholders to allow us to raise debt facilities for the diamond production''.

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https://www.miningcapital.com/companies/news/212606/nq-minerals-declares-commercial-production-at-hellyer-212606.html NQ Minerals declares commercial production at Hellyer https://www.miningcapital.com/companies/news/212606/nq-minerals-declares-commercial-production-at-hellyer-212606.html Tue, 15 Jan 2019 12:42:00 +0000 https://www.miningcapital.com/companies/news/212574/vasts-chairman-writes-to-shareholders-in-support-of-agm-resolution-to-issue-shares-212574.html VAST’s chairman writes to shareholders in support of AGM resolution to issue shares https://www.miningcapital.com/companies/news/212574/vasts-chairman-writes-to-shareholders-in-support-of-agm-resolution-to-issue-shares-212574.html Tue, 15 Jan 2019 08:17:00 +0000 https://www.miningcapital.com/companies/news/212568/anglo-asians-full-year-gold-production-hits-the-top-end-of-guidance-212568.html Anglo Asian’s full year gold production hits the top end of guidance https://www.miningcapital.com/companies/news/212568/anglo-asians-full-year-gold-production-hits-the-top-end-of-guidance-212568.html Tue, 15 Jan 2019 07:52:00 +0000 https://www.miningcapital.com/companies/news/212560/tertiary-will-assess-decision-to-deny-exploitation-concession-at-storuman-212560.html Tertiary will assess decision to deny exploitation concession at Storuman https://www.miningcapital.com/companies/news/212560/tertiary-will-assess-decision-to-deny-exploitation-concession-at-storuman-212560.html Tue, 15 Jan 2019 07:33:00 +0000 https://www.miningcapital.com/companies/stocktube/11845/alliance-mineral-assets-md-updates-on-bald-hill-production-and-offtake-11845.html Alliance Mineral Assets MD updates on Bald Hill production and offtake https://www.miningcapital.com/companies/stocktube/11845/alliance-mineral-assets-md-updates-on-bald-hill-production-and-offtake-11845.html Tue, 15 Jan 2019 04:52:00 +0000 Mark Calderwood, managing director of Alliance Mineral Assets Ltd (ASX:A40), updates Proactive Investors on the Bald Hill lithium-tantalum mine in the Eastern Goldfields, discussing revised lithium offtake agreements and providing a production update as well as production guidance for 2019.

Alliance was reinstated to official quotation today following a merger with Tawana Resources; the two companies previously co-owned Bald Hill.

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https://www.miningcapital.com/companies/news/212550/aeris-resources-intersects-copper-of-up-to-651-at-target-near-tritton-mine-212550.html Aeris Resources intersects copper of up to 6.51% at target near Tritton mine https://www.miningcapital.com/companies/news/212550/aeris-resources-intersects-copper-of-up-to-651-at-target-near-tritton-mine-212550.html Tue, 15 Jan 2019 04:13:00 +0000 https://www.miningcapital.com/companies/news/212549/anson-resources-preparing-to-commence-re-entry-of-oil-wells-212549.html Anson Resources preparing to commence re-entry of oil wells https://www.miningcapital.com/companies/news/212549/anson-resources-preparing-to-commence-re-entry-of-oil-wells-212549.html Tue, 15 Jan 2019 03:47:00 +0000 https://www.miningcapital.com/companies/news/212548/kogi-iron-granted-an-asx-trading-halt-212548.html Kogi Iron granted an ASX trading halt https://www.miningcapital.com/companies/news/212548/kogi-iron-granted-an-asx-trading-halt-212548.html Tue, 15 Jan 2019 03:33:00 +0000 https://www.miningcapital.com/companies/stocktube/11843/musgrave-minerals--md-discusses-cash-raise-drilling-results-and-gold-outlook-11843.html Musgrave Minerals' MD discusses cash raise, drilling results, and gold outlook https://www.miningcapital.com/companies/stocktube/11843/musgrave-minerals--md-discusses-cash-raise-drilling-results-and-gold-outlook-11843.html Tue, 15 Jan 2019 03:10:00 +0000 Musgrave Minerals Ltd (ASX:MGV) managing director Rob Waugh speaks to Proactive Investors about diamond drilling results from the Lake Austin discovery within the Cue Gold Project in Western Australia.

Last month the company raised $5.5 million through a share placement to develop the project overall.

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https://www.miningcapital.com/companies/news/212547/panoramic-resources-on-track-for-first-shipment-from-recommissioned-nickel-copper-cobalt-project-212547.html Panoramic Resources on track for first shipment from recommissioned nickel-copper-cobalt project https://www.miningcapital.com/companies/news/212547/panoramic-resources-on-track-for-first-shipment-from-recommissioned-nickel-copper-cobalt-project-212547.html Tue, 15 Jan 2019 02:40:00 +0000 https://www.miningcapital.com/companies/news/212546/orion-minerals-upgrades-prieska-zinc-copper-resource-to-over-30-million-tonnes-212546.html Orion Minerals upgrades Prieska zinc-copper resource to over 30 million tonnes https://www.miningcapital.com/companies/news/212546/orion-minerals-upgrades-prieska-zinc-copper-resource-to-over-30-million-tonnes-212546.html Tue, 15 Jan 2019 02:35:00 +0000 https://www.miningcapital.com/companies/news/212541/havilah-resources-speaks-to-achievements-212541.html Havilah Resources speaks to achievements https://www.miningcapital.com/companies/news/212541/havilah-resources-speaks-to-achievements-212541.html Tue, 15 Jan 2019 02:23:00 +0000 https://www.miningcapital.com/companies/news/212543/chase-mining-achieves-quantifiable-results-in-conversion-of-nsw-topaz-into-mullite-212543.html Chase Mining achieves quantifiable results in conversion of NSW topaz into mullite https://www.miningcapital.com/companies/news/212543/chase-mining-achieves-quantifiable-results-in-conversion-of-nsw-topaz-into-mullite-212543.html Tue, 15 Jan 2019 01:37:00 +0000 https://www.miningcapital.com/companies/news/212545/australian-mines-receives-19-million-rd-rebate-212545.html Australian Mines receives $1.9 million R&D rebate https://www.miningcapital.com/companies/news/212545/australian-mines-receives-19-million-rd-rebate-212545.html Tue, 15 Jan 2019 01:15:00 +0000 https://www.miningcapital.com/companies/news/212538/blackham-resources-nearby-partner-drills-more-high-grade-gold-212538.html Blackham Resources nearby partner drills more high-grade gold https://www.miningcapital.com/companies/news/212538/blackham-resources-nearby-partner-drills-more-high-grade-gold-212538.html Mon, 14 Jan 2019 23:40:00 +0000 https://www.miningcapital.com/companies/news/212539/musgrave-minerals-extends-gold-mineralisation-at-lake-austin-discovery-in-cue-project-212539.html Musgrave Minerals extends gold mineralisation at Lake Austin discovery in Cue project https://www.miningcapital.com/companies/news/212539/musgrave-minerals-extends-gold-mineralisation-at-lake-austin-discovery-in-cue-project-212539.html Mon, 14 Jan 2019 23:33:00 +0000 https://www.miningcapital.com/companies/news/212535/gold-road-resources-targets-first-gold-production-from-gruyere-in-june-quarter-212535.html Gold Road Resources targets first gold production from Gruyere in June quarter https://www.miningcapital.com/companies/news/212535/gold-road-resources-targets-first-gold-production-from-gruyere-in-june-quarter-212535.html Mon, 14 Jan 2019 21:35:00 +0000 https://www.miningcapital.com/companies/news/212481/winmar-resources-to-house-cobalt-facility-licence-in-african-jv-212481.html Winmar Resources to house cobalt facility licence in African JV https://www.miningcapital.com/companies/news/212481/winmar-resources-to-house-cobalt-facility-licence-in-african-jv-212481.html Mon, 14 Jan 2019 21:30:00 +0000 https://www.miningcapital.com/companies/news/212536/montero-completes-initial-lithium-and-tin-mineral-resource-estimate-for-uis-project-in-namibia-212536.html Montero completes initial lithium and tin mineral resource estimate for Uis project in Namibia https://www.miningcapital.com/companies/news/212536/montero-completes-initial-lithium-and-tin-mineral-resource-estimate-for-uis-project-in-namibia-212536.html Mon, 14 Jan 2019 21:28:00 +0000 https://www.miningcapital.com/companies/news/212525/neo-lithium-eyeing-operations-at-new-pilot-plant-starts-drilling-in-high-grade-zone-at-3q-property-212525.html Neo Lithium eyeing operations at new pilot plant; starts drilling in high-grade zone at 3Q property https://www.miningcapital.com/companies/news/212525/neo-lithium-eyeing-operations-at-new-pilot-plant-starts-drilling-in-high-grade-zone-at-3q-property-212525.html Mon, 14 Jan 2019 18:23:00 +0000 https://www.miningcapital.com/companies/news/212530/jaxon-mining-confirms-gold-cobalt-mineralization-extension-at-hazelton-property-in-british-columbia-212530.html Jaxon Mining confirms gold-cobalt mineralization extension at Hazelton property in British Columbia https://www.miningcapital.com/companies/news/212530/jaxon-mining-confirms-gold-cobalt-mineralization-extension-at-hazelton-property-in-british-columbia-212530.html Mon, 14 Jan 2019 18:10:00 +0000 https://www.miningcapital.com/companies/news/212524/great-panther-silver-agrees-to-accept-from-merger-partner-beadell-resources-us3m-in-partial-loan-payment-212524.html Great Panther Silver agrees to accept from merger partner Beadell Resources US$3M in partial loan payment https://www.miningcapital.com/companies/news/212524/great-panther-silver-agrees-to-accept-from-merger-partner-beadell-resources-us3m-in-partial-loan-payment-212524.html Mon, 14 Jan 2019 15:43:00 +0000 https://www.miningcapital.com/companies/stocktube/11834/caledonia-mining-enjoys-consistent-production-performance-at-blanket-mine-11834.html Caledonia Mining enjoys consistent production performance at Blanket mine https://www.miningcapital.com/companies/stocktube/11834/caledonia-mining-enjoys-consistent-production-performance-at-blanket-mine-11834.html Mon, 14 Jan 2019 15:31:00 +0000 Caledonia Mining Corporation Plc's (LON:CMCL) CEO Steve Curtis tells Proactive London's Andrew Scott they produced 14,952 ounces of gold during the quarter ended December 31, 2018, a seven per cent increase over the previous quarter.

Total gold production for the year to 31 December 2018 was approximately 54,512 ounces.

Curtis says gold production for 2019 is expected to be between 53,000 and 56,000 ounces

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https://www.miningcapital.com/companies/news/212517/great-bear-resources-starts-drilling-again-at--ontario-project-posts-3d-model-212517.html Great Bear Resources starts drilling again at Ontario project; posts 3D model https://www.miningcapital.com/companies/news/212517/great-bear-resources-starts-drilling-again-at--ontario-project-posts-3d-model-212517.html Mon, 14 Jan 2019 14:59:00 +0000 https://www.miningcapital.com/companies/news/212515/ximen-mining-hails-option-partner-s-drilling-update-for-gold-drop-property-212515.html Ximen Mining hails option partner's drilling update for Gold Drop property https://www.miningcapital.com/companies/news/212515/ximen-mining-hails-option-partner-s-drilling-update-for-gold-drop-property-212515.html Mon, 14 Jan 2019 14:02:00 +0000 https://www.miningcapital.com/companies/news/212512/newmont-mining-to-create-worlds-biggest-gold-producer-by-output-with-10bn-deal-to-buy-goldcorp-212512.html Newmont Mining to create world’s biggest gold producer by output with $10bn deal to buy Goldcorp https://www.miningcapital.com/companies/news/212512/newmont-mining-to-create-worlds-biggest-gold-producer-by-output-with-10bn-deal-to-buy-goldcorp-212512.html Mon, 14 Jan 2019 13:45:00 +0000 https://www.miningcapital.com/companies/news/212507/rockfire-resources-says-soil-sampling-at-double-event-prospect-is-underway-212507.html Rockfire Resources says soil sampling at Double Event prospect is underway https://www.miningcapital.com/companies/news/212507/rockfire-resources-says-soil-sampling-at-double-event-prospect-is-underway-212507.html Mon, 14 Jan 2019 12:57:00 +0000 https://www.miningcapital.com/companies/news/212505/ggx-gold-continues-to-find-high-grade-gold-at-gold-drop-property-212505.html GGX Gold continues to find high grade gold at Gold Drop property https://www.miningcapital.com/companies/news/212505/ggx-gold-continues-to-find-high-grade-gold-at-gold-drop-property-212505.html Mon, 14 Jan 2019 12:51:00 +0000 https://www.miningcapital.com/companies/stocktube/11828/regency-mines-pushes-back-bulk-of-debt-repayments-to-give--clearer-runway-through-2019--11828.html Regency Mines pushes back bulk of debt repayments to give 'clearer runway through 2019' https://www.miningcapital.com/companies/stocktube/11828/regency-mines-pushes-back-bulk-of-debt-repayments-to-give--clearer-runway-through-2019--11828.html Mon, 14 Jan 2019 12:02:00 +0000 Andrew Bell, chairman of Regency Mines PLC (LON:RGM), tells Proactive London's Andrew Scott the main burden of its debt repayments have been shifted into 2020 through an issue of convertible notes and a partial repayment and re-profiling of a loan note.

Regency's raised £676,000 by the issue of £676,000 of convertible notes with accompanying warrants to institutional and high net worth investors.

Bell also updates on developments with their metallurgical coal production at MET in the US as well as plans to strengthen and refresh the Regency board.

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https://www.miningcapital.com/companies/news/212498/regency-mines-shifts-main-burden-of-debt-repayments-into-2020-with-convertible-issue-loan-note-re-profiling-212498.html Regency Mines shifts main burden of debt repayments into 2020 with convertible issue, loan note re-profiling https://www.miningcapital.com/companies/news/212498/regency-mines-shifts-main-burden-of-debt-repayments-into-2020-with-convertible-issue-loan-note-re-profiling-212498.html Mon, 14 Jan 2019 11:41:00 +0000 https://www.miningcapital.com/companies/news/212492/strategic-minerals-jumps-as-subsidiary-obtains-extension-to-access-cobre-magnetite-stockpile-212492.html Strategic Minerals jumps as subsidiary obtains extension to access Cobre magnetite stockpile https://www.miningcapital.com/companies/news/212492/strategic-minerals-jumps-as-subsidiary-obtains-extension-to-access-cobre-magnetite-stockpile-212492.html Mon, 14 Jan 2019 10:50:00 +0000 https://www.miningcapital.com/companies/stocktube/11826/horizonte-minerals-secures-construction-licence-for-development-of-araguaia-project-11826.html Horizonte Minerals secures construction licence for development of Araguaia project https://www.miningcapital.com/companies/stocktube/11826/horizonte-minerals-secures-construction-licence-for-development-of-araguaia-project-11826.html Mon, 14 Jan 2019 10:14:00 +0000 Jeremy Martin, chief executive of Horizonte Minerals Plc (LON:HZM)(TSE:HZM), discusses with Proactive London's Andrew Scott the award of a construction licence for the development of the Araguaia ferronickel project in Pará State, Brazil.

The licence was granted by SEMAS, the Brazilian Pará State Environmental Agency.

Horizonte now has the permits required to construct the Araguaia rotary kiln electric furnace, processing plant and associated infrastructure.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30473/vsa-capital-market-movers---tectonic-gold-30473.html VSA CAPITAL MARKET MOVERS - Tectonic Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30473/vsa-capital-market-movers---tectonic-gold-30473.html Mon, 14 Jan 2019 09:19:00 +0000

VSA Morning Miner, 14/01/19

Click here for PDF version

Keep reading VSA research for free – Click here for our position on MIFID2

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Tectonic Gold (LON:TTAU)

Tectonic Gold (TTAU LN) has provided an update on the recent exploration programme. 75% of the assay results have been returned with the full results expected to be received before the end of January 2019 which will then be verified, collated and modelled and announced shortly after.

Australian exploration activity has picked up markedly with the rally in the AUD gold price to in excess of A$1,800/oz to close to record highs. Consequently, the assay labs are far busier than in recent years hence the longer than expected wait for the completion of testwork and the return of the full dataset.

The latest grades announced, albeit reported without full assay data, have demonstrated grades in line with historic mining at Specimen Hill at up to 35.2g/t Au from 90m depth. TTAU has also reported silver grades of up to 37g/t Ag, tellurium grades of up to 15 g/t and copper grades of up 1.45%. Intercepts of key signature elements of IRGS deposits are encouraging and we await the detailed results announcement to fully understand the context of the initial drilling programme.    

We reiterate our Speculative Buy recommendation.

 

 

 

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https://www.miningcapital.com/companies/news/212477/arianas-full-year-gold-production-of-27110-ounces-beats-initial-estimates-by-36-212477.html Ariana’s full year gold production of 27,110 ounces beats initial estimates by 36% https://www.miningcapital.com/companies/news/212477/arianas-full-year-gold-production-of-27110-ounces-beats-initial-estimates-by-36-212477.html Mon, 14 Jan 2019 08:18:00 +0000 https://www.miningcapital.com/companies/news/212476/acacia-mining-beats-quarterly-production-target-despite-tanzania-government-export-ban-212476.html Acacia Mining beats quarterly production target despite Tanzania government export ban https://www.miningcapital.com/companies/news/212476/acacia-mining-beats-quarterly-production-target-despite-tanzania-government-export-ban-212476.html Mon, 14 Jan 2019 08:14:00 +0000 https://www.miningcapital.com/companies/news/212474/horizonte-secures-key-licence-now-fully-permitted-for-construction-212474.html Horizonte secures key licence, now fully permitted for construction https://www.miningcapital.com/companies/news/212474/horizonte-secures-key-licence-now-fully-permitted-for-construction-212474.html Mon, 14 Jan 2019 08:07:00 +0000 https://www.miningcapital.com/companies/news/212469/caledonia-mining-boosts-quarterly-gold-production-looks-ahead-to-80000-ounces-in-2021-212469.html Caledonia Mining boosts quarterly gold production, looks ahead to 80,000 ounces in 2021 https://www.miningcapital.com/companies/news/212469/caledonia-mining-boosts-quarterly-gold-production-looks-ahead-to-80000-ounces-in-2021-212469.html Mon, 14 Jan 2019 07:51:00 +0000 https://www.miningcapital.com/companies/news/212462/laneway-resources-intersects-high-grade-gold-at-agate-creek-212462.html Laneway Resources intersects high-grade gold at Agate Creek https://www.miningcapital.com/companies/news/212462/laneway-resources-intersects-high-grade-gold-at-agate-creek-212462.html Mon, 14 Jan 2019 07:17:00 +0000 https://www.miningcapital.com/companies/news/212457/valor-resources-signs-deal-with-rio-tinto-subsidiary-to-advance-polymetallic-project-in-peru-212457.html Valor Resources signs deal with Rio Tinto subsidiary to advance polymetallic project in Peru https://www.miningcapital.com/companies/news/212457/valor-resources-signs-deal-with-rio-tinto-subsidiary-to-advance-polymetallic-project-in-peru-212457.html Mon, 14 Jan 2019 05:29:00 +0000 https://www.miningcapital.com/companies/news/212456/gateway-mining-hits-more-high-grade-gold-within-gidgee-project-212456.html Gateway Mining hits more high-grade gold within Gidgee project https://www.miningcapital.com/companies/news/212456/gateway-mining-hits-more-high-grade-gold-within-gidgee-project-212456.html Mon, 14 Jan 2019 05:07:00 +0000 https://www.miningcapital.com/companies/news/212455/syrah-resources-achieves-commercial-graphite-production-at-balama-212455.html Syrah Resources achieves commercial graphite production at Balama https://www.miningcapital.com/companies/news/212455/syrah-resources-achieves-commercial-graphite-production-at-balama-212455.html Mon, 14 Jan 2019 04:06:00 +0000 https://www.miningcapital.com/companies/news/212454/peninsula-energy-on-track-to-achieve-full-year-uranium-production-guidance-212454.html Peninsula Energy on track to achieve full-year uranium production guidance https://www.miningcapital.com/companies/news/212454/peninsula-energy-on-track-to-achieve-full-year-uranium-production-guidance-212454.html Mon, 14 Jan 2019 03:58:00 +0000 https://www.miningcapital.com/companies/news/212451/venturex-resources-gains-momentum-towards-sulphur-springs-copper-zinc-development-212451.html Venturex Resources gains momentum towards Sulphur Springs Copper-Zinc development https://www.miningcapital.com/companies/news/212451/venturex-resources-gains-momentum-towards-sulphur-springs-copper-zinc-development-212451.html Mon, 14 Jan 2019 02:35:00 +0000 https://www.miningcapital.com/companies/news/212453/Meteoric-Resources-begins-diamond-drilling-program-at-Joyce-in-Canada-212453.html Meteoric Resources begins diamond drilling program at Joyce in Canada https://www.miningcapital.com/companies/news/212453/Meteoric-Resources-begins-diamond-drilling-program-at-Joyce-in-Canada-212453.html Mon, 14 Jan 2019 02:32:00 +0000 https://www.miningcapital.com/companies/news/212450/blina-minerals-enters-trading-halt-ahead-of-strategic-investment-212450.html Blina Minerals enters trading halt ahead of strategic investment https://www.miningcapital.com/companies/news/212450/blina-minerals-enters-trading-halt-ahead-of-strategic-investment-212450.html Mon, 14 Jan 2019 01:49:00 +0000 https://www.miningcapital.com/companies/news/212449/red-river-resources-breaks-quarterly-operating-records-at-thalanga-212449.html Red River Resources breaks quarterly operating records at Thalanga https://www.miningcapital.com/companies/news/212449/red-river-resources-breaks-quarterly-operating-records-at-thalanga-212449.html Mon, 14 Jan 2019 01:45:00 +0000 https://www.miningcapital.com/companies/stocktube/11823/valor-resources-signs-agreement-with-kennecott-exploration-co-of-rio-tinto-group-11823.html Valor Resources signs agreement with Kennecott Exploration Co of Rio Tinto group https://www.miningcapital.com/companies/stocktube/11823/valor-resources-signs-agreement-with-kennecott-exploration-co-of-rio-tinto-group-11823.html Mon, 14 Jan 2019 01:36:00 +0000 Valor Resources Ltd (ASX:VAL) CEO Dr Nicholas Lindsay speaks to Proactive Investors about the just-announced signing of a joint venture Option Agreement with Kennecott Exploration Company, which is part of the Rio Tinto group.

The agreement pertains to Valor's Berenguela Copper-Silver-Manganese Project in Peru.

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https://www.miningcapital.com/companies/news/212448/argonaut-resources-leveraged-to-potential-exploration-success-as-drill-rig-mobilises-212448.html Argonaut Resources leveraged to potential exploration success as drill rig mobilises https://www.miningcapital.com/companies/news/212448/argonaut-resources-leveraged-to-potential-exploration-success-as-drill-rig-mobilises-212448.html Mon, 14 Jan 2019 01:21:00 +0000 https://www.miningcapital.com/companies/news/212445/xanadu-mines-technical-review-backs-major-resource-update-212445.html Xanadu Mines technical review backs major resource update https://www.miningcapital.com/companies/news/212445/xanadu-mines-technical-review-backs-major-resource-update-212445.html Mon, 14 Jan 2019 01:02:00 +0000 https://www.miningcapital.com/companies/news/212446/aeris-resources-prepares-to-drill-within-the-week-at-torrens-212446.html Aeris Resources prepares to drill within the week at Torrens https://www.miningcapital.com/companies/news/212446/aeris-resources-prepares-to-drill-within-the-week-at-torrens-212446.html Mon, 14 Jan 2019 00:49:00 +0000 https://www.miningcapital.com/companies/news/212444/great-boulder-resources-prepares-for-deeper-drilling-of-nickel-rich-eastern-mafic-target-212444.html Great Boulder Resources prepares for deeper drilling of nickel-rich Eastern Mafic target https://www.miningcapital.com/companies/news/212444/great-boulder-resources-prepares-for-deeper-drilling-of-nickel-rich-eastern-mafic-target-212444.html Sun, 13 Jan 2019 23:39:00 +0000 https://www.miningcapital.com/companies/news/212443/peninsula-mines-appoints-new-managing-director-with-korean-experience-212443.html Peninsula Mines appoints new managing director with Korean experience https://www.miningcapital.com/companies/news/212443/peninsula-mines-appoints-new-managing-director-with-korean-experience-212443.html Sun, 13 Jan 2019 23:35:00 +0000 https://www.miningcapital.com/companies/stocktube/11794/australian-vanadium-s-md-talks-vanadium-and-vrfb-markets-in-2019-and-beyond-11794.html Australian Vanadium's MD talks vanadium and VRFB markets in 2019 and beyond https://www.miningcapital.com/companies/stocktube/11794/australian-vanadium-s-md-talks-vanadium-and-vrfb-markets-in-2019-and-beyond-11794.html Sun, 13 Jan 2019 23:00:00 +0000 Australian Vanadium Ltd (ASX:AVL) managing director Vincent Algar speaks with Proactive Investors about the company's subsidiary VSUN Energy, innovation in Vanadium Redox Flow Batteries (VRFB), and the outlook both domestically and internationally for the "chemical chameleon." 

The company is working on a definitive feasibility study (DFS) for its wholly-owned flagship Gabanintha Vanadium Project in Western Australia.

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https://www.miningcapital.com/companies/news/212441/wollongong-coal-workers-take-action-shares-remain-suspended-212441.html Wollongong Coal workers take action, shares remain suspended https://www.miningcapital.com/companies/news/212441/wollongong-coal-workers-take-action-shares-remain-suspended-212441.html Sun, 13 Jan 2019 21:20:00 +0000 https://www.miningcapital.com/companies/news/212438/american-manganese-to-close-second-round-of-financing-212438.html American Manganese to close second round of financing https://www.miningcapital.com/companies/news/212438/american-manganese-to-close-second-round-of-financing-212438.html Sat, 12 Jan 2019 00:31:00 +0000 https://www.miningcapital.com/companies/news/212417/pure-gold-mining-is-a-top-pick-for-echelon-wealth-partners-as-explorer-moves-into-pivotal-first-quarter-212417.html Pure Gold Mining is a top pick for Echelon Wealth Partners as explorer moves into pivotal first quarter https://www.miningcapital.com/companies/news/212417/pure-gold-mining-is-a-top-pick-for-echelon-wealth-partners-as-explorer-moves-into-pivotal-first-quarter-212417.html Fri, 11 Jan 2019 17:34:00 +0000 https://www.miningcapital.com/companies/news/212431/endeavour-increases-interest-in-ivory-coast-mine-to-85-in-deal-with-soccer-legend-212431.html Endeavour increases interest in Ivory Coast mine to 85% in deal with soccer legend https://www.miningcapital.com/companies/news/212431/endeavour-increases-interest-in-ivory-coast-mine-to-85-in-deal-with-soccer-legend-212431.html Fri, 11 Jan 2019 17:00:00 +0000 https://www.miningcapital.com/companies/news/212430/trans-siberian-gold-says-full-year-2018-gold-production-expected-to-exceed-upper-end-of-its-guidance-212430.html Trans-Siberian Gold says full-year 2018 gold production expected to exceed upper end of its guidance https://www.miningcapital.com/companies/news/212430/trans-siberian-gold-says-full-year-2018-gold-production-expected-to-exceed-upper-end-of-its-guidance-212430.html Fri, 11 Jan 2019 15:54:00 +0000 https://www.miningcapital.com/companies/news/212423/afarak-names-melvin-grima-its-malta-based-finance-director-as-its-new-chief-financial-officer-212423.html Afarak names Melvin Grima, its Malta-based finance director, as its new chief financial officer https://www.miningcapital.com/companies/news/212423/afarak-names-melvin-grima-its-malta-based-finance-director-as-its-new-chief-financial-officer-212423.html Fri, 11 Jan 2019 15:17:00 +0000 https://www.miningcapital.com/columns/jackhammer/30470/the-feds-new-found-caution-is-being-lauded-by-markets-for-now-but-what-does-it-really-portend-30470.html The Fed’s new-found caution is being lauded by markets for now, but what does it really portend? https://www.miningcapital.com/columns/jackhammer/30470/the-feds-new-found-caution-is-being-lauded-by-markets-for-now-but-what-does-it-really-portend-30470.html Fri, 11 Jan 2019 12:15:00 +0000 https://www.miningcapital.com/companies/news/212392/grafton-group-sees-underlying-earnings-topping-analysts-expectations-after-solid-full-year-trading-212392.html Grafton Group sees underlying earnings topping analysts’ expectations after solid full-year trading https://www.miningcapital.com/companies/news/212392/grafton-group-sees-underlying-earnings-topping-analysts-expectations-after-solid-full-year-trading-212392.html Fri, 11 Jan 2019 09:02:00 +0000 https://www.miningcapital.com/companies/news/212389/tharisa-looks-to-future-as-quarterly-production-dips-amid-optimisation-work-212389.html Tharisa looks to future as quarterly production dips amid optimisation work https://www.miningcapital.com/companies/news/212389/tharisa-looks-to-future-as-quarterly-production-dips-amid-optimisation-work-212389.html Fri, 11 Jan 2019 08:34:00 +0000 https://www.miningcapital.com/companies/news/212371/vector-resources-acquires-majority-stake-in-adidi-kanga-gold-project-212371.html Vector Resources acquires majority stake in Adidi-Kanga Gold Project https://www.miningcapital.com/companies/news/212371/vector-resources-acquires-majority-stake-in-adidi-kanga-gold-project-212371.html Fri, 11 Jan 2019 06:32:00 +0000 https://www.miningcapital.com/companies/news/212369/tychean-resources-receives-eis-drilling-grant-for-the-yampi-project-212369.html Tychean Resources receives EIS drilling grant for the Yampi project https://www.miningcapital.com/companies/news/212369/tychean-resources-receives-eis-drilling-grant-for-the-yampi-project-212369.html Fri, 11 Jan 2019 04:35:00 +0000 https://www.miningcapital.com/companies/news/212368/tyranna-resources-gears-up-for-more-positive-exploration-news-in-2019-212368.html Tyranna Resources gears up for more positive exploration news in 2019 https://www.miningcapital.com/companies/news/212368/tyranna-resources-gears-up-for-more-positive-exploration-news-in-2019-212368.html Fri, 11 Jan 2019 03:57:00 +0000 https://www.miningcapital.com/companies/news/212367/latrobe-magnesium-receives-patent-for-hydromet-process-in-india-212367.html Latrobe Magnesium receives patent for hydromet process in India https://www.miningcapital.com/companies/news/212367/latrobe-magnesium-receives-patent-for-hydromet-process-in-india-212367.html Fri, 11 Jan 2019 03:38:00 +0000 https://www.miningcapital.com/companies/news/212366/matsa-resources-completes-red-dog-gold-operations-delivering-12704-ounces-and-55-million-surplus-212366.html Matsa Resources completes Red Dog gold operations delivering 12,704 ounces and $5.5 million surplus https://www.miningcapital.com/companies/news/212366/matsa-resources-completes-red-dog-gold-operations-delivering-12704-ounces-and-55-million-surplus-212366.html Fri, 11 Jan 2019 02:58:00 +0000 https://www.miningcapital.com/companies/news/212364/rimfire-pacific-mining-to-assess-sorpresa-discoveries-this-quarter-212364.html Rimfire Pacific Mining to assess Sorpresa discoveries this quarter https://www.miningcapital.com/companies/news/212364/rimfire-pacific-mining-to-assess-sorpresa-discoveries-this-quarter-212364.html Fri, 11 Jan 2019 02:00:00 +0000 https://www.miningcapital.com/companies/stocktube/11772/australian-vanadium-s-md-discusses-plans-for-gabanintha-project-with-cash-just-raised-11772.html Australian Vanadium's MD discusses plans for Gabanintha project with cash just raised https://www.miningcapital.com/companies/stocktube/11772/australian-vanadium-s-md-discusses-plans-for-gabanintha-project-with-cash-just-raised-11772.html Thu, 10 Jan 2019 23:00:00 +0000 Australian Vanadium Ltd (ASX:AVL) managing director Vincent Algar tells Proactive Investors that the company is well-funded to completes its definitive feasibility study (DFS) on the Gabanintha Vanadium Project in Western Australia, now that it has secured $6.16 million from an option conversion.

Algar discusses a pilot metallurgical test program, and securing further funding for the project.

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https://www.miningcapital.com/companies/stocktube/11766/kore-mining-flagship-project-imperial-sat-on-the-shelf-but-could-turn-to-gold-11766.html KORE Mining flagship project Imperial sat on the shelf but could turn to gold https://www.miningcapital.com/companies/stocktube/11766/kore-mining-flagship-project-imperial-sat-on-the-shelf-but-could-turn-to-gold-11766.html Thu, 10 Jan 2019 18:25:00 +0000 KORE Mining (CVE-KORE) CEO Adrian Rothwell dropped in to the Vancouver studio of Proactive Investors to talk with Steve Darling about the new company which has projects in British Columbia and California.

Rothwell provided some insight as to where their flagship gold project Imperial is at and what work will be done in 2019.  The CEO also updated drill results from their two projects in British Columbia, Gold Creek and FG Gold. 

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https://www.miningcapital.com/companies/stocktube/11781/bluerock-diamonds-adam-waugh-expecting-continued-improved-grades-in-2019-11781.html BlueRock Diamonds Adam Waugh expecting continued improved grades in 2019 https://www.miningcapital.com/companies/stocktube/11781/bluerock-diamonds-adam-waugh-expecting-continued-improved-grades-in-2019-11781.html Thu, 10 Jan 2019 16:09:00 +0000 Adam Waugh, chief executive of BlueRock Diamonds PLC (LON:BRD), tells Proactive London's Andrew Scott sales from the Kareevlei diamond mine rose 71% to 5,805 carats for 2018.

Production volumes for the full year amounted to 189,990 tonnes, up 24%, whilst the average grade increased by 34% to 3.28 carats per hundred tonnes.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30460/vsa-capital-market-movers---m2-cobalt-30460.html VSA CAPITAL MARKET MOVERS - M2 Cobalt https://www.miningcapital.com/columns/vsa-capital-market-movers/30460/vsa-capital-market-movers---m2-cobalt-30460.html Thu, 10 Jan 2019 09:40:00 +0000

VSA Morning Miner, 10/01/18

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M2 Cobalt (CVE:MC)

M2 Cobalt (MC CN) has announced the completion of the initial 2km of diamond drilling across 15 holes prior to its winter break in mid-December. Samples are now at the ALS Chemex South African Ltd labs for assay analysis with results currently anticipated by mid-February 2019.

The exploration programme as a whole covers the three distinct styles of mineralisation discovered across the major targets identified in the Phase 1 programme. Extensive anomalies of VMS copper cobalt mineralisation were identified at the Kilembe properties in south western Uganda as well as ultramafic nickel, copper, cobalt mineralisation and Katanga style sediment hosted copper cobalt mineralisation at the Bujagali properties in central Uganda. This initial programme was largely focused at Kilembe with the rig planned to follow onto Bujagali after.

We reiterate our Speculative Buy recommendation.

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30458/vsa-capital-market-movers---dekeloil-public-limited-30458.html VSA CAPITAL MARKET MOVERS - DekelOil Public Limited https://www.miningcapital.com/columns/vsa-capital-market-movers/30458/vsa-capital-market-movers---dekeloil-public-limited-30458.html Thu, 10 Jan 2019 09:18:00 +0000

VSA Morning Agri Comment, 10/01/19

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DekelOil Public Limited - Q4 Production & Sales Update

Côte d'Ivoire agricultural company DekelOil Public Limited (LON:DKL) has announced a production update for Q4 2018.

  • Fresh Fruit Bunches (FFB) Collected: 24,903t, -23.1% YoY (Q4 2017: 32,364t)
  • Crude Palm Oil (CPO) Production: 5,464t, -22.6% YoY (Q4 2017: 7,055t)
  • CPO Sales: 4,950t, -24.8% YoY (Q4 2017: 6,586t)
  • Average CPO Selling Price: €517/t, -14.8% YoY (Q4 2017: €607/t)

VSA Comment

Following a 15% YoY increase in FFB collected in Q3, we were hopeful that Q4 would provide continued evidence of a strong recovery in crop levels and provide upside to our forecasts. Unfortunately, today’s data confirms that this was not the case. However, it should be noted that the comparable period appears to have been an exceptionally good quarter for cropping and Q4 CPO production was more than 15% ahead of production in Q4 2016.

Over the full-year, DKL collected 146,036t of FFB and produced 33,077t of CPO, in-line with our forecasts of 147,525t and 33,341t, respectively. Palm kernel oil (PKO) sales (2,861t sold vs. 2,124t estimate) and palm kernel cake (PKC) sales (3,795t sold vs. 2,950t estimate) were significantly higher than we had estimated.

Pricing premiums over the European benchmark in H2 (+19% in Q4, +11% in Q3) allowed DKL to secure an average FY CPO selling price above our forecasts (€543/t vs. €523/t estimated). Along with the higher-than-forecast PKO and PKC sales, this may provide slight upside to our financial forecasts for FY 2018 (revenue of c€20m and net loss of c€3m). Given strong regional demand, we expect premium pricing to persist through FY 2019.

In terms of CPO pricing outlook, the European benchmark price has increased more than 20% since mid-November to US$535/t (€465/t). Although South East Asian palm oil stocks are currently high, we are now entering the low production season for that region, with Chinese and Indian demand expected to increase, and Malaysian and Indonesian domestic demand also likely to rise as higher biodiesel blending regulations are rolled out. In addition, the US National Oceanic and Atmospheric Administration has put a 90% chance of an El Niño forming in Q1. A strong El Niño has the potential to depress palm oil production and boost pricing.

On the bearish side, recent crude oil price falls have eliminated the premium of gasoil over Malaysian CPO (having been US$200/t+ in October). This will reduce discretionary palm-based biodiesel demand and could delay the implementation of further biodiesel blending regulations.

With 2018 now behind it, attention will turn to 2019, particularly with regards to the upcoming high season. In anticipation of this, DKL has established a fourth FFB collection centre near to its mill. Although never guaranteed, low production years are often followed by high production years, so we are hopeful that H1 2019 will be a positive one for DKL in terms of production. We look forward to a Q1 2019 production update in early April to confirm this either way. Recent CPO price increases, if sustained, could also help deliver an improved financial performance in FY 2019.

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


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https://www.miningcapital.com/companies/stocktube/11763/maverix-metals-acquires-silver-stream-from-northern-vertex-mining-corp-11763.html Maverix Metals acquires silver stream from Northern Vertex Mining Corp. https://www.miningcapital.com/companies/stocktube/11763/maverix-metals-acquires-silver-stream-from-northern-vertex-mining-corp-11763.html Wed, 09 Jan 2019 21:25:00 +0000 Maverix Metals Inc (CVE-MMX) CEO Daniel O'Flaherty and Ken Berry CEO of Northern Vertex Mining joined Christine Corrado from Proactive Investors to talk about Maverix's acquisition of a silver stream from Norther Vertex Mining.

The two gentleman discussed the details of the deal and how it will benefit both companies going forward. 

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https://www.miningcapital.com/companies/stocktube/11755/shefa-yamim-s-carmeltazite-officially-recognised-as-new-and-rare-mineral-11755.html Shefa Yamim's Carmeltazite officially recognised as new and rare mineral https://www.miningcapital.com/companies/stocktube/11755/shefa-yamim-s-carmeltazite-officially-recognised-as-new-and-rare-mineral-11755.html Wed, 09 Jan 2019 14:28:00 +0000 Shefa Yamim ATM LTD's (LSE:SEFA) James Campbell tells Proactive London's Andrew Scott that carmeltazite, a mineral found in one of the gemstones from their Mount Carmel property in Israel has been recognised and approved as a new mineral by the International Mineralogical Association.

The new mineral, first discovered by Shefa Yamim, got its name due to the location of the discovery on Mount Carmel, and due to its major chemical components - titanium, aluminium and zirconium.

Campbell also updates on the work that's being carried out in Zone One towards the start of trial mining later this year.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30454/vsa-capital-market-movers---central-asia-metals-30454.html VSA CAPITAL MARKET MOVERS - Central Asia Metals https://www.miningcapital.com/columns/vsa-capital-market-movers/30454/vsa-capital-market-movers---central-asia-metals-30454.html Wed, 09 Jan 2019 09:23:00 +0000

VSA Morning Miner, 09/01/19

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Central Asia Metals (LON:CAML)

Central Asia Metals (CAML LN) has announced strong production results for 2018 in line with company guidance and marginally ahead of our estimates across copper, lead and zinc. Copper production of 3.4kt in Q4 2018 resulted in full year 2018 production of 14kt which was flat YoY, despite the impact of severe weather in Q1 2018, and the company was able to make up the shortfall through the balance of the year. Having forecast 13.8kt copper output was 2% ahead of our forecasts while average LME copper prices of US$6,544/t were in line. Guidance for 2019 of 12.5-13.5kt copper output is marginally lower than our estimate of 13.8kt although remains in line with historical production levels.

At Sasa zinc production of 22.5kt was up 4% YoY with Q4 2018 production of 5.8kt up 8% YoY. Full year production was broadly in line with our estimate of 22.3kt as a combination of consistently stronger grades through the year along with rising recoveries to 85% in Q4 2018. The latter followed the commissioning of the new SMD mill earlier in the year. Lead production of 29.4kt was 2% lower YoY, however, it was 2% ahead of our estimate of 28.8kt and comfortably within the guidance range of 28-30kt. The lower YoY output was largely driven by a modest decline in lead grades from 3.98% to 3.90% and a 1pp decline in recoveries to 93.6%. This, therefore represents a strong first full year of operations at Sasa, in our view, and with zinc and lead guidance maintained at Sasa of between 22-24kt and 28-30kt respectively for 2019 CAML is set to maintain the established stable operational track record at Sasa. Updated production guidance remains in line with our estimates for 2019 onwards.

The tailings storage facility at Sasa is now largely complete which will provide storage at Sasa for a further seven years meaning that near term capital requirements at Sasa are largely confined to sustaining capex. Additionally, CAML commenced a life of mine study and resource infill drilling programme. The updated JORC resource is expected to be completed during Q1 2019. Our current model is based only on the existing JORC resources for Svinja Reka and Golema Reka; announced drilling results demonstrate extensions of mineralisation at depth for both ore bodies while at Svinja Reka grades below the 830m level are stronger than the inferred resource which stands at 2.7mnt at 3.2% lead and 2.1% zinc. Exploration at Sasa continues to provide material upside potential versus our mine life estimates while infill drilling  will likely provide greater confidence in the near term mine plan.

CAML has continued to make progress in identifying growth opportunities screening 22 projects in the period with three site visits. However, exploration results from Shuak have been deemed not to warrant further development by the company and we highlight that having successfully integrated Sasa, CAML has transformed to a larger multi asset operator since it acquired the assets in 2016.

Having beaten our production estimates in copper, zinc and lead CAML has again demonstrated its ability to consistently deliver strong operational performance. Although broader market volatility has meant the share performance has been rangebound over the past quarter we believe that the shares remain attractive trading on a 7% yield for 2018 based on our estimates. A core asset base able to deliver consistent strong free cash flow provides a robust platform to grow the business and we believe the shares offer an attractive entry point.

We reiterate our Buy recommendation and 309p target price.

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30452/vsa-capital-market-movers---colombus-energy-resources-30452.html VSA CAPITAL MARKET MOVERS - Colombus Energy Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30452/vsa-capital-market-movers---colombus-energy-resources-30452.html Wed, 09 Jan 2019 09:16:00 +0000

VSA Morning Flow Test, 09/01/19

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Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (CERP LN) reported Q4 2018 production averaging 670bopd resulting in full year average production of 615bopd in 2018 which was up 67% YoY and ahead of our full year estimate of 600bopd despite the impact of severe weather and record rainfall in Q4 2018. Quarterly production was 9% lower QoQ as moving workover rigs and routine operations were prevented by flooding which made roads impassable in Trinidad. Gross revenues of US$3.23m were down 16% QoQ owing to lower production and lower oil prices which averaged 5% lower QoQ at US$57.58/bbl.

That said, CERP achieved its year end target of 1,000bopd with peak production of 1,021bopd in the quarter. This included the initial production from the Snowcap 1 & 2 wells which achieved 70bopd after three years of shut in status. CERP had guided to an expected 100bfpd with part of the appraisal intended to assess the volumes of water production. After a successful appraisal we now expect pumped production to commence at Cory Moruga. We expect CERP production to bounce back from the impact of severe weather in Q1 2019 and workovers are continuing to progress across the operating fields, indeed the second pilot injection well at Goudron is ready for conversion to water injection in Q1 2019. CERP has guided that average production is likely to remain within the recent peak level in the near term which is line with our current expectations.
   
This unseasonably severe weather does in fact demonstrate clearly the importance of CERP’s acquisitions through 2018, at attractive valuations, which have diversified the operating base to six operating fields. With a reduced reliance on Goudron the company is better placed to withstand one-off shocks such as this while the investment made in operating infrastructure such as backup generators has meant that production was able to continue despite a temporary loss of grid power. Indeed, despite the reduction in output CERP continued to generate positive operational cashflow from its Trinidad operations of US$0.37m (US$0.54m in Q3 2018) which is a strong positive, in our view, and a clear demonstration of the company’s capital discipline and more robust asset base.
 
Cash at year end 2018 of US$2.6m (£1.7m) was broadly in line with our estimate of £1.5m while gross debt was further reduced to US$0.4m. This includes the net impact of the £2.5m fundraise in Q4 and repayment of the US$1.25m loan associated with the Steeldrum acquisition. This leaves CERP well placed to continue the optimisation of the six operating fields as well as make preparations for the major catalyst for the shares in 2019; exploration of the SWP. Based on our forecasts, CERP is fully funded for planned operations and drilling at SWP represents a potentially transformational event for the company given the estimated prospective resources of 1.3Bboe.

In addition, CERP is the operator of the Innis Trinity field and the current work programme is funded by Predator Oil and Gas (PRD LN) through a farm in agreement. Workovers in the quarter continued to make progress although CO2 injection has not yet commenced with the submission of the Certificate of Environmental Compliance completed in Q4 2018.

Recent share price performance has been soft and while we believe a combination of broad-based equity market volatility and a reduction in WTI oil prices have exacerbated the weakness the progress that management has made operationally and financially was not fairly reflected in the share price performance in 2018. A 67% YoY increase in production is an impressive and significant achievement and we expect continued progress in 2019. Although this was lower than originally anticipated at the start of the year and legacy costs associated with Spain have hampered financial performance we continue to forecast a reduction in the net loss from £5m to £3.4m in 2018 and a return to profit in 2019 demonstrating that the operational improvements are having a meaningful and tangible positive impact on the group financials.  We believe that at the current share price CERP’s production potential, exploration upside and capital discipline is simply not reflected and continue to see significant upside potential.

We reiterate our Buy recommendation and 21.4p target price.

 

 

 

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https://www.miningcapital.com/companies/stocktube/11746/w-resources--production-from-la-parrilla-is--very-well-timed--11746.html W Resources' production from La Parrilla is 'very well-timed' https://www.miningcapital.com/companies/stocktube/11746/w-resources--production-from-la-parrilla-is--very-well-timed--11746.html Wed, 09 Jan 2019 05:29:00 +0000 W Resources PLC (LON:WRES) chairman Michael Masterman updates Proactive Investors on the flagship La Parrilla tungsten and tin mine in Spain, where the first phases of production have commenced ahead of schedule.

"We're going to be transformed in 2019, going from development... to significant revenue and cash flow," says Masterman.

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https://www.miningcapital.com/companies/stocktube/11742/cervantes-corporation-chairman-outlines-gold-road-map-for-2019-11742.html Cervantes Corporation chairman outlines gold road map for 2019 https://www.miningcapital.com/companies/stocktube/11742/cervantes-corporation-chairman-outlines-gold-road-map-for-2019-11742.html Wed, 09 Jan 2019 03:31:00 +0000 Cervantes Corp (ASX:CVS) chairman Collin Vost speaks to Proactive Investors about the Albury Heath Gold Project in Western Australia, as well the gold explorer's wider project portfolio.

The company is in the process of raising up to $700,000 by issuing 70 million shares priced at 1 cent and a free attaching option exercisable at 1.5 cents with every 2 shares subscribed for. The prospectus offering will close on or before 18th January 2019.

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https://www.miningcapital.com/companies/stocktube/11741/constantine-metal-resources-expecting-busy-2019-after-two-resource-updates-to-close-2018-11741.html Constantine Metal Resources expecting busy 2019 after two resource updates to close 2018 https://www.miningcapital.com/companies/stocktube/11741/constantine-metal-resources-expecting-busy-2019-after-two-resource-updates-to-close-2018-11741.html Tue, 08 Jan 2019 19:59:00 +0000 Constantine Metals Resources (CVE:CEM-OTCQB-CNNSNF) Vice President of Exploration Darwin Green joined Steve Darling from Proactive Investors Vancouver to talk about the companies Palmer Project in Alaska. The project is a partnership with Dowa from Tokyo and features the Palmer Deposit and the AG Deposit. 

Green told Proactive the state of both of the deposits including the most recent resource update on the Palmer deposit. Green also shared why their partnership with Dowa will see great benefits for both companies including the location in Alaska. 

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https://www.miningcapital.com/companies/stocktube/11728/rare-earths-market-analysis-from-roskill-11728.html Rare Earths market analysis from Roskill https://www.miningcapital.com/companies/stocktube/11728/rare-earths-market-analysis-from-roskill-11728.html Tue, 08 Jan 2019 12:36:00 +0000 Why are Rare Earths increasingly important both to China and the rest of the world? How is supply and demand met and which processes are holding up that supply chain from functioning optimally? What about the importance of secondary supply and recycling? All these questions and more are put to Roskill's Rare Earth's analyst David Merriman, who brings Proactive London up to date about this fascinating growing market and why investors should be keeping a sharp eye on it.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30445/vsa-capital-market-movers---egdon-resources-30445.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30445/vsa-capital-market-movers---egdon-resources-30445.html Tue, 08 Jan 2019 09:31:00 +0000

VSA Morning Flow Test, 08/01/18

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Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) announced yesterday that the Biscathorpe exploration well has now been spudded in line with the previously set out timetable. Preliminary results are now expected in early February.

EDR holds a net interest of 35.8% and 22.5% share of the well cost. Currently we value the asset at 6.7p/sh. on a risked basis using a 40% CoS against the mean prospective resources of 14mmbo (5mmbo net to EDR) highlighting the current value potential given the current share price of 8p/sh.

This appraisal well will test whether the geology at Biscathorpe is comparable to that of the Reepham oilfield around 20km south west of Biscathorpe. At Reepham the Basal Westphalian sandstone reservoir experiences significant lateral thickening down dip, however, this is not directly visible on seismic data. From this well EDR will therefore aim to establish the extent of reservoir thickening beyond a small known local fault. Once the extent of thickening is better understood EDR will be better able to determine the quality and extent of the reservoir; currently the resource ranges from 1.8mmbo (P90) to 35.3mmbo (P10).

EDR has a number of catalysts across both its conventional assets, as at Biscathorpe, and unconventional assets with drilling at Springs Road upcoming where EDR has a direct interest. While results are also expected from Cuadrilla’s testing at Preston New Road which are important for the UK shale industry. Positive results for each of these could, in our view, drive a strong rerating for the shares which are currently deeply discounted, in our view.

We reiterate our Speculative Buy recommendation and 50p target price.


 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30441/vsa-capital-market-movers---shefa-yamim-30441.html VSA CAPITAL MARKET MOVERS - Shefa Yamim https://www.miningcapital.com/columns/vsa-capital-market-movers/30441/vsa-capital-market-movers---shefa-yamim-30441.html Mon, 07 Jan 2019 09:35:00 +0000

VSA Morning Miner, 07/01/19

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Shefa Yamim (LON:SEFA)

Shefa Yamim (SEFA LN) has announced the discovery of a new mineral found as inclusions in the Carmel Sapphire prevalent at its alluvial gemstone project in Northern Israel. The new mineral with major chemical components of titanium, aluminium and zirconium has been named carmeltazite and has been recognised and approved as a new mineral by the International Mineralogical Association following the publication of a paper by a team from the Macquarie University in Australia led by Bill Griffin.

The discovery of another new mineral by SEFA highlights the unique nature of the collection of rare gemstones present at the Kishon Mid Reach project and the company continues to progress towards trial mining in 2019.
  
We reiterate our Speculative Buy recommendation.

 

 

 

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https://www.miningcapital.com/companies/stocktube/11709/black-rock-mining-sells-out-mahenge-project-dfs-with-third-offtake-agreement-11709.html Black Rock Mining sells out Mahenge Project DFS with third offtake agreement https://www.miningcapital.com/companies/stocktube/11709/black-rock-mining-sells-out-mahenge-project-dfs-with-third-offtake-agreement-11709.html Mon, 07 Jan 2019 01:03:00 +0000 Black Rock Mining Ltd (ASX:BKT) chief executive officer John de Vries tells Proactive Investors that the signing of a third offtake agreement, with China-based Taihe Soar, means that the definitive feasibility study on the Mahenge Graphite Project in Tanzania is now sold out.
 
The project, which boasts one of the world's largest JORC-compliant flake graphite resources, is now 'shovel-ready' pending some finance and permitting.
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https://www.miningcapital.com/columns/jackhammer/30434/aussie-gold-price-hits-all-time-high-as-chinese-economic-growth-slows-again-30434.html Aussie gold price hits all-time high as Chinese economic growth slows again https://www.miningcapital.com/columns/jackhammer/30434/aussie-gold-price-hits-all-time-high-as-chinese-economic-growth-slows-again-30434.html Fri, 04 Jan 2019 11:09:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30437/vsa-capital-market-movers---central-asia-metals-30437.html VSA CAPITAL MARKET MOVERS - Central Asia Metals https://www.miningcapital.com/columns/vsa-capital-market-movers/30437/vsa-capital-market-movers---central-asia-metals-30437.html Fri, 04 Jan 2019 10:46:00 +0000

VSA Morning Miner, 04/01/19

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Central Asia Metals (LON:CAML)

Central Asia Metals (CAML LN) has announced that it has refinanced and consolidated its corporate debt as of December 2018. The Sasa mine had gross debt of US$67m at the time of the acquisition by CAML in November 2017. As part of the acquisition financing CAML raised US$120m in debt from its offtake partner, Traxys. In order to simplify the outstanding corporate debt CAML has increased the size of the Traxys facility by US$60m to US$151m and repaid the outstanding Sasa debt plus accrued interest.

The Traxys facility carries 4.75% interest plus 1-month US Libor and is to be repaid monthly on a straight-line basis within four years without the previous requirement for cash sweeps. Our current estimates based on prior guidance assume that gross debt would be repaid by the end of 2021 and we forecast year end 2018 gross debt of around US$132m. Given the removal of the cash sweep constraint this likely gives CAML more flexibility over repayments and use of cash which may prompt a less aggressive deleveraging programme particularly since our current forecasts suggest net debt to EBITDA of 0.8x at year end 2018.

The shares have traded within a narrow range over the past three months despite commodity price volatility, however, given the strong free cash flow outlook which is highlighted by the ability to rapidly deleverage whilst continuing to pay a robust dividend the shares remain attractive, in our view. At the current price we anticipate a dividend yield of around 7% in 2018.

We reiterate our Buy recommendation and target price of 309p.

 

 

 

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https://www.miningcapital.com/companies/stocktube/11695/galena-mining-optimising-pfs-to-reflect-evolved-economics-of-abra-on-track-with-dfs-11695.html Galena Mining optimising PFS to reflect evolved economics of Abra; on track with DFS https://www.miningcapital.com/companies/stocktube/11695/galena-mining-optimising-pfs-to-reflect-evolved-economics-of-abra-on-track-with-dfs-11695.html Thu, 03 Jan 2019 01:43:00 +0000 Galena Mining Ltd (ASX:G1A) managing director Alex Molyneux speaks to Proactive Investors about the recent resource and reserve update on the Abra Base Metals Project, new mine model, and progress with permitting and financing.

"At our throughput rate for Abra, we're basically talking about the potential for an extra year of mine life. In addition to that, the grades of the material in the mine model have gone up, so there's 6% more lead and 20% more silver in terms of the feed grades going through, and so there's great potential for an increased revenue and margins in comparison to the data that was used to form the PFS back in September. And that model has also calculated a new reserve of 10.3 million tonnes at 8.8% lead; that's a 9% increase," says Molyneux.

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https://www.miningcapital.com/companies/stocktube/11692/enertopia-corp-finishes-drill-program-now-awaits-results-from-lab-11692.html Enertopia Corp finishes drill program now awaits results from lab https://www.miningcapital.com/companies/stocktube/11692/enertopia-corp-finishes-drill-program-now-awaits-results-from-lab-11692.html Wed, 02 Jan 2019 21:46:00 +0000 Enertopia Corp (CSE:TOP) President and CEO Robert McAllister joined Steve Darling from Proactive Investors in Vancouver with news that the drill program at their Clayton Valley lithium project in Nevada ended just before Christmas.  McAllister told Proactive the samples will now be sent to the lab for testing.

Those test results are expected to be back to the company by the end of February.  

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https://www.miningcapital.com/companies/stocktube/11690/newrange-gold-corp-appoints-robert-archer-as-new-ceo-11690.html Newrange Gold Corp appoints Robert Archer as new CEO https://www.miningcapital.com/companies/stocktube/11690/newrange-gold-corp-appoints-robert-archer-as-new-ceo-11690.html Wed, 02 Jan 2019 19:34:00 +0000 Newrange Gold Corp (CVE:NRG) has made a corporate move by appointing Robert Archer as its new CEO. Archer has been a director with the company since March of 2018. Archer brings a tremendous amount of experience, he was the Co-Founder and CEO of Great Panther Silver until August, 2017. 

The company also announced Robert Carrington will maintain his role as President and Chairman of Newrange.
 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30425/vsa-capital-market-movers---dekeloil-30425.html VSA CAPITAL MARKET MOVERS - DekelOil https://www.miningcapital.com/columns/vsa-capital-market-movers/30425/vsa-capital-market-movers---dekeloil-30425.html Fri, 21 Dec 2018 09:55:00 +0000

VSA Morning Agri Comment, 21/12/18

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DKL Takes 43.8% Stake in Cashew Project

West African agricultural company DekelOil Public (LON:DKL) has taken a 43.8% equity stake in the 10,000tpa (expandable to 30,000tpa) Tiebissou cashew processing project in Cote d'Ivoire.

  • Consideration to be satisfied via the issuance of DKL shares at 4.5p per share, a 46% premium to its last closing price
  • Implied current valuation of €6m
  • Retains an option to acquire a further 20.5% interest on same terms as original option agreement signed on 26 June 2018

VSA Comment

The Tiebissou project is scheduled to become operational in early 2020 in time for the Côte d’Ivoire cashew season that typically starts in February and ends in June. Assuming DKL exercises its option to take majority control, this will be its second majority-owned operational project in Côte d’Ivoire.

With this equity investment, DKL is now sharing some of the development risk. However, it believes that this is minimal given senior management have been appointed, a 13-year tax exemption has been granted, key construction contracts are now in place and project debt financing has been secured (meaning no material cash contribution will be required by DKL for the project).

The original option agreement valued the project at a minimum of €18m once operational with the option only exercisable from H1 2021. With cashew processing facilities typically valued at around US$1m per 1,000tpa capacity, we believe this valuation seems fair (for a 10,000tpa-30,000tpa facility).

DKL reports that PKF Littlejohn LLP believes that the valuation of this specific transaction (€6m) "appears reasonable and on an arm's length basis" and this was supported by independent NED opinion and a recent independent investment into the project by an unrelated investor.

As we outlined in our initiation report on DKL, this cashew project will provide DKL with sensible diversification given its expertise in the processing of agricommodities, smallholder relations and operating in-country.

We estimate the project could deliver an additional c€3m in attributable profit to DKL by 2022 (depending on its final equity stake when operational).

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

 


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

NWF Group

74.83

153.50

4.00

+2.7%

Devro

264.68

158.60

1.60

+1.0%

Eden Research

25.07

12.10

0.10

+0.8%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Plant Health Care

17.20

9.95

(0.50)

-4.8%

Anglo-Eastern Plantations

236.23

596.00

(25.00)

-4.0%

Genus

1,414.08

2,180.00

(74.00)

-3.3%


 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30424/vsa-capital-market-movers---tectonic-gold-30424.html VSA CAPITAL MARKET MOVERS - Tectonic Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30424/vsa-capital-market-movers---tectonic-gold-30424.html Fri, 21 Dec 2018 09:52:00 +0000

VSA Morning Miner, 21/12/18

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Tectonic Gold (LON:TTAU)

Yesterday Tectonic Gold (TTAU LN) provided initial assay results from its recent drilling campaign at Specimen Hill in Queensland, Australia. These results are based on the first 25% of the assays and are encouraging in our opinion. It appears that the aims of the drilling campaign - to verify known near surface mineralisation and extend the depth of this mineralisation as well as test the potential for porphyry style mineralisation at depth - have been positively fulfilled.

Widths have not been reported, however, assays from the near surface targets intercepted grades of up to 5.14g/t Au from 118.6m and up to 6.06g/t Au from 96m. Historic drilling intercepted mineralisation around 50m from surface and these latest holes were intended to extend this known mineralisation at depth.

Whilst these results are positive, the largest potential upside for TTAU lies in discovering major porphyry style deposits. The fact that initial results suggest that porphyry mineralisation has been intercepted is highly encouraging, in our view, and appears to confirm the company’s exploration model. Porphyry style mineralisation was intercepted 230m from surface, although grades are not yet available. TTAU has indicated that full results are likely to be available in early 2019.

The verification aspect of the drilling programme was a useful tool for assessing the effectiveness of modern geophysics techniques which have been used by TTAU to date. Given that both lode extensions have been found as part of the near-surface mineralisation as well as intercepts of porphyry style mineralisation at depth it suggests that these methods are effective and will be used to identify new targets. 

We reiterate our Speculative Buy recommendation.


 

 

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https://www.miningcapital.com/companies/stocktube/11685/technology-metals-advancing-gabanintha-project-dfs-with-drilling-and-met-testing-11685.html Technology Metals advancing Gabanintha project DFS with drilling and met testing https://www.miningcapital.com/companies/stocktube/11685/technology-metals-advancing-gabanintha-project-dfs-with-drilling-and-met-testing-11685.html Fri, 21 Dec 2018 04:11:00 +0000 Ian Prentice, executive director of Technology Metals Australia Ltd (ASX:TMT), updates Proactive Investors on results from RC and diamond drilling, and metallurgical test work.

A Definitive Feasibility Study (DFS) on the Gabanintha Vanadium Project in Western Australia is on track for delivery in the June quarter of 2019.

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https://www.miningcapital.com/companies/stocktube/11684/saturn-metals-has-a-dual-strategy-to-develop-its-large-scale-apollo-hill-gold-project-11684.html Saturn Metals has a dual strategy to develop its large-scale Apollo Hill Gold Project https://www.miningcapital.com/companies/stocktube/11684/saturn-metals-has-a-dual-strategy-to-develop-its-large-scale-apollo-hill-gold-project-11684.html Fri, 21 Dec 2018 03:59:00 +0000 Saturn Metals Ltd (ASX:STN) managing director Ian Bamborough introduces Proactive Investors to the Western Australian gold exploration company's Apollo Hill Project, located in the heart of the Eastern Goldfields. Both the company and its assets were spun out of Peel Mining Ltd (ASX:PEX) and floated on the ASX in March of this year.

Saturn Metals is simultaneously working to grow an existing resource of 20.7 million tonnes at 1.0 g/t gold for 685,000 ounces, and discover significant new deposits through greenfields exploration work in the wider project area.

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https://www.miningcapital.com/companies/stocktube/11694/havilah-resources--technical-director-updates-on-grants-and-kalkaroo-projects-11694.html Havilah Resources' technical director updates on Grants and Kalkaroo projects https://www.miningcapital.com/companies/stocktube/11694/havilah-resources--technical-director-updates-on-grants-and-kalkaroo-projects-11694.html Fri, 21 Dec 2018 01:27:00 +0000 Havilah Resources Ltd (ASX:HAV) technical director Dr. Chris Giles speaks to Proactive Investors in detail about a major iron ore find located in Grants Basin, South Australia.

Havilah has also made significant progress with its flagship Kalkaroo copper-gold-cobalt project recently, obtaining a Native Title Agreement.

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https://www.miningcapital.com/companies/stocktube/11676/predictive-discovery-expects-drilling-results-from-multiple-projects-through-to-july-11676.html Predictive Discovery expects drilling results from multiple projects through to July https://www.miningcapital.com/companies/stocktube/11676/predictive-discovery-expects-drilling-results-from-multiple-projects-through-to-july-11676.html Thu, 20 Dec 2018 22:30:00 +0000 Predictive Discovery Ltd. (ASX:PDI) managing director Paul Roberts updates Proactive Investors on the West Africa-focused gold prospect generator's new land in Guinea and Burkina Faso, new arrangements with partners on the Bobosso project in Cote D’Ivoire, and exploration works at a number of other projects.

Roberts explains, "Our model is very much about having as many properties as possible, and therefore maximising the opportunity for shareholders, but at the same time minimising the overall burn rate so that we're not constantly going to the market and asking for dilutive capital raisings. This is something we can see playing out in Guinea and Burkina Faso. We're very focused on picking up ground 100% in our own right."

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https://www.miningcapital.com/companies/stocktube/11680/europa-metals-reports--promising-results--from-drilling-at-toral-project-11680.html Europa Metals reports "promising results" from drilling at Toral project https://www.miningcapital.com/companies/stocktube/11680/europa-metals-reports--promising-results--from-drilling-at-toral-project-11680.html Thu, 20 Dec 2018 10:45:00 +0000 Europa Metals Ltd (LON:EUZ) said phase two drilling at its Toral lead, zinc and silver project in Spain has shown “promising results”. Europa Director Laurence Read tells Proactive London that aside from the near-surface resource which was inline with geological data and Europa's subsequent expectations, they also ran into a high grade copper intersection which was more interesting...prompting questions about what could lie beneath. The high grade copper pushed all the way to surface could lead to a separate workstream and merit further investigation. Three infill diamond drill holes at aToral all intersected lead, zinc and silver mineralisation at a depth of 300m of the topographic surface. The results confirmed block model grade and thickness.

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https://www.miningcapital.com/companies/stocktube/11675/archer-exploration-s-exclusive-ip-for-quantum-computing-shows-strategy-in-action-11675.html Archer Exploration's exclusive IP for quantum computing shows strategy in action https://www.miningcapital.com/companies/stocktube/11675/archer-exploration-s-exclusive-ip-for-quantum-computing-shows-strategy-in-action-11675.html Thu, 20 Dec 2018 02:46:00 +0000 Archer Exploration Ltd (ASX:AXE) CEO Mohammad Choucair updates Proactive Investors on the company’s recently signed exclusive agreement, with University of Sydney Commercial Development and Industry Partnerships (CDIP), regarding intellectual property (IP) for quantum computing technology that functions at room temperature.

Archer’s wholly owned subsidiary Carbon Allotropes supplies materials that would form the critical componentry of the device. The advanced materials company will be enacting a commercialisation plan in tandem with developing the technology.

Choucair says, "The barriers to entry into quantum computing and technology can be seen as quite high from both a technical and commercial point of view, but this is where the value in obtaining this license agreement lies... Now that we do have this exclusive license, we've been able to overcome these barriers to entry, and maybe will start setting a few of our own."

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https://www.miningcapital.com/companies/stocktube/11672/aspire-mining-fully-funded-to-progress-ovoot-early-development-plan-after-strategic-financing-11672.html Aspire Mining fully-funded to progress Ovoot early development plan after strategic financing https://www.miningcapital.com/companies/stocktube/11672/aspire-mining-fully-funded-to-progress-ovoot-early-development-plan-after-strategic-financing-11672.html Thu, 20 Dec 2018 02:21:00 +0000 Aspire Mining Ltd (ASX:AKM) managing director David Paull speaks to Proactive Investors about the company’s recent strategic financing and its development of the Ovoot Coking Coal Project in Mongolia.

“We’re well-funded now to complete the pre-feasibility study, and feasibility studies, that are required to confirm the early development project for Ovoot,” Paull says.

He continues, “the early development project … comprises both the mine site mine planning exercise for the carve-out of the low-ash, high-yielding section of the Ovoot project and also establishing a direct haul road.

“We’re looking at a combination of diesel genset as support for a solar power station … so that’s an interesting occurrence [where] you’ll have a coal mine operation using solar as its predominant power source, which is a sign of the times.”

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https://www.miningcapital.com/companies/stocktube/11661/galan-lithium-starting-maiden-drilling-in-january-maiden-resource-slated-for-q3-2019-11661.html Galan Lithium starting maiden drilling in January, maiden resource slated for Q3 2019 https://www.miningcapital.com/companies/stocktube/11661/galan-lithium-starting-maiden-drilling-in-january-maiden-resource-slated-for-q3-2019-11661.html Wed, 19 Dec 2018 22:15:00 +0000 Galan Lithium Ltd (ASX:GLN) advisor Clive Jones reviews the exploration works done to date on the Hombre Muerto Lithium Brine Project in Argentina's Catamarca province, and speaks to Proactive Investors about plans to develop the Candelas channel now that drilling permits have been granted.

The maiden drilling program will comprise five diamond holes along about 12 kilometres of strike, to be commenced at the start of the new year. If those results meet expectations, Galan is looking to fast track the project with follow up drilling.

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https://www.miningcapital.com/companies/stocktube/11653/australian-vanadium-reveals-pfs--maiden-ore-reserve-for--globally-unique--project-11653.html Australian Vanadium reveals PFS & maiden ore reserve for 'globally unique' project https://www.miningcapital.com/companies/stocktube/11653/australian-vanadium-reveals-pfs--maiden-ore-reserve-for--globally-unique--project-11653.html Wed, 19 Dec 2018 22:00:00 +0000 Australian Vanadium Ltd (ASX:AVL) managing director Vincent Algar speaks to Proactive Investors about today's announced maiden ore reserve and final Pre Feasibility Study (PFS) on the Gabanintha Vanadium Project in Western Australia. The results follow on from a base case released in September.

Explaining the importance of having a life of mine mass recovery to concentrate of over 60%, Algar says, "This is one of the most exciting things about the Gabanintha deposit overall. It yields something that vanadium, titanium deposits around the world don't yield; which is when we use magnetic separation to pull the magnetite out of the ore, we get a very large mass pool, and that means we can make the plant slightly smaller than others have to around the world... so there's a certain uniqueness about Gabanintha, and we've been able to translate this into the process design and into the mine schedule."

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https://www.miningcapital.com/companies/stocktube/11643/berkwood-resources-provides-update-on-phase-4-drilling-at-graphite-project-in-quebec-11643.html Berkwood Resources provides update on Phase 4 drilling at Graphite project in Quebec https://www.miningcapital.com/companies/stocktube/11643/berkwood-resources-provides-update-on-phase-4-drilling-at-graphite-project-in-quebec-11643.html Wed, 19 Dec 2018 16:33:00 +0000 Berkwood Resources (CVE_BKR) President and CEO Tom Yingling joined Steve Darling in the Vancouver studio of Proactive Investors to share details about their drilling program at the Lac Guéret Extensions Graphite Project in Quebec.

Yingling told Proactive the current drilling program will finish in 2018 with more to come in 2019. The CEO also talked about the geo physical work being done and why it's so important for their project. 

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https://www.miningcapital.com/companies/stocktube/11664/scotgold-resources-presses-button-on-cononish-goldmine-11664.html Scotgold Resources presses button on Cononish goldmine https://www.miningcapital.com/companies/stocktube/11664/scotgold-resources-presses-button-on-cononish-goldmine-11664.html Wed, 19 Dec 2018 11:58:00 +0000 Gold miner Scotgold Resources Ltd (LON:SGZ) is to break ground on the Cononish mine in the Trossachs National Park following completion of their planning application. Scotgold's CEO Richard Gray tells Proactive London how he has a core team on site and equipment is also being lined up so Scotgold can the 'hit the ground running' at the start of 2019.
Scotgold expects to process around 3,000 tonnes of ore per month in the first phase, which will double in phase two.
A feasibility study last year estimated Cononish can generate between £67mln and £100mln in earnings over the life of the mine.
The pre-tax net present value was put at £43mln, using a 10% discount rate. In early morning trading, Scotgold shares were 4.4% higher at 35.50p.

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https://www.miningcapital.com/companies/stocktube/11663/kodal-reflects-on-gold-jv-progress-and-a-busy-2018-11663.html Kodal reflects on gold JV progress and a busy 2018 https://www.miningcapital.com/companies/stocktube/11663/kodal-reflects-on-gold-jv-progress-and-a-busy-2018-11663.html Wed, 19 Dec 2018 10:57:00 +0000 Kodal Minerals PLC (LON:KOD) the mineral exploration and development company focussed on West Africa, gives Proactive London an update on the company's joint venture with Resolute Mining Limited, relating to three gold exploration licences located in central and northern Cote d'Ivoire. Kodal CEO Bernard Aylward tells Proactive's Polly Middlehurst how their gold play is progressing and  how 2018 has been a drilling-focussed year.  Kodal currently holds a 100% interest in all three licences in West Africa, with Resolute, which is financing and managing the exploration programme, earning into a maximum 75% interest.

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https://www.miningcapital.com/companies/stocktube/11660/mawson-resources-has-one-of-finland-s-top-gold-resources-plus-expected--upgrades-11660.html Mawson Resources has one of Finland's top gold resources, plus expected upgrades https://www.miningcapital.com/companies/stocktube/11660/mawson-resources-has-one-of-finland-s-top-gold-resources-plus-expected--upgrades-11660.html Wed, 19 Dec 2018 07:40:00 +0000 Mawson Resources Ltd (TSX:MAW) chairman & CEO Michael Hudson tells Proactive Investors that the just-announced maiden inferred gold-cobalt resource estimates for the Raja and Palokas prospects at the Rajapalot Project in Finland will be expanded in merely a month.

Electromagnetic surveys are being conducted beyond the 20% of the known four kilometre trend already examined. Five drill rigs are expected to be mobilised on site by the end of January to grow the resources and de-risk the project.

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https://www.miningcapital.com/companies/stocktube/11659/hannan-metals-turning-focus-to--the-best-geological-area--identified-in-past-18-months-11659.html Hannan Metals turning focus to 'the best geological area' identified in past 18 months https://www.miningcapital.com/companies/stocktube/11659/hannan-metals-turning-focus-to--the-best-geological-area--identified-in-past-18-months-11659.html Wed, 19 Dec 2018 07:03:00 +0000 Hannan Metals Ltd (CVE:HAN, OTCPK:HANNF) chief executive Michael Hudson updates Proactive Investors on the County Clare zinc project in Ireland.

Drilling on seismic targets at the Ballyhickey prospect was cut short after results failed to meet hopes. Hannan is now focusing attention on the Kilmurry target, which is located eight to nine kilometres south of the existing Kilbricken resource.

Hudson teases that, "Kilbricken looks like a secondary target in many ways from a geological perspective to what we're finding at Kilmurry."

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https://www.miningcapital.com/companies/stocktube/11658/canyon-resources-confident-in-scale-and-high-grade-of-bauxite-resource-at-minim-martap-11658.html Canyon Resources confident in scale and high-grade of bauxite resource at Minim Martap https://www.miningcapital.com/companies/stocktube/11658/canyon-resources-confident-in-scale-and-high-grade-of-bauxite-resource-at-minim-martap-11658.html Wed, 19 Dec 2018 06:51:00 +0000 Canyon Resources Ltd (ASX:CAY) managing director Phil Gallagher speaks to Proactive Investors about the bauxite developer’s Minim Martap project in Cameroon.
 
“The project has an existing resource of over half a billion tonnes of high-grade bauxite of 46.5% with less than 2% reactive silica,” Gallagher says.
 
He continues “within that we were able to identify a resource of 49% bauxite which is very high-grade and in the current market high-grade bauxite is a highly desirable commodity."
 
The company has begun an initial aircore drilling and exploration campaign at Minim Martap targeting untested high-grade bauxite plateaux with the aim of increasing the already substantial resource. 
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https://www.miningcapital.com/companies/stocktube/11657/bepkong-drilling-results-mark--game-changer--for-azumah-resources--wa-gold-project-11657.html Bepkong drilling results mark 'game changer' for Azumah Resources' Wa Gold Project https://www.miningcapital.com/companies/stocktube/11657/bepkong-drilling-results-mark--game-changer--for-azumah-resources--wa-gold-project-11657.html Wed, 19 Dec 2018 05:46:00 +0000 Azumah Resources Ltd (ASX:AZM) managing director Steve Stone follows up with Proactive Investors on fresh assays from the second and third holes drilled as part of a major 40,000 metre $4 million resource upgrade drilling campaign at the Wa Gold Project in Ghana.

The three holes have revealed the potential for an underground mining operation on the Bepkong deposit. A "landmark" feasibility update is expected to be released before the end of January.

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https://www.miningcapital.com/companies/stocktube/11656/lithium-australia-s-md-reviews-progress-throughout-the-supply-chain-in-2018-11656.html Lithium Australia's MD reviews progress throughout the supply chain in 2018 https://www.miningcapital.com/companies/stocktube/11656/lithium-australia-s-md-reviews-progress-throughout-the-supply-chain-in-2018-11656.html Wed, 19 Dec 2018 04:18:00 +0000 Adrian Griffin, managing director of Lithium Australia NL (ASX:LIT), provides Proactive Investors with an overview of progress made throughout 2018 towards the company's stated strategic goal of closing the loop on lithium supply.

Topics of discussion include exploration projects, the acquisition of VSPC Ltd and development of the SiLeach® process for extracting lithium chemicals from mica, the production of both cathode and anode powders, development of the LieNA lithium extraction from spodumene process, and recycling works.

Speaking about the latter, Griffin says, "If you look at current processing technologies on a global basis, only [about 9%] of lithium ion batteries ever get back into the supply chain via recycling route and the rest go to landfill. In Australia, the proportion that gets back into the recycling chain is diminishing [currently around 2%]... the material in those lithium ion batteries has a grade that is about 100 times higher than an ore body that's required to produce a battery in the first place. So it should be very cheap material."

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https://www.miningcapital.com/companies/stocktube/11654/theta-gold-mines-name-change-reflects-focus-on-first-gold-at-south-african-open-cut-project-11654.html Theta Gold Mines’ name change reflects focus on first gold at South African open cut project https://www.miningcapital.com/companies/stocktube/11654/theta-gold-mines-name-change-reflects-focus-on-first-gold-at-south-african-open-cut-project-11654.html Wed, 19 Dec 2018 01:04:00 +0000 Theta Gold Mines Ltd (ASX:TGM) non-executive chairman Bill Guy and other directors and senior management speak to Proactive Investors from site in South Africa about the company’s recent name change and its drive towards gold production at its Theta Hill Open Cut Project in South Africa. The company was previously known as Stonewall Resources (ASX:SWJ).

“The near-term focus is to convert this large resource into a reserve,” says Guy.

He continues, “in the New Year we will have an exploration update which will be part of the Columbia Hill-Theta Hill drilling update; essentially then we’ll move through to reserve statements and feasibility study completion.”

“That process has already been funded, so then the next phase will be permitting, more drilling and upgrading the plant and getting it operational.”

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https://www.miningcapital.com/companies/stocktube/11646/nexus-minerals-will-be-busy-in-2019-with-two-pronged-approach-for-wallbrook-project-11646.html Nexus Minerals will be busy in 2019 with two-pronged approach for Wallbrook project https://www.miningcapital.com/companies/stocktube/11646/nexus-minerals-will-be-busy-in-2019-with-two-pronged-approach-for-wallbrook-project-11646.html Tue, 18 Dec 2018 22:15:00 +0000 Nexus Minerals Ltd (ASX:NXM) managing director Andy Tudor speaks to Proactive Investors about the Eastern Goldfields-focused explorer's newly enlarged Wallbrook Gold Project. Nexus recently acquired three neighbouring tenements from Newmont Mining Corp’s (NYSE:NEM) Newmont Exploration, increasing the total scale of Wallbrook to 250 square kilometres.

Tudor explains that a myriad of current and upcoming exploration works are focused on two main targets: shallow, lower-grade bulk-tonnage mineralisation that represents 'low hanging fruit'; and deeper potential 3-5 million ounce discoveries. Overall, he draws comparisons with Saracen Mineral Holdings' Karari deposit, which is located 30 kilometres to the South.

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https://www.miningcapital.com/companies/stocktube/11645/american-pacific-borate--lithium-working-to-be--globally-significant-borate-producer--11645.html American Pacific Borate & Lithium working to be 'globally significant borate producer' https://www.miningcapital.com/companies/stocktube/11645/american-pacific-borate--lithium-working-to-be--globally-significant-borate-producer--11645.html Tue, 18 Dec 2018 22:00:00 +0000 American Pacific Borate and Lithium Ltd (ASX:ABR) managing director Michael Schlumpberger introduces Proactive Investors to the company and its projects, including the flagship Fort Cady Borate and Lithium Project located in Southern California, USA, on which a promising Definitive Feasibility Study (DFS) has just been published.

Schlumpberger says, "I think there are several takeaways from that feasibility study. The first is, we think the borate market is an exciting place to be. Certainly if you look at the financial metrics associated with the project I think they speak for themselves as very strong financial metrics. And finally, we think that the risk profile associated with the project is very low."

"We're looking at the start of construction in Q4 of [calendar year] 2019. About a twelve month build is what we anticipate, so it should fast track us very quickly into production," teases Schlumpberger.

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https://www.miningcapital.com/companies/stocktube/11593/lithiumore-consultant-says-the-company-probably-has-some-of--the-lowest-cost-lithium-in-the-world--11593.html LithiumOre consultant says the company probably has some of 'the lowest-cost lithium in the world' https://www.miningcapital.com/companies/stocktube/11593/lithiumore-consultant-says-the-company-probably-has-some-of--the-lowest-cost-lithium-in-the-world--11593.html Tue, 18 Dec 2018 16:28:00 +0000 Joe Salvani, consultant to LithiumOre Corp (OTCQB:ORRP) and founder of JFS Investments Inc tells Proactive Investors that he's interested in the Nevada-based lithium company, as it has "the lowest-cost lithium in the world."

The former Goldman Sachs Chemical Industry analyst, whose interest in lithium was piqued after researching lithium play Albemarle Corporation (NYSE:ALB), was interested in finding valuable lithium plays, which he says, he found in LithiumOre.

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https://www.miningcapital.com/companies/stocktube/11648/savannah-resources--building-a-world-class-team--as-it-advances-mina-do-barroso-towards-feasibility-11648.html Savannah Resources 'building a world class team' as it advances Mina do Barroso towards feasibility https://www.miningcapital.com/companies/stocktube/11648/savannah-resources--building-a-world-class-team--as-it-advances-mina-do-barroso-towards-feasibility-11648.html Tue, 18 Dec 2018 09:42:00 +0000 David Archer, chief executive of Savannah Resources PLC (LON:SAV), tells Proactive London's Andrew Scott drilling at the Grandao and Pinheiro deposits within its Mina do Barroso project in Portugal has returned a series of significant lithium intersections.

Archer also says they've formalised their relationship with a university research team led by professor Noronha – the man who first discovered lithium near the Mina do Barroso project thirty years ago.

As well as the team from the University of Porto, Savannah's also joining forces with the Laboratorio Nacional de Energia e Geologia (LNEG) – a governmental research and development institution with “significant experience” in lithium processing technologies.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30409/vsa-capital-market-movers---exore-resources-30409.html VSA CAPITAL MARKET MOVERS - Exore Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30409/vsa-capital-market-movers---exore-resources-30409.html Tue, 18 Dec 2018 09:41:00 +0000

VSA Morning Miner, 18/12/18

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Exore Resources (ASX:ERX)

With drilling well underway the initial aircore results have yielded highly encouraging intercepts which capitalise on the early work carried out by the vendors. Aircore drilling has expanded the known shallow mineralisation at the Liberty 2 prospect by 60% to a 1.6km strike running NE to SW and dipping to the East. It remains open in all directions and ERX will now commence resource definition RC drilling commencing Q1 2019.

At Liberty 2 Exore Resources (ERX AU) carried out a 7,500m programme across 57 holes averaging 47m depth. The fact that aircore could operate to this depth indicates significant surface weathering and therefore potentially higher grades in unweathered bedrock. The programme covered eight new traverses each of which intercepted gold mineralisation hosted in deformed sedimentary and mafic rocks as well as in quartz veins which typically host higher grades. Significant intercepts in this programme included:

  • 12m at 3.3g/t Au from 4m
  • 12m at 1.88g/t Au from 8m
  • 18m at 2.15g/t Au from 36m
  • 8m at 1.73g/t Au from 32m
  • 4m at 4.45g/t Au from 44m

This significant expansion of shallow mineralisation demonstrates the potential of the Liberty 2 prospect which is contained within a broader 20km in soil anomaly. In addition, RC drilling is underway at Antoinette and first pass aircore drilling is underway at Veronique. However, these three large scale anomalies cover only a small portion of the 830km2 license area and ERX have initiated a regional geochemical soil sampling programme to explore the further potential.

We therefore expect significant upcoming newsflow from ERX to build on these initial strong results. With A$15m in cash ERX is fully funded for its exploration activities and is in a strong position to fully capitalise on the clear significant potential which exists at its licenses in Cote d’Ivoire.

We reiterate our Speculative Buy recommendation.

 

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30408/vsa-capital-market-movers---egdon-resources-30408.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30408/vsa-capital-market-movers---egdon-resources-30408.html Tue, 18 Dec 2018 09:36:00 +0000

VSA Morning Flow Test, 18/12/18

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Egdon Resources (LON:EDR)

We note from the IGas (LON:IGAS) announcement that having reached the target depth of 1,810m the Tinker Lane well, spudded in late November, did not encounter the Bowland shales; the key target for shale gas. Although Egdon Resouces (LON:EDR) has significant interest in the central part of the Gainsborough Trough it does not have an interest at Tinker Lane as this well was always designed to test the lateral extent of the Bowland shale and was therefore a bull case well for IGAS if successful.

In our view, we see this as a vindication of EDR’s strategy to focus on the central areas of the play highlighting why EDR is our preferred exposure to UK shale potential. Indeed, EDR have a 14.5% interest at Spring’s Road in the central areas of the Gainsborough Trough; IGAS is also the operator. With the Tinker Lane well completed ahead of schedule the focus will now be on Spring’s Road which IGAS expect to spud in Q1 2019.

We reiterate our Buy recommendation and target price of 50p.


 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30407/vsa-capital-market-movers---redt-energy-30407.html VSA CAPITAL MARKET MOVERS - redT energy https://www.miningcapital.com/columns/vsa-capital-market-movers/30407/vsa-capital-market-movers---redt-energy-30407.html Tue, 18 Dec 2018 09:33:00 +0000

VSA Morning Alternative Energy Comment, 18/12/18

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redT energy#: Year-End Update

redT energy (LON:RED), an energy storage solutions company, has released an update that summarises its key achievements during FY 2018.

  • Gross pipeline continues to stand above £1bn
  • Risk-weighted development pipeline now at “more than 1,500” tank unit modules (was reported as 1,687 units on 13 September)

VSA Comment

RED has released a summary of its activity in FY 2018. In terms of new information, the company has revealed that it is in final discussions for a multi-MWh project in the UK market, in late stage negotiations for a number of high profile projects in South Africa and that it intends to offer an electrolyte rental option to its customers (we have assumed in our modelling that this will occur for sales completed over the next two years, as the vanadium price remains elevated).

The company also stated that it continues to progress towards financial close on the first 40MWh project of its 700MWh German project portfolio. In our recent note on the company we stated that we now expected this to close in early 2019 (from end 2018) and this has been confirmed by the company this morning.

There are therefore several potential share price catalysts due early next year - closing of the financing for the initial German project, first commercial delivery of a Gen3 machine (for Anglian Water), progress on seeking one or more strategic partners, and the winning of significant new projects in both South Africa and the UK.

We recently released an updated note on RED, where we made some adjustments to our near-term forecasts and updated our valuation. As such, we now have a BUY recommendation and target price of 21p on the stock.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Rurelec

3.9

0.7

0.10

+16.7%

Sabien Technology

0.7

0.1

0.01

+13.6%

redT energy

50.2

6.4

0.45

+7.6%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Aggregated Micro Power

41.0

95.0

(7.50)

-7.3%

Advanced Power Components

11.9

6.6

(0.50)

-7.0%

Ilika

14.4

14.2

(1.00)

-6.6%


 

 

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https://www.miningcapital.com/companies/stocktube/11644/verdant-minerals-turning-focus-to-commercialisation-of-amaroo-phosphate-project-11644.html Verdant Minerals turning focus to commercialisation of Amaroo Phosphate Project https://www.miningcapital.com/companies/stocktube/11644/verdant-minerals-turning-focus-to-commercialisation-of-amaroo-phosphate-project-11644.html Tue, 18 Dec 2018 04:00:00 +0000 Chris Tziolis, managing director of Verdant Minerals Ltd (ASX:VRM), updates Proactive Investors on the flagship wholly-owned Amaroo Phosphate Project in Australia's Northern Territory.

"I think our timing's pretty good, there's renewed interest globally in these sorts of projects. These projects in Australia represent a great opportunity for customers of these particular products to shift away from their traditional supplies and perhaps own back to the rock, which is unique... [Amaroo] is the entree to a big phosphate basin," says Tziolis.

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https://www.miningcapital.com/companies/stocktube/11642/thunderstruck-resources-says-ip-geophysical-studies-at-its-copper-and-gold-properties-in-fiji-underway-11642.html Thunderstruck Resources says IP geophysical studies at its copper and gold properties in Fiji underway https://www.miningcapital.com/companies/stocktube/11642/thunderstruck-resources-says-ip-geophysical-studies-at-its-copper-and-gold-properties-in-fiji-underway-11642.html Mon, 17 Dec 2018 19:43:00 +0000 Thunderstruck Resources Ltd (CVE:AWE) (OTCQB:THURF) CEO Bryce Bradley tells Proactive Investors the mining company is conducting its IP (induced polarization) geophysical study on its Rama Creek Copper/Gold Porphyry and on its Liwa Creek Gold Prospect in Fiji.

Bradley says because the rainy season in Fiji starts around November, its difficult to begin a drill program, however, surface work is still possible. The company expects to have these IP results throughout January, and would be able to designate drill targets to begin drilling closer to May 2019.

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https://www.miningcapital.com/companies/stocktube/11636/rainbow-rare-earths-publishes-maiden-jorc-resource-for-gakara-11636.html Rainbow Rare Earths publishes maiden JORC resource for Gakara https://www.miningcapital.com/companies/stocktube/11636/rainbow-rare-earths-publishes-maiden-jorc-resource-for-gakara-11636.html Mon, 17 Dec 2018 09:27:00 +0000 Martin Eales, chief executive of Rainbow Rare Earths Limited (LON:RBW), discusses with Proactive London's Andrew Scott a maiden JORC-compliant Mineral Resource for their Gakara rare earths project in Burundi, East Africa.

The total resource currently is 1.2mln tonnes of ore, though Eales says this is only a small fraction of the Gakara Project.

The Mineral Resource was based on only four out of the 28 mineralised prospects across the licence.

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https://www.miningcapital.com/companies/stocktube/11634/resolute-mining-has-commenced-ore-production-from-syama-underground-gold-mine-11634.html Resolute Mining has commenced ore production from Syama Underground Gold Mine https://www.miningcapital.com/companies/stocktube/11634/resolute-mining-has-commenced-ore-production-from-syama-underground-gold-mine-11634.html Mon, 17 Dec 2018 02:48:00 +0000 Resolute Mining Ltd (ASX:RSG) managing director and chief executive John Welborn updates Proactive Investors on the gold producer's achievements in 2018 and goals for 2019; touching on developments at the Syama Gold Mine in Mali, the Bibiani Gold Mine in Ghana, the Ravenswood Gold Mine in Queensland, Australia, and the wider exploration portfolio.

Welborn says, "We have an organic pathway to 500,000 ounces of gold production a year from our existing assets of Syama, a recommissioned Bibiani and Ravenswood, so that's a near term development plan for Resolute, to go beyond the 500,000 ounce per annum production mark. Beyond that, we're a company that has proven to be capable of operating multiple assets in Africa, and we're looking to be the right partner for both African governments and potentially exploration companies. We'd like to operate four to six gold mines over the next three to five years, and bring down our average portfolio gold production to below US$750 an ounce."

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https://www.miningcapital.com/companies/stocktube/11629/afarak-group-plc-well-positioned-to-exploit-opportunities-in-2019-11629.html Afarak Group Plc well positioned to exploit opportunities in 2019 https://www.miningcapital.com/companies/stocktube/11629/afarak-group-plc-well-positioned-to-exploit-opportunities-in-2019-11629.html Fri, 14 Dec 2018 15:23:00 +0000 Guy Konsbruck, chief executive of Afarak Group Plc (LON:AFRK), discusses with Proactive London’s Andrew Scott their recent third quarter update as well outlook for 2019.

He says the speciality alloys division fully met expectations with the mines in Turkey performing well and the additional plant investments they’ve made have led to an increase in productivity – however significant challenges faced by the FerroAlloys segment in South Africa offset those positive results.

Despite the volatile market environment, Konsbruck says they’re continuing on their path of restructuring and consolidation.

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https://www.miningcapital.com/companies/stocktube/11628/roskill-analyst-jose-lazuen-on-the-automotive-race-towards-electrification-11628.html Roskill analyst Jose Lazuen on the automotive race towards electrification https://www.miningcapital.com/companies/stocktube/11628/roskill-analyst-jose-lazuen-on-the-automotive-race-towards-electrification-11628.html Fri, 14 Dec 2018 13:49:00 +0000 Roskill analyst Jose Lazuen discusses with Proactive London's Andrew Scott the outlook for the automotive and electric car markets.

He discusses whether he reckons electric cars will be adopted uniformly around the world and if early movers like Tesla have an advantage over other companies in the space such as Volkswagen and Daimler.

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https://www.miningcapital.com/companies/stocktube/11626/bacanora-lithium-to-spin-out-zinnwald-as-finance-discussions-advance-for-flagship-mexico-project-11626.html Bacanora Lithium to spin out Zinnwald as finance discussions advance for flagship Mexico project https://www.miningcapital.com/companies/stocktube/11626/bacanora-lithium-to-spin-out-zinnwald-as-finance-discussions-advance-for-flagship-mexico-project-11626.html Fri, 14 Dec 2018 13:23:00 +0000 Peter Secker, chief executive of Bacanora Lithium Ltd (LON:BCN), caught up with Proactive London's Andrew Scott to discussion the ongoing Front End Engineering Design for their flagship Sonora Lithium project in Mexico.

Secker adds they've hosted a number of site visits by potential strategic investors, at both the corporate and project levels, to secure the outstanding development capital for Sonora.

He says they're also planning to spin out the Zinnwald project in Germany on which a feasibility study is currently being undertaken.

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https://www.miningcapital.com/companies/stocktube/11622/kin-mining-s-exploration-program--back-in-full-swing--following--strong--results-11622.html Kin Mining's exploration program 'back in full swing' following 'strong' results https://www.miningcapital.com/companies/stocktube/11622/kin-mining-s-exploration-program--back-in-full-swing--following--strong--results-11622.html Fri, 14 Dec 2018 00:21:00 +0000 Kin Mining NL (ASX:KIN) managing director Andrew Munckton talks to Proactive Investors about the resumption of diamond drilling at the Lewis Prospect within the Leonora Gold Project in Western Australia.

Earlier this week, results from a previous drill program on the area came out, which Munckton says, "Really gave us some strong development opportunities."

He also teases that Kin will reach three major milestones in the next two or three months.

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https://www.miningcapital.com/companies/stocktube/11621/euro-manganese-updates-chvaletice-project-mineral-resource-and-gives-2019-outlook-11621.html Euro Manganese updates Chvaletice Project mineral resource and gives 2019 outlook https://www.miningcapital.com/companies/stocktube/11621/euro-manganese-updates-chvaletice-project-mineral-resource-and-gives-2019-outlook-11621.html Thu, 13 Dec 2018 23:20:00 +0000 Euro Manganese (CVE:EMN-ASX:EMN) President and CEO Marco Romero joined Steve Darling in the Vancouver studio of Proactive Investors with an update on their manganese project just east of Prague.

Romero provided new details about the mineral resource and also some timing for a demonstrations plant they are looking to construct. 

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https://www.miningcapital.com/companies/stocktube/11620/peel-mining-s-follow-up-works-prove-previous-high-grade-findings--not-a-one-hit-wonder--11620.html Peel Mining's follow-up works prove previous high-grade findings 'not a one hit wonder' https://www.miningcapital.com/companies/stocktube/11620/peel-mining-s-follow-up-works-prove-previous-high-grade-findings--not-a-one-hit-wonder--11620.html Thu, 13 Dec 2018 23:01:00 +0000 Peel Mining Ltd (ASX:PEX) managing director Rob Tyson catches up with Proactive Investors' Danielle Doporto about the current 20,000-metre maiden resource drilling program at the Wagga Tank zinc-polymetallic project in Western NSW.

The campaign is about a quarter of the way through, and assay results have come out this week on about half of that drilling.

Peel aims to complete a maiden JORC-compliant mineral resource estimate on the Southern Nights prospect within the project by the end of this financial year.

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https://www.miningcapital.com/companies/stocktube/11619/blackham-resources-aims-to-produce-over-200000-ounces-gold-per-year-from-one-site-11619.html Blackham Resources aims to produce over 200,000 ounces gold per year from one site https://www.miningcapital.com/companies/stocktube/11619/blackham-resources-aims-to-produce-over-200000-ounces-gold-per-year-from-one-site-11619.html Thu, 13 Dec 2018 22:53:00 +0000 Blackham Resources Ltd (ASX:BLK) executive chairman Milan Jerkovic introduces Proactive Investors to the company's Matilda-Wiluna Gold Operation, and refined strategy for gold production from the prolific Wiluna Mine & Coles Find Shear areas in Western Australia.

Jerkovic explains "Our aim is to consolidate the current production, increase our short term cash flow, reduce our debt, and essentially put the company in a position where it could unlock a much larger inventory of gold and hopefully put us in the rank of the top 15 producers in Australia in a single location... short term it's all about production stability and repairing the balance sheet to a point where we have a very solid base from which to launch our next growth stage."

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https://www.miningcapital.com/companies/stocktube/11618/arafura-resources--latest-pilot-plant-results-are--very-significant-and-quite-unique--11618.html Arafura Resources' latest pilot plant results are 'very significant and quite unique' https://www.miningcapital.com/companies/stocktube/11618/arafura-resources--latest-pilot-plant-results-are--very-significant-and-quite-unique--11618.html Thu, 13 Dec 2018 22:40:00 +0000 Arafura Resources Ltd (ASX:ARU) CEO Gavin Lockyer updates Proactive Investors on flowsheet development, following news that a phase 6 pilot plant successfully extracted low-value, high-volume cerium from rare earth hydroxide to produce rare earth chloride.

This week the company raised over $3 million in an oversubscribed share purchase plan (SPP). That cash will be used to advance a definitive feasibility study (DFS) on the Nolans Neodymium Praseodymium (NdPr) Project in the Northern Territory.

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https://www.miningcapital.com/companies/stocktube/11612/piedmont-lithium-sells-111000000-shares-at-au011-to-drive-drilling-program-11612.html Piedmont Lithium sells 111,000,000 shares at AU$0.11 to drive drilling program https://www.miningcapital.com/companies/stocktube/11612/piedmont-lithium-sells-111000000-shares-at-au011-to-drive-drilling-program-11612.html Thu, 13 Dec 2018 16:32:00 +0000 Piedmont Lithium (NASDAQ:PLL) (ASX: PLL) CEO Keith Philips sits down with Proactive Investors at the LD Micro show in Los Angeles.

Philips says the dual listed company has sold 111 mln shares at AU$0.11 to go towards drilling on their lithium project in North Carolina.

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https://www.miningcapital.com/companies/stocktube/11609/roskill-talks-vanadium-price-spike-11609.html Roskill talks Vanadium price spike https://www.miningcapital.com/companies/stocktube/11609/roskill-talks-vanadium-price-spike-11609.html Thu, 13 Dec 2018 13:53:00 +0000 Jack Bedder, Roskill's Director (Steel Alloys) tells Proactive London how the recent uptick in Vanadium prices is partially due to higher demand for steel. Vanadium prices have gone up hugely over the last 18 months because of the EVRAZ shutdown, feedstock tightness, environmental inspections and even trade wars. Bedder gives his take on the big Vanadium picture as well as commenting on his outlook for demand from steel and battery producers.

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https://www.miningcapital.com/companies/stocktube/11608/lithium-markets-analysis-with-roskill-11608.html Lithium markets analysis with Roskill https://www.miningcapital.com/companies/stocktube/11608/lithium-markets-analysis-with-roskill-11608.html Thu, 13 Dec 2018 13:41:00 +0000 Oliver Heathman, Mining Research Manager at Roskill explains to Proactive London how demand for lithium is set to increase substantially over the next decade despite the fact that commentators are predicting a huge over supply in the markets. More here too on how bigger companies are snapping up stakes in smaller concerns to beef up their market presence as well as shore up their resilience in a continally -changing metals marketplace.

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https://www.miningcapital.com/companies/stocktube/11606/saleable-quartz-and-feldspar-boon-for-savannah-resources-11606.html Saleable quartz and feldspar boon for Savannah Resources https://www.miningcapital.com/companies/stocktube/11606/saleable-quartz-and-feldspar-boon-for-savannah-resources-11606.html Thu, 13 Dec 2018 12:18:00 +0000 Savannah Resources (LON:SAV) has announced that ongoing metallurgical test work has successfully produced saleable quartz and feldspar products for use in the ceramics industry from its Portuguese Mina do Barroso Project. Savannah's CEO David Archer tells Proactive London why the deposit is so significant and when he expects the company can deliver the resource to market post their current feasibility study, which is progressing well.
The AIM-listed resource development company - which is focused on becoming Europe's most significant producer of lithium spodumene concentrates  - said the production of quartz and feldspar products will mean that the company will reduce the volumes of non-saleable material that will need to be emplaced on site in contoured and vegetated landforms.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30390/vsa-capital-market-movers---bacanora-lithium-back-sonora-convinced-by-site-visit-30390.html VSA CAPITAL MARKET MOVERS - Bacanora Lithium: Back Sonora; Convinced by Site Visit https://www.miningcapital.com/columns/vsa-capital-market-movers/30390/vsa-capital-market-movers---bacanora-lithium-back-sonora-convinced-by-site-visit-30390.html Thu, 13 Dec 2018 09:23:00 +0000

Bacanora Lithium#: Back Sonora; Convinced by Site Visit

For the full report, please click here. 

Keep reading VSA research for free – Click here for our position on MIFID2

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Pilot Plant and Offtakes De-Risk Sonora

Bacanora Lithium (LON:BCN) has developed and proven through three years of pilot plant operations that it has a viable extraction process for its soft rock polylithionite project in Sonora, Mexico. BCN has consistently produced a 99.5% lithium carbonate and the strategic investment from Hanwa Co. and 10-year offtake for 100% of stage one output verifies this process and confirms that the pilot plant has significantly derisked the process design. This confidence is further underpinned by the commitment of strategic, specialist investors RK Mining and State General Reserve Fund of Oman.

Fundamentals, however, remain at the forefront of our investment case and based on a WACC of 8.2% we derive an attributable NPV of US$935m for the two-phase project capable of producing 17.9ktpa and 36ktpa Li2CO3 respectively requiring upfront capex of US$420m. Cash costs of US$4,350/t (before by product credits) place the project attractively within the global cost curve implying strong margins. The initial 20-year mine life uses just 7% of the Sonora resource, on our estimates, and remains open to expansion. Consequently, we believe that one of the most attractive aspects of the project for offtakers (and why it will be successful) is the ability to replicate the modular design and scale production in line with rising global demand.

Lithium Fundamentals Continue to Strengthen

The lithium market is expected to grow 25% YoY in 2018 to 260kt LCE as demand for lithium ion batteries continues to grow. The demand outlook remains strong and consensus demand for 2025 is now at 1mntpa LCE. Benchmark Mineral Intelligence now estimate 1,148GWh of battery manufacturing capacity by 2025. Supply growth is, however, struggling to keep up. SQM (SQM US) will now produce 45kt LCE in 2018, -7% YoY, having initially guided to reaching a run rate of 70ktpa by year-end. Prices have therefore remained supported above US$16,000/t through 2018 for battery-grade lithium carbonate, while the medium term outlook has been strengthened by the rejection of Albemarle (ALB US) and SQM’s plans to raise output at the Salar de Atacama. End users are therefore compelled to seek supply outside of Chile to meet their needs.

Recommendation and Target Price

The shares are down 76% YTD as weak lithium sentiment has driven lithium equities lower globally while BCN performance was compounded by the pulled financing. However, following our site visit we are convinced of the viability of the Sonora project and that BCN has the expertise to deliver the attractive returns and the high quality LCE production promised.

We initiate coverage with a Buy recommendation and target price of 115p/sh.


 

 

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https://www.miningcapital.com/companies/stocktube/11605/danakali-shovel-ready-at-colluli-following-execution-of-us200m-debt-finance-mandate-11605.html Danakali “shovel-ready” at Colluli following execution of US$200m debt finance mandate https://www.miningcapital.com/companies/stocktube/11605/danakali-shovel-ready-at-colluli-following-execution-of-us200m-debt-finance-mandate-11605.html Thu, 13 Dec 2018 07:30:00 +0000 Danakali Ltd (ASX:DNK) (LON:DNK) executive chairman Seamus Cornelius updates Proactive Investors on the potash developer’s recent execution of a mandate to provide fully underwritten debt finance facilities of US$200M to fund and construct its Colluli Potash Project in Eritrea.
 
“Given that we’re in Africa, if you were to take a market that is a specialist in funding African projects then that is probably London,” says Cornelius regarding Danakali’s recent AIM-listing.
 
He continues, “getting the debt now with $200 million under the mandate letter, that helps us as well.
 
“Where we are in terms of the project is we are shovel-ready, so as soon as we secure the full funding we will start construction – the construction will take two years and then we’ll be in production [in] 2021.”
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https://www.miningcapital.com/companies/stocktube/11601/bryah-resources-looking-to-advance-from-explorer-to-producer--in-the-near-term--11601.html Bryah Resources looking to advance from explorer to producer 'in the near term' https://www.miningcapital.com/companies/stocktube/11601/bryah-resources-looking-to-advance-from-explorer-to-producer--in-the-near-term--11601.html Wed, 12 Dec 2018 23:07:00 +0000 Neil Marston, managing director of Bryah Resources (ASX:BYH), updates Proactive Investors on the Windalah Gold Prospect, the Mount Labouchere Manganese Prospect, and the Horseshoe South Manganese Mine. All sit within the Bryah Basin Project in central Western Australia.

"We want to advance from being an explorer to a producer in the near term. The way we're going to do that is to advance our manganese assets... overall, 2019 looks like it's going to be a very exciting year. And we've already had successes this year on the gold at Windalah and on our manganese exploration," says Marston.

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https://www.miningcapital.com/companies/stocktube/11602/azumah-resources-makes-new-high-grade-discovery-in-first-hole-of-40000m-program-11602.html Azumah Resources makes new high-grade discovery in first hole of 40,000m program https://www.miningcapital.com/companies/stocktube/11602/azumah-resources-makes-new-high-grade-discovery-in-first-hole-of-40000m-program-11602.html Wed, 12 Dec 2018 22:10:00 +0000 Steve Stone, managing director of Azumah Resources Ltd (ASX:AZM), speaks to Proactive Investors about the results of the first hole drilled in the Bepkong East prospect within the Wa Gold Project in Ghana.

"What's important about this intercept is it's way below and a long way to the East from where we've ever drilled before; so it's really a new discovery. It's going to change our whole view on our Bepkong deposit, and also the whole system of mineralisation in that area... this adds to the opportunity of going underground once we've mined out that open pit material," says Stone.

A 40,000 metre, $4 million resource upgrade drill program is underway across multiple targets. A feasibility update is due early next year.

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https://www.miningcapital.com/companies/stocktube/11599/prospero-silver-corp-make-deal-with-fortuna-silver-on-pachuca-southeast-project-11599.html Prospero Silver Corp make deal with Fortuna Silver on Pachuca Southeast project https://www.miningcapital.com/companies/stocktube/11599/prospero-silver-corp-make-deal-with-fortuna-silver-on-pachuca-southeast-project-11599.html Wed, 12 Dec 2018 21:21:00 +0000 Prospero Silver (CVE:PSL) Executive Vice President of Business Development Ralph Rushton joined Steve Darling in the Vancouver Studio of Proactive Investors to talk about their recent deal with Fortuna Silver. The deal is for the Pachuca Silver project and worth 8 million dollar U.S..

Rushton also talked about the area that projest is in and what the company is looking at in 2019.  

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https://www.miningcapital.com/companies/stocktube/11598/great-bear-resources-releases-impressive-results-from-dixie-project-in-ontario-11598.html Great Bear Resources releases impressive results from Dixie Project in Ontario https://www.miningcapital.com/companies/stocktube/11598/great-bear-resources-releases-impressive-results-from-dixie-project-in-ontario-11598.html Wed, 12 Dec 2018 20:37:00 +0000 Great Bear Resources (CVE:GBR) President and CEO Chis Taylor joined Steve Darling in the Vancouver office of Proactive Investors with their latest drill results from the Dixie Project in Red Lake, Ontario.

Taylor has results from 19 holes at over 4200 metres.  Taylor also talked about their plan for 2019 that includes second rig on site. 

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https://www.miningcapital.com/companies/stocktube/11592/kavango-resources-identifies-at--least-two-drillable-targets-at-ksz-project-in-botswana-11592.html Kavango Resources identifies at least two drillable targets at KSZ project in Botswana https://www.miningcapital.com/companies/stocktube/11592/kavango-resources-identifies-at--least-two-drillable-targets-at-ksz-project-in-botswana-11592.html Wed, 12 Dec 2018 13:20:00 +0000 Mike Moles, director of Kavango Resources PLC (LON:KAV), tells Proactive London's Andrew Scott that ground-based magnetic surveys conducted on their Kalahari Suture Zone project in Botswana have confirmed the existence of several potentially mineralised structures.

The surveys followed up on data gained in an earlier airborne survey and complement soil surveys undertaken at the surface.

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https://www.miningcapital.com/companies/stocktube/11590/horizonte-minerals--araguaia-expansion-a--step-change--in-project-economics-11590.html Horizonte Minerals' Araguaia expansion a 'step-change' in project economics https://www.miningcapital.com/companies/stocktube/11590/horizonte-minerals--araguaia-expansion-a--step-change--in-project-economics-11590.html Wed, 12 Dec 2018 12:44:00 +0000 Jeremy Martin, chief executive of Horizonte Minerals Plc (LON:HZM), discusses with Proactive London's Andrew Scott plans for second phase expansion at Araguaia.

Production during stage 1 is expected to average 14,500 tonnes of nickel per year, but Horizonte reckons it can double this with the addition of a second rotary kiln electric furnace process line after three years.

The stage 2 expansion, which would not increase upfront capital costs and would be funded through operational cash flow, would support a 26-year mine life generating pre-tax cash flows of US$2.6bn.

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https://www.miningcapital.com/companies/stocktube/11588/nordic-gold-corp-celebrates-first-gold-pour-at-laiva-mine-in-finland-11588.html Nordic Gold Corp celebrates first gold pour at Laiva Mine in Finland https://www.miningcapital.com/companies/stocktube/11588/nordic-gold-corp-celebrates-first-gold-pour-at-laiva-mine-in-finland-11588.html Wed, 12 Dec 2018 08:43:00 +0000 Nordic Gold Corp's (CVE:NOR) Michael Hepworth discusses with Proactive London's Andrew Scott the recent first pour of gold at their wholly owned Laiva Mine near Raahe in Finland.

A total of 1,234 ounces was poured.

Hepworth says the first pour is a critical but vital step in returning Laiva to commercial production.

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https://www.miningcapital.com/companies/stocktube/11587/emmerson-resources-sees-first-ore-trucked-out-of-edna-beryl-gold-mine-11587.html Emmerson Resources sees first ore trucked out of Edna Beryl Gold Mine https://www.miningcapital.com/companies/stocktube/11587/emmerson-resources-sees-first-ore-trucked-out-of-edna-beryl-gold-mine-11587.html Tue, 11 Dec 2018 22:00:00 +0000 Emmerson Resources Ltd (ASX:ERM) MD & CEO Rob Bills tells Proactive Investors that the first batch of ore has been trucked out of the Edna Beryl Gold Mine, representing the first commercial production from the explorer's portfolio in the Northern Territory's Tennant Creek Mineral Field.

Longer term, ore from Edna Beryl and other small gold mines in the area will be processed locally at the Warrego Mill, which will be refurbished by strategic partner Territory Resources Limited (ASX:TTY); but the current arrangement will result in strategically significant early cash flows.

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https://www.miningcapital.com/companies/stocktube/11585/enertopia-corp-show-off-drilling-program-in-clayton-valley-nevada-11585.html Enertopia Corp show off drilling program in Clayton Valley, Nevada https://www.miningcapital.com/companies/stocktube/11585/enertopia-corp-show-off-drilling-program-in-clayton-valley-nevada-11585.html Tue, 11 Dec 2018 19:34:00 +0000 Enertopia Corp (CSE:TOP} President and CEO Robert McAllister Joined Steve Darling from Proactive Investors on our new feature Breaking Ground. McAllister took us on site in Nevada to show the drilling program that started December 7th.  The affable CEO talked about the work done so far and what is next for the lithium project. 

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https://www.miningcapital.com/companies/stocktube/11583/jubilee-metals--leon-coetzer-on-significant-chrome-acquisition-11583.html Jubilee Metals' Leon Coetzer on significant chrome acquisition https://www.miningcapital.com/companies/stocktube/11583/jubilee-metals--leon-coetzer-on-significant-chrome-acquisition-11583.html Tue, 11 Dec 2018 15:04:00 +0000 Leon Coetzer, chief executive of Jubilee Metals Group PLC (LON:JLP), tells Proactive London's Andrew Scott they're acquiring rights to all the chrome at the PlatCro project in South Africa, where it already controls the platinum group elements.

The operation is already in production and is currently processing 75,000 tonnes of ore per month from a resource base of over 1.8mln tonnes.

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https://www.miningcapital.com/companies/stocktube/11581/afritin-s-anthony-viljoen-on-site-as-first-large-scale-blast-takes-place-at-uis-tin-mine-11581.html AfriTin's Anthony Viljoen on site as first large-scale blast takes place at Uis tin mine https://www.miningcapital.com/companies/stocktube/11581/afritin-s-anthony-viljoen-on-site-as-first-large-scale-blast-takes-place-at-uis-tin-mine-11581.html Tue, 11 Dec 2018 13:53:00 +0000 Anthony Viljoen, chief executive of AfriTin Mining Limited (LON:ATM), spoke to Proactive Investors as the first large-scale blast took place at their Uis tin mine in Namibia.

The blast is part of the phase 1 pilot production at the site.

First ore has been produced and is now being prepared and stockpiled to await completion of the phase 1 processing plant.

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https://www.miningcapital.com/companies/stocktube/11580/sigmaroc-s-acquisition-of-ccp--the-right-next-step--for-the-company-11580.html SigmaRoc's acquisition of CCP 'the right next step' for the company https://www.miningcapital.com/companies/stocktube/11580/sigmaroc-s-acquisition-of-ccp--the-right-next-step--for-the-company-11580.html Tue, 11 Dec 2018 13:42:00 +0000 SigmaRoc PLC's (LON:SRC) chief executive Max Vermorken discusses with Proactive London the acquisition of concrete blocks and paving stones maker CCP Building Products for £15.21mln.

In the 12 months to the end of August, CCP generated revenue of £20.9mln and delivered adjusted underlying earnings (EBITDA) of £2.6mln.

To help finance the deal, SigmaRoc's increased its credit facility with Santander by £14mln to £34mln.

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https://www.miningcapital.com/companies/stocktube/11577/infinity-lithium-working-to-become-fully-integrated-low-cost-lithium-hydroxide-producer-11577.html Infinity Lithium working to become fully-integrated low-cost lithium hydroxide producer https://www.miningcapital.com/companies/stocktube/11577/infinity-lithium-working-to-become-fully-integrated-low-cost-lithium-hydroxide-producer-11577.html Tue, 11 Dec 2018 05:40:00 +0000 Infinity Lithium Corporation Ltd (ASX:INF) vice president of European corporate strategy & business development Vincent Ledoux Pedailles speaks to Proactive Investor's Danielle Doporto as part of an Australian roadshow.

A scoping study was recently published on producing lithium hydroxide from the San Jose Lithium Project in Spain, showing an NPV10 of around US$720 million with an IRR of 51% and an operating expense toward the bottom of the cost curve at US$5,343 per tonne.

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https://www.miningcapital.com/companies/stocktube/11576/great-boulder-resources-md-discusses-upcoming-drilling-metallurgical-test-work-11576.html Great Boulder Resources MD discusses upcoming drilling, metallurgical test work https://www.miningcapital.com/companies/stocktube/11576/great-boulder-resources-md-discusses-upcoming-drilling-metallurgical-test-work-11576.html Tue, 11 Dec 2018 05:24:00 +0000 Great Boulder Resources Ltd (ASX:GBR) managing director Stefan Murphy speaks to Proactive Investors' Danielle Doporto about the explorer's revised geological interpretation of the Eastern Mafic Complex, which follows a maiden 30-hole reverse circulation (RC) drill program and other works in the area.

Three to four deep diamond holes will be drilled early next year, co-funded by the Western Australian Government. Concurrently, there will be a shallow drilling campaign on a number of other prospects over a large area. Metallurgical test work is ongoing.

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https://www.miningcapital.com/companies/stocktube/11575/hexagon-resources-targets-high-tech-graphite-markets-with-scale--premium-pricing-11575.html Hexagon Resources targets high-tech graphite markets with scale & premium pricing https://www.miningcapital.com/companies/stocktube/11575/hexagon-resources-targets-high-tech-graphite-markets-with-scale--premium-pricing-11575.html Tue, 11 Dec 2018 00:01:00 +0000 Hexagon Resources Ltd (ASX:HXG) managing director Mike Rosenstreich speaks to Proactive Investors about achieving 99.999% (also known as 'five nines') graphite purity from a large 20 kilogram sample from the McIntosh Graphite Project in Western Australia’s East Kimberley.

Rosenstreich says, "There is a standard that describes nuclear grade graphite materials, and we hit and indeed exceed their standard. I'm not suggesting that our markets are all destined for the nuclear industry; what our products are destined for is deep markets. We're looking for markets with scale and premium pricing."

He also updates on upstream activities, sharing the latest progress made by partner MinRes (ASX:MIN) on DFS works. A resource upgrade is slated for early next year.

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https://www.miningcapital.com/companies/stocktube/11574/peninsula-mines-intersects-graphite-in-all-six-initial-drill-holes-at-gapyeong-project-11574.html Peninsula Mines intersects graphite in all six initial drill holes at Gapyeong project https://www.miningcapital.com/companies/stocktube/11574/peninsula-mines-intersects-graphite-in-all-six-initial-drill-holes-at-gapyeong-project-11574.html Mon, 10 Dec 2018 23:34:00 +0000 Peninsula Mines Ltd (ASX:PSM) managing director Jon Dugdale updates Proactive Investors on the South Korea-focused company's upstream and downstream activities as it works to become a leading integrated graphite producer in the country.

Dugdale also discusses progress with the precious and base metals projects, saying that the company is well-financed to develop across the board.

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https://www.miningcapital.com/companies/stocktube/11570/w-resources-completes-la-parrilla-mines-crusher-plant-11570.html W Resources completes La Parrilla mine’s crusher plant https://www.miningcapital.com/companies/stocktube/11570/w-resources-completes-la-parrilla-mines-crusher-plant-11570.html Mon, 10 Dec 2018 15:57:00 +0000 W Resources PLC (LON:WRES) has announced the mechanical completion of the crusher at La Parrilla, their plant in Spain. Chairman Michael Masterman tells Proactive London how they've also started production, shipped their first batch of tungsten - and been paid.
The move paves the way for commissioning of mined ore from the Spanish project during January. Masterman added, “We are looking forward to first mined ore into the crusher early in the new year which will contribute to an increase in production rates from La Parrilla".

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https://www.miningcapital.com/companies/stocktube/11566/mkango-rare-earths-project-results-now-fed-into-resource-programme-11566.html Mkango rare earths project results now fed into resource programme https://www.miningcapital.com/companies/stocktube/11566/mkango-rare-earths-project-results-now-fed-into-resource-programme-11566.html Mon, 10 Dec 2018 15:09:00 +0000 Mkango Resources Ltd (LON:MKA, CVE:MKA) tells Proactive London that the final batch of results from the 2018 drill programme, at the Songwe Hill rare earths project in Malawi, has unearthed the highest grades to date. CEO William Dawes explains how those results will now be fed into a resource programme as he looks forward to their technical report unlocking Mkango's next tranche of funding.
Mkango said that the results of the majority of the remaining holes (19 of 21) from the 10,900 metre drill programme saw significant zones of rare earths mineralisation grading above 1% total rare earth oxides (TREO).

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https://www.miningcapital.com/companies/stocktube/11565/europa-metals-releases-results-of-scoping-study-11565.html Europa Metals releases results of scoping study https://www.miningcapital.com/companies/stocktube/11565/europa-metals-releases-results-of-scoping-study-11565.html Mon, 10 Dec 2018 14:44:00 +0000 Europa Metals Ltd (LON:EUZ)(ASX:EUZ) has released results of a scoping study carried out on its Toral lead-zinc-silver project in Spain.
Europa's Laurence Reed and Myles Campion tell Proactive London that while the ASX rules prevents them giving investors numbers, they can tell you the deposit looks strong. Now Europa wants to take the project forward to infill drilling so they can take the focus away from inferred to indicated.
The study considered three conceptual underground mining development and production scenarios for Toral and concluded that a decline access ramp with a high-grade focus would be an optimal path to development.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30373/vsa-capital-market-movers---exore-lake-30373.html VSA CAPITAL MARKET MOVERS - Exore, Lake https://www.miningcapital.com/columns/vsa-capital-market-movers/30373/vsa-capital-market-movers---exore-lake-30373.html Mon, 10 Dec 2018 09:34:00 +0000

VSA Morning Miner, 10/12/18

Click here for PDF version

Keep reading VSA research for free – Click here for our position on MIFID2

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Exore Resources (ASX:ERX)

Exore Resources (ERX AU) has announced the successful first renewal of the Boundiali and Korhogo exploration permits and the start of the 30km drilling programme which is now underway. With the permits now renewed for an initial three years ahead of the next renewal ERX is well placed to capitalise on the initial encouraging discoveries made by the vendor Apollo Consolidated (AOP AU). ERX will now issue 90mn shares to AOP shareholders after conditional approval was granted pending the renewal of the permits.

The 30km drill programme is underway with two drill rigs, able to carry out aircore, RC and diamond drilling. The drilling will cover the three major in soil gold anomalies which have been identified within the 830km2 that has only been partially explored and are adjacent to Randgold Resources (RRS LN) Fonondara licenses. AC drilling at the Liberty 2 prospect which covers 1km of a 20km anomalous trend has previously yielded results of up to 12m at 2.27g/t Au from surface and initial results are expected in late December 2018. Resource definition drilling at Antoinette will commence imminently with results due in early 2019 in order to build on prior results of 17m at 22.5g/t Au from 8m and 14m at 11.24g/t Au from 12m. The third prospect, Veronique, has yet to be drilled and ERX will conduct AC drilling here initially.

With A$15m in cash the exploration programme is fully funded and we believe there is significant exploration potential given the extensive, shallow nature of the anomalies and the high grade results yielded to date.

Please click here to read our recent report on the transaction.

We reiterate our Speculative Buy recommendation.

Lake Resources (LKE AU)#

Lithium equities have been under pressure over the past few weeks in line with the global correction in equities, despite the secular nature of the market drivers. However, Lake Resources (LKE AU) has continued to make strong progress with its partner Lilac Solutions whose initial test work has shown the potential for first quartile cash costs following testwork on brine samples from LKE’s wholly owned Kachi project in Argentina.

The testwork using the Lilac process and evaporative dewatering yielded recoveries of 85-90% lithium producing a concentrate of 25,000mg/l Li from samples of 300mg/l Li. From this concentrate a lithium carbonate or hydroxide product could then be produced within a conventional plant. The major advantages of the Lilac process are that it reduces the production time from months to hours and dramatically increases recoveries from 40-50% to 85-90% as well as having a lower environmental impact compared to traditional techniques.

Having applied these impressive results to the development of a flowsheet for a 25ktpa lithium carbonate plant Lilac has obtained potential cash costs of around US$2,600/t with a ±30% margin for error which on the upper end implies US$3,380/t. This upper figure is also highly attractive in terms of the global cost curve currently where recent supply growth has been focused on the upper end. Furthermore, the environmental impact of lithium brine production is currently hampering growth in Chile, from the Salar de Atacama in particular and therefore Lilac’s technique which avoids evaporation ponds enables the reinjection of the remaining brine without significantly impacting water quality.

LKE are now working with Lilac to develop a pilot plant to be installed in 2019 to further the development and capitalise on these results which have transformative potential for Kachi’s returns. The pilot plant will focus on produced a concentrated brine using Lilac’s techniques although LKE will also progress testwork for production via traditional evaporation processes. As a first mover in this technology we believe this is a prudent approach, however, this also means that LKE is well placed to benefit from the potential success of this extraction technique.

Please click here to read our recent report on LKE’s maiden resource announcement.

We reiterate our Buy recommendation and target price of A$0.36/sh.

 

 

 

 

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https://www.miningcapital.com/companies/stocktube/11540/archer-exploration-ceo-explains-three-pronged-strategy-to-advance-three-verticals Archer Exploration CEO explains three pronged strategy to advance three verticals https://www.miningcapital.com/companies/stocktube/11540/archer-exploration-ceo-explains-three-pronged-strategy-to-advance-three-verticals Mon, 10 Dec 2018 01:44:00 +0000 Archer Exploration Ltd (ASX:AXE) CEO Mohammad Choucair tells Proactive Investors that over the coming year the advanced materials company will build its three business verticals of quantum computing, human health and reliable energy using a three-pronged strategy of partnerships and acquisitions, commercialising intellectual property [IP], and tech development.

Choucair says, "I think those three key areas of value add are interrelated. With the IP for us it needs to be very materials-centric; a material that either underpins a technology or a technology itself that has materials critical to its function... we're working with materials that we're trying to integrate and develop into technologies that are applied in some really high-growth markets, that are affected by reliable energy, human health and quantum technology."

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https://www.miningcapital.com/companies/stocktube/11517/golden-arrow-resources-begins-production-at-its-chinchillas-mine-in-argentina-11517.html Golden Arrow Resources begins production at its Chinchillas mine in Argentina https://www.miningcapital.com/companies/stocktube/11517/golden-arrow-resources-begins-production-at-its-chinchillas-mine-in-argentina-11517.html Fri, 07 Dec 2018 19:31:00 +0000 Golden Arrow Resources Corporation (CVE:GRG) (OTCQB:GARWF) CEO Joseph Grosso and VP of Exploration & Development Brian McEwen tells Proactive Investors that the company has begun production at its silver, zinc and lead Chinchillas mine in Argentina.

McEwen says the mine will run at 4,000 tonnes per day. The company hopes to increase this to 5,000 tonnes per day. He adds the mine will produce about 8 million ounces of silver per year.

Grosso says the company is very happy to begin production, and will continue to expand in this area of the world.

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https://www.miningcapital.com/companies/stocktube/11516/enertopia-to-begin-drilling-at-its-lithium-resource-in-nevada-tomorrow-11516.html Enertopia to begin drilling at its lithium resource in Nevada tomorrow https://www.miningcapital.com/companies/stocktube/11516/enertopia-to-begin-drilling-at-its-lithium-resource-in-nevada-tomorrow-11516.html Fri, 07 Dec 2018 17:08:00 +0000 Enertopia Corp (CSE:TOP) (OTCMKTS:ENRT) CEO Robert McAllister tells Proactive Investors that a drilling team has been sent to begin work at the company’s lithium project in Clayton Valley, Nevada.

McAllister says the first four holes of the program to be drilled will define a lithium resource on the project, and the recovered lithium material will be used for metallurgical and pH solution testing.

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https://www.miningcapital.com/companies/stocktube/11511/china-controls-copper-markets-with-change-in-scrap-rules-11511.html China controls copper markets with change in scrap rules https://www.miningcapital.com/companies/stocktube/11511/china-controls-copper-markets-with-change-in-scrap-rules-11511.html Fri, 07 Dec 2018 14:21:00 +0000 Roskill's Associate (copper) Analyst Jonathan Barnes talks Proactive London through the US/China 'tit-for-tat' trade tariffs..and the chances of a partial resolution, which fundamentals in the copper market indicate could be on the cards. New rules in China (in terms of the quality of imported metals the Chinese government will now accept) is now leaving a glut of unused scrap in US metal yards and changing forces at work within the copper markets. As China consumes half of the world's copper supply for their energy grid and their A/C units, the Chinese influence can't be underestimated, especially as they are copper's most speculative buyers, stockpiling when prices are low.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30366/vsa-capital-market-movers-egdon-resources-30366.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30366/vsa-capital-market-movers-egdon-resources-30366.html Fri, 07 Dec 2018 10:26:00 +0000

VSA Morning Flow Test, 07/12/18

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Egdon Resources (EDR LN)#

Egdon Resources (EDR LN) has provided an update on conventional appraisal drilling at Biscathorpe where strong progress is being made and with the site close to completion the drilling rig is expected to mobilise in early January 2019. Well completion will likely be in mid-February 2019.

EDR holds a net interest of 35.8% and 22.5% share of the well cost. Currently we value the asset at 6.7p/sh. on a risked basis using a 40% CoS against the mean prospective resources of 14mmbo (5mmbo net to EDR). This highlights once again how undervalued the company currently is trading at 7.4p/sh.  
 
This appraisal well will test whether the geology at Biscathorpe is comparable to that of the Reepham oilfield around 20km south west of Biscathorpe. At Reepham the Basal Westphalian sandstone reservoir experiences significant lateral thickening down dip, however, this is not directly visible on seismic data. From this well EDR will therefore aim to establish the extent of reservoir thickening beyond a small known local fault. Once the extent of thickening is better understood EDR will be better able to determine the quality and extent of the reservoir; currently the resource ranges from 1.8mmbo (P90) to 35.3mmbo (P10).

We reiterate our Buy recommendation and target price of 50p.


 

 

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https://www.miningcapital.com/companies/stocktube/11504/wealth-minerals-aims-to-begin-drilling-on-its-lithium-play-early-2019-11504.html Wealth Minerals aims to begin drilling on its lithium play early 2019 https://www.miningcapital.com/companies/stocktube/11504/wealth-minerals-aims-to-begin-drilling-on-its-lithium-play-early-2019-11504.html Thu, 06 Dec 2018 21:14:00 +0000 Wealth Minerals Ltd (OTCMKTS:WMLLF) President Timothy McCutcheon sits down with Proactive Investors at the 11th Annual LD Micro Main Event in Los Angeles.

McCutcheon says the team is focused on mining lithium in Chile.

He adds the company aims to begin drilling in early 2019 "right after the New Year."

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https://www.miningcapital.com/companies/stocktube/11502/nano-one-materials-on-the-verge-with-bringing-in-partnerships-with-major-players-11502.html Nano One Materials 'on the verge' with bringing in partnerships with major players https://www.miningcapital.com/companies/stocktube/11502/nano-one-materials-on-the-verge-with-bringing-in-partnerships-with-major-players-11502.html Thu, 06 Dec 2018 20:40:00 +0000 Nano One Materials (OTCMKTS:NNOMF) (TSX-V:NNO) CEO Dan Blondal sits down with Proactive Investors at the 11th Annual LD Micro Main Event in Los Angeles. 

Blondal says Nano One is a Vancouver-based technology company that produces low cost high performance energy storage materials for batteries and a wide range of advanced nano-structured composite materials. Nano One has 2 US patents.

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https://www.miningcapital.com/companies/stocktube/11497/investors-taking-a-keen-interest-in-trans-pacific-energy-s-lithium-extraction-technology-11497.html Investors taking a keen interest in Trans Pacific Energy's lithium extraction technology https://www.miningcapital.com/companies/stocktube/11497/investors-taking-a-keen-interest-in-trans-pacific-energy-s-lithium-extraction-technology-11497.html Thu, 06 Dec 2018 15:56:00 +0000 Trans Pacific Energy Group CEO Arthur Darivas tells Proactive London's Andrew Scott they're an exploration mining company focused on minerals that will support new-generation batteries.

''So we're talking about nickel, cobalt, lithium and copper ...a big concentration of our assets are in Western Australia and also Argentina'', Darivas says.

Darivas says in recent weeks he's been meeting with investors both in New York and in London and has been overwhelmed with the interest in the company.

He says the interest isn't just in their mix of assets but also in their lithium extraction technology - ''we applied and received our patent in September which is basically around the brine extraction process which provides us with a higher quality yield on both magnesium but more importantly on the lithium''.

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https://www.miningcapital.com/companies/stocktube/11496/drdgold-has-good-commissioning-for-first-phase-of-far-west-gold-recoveries-project-11496.html DRDGOLD has good commissioning for first phase of Far West Gold Recoveries project https://www.miningcapital.com/companies/stocktube/11496/drdgold-has-good-commissioning-for-first-phase-of-far-west-gold-recoveries-project-11496.html Thu, 06 Dec 2018 15:51:00 +0000 DRDGOLD Ltd (NYSE:DRD) (JSE:DRD) CEO Niel Pretorius tells Proactive Investors that the gold-tailings company commissioned its first phase of the Far West Gold Recoveries project today in West Rand, South Africa.

Pretorius says right off the bat, 500 tonnes per hour began flowing at its plant, and says it was "a good commissioning." Pretorius says the intention is to have the circuit up and running for full production by early 2019, producing 500,000 tonnes per month.

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https://www.miningcapital.com/companies/stocktube/11495/oriole-resources-partner-begins-rc-drill-programme-at-senegal-project-11495.html Oriole Resources' partner begins RC drill programme at Senegal project https://www.miningcapital.com/companies/stocktube/11495/oriole-resources-partner-begins-rc-drill-programme-at-senegal-project-11495.html Thu, 06 Dec 2018 15:40:00 +0000 Tim Livesey, chief executive of Oriole Resources PLC (LON:ORR), tells Proactive London's Andrew Scott a reverse circulation drilling programme is underway at their Dalafin prospect in eastern Senegal.

Canadian group IAMGOLD is undertaking the drilling as part of its option to earn a 70% interest through US$8mln of exploration.

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https://www.miningcapital.com/companies/stocktube/11491/nouveau-monde-graphite-looking-to-take-graphite-mining-project-to-next-level-11491.html Nouveau Monde Graphite looking to take graphite mining project to next level https://www.miningcapital.com/companies/stocktube/11491/nouveau-monde-graphite-looking-to-take-graphite-mining-project-to-next-level-11491.html Thu, 06 Dec 2018 14:28:00 +0000 Nouveau Monde Graphite (CVE:NOU-OTCQX:NMGRF) Executive Vice President, Capital Markets Tristan Menard joined Steve Darling from Proactive Investors in Los Angeles at the LD Micro Show to talk about the companies Graphite mine. Menard shared details of the stage of the mine and some of the impressive numbers they are seeing. He also talked about the global market for Graphite and how they fit within it. 

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https://www.miningcapital.com/companies/stocktube/11490/recent-strength-in-fluorspar-prices-a-temporary-spike-roskill-analyst-11490.html Recent strength in Fluorspar prices 'a temporary spike' - Roskill analyst https://www.miningcapital.com/companies/stocktube/11490/recent-strength-in-fluorspar-prices-a-temporary-spike-roskill-analyst-11490.html Thu, 06 Dec 2018 12:59:00 +0000 Roskill's Kerry Satterthwaite discusses why Fluorspar prices are at seven year highs and the reason she reckons it could be a temporary spike.

In 2018 world fluorspar production will total just 6Mt, almost its lowest level for a decade.

Of this, 4Mt will be acid-grade fluorspar which is primarily for the chemical and aluminium industries.

Fluorspar only exists in commercially exploitable quantities in less than 20 countries.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30362/vsa-capital-market-movers-redt-energy-30362.html VSA CAPITAL MARKET MOVERS - redT energy https://www.miningcapital.com/columns/vsa-capital-market-movers/30362/vsa-capital-market-movers-redt-energy-30362.html Thu, 06 Dec 2018 11:56:00 +0000

redT energy#: Valuation Update

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In September, energy storage company redT energy (LON:RED) released results for the six months ended 30 June 2018 showing revenue of £1.2m (84% from its US carbon business) and a loss before interest and tax of £5.7m, largely in-line with our expectations. This was followed in early October by a £5m placing and an announcement that it was seeking strategic partners to support and finance the continued growth of the business. Since then it has also confirmed that its flagship 1MWh Australian project is now operational.

Key Orders Point to Growing Market Acceptance

In H2 2018 RED has made considerable in-roads into its key target markets of Commercial & Industrial, Grid-Scale and Large-scale Solar, all of which have the potential to lead to significant orders for RED’s flow machines over the next few years.

Pipeline Has Increased Threefold

The company’s gross order pipeline now sits at more than one billion pounds, having increased more than three times since the €357m reported in December 2017. This has been conservatively risk-weighted by the company to £188m, an amount that almost covers our revenue forecasts for the next four years. In its interim results, the company also provided a split of its gross pipeline across its three key target sectors – Commercial & Industrial (£115m), Grid-Scale (£702m) and Large-scale Solar (£256m).

RED has enough orders in its pipeline to deliver on our forecasts for the next couple of years and as such much of the company’s effort will now be focused on securing infrastructure financing for key orders, scaling up production via its manufacturing partners, and striking one or more strategic partnerships, to satisfy these.

Recommendation and Target Price

We have made some adjustments to our near-term forecasts (see page 7). We maintain our BUY recommendation but move our target price to 21p.


 

 

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https://www.miningcapital.com/companies/stocktube/11487/strategic-minerals-exceptionally-pleased-as-leigh-creek-drilling-hits-further-mineralisation-11487.html Strategic Minerals 'exceptionally pleased' as Leigh Creek drilling hits further mineralisation https://www.miningcapital.com/companies/stocktube/11487/strategic-minerals-exceptionally-pleased-as-leigh-creek-drilling-hits-further-mineralisation-11487.html Thu, 06 Dec 2018 11:13:00 +0000 John Peters, managing director of Strategic Minerals Plc (LON:SML), tells Proactive London's Andrew Scott they've hit new copper mineralisation at their Leigh Creek copper project in South Australia.

Follow up diamond drilling has now begun with Peters adding that they've also completed a 250-hole shallow air core programme for all existing heap leach pads.

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https://www.miningcapital.com/companies/stocktube/11485/fertoz-progressing-first-ever-global-organic-fertiliser-supply-chain-on-multiple-fronts-11485.html Fertoz progressing first-ever global organic fertiliser supply chain on multiple fronts https://www.miningcapital.com/companies/stocktube/11485/fertoz-progressing-first-ever-global-organic-fertiliser-supply-chain-on-multiple-fronts-11485.html Thu, 06 Dec 2018 04:32:00 +0000 Pat Avery, executive chairman of Fertoz Ltd (ASX:FTZ), provides Proactive Investors with an overview of progress at each stage of the value chain; from mining to product lines, through to distribution and sales. The agribusiness is establishing the first-ever global supply chain for organic fertilisers, with end users spanning conventional and organic growers, wholesalers and stores.

"The key is to execute in every area, and I think we're executing in mining by getting more supply and getting our permitting system going, we're executing in logistics and supply chain and processing, and then really in sales... We have essentially located all the high quality phosphate in the Western US and in Canada, and have attempted to tie that up, so we think we've got real strategic strength," says Avery.

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https://www.miningcapital.com/companies/stocktube/11451/alto-metals-adding-ounces-and-grade-across-multiple-deposits-at-sandstone-gold-project-11451.html Alto Metals adding ounces and grade across multiple deposits at Sandstone Gold Project https://www.miningcapital.com/companies/stocktube/11451/alto-metals-adding-ounces-and-grade-across-multiple-deposits-at-sandstone-gold-project-11451.html Wed, 05 Dec 2018 22:00:00 +0000 Alto Metals Ltd (ASX:AME) managing director Dermot Ryan summarises for Proactive Investors the past 24 months of exploration and metallurgical test works at the approximately 800 square kilometre Sandstone Gold Project in Western Australia. There is currently a defined a gold resource of about 4.9 million tonnes at 1.7 g/t for 261,000 ounces of contained gold across the project.

The gold explorer is currently working on JORC 2012 resource estimates for three deposits named Ladybird, Havilah and Sandstone North. It revealed maiden gold resources at the Indomitable and Vanguard Camp deposits a couple of months ago.

Early next year there will be an RC drilling campaign on three main targets, namely Indomitable, Vanguard and Lord Nelson. An Aircore drilling program is also planned for earlier stage exploration areas.

Ryan highlights gold recoveries of 93-94% from metallurgical test work.

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https://www.miningcapital.com/companies/stocktube/11472/zinc-one-resources-to-release-resource-estimate-for-its-bongara-zinc-project-in-peru-11472.html Zinc One Resources to release resource estimate for its Bongara zinc project in Peru https://www.miningcapital.com/companies/stocktube/11472/zinc-one-resources-to-release-resource-estimate-for-its-bongara-zinc-project-in-peru-11472.html Wed, 05 Dec 2018 20:10:00 +0000 Zinc One Resources Inc (CVE:Z) CEO Bill Williams tells Proactive Investors that the company has outlined a path toward a first mineral resource for its Bongara zinc project in Peru, where all the data from its 2018 drilling has now been compiled.

Williams is especially excited about Mina Chica, a deposit within Bongara, where the company has discovered high grade zinc 2 to 3 meters below the shallow cover.

A resource estimated is expected to be released in early 2019.

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https://www.miningcapital.com/companies/stocktube/11469/ur-energy-prepares-to-take-on-putin-after-filing-section-232-petition-11469.html Ur-Energy prepares to take on Putin after filing Section 232 Petition https://www.miningcapital.com/companies/stocktube/11469/ur-energy-prepares-to-take-on-putin-after-filing-section-232-petition-11469.html Wed, 05 Dec 2018 18:24:00 +0000 Jeffrey Klenda, chief executive of Ur-Energy Inc (NYSEAMERICAN: URG) sat down with Proactive Investors at the 11th Annual LD Micro Main Event in Los Angeles, to update investors about the company’s uranium mineral properties. Ur-Energy engages in uranium mining and recovery operations. The Colorado company holds interests in at least 13 projects located in the US and its principal site is the Lost Creek project in Wyoming.

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https://www.miningcapital.com/companies/stocktube/11466/gold-resource-expands-arista-mine-switchback-vein-system-discovers-two-new-veins-11466.html Gold Resource expands Arista Mine Switchback vein system, discovers two new veins https://www.miningcapital.com/companies/stocktube/11466/gold-resource-expands-arista-mine-switchback-vein-system-discovers-two-new-veins-11466.html Wed, 05 Dec 2018 16:57:00 +0000 Gold Resource Corporation (NYSEAMERICAN:GORO) CEO Jason Reid tells Proactive Investors the company has expanded its Arista Mine’s Switchback vein system in Mexico, and has discovered two new mineralized veins.

Reid says the expansion of the Arista mine "speaks to the longevity of the operation."

Reid says its been a 'great' deposit for the company to mine. He says an updated resource estimate should come early 2019.

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https://www.miningcapital.com/companies/stocktube/11465/strategic-minerals-confidence-in-redmoor-continues-to-build-as-drill-results-exceed-expectations-11465.html Strategic Minerals' confidence in Redmoor continues to build as drill results exceed expectations https://www.miningcapital.com/companies/stocktube/11465/strategic-minerals-confidence-in-redmoor-continues-to-build-as-drill-results-exceed-expectations-11465.html Wed, 05 Dec 2018 16:11:00 +0000 Strategic Minerals plc (LON:SML) executive director Peter Wale and Cornwall Resources' exploration manager Brett Grist discuss developments at the Redmoor tin/tungsten project in Cornwall.

Grades from recent drilling have been described as bonanza - latest indications for tungsten, tin and copper have been the highest yet seen.

Phase 2 has been expanded by one to five holes within the original budget for the whole programme.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30346/vsa-capital-market-movers---egdon-resources-30346.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30346/vsa-capital-market-movers---egdon-resources-30346.html Mon, 03 Dec 2018 10:01:00 +0000 Egdon Resources (LON:EDR)
Egdon Resources (LON:EDR) has announced a positive production update from Ceres where the first full month’s production averaged 1.16mncbfd (193boepd). For November alone, EDR anticipate gas revenues of at least £235k not including the sale of 17bpd of condensate over the same period. 

Whilst Ceres, in which EDR has a 10% stake, has been shut-in the reservoir pressure has been able to recover hence this strong initial production level. EDR guided to an average for group production of 150-180boepd in the first half of the financial year. With our full year forecast at 210boepd, which is driven in part by a full contribution of Ceres in H2 along with recent oil market volatility we leave our estimates unchanged at this time. Gas prices have pulled back from Q3 2018 highs of approximately 84p/therm, however, now at around 68p/therm they remain well supported versus recent prior trading range.

We reiterate our Buy recommendation and target price of 50p.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30341/vsa-capital-market-movers-m2-cobalt-cvemc-30341.html VSA Capital Market Movers - M2 Cobalt (CVE:MC) https://www.miningcapital.com/columns/vsa-capital-market-movers/30341/vsa-capital-market-movers-m2-cobalt-cvemc-30341.html Fri, 30 Nov 2018 10:14:00 +0000 M2 Cobalt (CVE:MC)
M2 Cobalt (CVE:MC) has provided an update on exploration at its Bujagali licences in Central Uganda. The regional targets that were previously announced as part of the systematic phase one exploration programme have now been expanded through further infill sampling while additional targets have also been discovered in the new licenses. 

To date the company has received results for 12,116 soil and 1,347 rock samples at Bujagali. Results in Els 1665 and 1683 have yielded five discrete targets with up to 1.25% Co and 1.2% Cu soil anomalies. At EL 1666 three discrete anomalies have been identified with up to 1% Cu, 0.5% Ni and 0.68% Co. There are three further targets at EL 1682 and EL 1686 which require further sampling although so far have yielded up to 0.28% Cu and 0.48% Co as well as 0.1% Cu respectively in rock grab samples.

Most recently exploration in the newly acquired EL 1827 limited sampling has already returned results of 0.65% Co and 0.18% Cu along strike from the Waraji and Nile targets. The additional anomalies in the expanded license area as well as the expansion of known targets is providing greater weight to the view that M2 are exploring a regional Katanga style play with significant exploration upside potential. The discoveries lie on a regional trend and whilst drilling is underway at the Bombo target, also within the Bujagali licenses, M2 will carry out IP surveys to finalise drill targeting before the rig moves to drill Nile and Waraji.

We reiterate our Speculative Buy recommendation.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30337/vsa-capital-market-movers-shefa-yamim-30337.html VSA CAPITAL MARKET MOVERS - Shefa Yamim https://www.miningcapital.com/columns/vsa-capital-market-movers/30337/vsa-capital-market-movers-shefa-yamim-30337.html Thu, 29 Nov 2018 09:11:00 +0000 Shefa Yamim (LON:SEFA)#


Shefa Yamim has announced an increase estimated mineralised placer gravels at its Kishon Mid Reach project in Northern Israel. Zone 1 hosts approximately 1.1mnt of placer gravels which host the broad range of gemstones the company has discovered to date while following the initial bulk sampling at Zone 2 and early exploration at Zone 3 (the most downstream of the target areas) has resulted in an increase in placer gravel tonnes to 4.98mnt. Zone 2 target has 0.87mnt while Zone 3 is estimated to host 2.9mnt.


Given the nature of alluvial style deposits it is difficult to extrapolate prior results in terms of grade from one zone to another, however, confirmation of the added potential is positive, in our view.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30332/vsa-capital-market-movers-m2-cobalt-lake-resources-30332.html VSA CAPITAL MARKET MOVERS - M2 Cobalt & Lake Resources. https://www.miningcapital.com/columns/vsa-capital-market-movers/30332/vsa-capital-market-movers-m2-cobalt-lake-resources-30332.html Wed, 28 Nov 2018 09:40:00 +0000

VSA Morning Miner, 28/18/18

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M2 Cobalt (CVE:MC)

M2 Cobalt (MC CN) announced that it has mobilised a second drill rig to drill its Bombo target in Central Uganda within its Bujagali license area. M2 anticipate that around 1km of diamond core drilling will be undertaken in this programme. M2 conducted significant local geochemical analysis as well as geophysics and IP to determine initial drill collars having yielded large scale anomalies.

There are expected to be multiple styles of mineralisation at the Bujagali licenses. At Bombo specifically a series of ultramafic bodies have been identified with anomalous nickel, copper and cobalt all yielded through the systematic phase one exploration programme.

With drilling at its both its major license area, M2 is in a strong position with multiple near-term catalysts. Nickel sulphides have been highlighted as a particularly attractive source for battery manufacturers looking to secure nickel and cobalt sulphates supply and M2 is positioning Uganda as a major source of ethical battery minerals.

We reiterate our Speculative Buy recommendation.  

NuLegacy Gold (CVE:NUG

NuLegacy Gold (NUG CN) has announced that it has received final approval to commence a ten hole exploration programme from the state authorities. The programme will begin immediately and will focus on the Avocado and Serena zones. These latest permits enable NUG to drill over a significantly wider area as part of this plan at Avocado.

The second area of focus steps out around 1,450m to the west of Serena testing the intersection of the major northwest and east-west structural trends associated with Carlin style gold systems.
Following the success of the exploration programmes earlier this year we are looking for NUG to capitalise on the high grade results previously achieved enabling the company to confirm the validity of its updated exploration targeting methodology.

We reiterate our Speculative Buy recommendation.


 

 

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https://www.miningcapital.com/columns/jackhammer/30316/chinas-rate-of-growth-is-slowing-and-the-world-will-have-to-adjust-30316.html China’s rate of growth is slowing, and the world will have to adjust https://www.miningcapital.com/columns/jackhammer/30316/chinas-rate-of-growth-is-slowing-and-the-world-will-have-to-adjust-30316.html Fri, 23 Nov 2018 14:00:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30314/vsa-capital-market-movers-egdon-resources-30314.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30314/vsa-capital-market-movers-egdon-resources-30314.html Thu, 22 Nov 2018 09:45:00 +0000 Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced positive progress at its Wressle development. North Lincolnshire Council’s Planning Officer, having reviewed EDR’s submission, has recommended approval of the development stating that the new application has addressed concerns raised previously and the reasons for prior refusal have now been overcome. EDR has strengthened its submission through additional groundwater testwork and proposed monitoring as well as a redesigned site. While this is a positive step for EDR it remains for the planning committee to approve the application at next week’s meeting.

We currently include estimates for Wressle production in FY 2020 and anticipate annual production of 125bopd net to EDR providing significant cashflow. With the incremental production from Ceres now benefitting EDR and likely to result in a net profit for EDR in FY 2019 we expect Wressle to further strengthen EDR’s earnings outlook.

Cuadrilla continue to make progress at Preston New Road, however, media attention has faded since the initial micro seismic events which briefly halted production. With results upcoming, EDR continue to offer the most attractive exposure to UK shale in our view with significant shale acreage, a robust earnings outlook and upcoming drilling within both its conventional and unconventional portfolio.

We reiterate our Buy recommendation and target price of 50p.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30308/vsa-capital-market-movers-tectonic-gold-30308.html VSA CAPITAL MARKET MOVERS - Tectonic Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30308/vsa-capital-market-movers-tectonic-gold-30308.html Wed, 21 Nov 2018 09:28:00 +0000

VSA Morning Miner, 21/11/18

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Tectonic Gold (LON:TTAU)

Tectonic Gold (TTAU LN) announced that it has received approximately A$0.6m under the Australian Federal Government R&D Tax Incentive Scheme in a rebate for the year end 30 June 2018. The company has previously highlighted its eligibility for a 43.5% cash rebate on all qualifying technical expenditure. This covers a significant portion of TTAU’s recent expenditure and the company remains eligible for further rebates.

TTAU has qualified through its significant work in reinterpreting regional geological history and applying this to the exploration strategy identifying IRGS systems in Queensland. Furthermore, by using modern and innovative techniques for deep penetrating geophysics the company is pushing its credentials as a modern explorer.

The incentive is a welcome benefit which maximises TTAU’s exploration programme. With the recent drilling programme completed we await the results of assay particularly since mineralisation was intersected with every hole. This programme not only validated known near surface mineralisation from historic drilling but also intersected porphyry mineralisation at depths of more than 250m. We therefore see significant near term potential catalysts for the shares.

We reiterate our Speculative Buy recommendation.  

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30299/vsa-capital-market-movers-redt-energy-30299.html VSA CAPITAL MARKET MOVERS - redT energy https://www.miningcapital.com/columns/vsa-capital-market-movers/30299/vsa-capital-market-movers-redt-energy-30299.html Mon, 19 Nov 2018 10:13:00 +0000

VSA Morning Alternative Energy Comment, 19/11/18

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redT#: Australian Project Now Operational

redT energy (RED LN)#, an energy storage solutions company, has announced that its 1MWh hybrid energy storage system located on the Clayton, Victoria campus of Monash University in Australia is now operational.

  • System comprises a 900kWh vanadium flow system (12 tank unit modules) and a 120kW lithium-ion battery.
  • The system has been integrated into the campus micro-grid, which includes 1MW of solar PV generation assets as well as EV charging stations and building management systems.
  • The system is the largest behind-the-meter commercial and industrial energy storage system to be installed in Australia.  
  • The Australian energy storage market is estimated to be worth cA$30bn by 2030 with almost 400MWh of energy storage projects estimated to be installed in behind-the-meter commercial and industrial applications nationwide by 2022 according to industry consultants Delta-ee.

VSA Comment

In October 2017 RED announced this first order in the Australian market, which we estimated would deliver cUS$1m (cA$1.3m) in revenues to the company. It is therefore positive to see the project become operational a little over a year later.

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

This project will become an important marketing site for the company as it seeks further orders in an Australian market forecast for explosive growth (400 energy storage systems of this size are estimated to be installed by 2022).

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


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Good Energy

17.3

104.5

15.50

+17.4%

Edenville

2.9

0.2

0.01

+2.8%

Ceres Power

222.8

165.0

3.00

+1.9%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Sabien Technologies

0.3

0.2

(0.02)

-10.3%

Biome Technologies

12.9

547.5

(52.50)

-8.7%

Plutus PowerGen

4.3

0.6

(0.02)

-4.0%


 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30297/vsa-capital-market-movers-dekeloil-30297.html VSA CAPITAL MARKET MOVERS - DekelOil https://www.miningcapital.com/columns/vsa-capital-market-movers/30297/vsa-capital-market-movers-dekeloil-30297.html Mon, 19 Nov 2018 10:08:00 +0000

VSA Morning Agri Comment, 19/11/18

PDF Version

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DekelOil#: Cashew Project Contract

Côte d'Ivoire palm oil producer DekelOil Public Limited (DKL LN)# 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 €2.2m contract for the civil works and associated infrastructure for its large-scale cashew processing project at Tiébissou in Côte d'Ivoire to Entreprise Kone Daouda Soukpafolo Nouvelle (lead contractor), an established civil engineering company in Cote d'Ivoire, and Société Internationale d'Ingénierie en Structures et Assemblages Métalliques, an associate company of EKDS which specialises in metal and civil works.

VSA Comment

This announcement follows on from the €6.5m construction contract awarded at the end of October and means that installation of the water system and connection to the electricity grid are the only two major pieces of work yet to be contracted out for this project. Civil works are expected to begin in early 2019 and should take between six and eight months to complete.

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)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Accsys Technologies

121.74

103.50

2.00

+2.0%

Plant Health Care

16.94

9.80

0.18

+1.8%

Devro

297.06

178.00

2.80

+1.6%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Produce Investments

48.80

180.00

(9.00)

-4.8%

Anglo-Eastern Plantations

21.04

540.00

(24.00)

-4.3%

NWF Group

86.04

176.50

(4.50)

-2.5%


 

 

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https://www.miningcapital.com/columns/jackhammer/30295/brexit-turmoil-drives-investors-towards-metals-and-miners-30295.html Brexit turmoil drives investors towards metals and miners https://www.miningcapital.com/columns/jackhammer/30295/brexit-turmoil-drives-investors-towards-metals-and-miners-30295.html Fri, 16 Nov 2018 15:19:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30285/vsa-capital-market-movers-m2-cobalt-cvemc-30285.html VSA Capital Market Movers - M2 Cobalt (CVE:MC) https://www.miningcapital.com/columns/vsa-capital-market-movers/30285/vsa-capital-market-movers-m2-cobalt-cvemc-30285.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30284/vsa-capital-market-movers-genus-agm-statement-30284.html VSA Capital Market Movers - Genus: AGM Statement https://www.miningcapital.com/columns/vsa-capital-market-movers/30284/vsa-capital-market-movers-genus-agm-statement-30284.html 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.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Plant Health Care

17.46

10.10

0.78

+8.3%

Avon Rubber

410.66

1,355.00

55.00

+4.2%

Devro

288.71

173.00

6.00

+3.6%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Carr's Group

144.43

158.00

(6.50)

-4.0%

Agriterra

2.23

10.50

(0.25)

-2.3%

Eden Research

25.38

12.25

(0.25)

-2.0%

 


 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30282/vsa-capital-market-movers-redt-energy-management-team-update-30282.html VSA Capital Market Movers - redT energy: Management Team Update https://www.miningcapital.com/columns/vsa-capital-market-movers/30282/vsa-capital-market-movers-redt-energy-management-team-update-30282.html 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.

Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

SSE plc

12,186.7

1,191.0

59.50

+5.3%

Proton Power Systems

54.0

8.4

0.38

+4.7%

PV Crystalox Solar

37.4

23.7

0.80

+3.5%

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30266/vsa-capital-market-movers-columbus-energy-resources-building-the-foundations-30266.html VSA Capital Market Movers - Columbus Energy Resources: Building the Foundations https://www.miningcapital.com/columns/vsa-capital-market-movers/30266/vsa-capital-market-movers-columbus-energy-resources-building-the-foundations-30266.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30262/vsa-capital-market-movers-carr-s-group-30262.html VSA Capital Market Movers - Carr's Group https://www.miningcapital.com/columns/vsa-capital-market-movers/30262/vsa-capital-market-movers-carr-s-group-30262.html 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.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Carr's Group

142.59

156.00

7.75

+5.2%

Eden Research

25.90

12.50

0.25

+2.0%

REA Holdings

106.95

264.00

5.00

+1.9%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

DekelOil

11.38

3.80

(0.28)

-6.7%

MP Evans

372.44

680.00

(30.00)

-4.2%

Anglo-Eastern Plantations

214.83

542.00

(17.00)

-3.0%

 


 

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https://www.miningcapital.com/columns/jackhammer/30260/what-now-for-interest-rates-and-metals-prices-now-that-the-mid-terms-are-out-of-the-way-30260.html What now for interest rates and metals prices, now that the Mid-Terms are out of the way? https://www.miningcapital.com/columns/jackhammer/30260/what-now-for-interest-rates-and-metals-prices-now-that-the-mid-terms-are-out-of-the-way-30260.html Fri, 09 Nov 2018 12:37:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30251/vsa-capital-market-movers-nulegacy-gold-30251.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30251/vsa-capital-market-movers-nulegacy-gold-30251.html 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.  

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30245/vsa-capital-market-movers-lake-resources-30245.html VSA Capital Market Movers - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30245/vsa-capital-market-movers-lake-resources-30245.html 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. 

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https://www.miningcapital.com/columns/jackhammer/30229/us-mid-terms-enter-final-stretch-with-truth-justice-and-the-american-way-almost-completely-hidden-from-view-30229.html US mid-terms enter final stretch, with truth, justice and the American way almost completely hidden from view https://www.miningcapital.com/columns/jackhammer/30229/us-mid-terms-enter-final-stretch-with-truth-justice-and-the-american-way-almost-completely-hidden-from-view-30229.html Fri, 02 Nov 2018 13:53:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30227/vsa-capital-market-movers-lake-resources-30227.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30227/vsa-capital-market-movers-lake-resources-30227.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30223/vsa-capital-market-movers-edgon-resources-fy-2018-results-30223.html VSA CAPITAL MARKET MOVERS - Edgon Resources: FY 2018 Results https://www.miningcapital.com/columns/vsa-capital-market-movers/30223/vsa-capital-market-movers-edgon-resources-fy-2018-results-30223.html Thu, 01 Nov 2018 14:20:00 +0000

Egdon Resources#: FY 2018 Results

For the full report, please click here. 

Keep reading VSA research for free – Click here for our position on MIFID2


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: oodonnell@vsacapital.com

VSA Capital Limited, New Liverpool House, 15-17 Eldon Street, London EC2M 7LD | www.vsacapital.com

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30215/vsa-capital-market-movers-dekeloil-30215.html VSA CAPITAL MARKET MOVERS - DekelOil https://www.miningcapital.com/columns/vsa-capital-market-movers/30215/vsa-capital-market-movers-dekeloil-30215.html 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)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Obtala Limited

21.62

6.60

0.70

+11.9%

Carr's Group

138.25

151.25

4.25

+2.9%

Origin Enterprises

616.51

490.92

3.98

+0.8%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Anpario

92.64

400.00

(25.00)

-5.9%

Avon Rubber

363.68

1,200.00

(25.00)

-2.0%

NWF Group

82.88

170.00

(1.50)

-0.9%

 


 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30203/vsa-capital-market-movers-lake-resources-30203.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30203/vsa-capital-market-movers-lake-resources-30203.html 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. 

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https://www.miningcapital.com/columns/jackhammer/30201/how-high-will-the-gold-price-go-in-the-face-of-the-current-equity-market-correction-30201.html How high will the gold price go in the face of the current equity market correction? https://www.miningcapital.com/columns/jackhammer/30201/how-high-will-the-gold-price-go-in-the-face-of-the-current-equity-market-correction-30201.html Fri, 26 Oct 2018 11:55:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30175/vsa-capital-market-movers-lake-resources-30175.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30175/vsa-capital-market-movers-lake-resources-30175.html Mon, 22 Oct 2018 13:24:00 +0100

VSA Morning Miner, 22/10/18

Click here for PDF version

Keep reading VSA research for free – Click here for our position on MIFID2

8cca5f03-3a65-4030-b4e7-e9353ee5674b.png


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.

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30176/vsa-capital-market-movers-lake-resources-30176.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30176/vsa-capital-market-movers-lake-resources-30176.html Mon, 22 Oct 2018 13:24:00 +0100

VSA Morning Miner, 22/10/18

Click here for PDF version

Keep reading VSA research for free – Click here for our position on MIFID2

8cca5f03-3a65-4030-b4e7-e9353ee5674b.png


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.

 

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https://www.miningcapital.com/columns/jackhammer/30169/us-booms-and-mid-terms-loom-with-culture-wars-taking-centre-stage-30169.html US booms and mid-terms loom, with culture wars taking centre stage https://www.miningcapital.com/columns/jackhammer/30169/us-booms-and-mid-terms-loom-with-culture-wars-taking-centre-stage-30169.html Sat, 20 Oct 2018 06:00:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30156/vsa-capital-market-movers-m2-cobalt-30156.html VSA CAPITAL MARKET MOVERS - M2 Cobalt https://www.miningcapital.com/columns/vsa-capital-market-movers/30156/vsa-capital-market-movers-m2-cobalt-30156.html Thu, 18 Oct 2018 08:18:00 +0100

VSA Morning Miner, 18/10/18

Click here for PDF version

Keep reading VSA research for free – Click here for our position on MIFID2


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.


 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30148/vsa-capital-market-movers-m2-cobalt-30148.html VSA CAPITAL MARKET MOVERS - M2 Cobalt https://www.miningcapital.com/columns/vsa-capital-market-movers/30148/vsa-capital-market-movers-m2-cobalt-30148.html 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.

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https://www.miningcapital.com/columns/jackhammer/30133/equity-rout-puts-precious-metals-back-into-the-spotlight-30133.html Equity rout puts precious metals back into the spotlight https://www.miningcapital.com/columns/jackhammer/30133/equity-rout-puts-precious-metals-back-into-the-spotlight-30133.html Fri, 12 Oct 2018 13:01:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30120/vsa-capital-market-movers-dekeloil-30120.html VSA CAPITAL MARKET MOVERS - DekelOil https://www.miningcapital.com/columns/vsa-capital-market-movers/30120/vsa-capital-market-movers-dekeloil-30120.html 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.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Eden Research

23.31

11.25

0.25

+2.3%

Zambeef Products

33.82

11.25

0.20

+1.8%

Devro

341.28

204.50

1.00

+0.5%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Anpario

103.02

445.00

(25.00)

-5.3%

Sirius Minerals

1,196.14

25.44

(1.00)

-3.8%

Produce Investments

48.40

178.50

(6.50)

-3.5%

 

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https://www.miningcapital.com/columns/jackhammer/30110/us-economic-strength-has-been-purchased-at-the-price-of-a-massive-monetary-expansion-which-in-turn-puts-a-floor-on-the-gold-price-30110.html US economic strength has been purchased at the price of a massive monetary expansion, which in turn puts a floor on the gold price https://www.miningcapital.com/columns/jackhammer/30110/us-economic-strength-has-been-purchased-at-the-price-of-a-massive-monetary-expansion-which-in-turn-puts-a-floor-on-the-gold-price-30110.html Fri, 05 Oct 2018 13:38:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30106/vsa-capital-market-movers-central-asia-metals-30106.html VSA CAPITAL MARKET MOVERS - Central Asia Metals https://www.miningcapital.com/columns/vsa-capital-market-movers/30106/vsa-capital-market-movers-central-asia-metals-30106.html 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. 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30104/vsa-capital-market-movers-lake-resources-30104.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30104/vsa-capital-market-movers-lake-resources-30104.html 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.

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https://www.miningcapital.com/columns/jackhammer/30093/what-next-for-the-gold-price-30093.html What next for the gold price? https://www.miningcapital.com/columns/jackhammer/30093/what-next-for-the-gold-price-30093.html Fri, 28 Sep 2018 13:09:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30082/vsa-capital-market-movers-central-asia-metals-30082.html VSA CAPITAL MARKET MOVERS - Central Asia Metals https://www.miningcapital.com/columns/vsa-capital-market-movers/30082/vsa-capital-market-movers-central-asia-metals-30082.html 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. 

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https://www.miningcapital.com/columns/jackhammer/30080/the-feds-forthcoming-decisions-on-rates-are-likely-to-have-major-implications-for-the-mining-sector-and-emerging-markets-30080.html The Fed’s forthcoming decisions on rates are likely to have major implications for the mining sector and emerging markets https://www.miningcapital.com/columns/jackhammer/30080/the-feds-forthcoming-decisions-on-rates-are-likely-to-have-major-implications-for-the-mining-sector-and-emerging-markets-30080.html Fri, 21 Sep 2018 13:49:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30075/vsa-capital-market-movers-nulegacy-gold-30075.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30075/vsa-capital-market-movers-nulegacy-gold-30075.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30071/vsa-capital-market-movers-m2-cobalt-30071.html VSA CAPITAL MARKET MOVERS - M2 Cobalt https://www.miningcapital.com/columns/vsa-capital-market-movers/30071/vsa-capital-market-movers-m2-cobalt-30071.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30069/vsa-capital-market-movers-novo-ltio-30069.html VSA CAPITAL MARKET MOVERS - Novo Lítio https://www.miningcapital.com/columns/vsa-capital-market-movers/30069/vsa-capital-market-movers-novo-ltio-30069.html 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.

Reccomendation

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.

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30067/vsa-capital-market-movers-redt-energy-30067.html VSA CAPITAL MARKET MOVERS - redT Energy https://www.miningcapital.com/columns/vsa-capital-market-movers/30067/vsa-capital-market-movers-redt-energy-30067.html 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.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Biome Technologies plc

15.1

640

+60

+10.3%

Powerhouse Energy Group PLC

5.5

0.3

+0.02

+6.3%

Plutus PowerGen plc

8.1

1.1

0.05

+4.7%

 

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

SSE plc

10,969

1,084

-36

-3.2%

redT Energy PLC

61.1

8.5

-0.15

-1.7%

Good Energy Group PLC

19.3

120

-1.5

-1.2%

 

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https://www.miningcapital.com/columns/jackhammer/30064/us-mid-terms-loom-gold-ticks-up-and-the-global-economy-roars-on-30064.html US mid-terms loom, gold ticks up, and the global economy roars on https://www.miningcapital.com/columns/jackhammer/30064/us-mid-terms-loom-gold-ticks-up-and-the-global-economy-roars-on-30064.html Fri, 14 Sep 2018 13:16:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30062/dekeloil-public-limited-h1-2018-results-30062.html DekelOil Public Limited#: H1 2018 Results https://www.miningcapital.com/columns/vsa-capital-market-movers/30062/dekeloil-public-limited-h1-2018-results-30062.html 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

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30057/vsa-capital-market-movers-redt-energy-30057.html VSA CAPITAL MARKET MOVERS - redT energy https://www.miningcapital.com/columns/vsa-capital-market-movers/30057/vsa-capital-market-movers-redt-energy-30057.html 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.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Hydrodec

8.9

1.2

0.10

+9.1%

redT energy

66.2

9.2

0.35

+4.0%

Solid State

27.8

327.0

12.00

+3.8%

 

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

SSE

11,606.5

1,147.0

(103.50)

-8.3%

Centrica

8,145.3

144.4

(5.40)

-3.6%

AFC Energy

30.4

7.8

(0.260

-3.2%

 

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https://www.miningcapital.com/columns/jackhammer/30047/the-junior-mining-sector-is-showing-real-signs-of-life-as-the-global-economy-powers-on-30047.html The junior mining sector is showing real signs of life, as the global economy powers on https://www.miningcapital.com/columns/jackhammer/30047/the-junior-mining-sector-is-showing-real-signs-of-life-as-the-global-economy-powers-on-30047.html Fri, 07 Sep 2018 12:46:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30043/vsa-capital-market-movers-genus-30043.html VSA CAPITAL MARKET MOVERS - Genus https://www.miningcapital.com/columns/vsa-capital-market-movers/30043/vsa-capital-market-movers-genus-30043.html Thu, 06 Sep 2018 07:57:00 +0100 Genus: FY 2018 Results

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

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

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

VSA Comment

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

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

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

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

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

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

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


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Obtala Limited

22.25

6.75

0.35

+5.5%

Carr's Group

137.56

150.50

3.25

+2.2%

Plant Health Care

28.60

16.55

0.05

+0.3%

 

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Sirius Minerals

1,535.61

32.66

(1.92)

-5.6%

Genus

1,670.76

2,722.00

(110.00)

-3.9%

Anglo-Eastern Plantations

259.22

654.00

(18.00)

-2.7%

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30042/vsa-capital-market-movers-lake-resources-30042.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30042/vsa-capital-market-movers-lake-resources-30042.html 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. 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30039/vsa-capital-market-movers-lake-resources-30039.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30039/vsa-capital-market-movers-lake-resources-30039.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30033/vsa-capital-market-movers-m2-cobalt-30033.html VSA Capital Market Movers - M2 Cobalt https://www.miningcapital.com/columns/vsa-capital-market-movers/30033/vsa-capital-market-movers-m2-cobalt-30033.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30032/vsa-capital-market-movers-egdon-resources-30032.html VSA Capital Market Movers - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30032/vsa-capital-market-movers-egdon-resources-30032.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30029/vsa-capital-market-movers-altyn-shefa-yamim-30029.html VSA Capital Market Movers - Altyn, Shefa Yamim.. https://www.miningcapital.com/columns/vsa-capital-market-movers/30029/vsa-capital-market-movers-altyn-shefa-yamim-30029.html 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. 

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https://www.miningcapital.com/columns/jackhammer/30025/will-the-uss-trade-deal-with-mexico-encourage-donald-trump-to-double-down-with-china-30025.html Will the US’s trade deal with Mexico encourage Donald Trump to double down with China? https://www.miningcapital.com/columns/jackhammer/30025/will-the-uss-trade-deal-with-mexico-encourage-donald-trump-to-double-down-with-china-30025.html Fri, 31 Aug 2018 13:00:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30024/vsa-capital-market-movers-egdon-resources-30024.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30024/vsa-capital-market-movers-egdon-resources-30024.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30022/vsa-capital-market-movers-colombus-energy-resources-30022.html VSA CAPITAL MARKET MOVERS - Colombus Energy Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30022/vsa-capital-market-movers-colombus-energy-resources-30022.html 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.

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https://www.miningcapital.com/columns/jackhammer/30012/the-intrigue-around-the-proposed-rescue-package-for-noble-group-reveals-appetite-for-commodities-trading-is-a-strong-as-ever-30012.html The intrigue around the proposed rescue package for Noble Group reveals appetite for commodities trading is a strong as ever https://www.miningcapital.com/columns/jackhammer/30012/the-intrigue-around-the-proposed-rescue-package-for-noble-group-reveals-appetite-for-commodities-trading-is-a-strong-as-ever-30012.html Fri, 24 Aug 2018 13:00:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30010/vsa-capital-market-movers-shefa-yamim-30010.html VSA CAPITAL MARKET MOVERS - Shefa Yamim https://www.miningcapital.com/columns/vsa-capital-market-movers/30010/vsa-capital-market-movers-shefa-yamim-30010.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30007/vsa-capital-market-movers-lithium-americas-lake-resources-sqm-30007.html VSA CAPITAL MARKET MOVERS - Lithium Americas, Lake Resources, SQM.. https://www.miningcapital.com/columns/vsa-capital-market-movers/30007/vsa-capital-market-movers-lithium-americas-lake-resources-sqm-30007.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30006/vsa-capital-market-movers-energy-storage-briefing-30006.html VSA CAPITAL MARKET MOVERS - Energy Storage Briefing https://www.miningcapital.com/columns/vsa-capital-market-movers/30006/vsa-capital-market-movers-energy-storage-briefing-30006.html 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

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https://www.miningcapital.com/columns/jackhammer/30004/dominant-dollar-drives-all-before-it-as-chinas-growth-falters-30004.html Dominant dollar drives all before it as China’s growth falters https://www.miningcapital.com/columns/jackhammer/30004/dominant-dollar-drives-all-before-it-as-chinas-growth-falters-30004.html Fri, 17 Aug 2018 13:19:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30002/vsa-capital-market-movers-independent-oil-gas-30002.html VSA CAPITAL MARKET MOVERS - Independent Oil & Gas https://www.miningcapital.com/columns/vsa-capital-market-movers/30002/vsa-capital-market-movers-independent-oil-gas-30002.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29999/vsa-capital-market-movers-shefa-yamim-29999.html VSA CAPITAL MARKET MOVERS - Shefa Yamim https://www.miningcapital.com/columns/vsa-capital-market-movers/29999/vsa-capital-market-movers-shefa-yamim-29999.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29997/vsa-capital-market-movers-nulegacy-gold-29997.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/29997/vsa-capital-market-movers-nulegacy-gold-29997.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29995/vsa-capital-market-movers-lake-resources-ganfeng-lithium-lithium-americas-29995.html VSA Capital Market Movers - Lake Resources, Ganfeng Lithium, Lithium Americas.. https://www.miningcapital.com/columns/vsa-capital-market-movers/29995/vsa-capital-market-movers-lake-resources-ganfeng-lithium-lithium-americas-29995.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29994/vsa-capital-market-movers-lake-resources-29994.html VSA Capital Market Movers - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/29994/vsa-capital-market-movers-lake-resources-29994.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29981/vsa-capital-market-movers-dekeloil-public-limited-29981.html VSA CAPITAL MARKET MOVERS - DekelOil Public Limited https://www.miningcapital.com/columns/vsa-capital-market-movers/29981/vsa-capital-market-movers-dekeloil-public-limited-29981.html 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.

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https://www.miningcapital.com/columns/jackhammer/29976/base-metals-fall-on-trade-war-fears-as-trump-doubles-down-on-chinese-tariff-rhetoric-29976.html Base metals fall on trade war fears, as Trump doubles down on Chinese tariff rhetoric https://www.miningcapital.com/columns/jackhammer/29976/base-metals-fall-on-trade-war-fears-as-trump-doubles-down-on-chinese-tariff-rhetoric-29976.html Fri, 03 Aug 2018 17:32:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/29971/vsa-capital-market-movers-central-asia-metals-29971.html VSA CAPITAL MARKET MOVERS - CENTRAL ASIA METALS https://www.miningcapital.com/columns/vsa-capital-market-movers/29971/vsa-capital-market-movers-central-asia-metals-29971.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29968/vsa-capital-market-movers-nulegacy-gold-29968.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/29968/vsa-capital-market-movers-nulegacy-gold-29968.html 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.  

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29967/vsa-capital-market-movers-egdon-resources-29967.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/29967/vsa-capital-market-movers-egdon-resources-29967.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29964/vsa-capital-market-movers-lake-resources-orocobre-advantage-lithium-29964.html VSA CAPITAL MARKET MOVERS - Lake Resources, Orocobre, Advantage Lithium.. https://www.miningcapital.com/columns/vsa-capital-market-movers/29964/vsa-capital-market-movers-lake-resources-orocobre-advantage-lithium-29964.html 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.  

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29956/vsa-capital-market-movers-egdon-resources-alkane-energy-29956.html VSA CAPITAL MARKET MOVERS - Egdon Resources, Alkane Energy https://www.miningcapital.com/columns/vsa-capital-market-movers/29956/vsa-capital-market-movers-egdon-resources-alkane-energy-29956.html 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. 

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https://www.miningcapital.com/columns/jackhammer/29953/bad-news-will-be-good-for-gold-as-president-trump-continues-to-prop-up-the-price-29953.html Bad news will be good for gold, as President Trump continues to prop up the price https://www.miningcapital.com/columns/jackhammer/29953/bad-news-will-be-good-for-gold-as-president-trump-continues-to-prop-up-the-price-29953.html Fri, 27 Jul 2018 13:38:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/29945/vsa-capital-market-movers-redt-energy-29945.html VSA CAPITAL MARKET MOVERS - redT energy https://www.miningcapital.com/columns/vsa-capital-market-movers/29945/vsa-capital-market-movers-redt-energy-29945.html 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.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Advanced Power Components

9.6

7.1

0.50

+7.5%

Drax Group

1,390.9

345.0

4.20

+1.2%

Impax Environmental Markets

496.9

276.0

2.00

+0.7%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

China New Energy

5.2

1.2

(0.05)

-4.1%

CAP-XX

25.2

8.4

(0.35)

-4.0%

Ceres Power

165.4

16.3

(0.67)

-4.0%

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29931/vsa-capital-market-movers-egdon-resources-lonedr-29931.html VSA Capital Market Movers - Egdon Resources (LON:EDR) https://www.miningcapital.com/columns/vsa-capital-market-movers/29931/vsa-capital-market-movers-egdon-resources-lonedr-29931.html 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.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29925/vsa-capital-market-movers-shefa-yamim-lonsefa-29925.html VSA Capital Market Movers - Shefa Yamim (LON:SEFA) https://www.miningcapital.com/columns/vsa-capital-market-movers/29925/vsa-capital-market-movers-shefa-yamim-lonsefa-29925.html 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.

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https://www.miningcapital.com/columns/jackhammer/29922/strong-economic-growth-represents-the-perfect-backdrop-for-trump-to-steer-the-us-onto-a-new-economic-course-29922.html Strong economic growth represents the perfect backdrop for Trump to steer the US onto a new economic course https://www.miningcapital.com/columns/jackhammer/29922/strong-economic-growth-represents-the-perfect-backdrop-for-trump-to-steer-the-us-onto-a-new-economic-course-29922.html Fri, 20 Jul 2018 12:26:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/29909/vsa-capital-market-movers-carrs-group-h2-trading-update-29909.html VSA Capital Market Movers - Carr’s Group#: H2 Trading Update https://www.miningcapital.com/columns/vsa-capital-market-movers/29909/vsa-capital-market-movers-carrs-group-h2-trading-update-29909.html 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.

 

Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Carr's Group

150.81

165.00

15.50

+10.4%

Plant Health Care

26.79

15.50

0.70

+4.7%

Sirius Minerals

1,572.77

33.46

0.46

+1.4%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Agriterra

2.97

14.00

(1.00)

-6.7%

DekelOil

17.80

5.95

(0.20)

-3.3%

Camellia

321.08

11,625.00

(175.00)

-1.5%

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/29902/vsa-capital-market-movers-independent-oil-gas-loniog-29902.html VSA Capital Market Movers - Independent Oil & Gas (LON:IOG) https://www.miningcapital.com/columns/vsa-capital-market-movers/29902/vsa-capital-market-movers-independent-oil-gas-loniog-29902.html 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.

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https://www.miningcapital.com/columns/jackhammer/29894/president-trumps-bluster-and-thunder-has-a-deeper-purpose-behind-it-in-regard-to-nato-russia-and-china-29894.html President Trump’s bluster and thunder has a deeper purpose behind it in regard to NATO, Russia and China https://www.miningcapital.com/columns/jackhammer/29894/president-trumps-bluster-and-thunder-has-a-deeper-purpose-behind-it-in-regard-to-nato-russia-and-china-29894.html Fri, 13 Jul 2018 11:53:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/29872/vsa-capital-market-movers-shefa-yamim-lonsefa-29872.html VSA Capital Market Movers - Shefa Yamim (LON:SEFA) https://www.miningcapital.com/columns/vsa-capital-market-movers/29872/vsa-capital-market-movers-shefa-yamim-lonsefa-29872.html 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. 

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https://www.miningcapital.com/columns/jackhammer/29862/copper-strength-in-doubt-as-trade-war-fears-take-centre-stage-in-markets-29862.html Copper strength in doubt as trade war fears take centre stage in markets https://www.miningcapital.com/columns/jackhammer/29862/copper-strength-in-doubt-as-trade-war-fears-take-centre-stage-in-markets-29862.html Fri, 06 Jul 2018 10:04:00 +0100