https://www.miningcapital.com/companies/news/224300/ximen-mining-aiming-to-pour-first-gold-pour-bar-from-historic-kenville-mine-by-end-of-2019-224300.html Ximen Mining aiming to pour first gold pour bar from historic Kenville mine by end of 2019 https://www.miningcapital.com/companies/news/224300/ximen-mining-aiming-to-pour-first-gold-pour-bar-from-historic-kenville-mine-by-end-of-2019-224300.html Mon, 22 Jul 2019 16:55:00 +0100 https://www.miningcapital.com/companies/news/224288/bonterra-resources-hits-high-grade-gold-at-quebec-projects-224288.html Bonterra Resources hits high-grade gold at Quebec projects https://www.miningcapital.com/companies/news/224288/bonterra-resources-hits-high-grade-gold-at-quebec-projects-224288.html Mon, 22 Jul 2019 15:58:00 +0100 https://www.miningcapital.com/companies/news/224296/mgx-renewables-kicks-off-trading-debut-on-canadian-securities-exchange-224296.html MGX Renewables kicks off trading debut on Canadian Securities Exchange https://www.miningcapital.com/companies/news/224296/mgx-renewables-kicks-off-trading-debut-on-canadian-securities-exchange-224296.html Mon, 22 Jul 2019 15:55:00 +0100 https://www.miningcapital.com/companies/news/224293/klondike-gold-commences-new-drilling-program-at-lode-star-zone-in-yukon-224293.html Klondike Gold commences new drilling program at Lode Star zone in Yukon https://www.miningcapital.com/companies/news/224293/klondike-gold-commences-new-drilling-program-at-lode-star-zone-in-yukon-224293.html Mon, 22 Jul 2019 15:50:00 +0100 https://www.miningcapital.com/companies/news/224294/roth-capital-research-repeats-buy-rating-650-price-target-gold-resource-corp-shares-following-recent-second-quarter-update-224294.html ROTH Capital Research repeats Buy rating, $6.50 price target Gold Resource Corp shares following recent second quarter update https://www.miningcapital.com/companies/news/224294/roth-capital-research-repeats-buy-rating-650-price-target-gold-resource-corp-shares-following-recent-second-quarter-update-224294.html Mon, 22 Jul 2019 15:13:00 +0100 https://www.miningcapital.com/companies/stocktube/14156/dunnedin-ventures-sees-stock-rise-after-positive-news-from-project-near-trapper-claim-14156.html Dunnedin Ventures sees stock rise after positive news from project near Trapper claim https://www.miningcapital.com/companies/stocktube/14156/dunnedin-ventures-sees-stock-rise-after-positive-news-from-project-near-trapper-claim-14156.html Mon, 22 Jul 2019 14:18:00 +0100 Dunnedin Ventures (CVE: DVI) President and CEO Claudia Tornquist sat down with Steve Darling from Proactive Investors Vancouver to discuss their Trapper Gold and Copper project in the Golden Triangle in Northern British Columbia.

Tornquist talked about the work they did on it and also about a neighbouring property and how their recent news is affecting Dunnedin.

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https://www.miningcapital.com/companies/news/224285/fura-gems-amends-option-deal-to-buy-capricorn-sapphire-mining-project-in-queensland-224285.html Fura Gems amends option deal to buy Capricorn sapphire mining project in Queensland https://www.miningcapital.com/companies/news/224285/fura-gems-amends-option-deal-to-buy-capricorn-sapphire-mining-project-in-queensland-224285.html Mon, 22 Jul 2019 13:00:00 +0100 https://www.miningcapital.com/companies/news/224283/galantas-gold-tracks-kearney-vein-down-to-fourth-level-at-omagh-mine-224283.html Galantas Gold tracks Kearney vein down to fourth level at Omagh mine https://www.miningcapital.com/companies/news/224283/galantas-gold-tracks-kearney-vein-down-to-fourth-level-at-omagh-mine-224283.html Mon, 22 Jul 2019 11:54:00 +0100 https://www.miningcapital.com/companies/news/224275/castillo-coppers-three-pillared-strategy-to-drive-transition-into-mid-tier-copper-company-224275.html Castillo Copper’s three-pillared strategy to drive transition into mid-tier copper company https://www.miningcapital.com/companies/news/224275/castillo-coppers-three-pillared-strategy-to-drive-transition-into-mid-tier-copper-company-224275.html Mon, 22 Jul 2019 09:25:00 +0100 https://www.miningcapital.com/companies/news/224274/sirius-minerals-bosses-to-begin-bond-roadshow-this-week-224274.html Sirius Minerals bosses to begin bond roadshow this week https://www.miningcapital.com/companies/news/224274/sirius-minerals-bosses-to-begin-bond-roadshow-this-week-224274.html Mon, 22 Jul 2019 09:00:00 +0100 https://www.miningcapital.com/companies/stocktube/14151/galantas-gold-seeing--racy--grades-at-omagh-as-development-work-advances-14151.html Galantas Gold seeing 'racy' grades at Omagh as development work advances https://www.miningcapital.com/companies/stocktube/14151/galantas-gold-seeing--racy--grades-at-omagh-as-development-work-advances-14151.html Mon, 22 Jul 2019 08:53:00 +0100 Galantas Gold Corporation's (LON:GAL) roland Phelps tells Proactive London's Andrew Scott they've hit more strong gold indications from work at the Omagh mine in Northern Ireland.

An access drive on the fourth (1060) level intersected the Kearney vein ahead of schedule.

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https://www.miningcapital.com/companies/news/224269/galantas-gold-continues-to-find-strong-gold-indications-at-omagh-224269.html Galantas Gold continues to find strong gold indications at Omagh https://www.miningcapital.com/companies/news/224269/galantas-gold-continues-to-find-strong-gold-indications-at-omagh-224269.html Mon, 22 Jul 2019 07:31:00 +0100 https://www.miningcapital.com/companies/news/224252/twenty-seven-company-expedites-exploration-on-rover-gold-target-near-sandstone-224252.html Twenty Seven Company expedites exploration on Rover gold target near Sandstone https://www.miningcapital.com/companies/news/224252/twenty-seven-company-expedites-exploration-on-rover-gold-target-near-sandstone-224252.html Mon, 22 Jul 2019 07:20:00 +0100 https://www.miningcapital.com/companies/news/224266/regency-mines-refinances-debt-reduces-annual-payment-requirements-224266.html Regency Mines refinances debt, reduces annual payment requirements https://www.miningcapital.com/companies/news/224266/regency-mines-refinances-debt-reduces-annual-payment-requirements-224266.html Mon, 22 Jul 2019 07:19:00 +0100 https://www.miningcapital.com/companies/news/224263/pembridge-resources-secures-advanced-payment-off-take-deal-with-sumitomo-224263.html Pembridge Resources secures advanced payment off-take deal with Sumitomo https://www.miningcapital.com/companies/news/224263/pembridge-resources-secures-advanced-payment-off-take-deal-with-sumitomo-224263.html Mon, 22 Jul 2019 07:08:00 +0100 https://www.miningcapital.com/companies/news/224260/yellow-cake-posts-quarterly-nav-update-sees-positive-developments-in-uranium-market-224260.html Yellow Cake posts quarterly NAV update, sees positive developments in uranium market https://www.miningcapital.com/companies/news/224260/yellow-cake-posts-quarterly-nav-update-sees-positive-developments-in-uranium-market-224260.html Mon, 22 Jul 2019 06:56:00 +0100 https://www.miningcapital.com/companies/news/224244/chase-mining-gains-first-nations-access-approval-for-drilling-at-lorraine-224244.html Chase Mining gains First Nations access approval for drilling at Lorraine https://www.miningcapital.com/companies/news/224244/chase-mining-gains-first-nations-access-approval-for-drilling-at-lorraine-224244.html Mon, 22 Jul 2019 04:45:00 +0100 https://www.miningcapital.com/companies/news/224245/arafura-resources-banks-232-million-to-advance-magnet-metals-project-224245.html Arafura Resources banks $23.2 million to advance magnet metals project https://www.miningcapital.com/companies/news/224245/arafura-resources-banks-232-million-to-advance-magnet-metals-project-224245.html Mon, 22 Jul 2019 04:12:00 +0100 https://www.miningcapital.com/companies/news/224242/galan-lithium-hits-more-high-grade-brine-at-candelas-project-in-argentina-224242.html Galan Lithium hits more high-grade brine at Candelas project in Argentina https://www.miningcapital.com/companies/news/224242/galan-lithium-hits-more-high-grade-brine-at-candelas-project-in-argentina-224242.html Mon, 22 Jul 2019 03:41:00 +0100 https://www.miningcapital.com/companies/news/224241/volt-resources-share-purchase-plan-to-raise-at-least-11-million-for-debt-facility-restructure-224241.html Volt Resources’ share purchase plan to raise at least $1.1 million for debt facility restructure https://www.miningcapital.com/companies/news/224241/volt-resources-share-purchase-plan-to-raise-at-least-11-million-for-debt-facility-restructure-224241.html Mon, 22 Jul 2019 03:29:00 +0100 https://www.miningcapital.com/companies/news/224238/venus-metals-drilling-seeks-further-bonanza-grade-gold-at-youanmi-224238.html Venus Metals drilling seeks further bonanza-grade gold at Youanmi https://www.miningcapital.com/companies/news/224238/venus-metals-drilling-seeks-further-bonanza-grade-gold-at-youanmi-224238.html Mon, 22 Jul 2019 02:20:00 +0100 https://www.miningcapital.com/companies/news/224240/meteoric-resources-to-follow-up-bonanza-gold-grades-with-maiden-drill-program-at-juruena-gold-project-224240.html Meteoric Resources to follow-up bonanza gold grades with maiden drill program at Juruena Gold Project https://www.miningcapital.com/companies/news/224240/meteoric-resources-to-follow-up-bonanza-gold-grades-with-maiden-drill-program-at-juruena-gold-project-224240.html Mon, 22 Jul 2019 01:57:00 +0100 https://www.miningcapital.com/companies/news/224234/alto-metals-golden-lord-nelson-results-show-potential-to-grow-sandstone-resource-224234.html Alto Metals golden Lord Nelson results show potential to grow Sandstone resource https://www.miningcapital.com/companies/news/224234/alto-metals-golden-lord-nelson-results-show-potential-to-grow-sandstone-resource-224234.html Mon, 22 Jul 2019 01:12:00 +0100 https://www.miningcapital.com/companies/news/224236/galena-mining-feasibility-study-reaffirms-half-billion-dollar-base-metal-mine-224236.html Galena Mining feasibility study reaffirms half billion dollar base metal mine https://www.miningcapital.com/companies/news/224236/galena-mining-feasibility-study-reaffirms-half-billion-dollar-base-metal-mine-224236.html Mon, 22 Jul 2019 01:02:00 +0100 https://www.miningcapital.com/companies/news/224235/resolute-minings-ravenswood-expansion-project-gets-bigger-with-gold-reserves-up-58-224235.html Resolute Mining’s Ravenswood Expansion Project gets bigger with gold reserves up 58% https://www.miningcapital.com/companies/news/224235/resolute-minings-ravenswood-expansion-project-gets-bigger-with-gold-reserves-up-58-224235.html Mon, 22 Jul 2019 00:39:00 +0100 https://www.miningcapital.com/companies/news/224233/ironbark-zinc-commences-study-on-high-grade-starter-mine-224233.html Ironbark Zinc commences study on high-grade starter mine https://www.miningcapital.com/companies/news/224233/ironbark-zinc-commences-study-on-high-grade-starter-mine-224233.html Sun, 21 Jul 2019 23:50:00 +0100 https://www.miningcapital.com/companies/news/224232/alita-resources-june-quarter-gets-tick-from-canaccord-224232.html Alita Resources June quarter gets tick from Canaccord https://www.miningcapital.com/companies/news/224232/alita-resources-june-quarter-gets-tick-from-canaccord-224232.html Sun, 21 Jul 2019 22:39:00 +0100 https://www.miningcapital.com/companies/news/224230/peninsula-energy-secures-speculative-buy-recommendation-from-euroz-securities-224230.html Peninsula Energy secures speculative buy recommendation from Euroz Securities https://www.miningcapital.com/companies/news/224230/peninsula-energy-secures-speculative-buy-recommendation-from-euroz-securities-224230.html Sun, 21 Jul 2019 22:30:00 +0100 https://www.miningcapital.com/companies/news/224231/globex-mining-raises-c12-million-in-private-placement-224231.html Globex Mining raises C$1.2 million in private placement https://www.miningcapital.com/companies/news/224231/globex-mining-raises-c12-million-in-private-placement-224231.html Fri, 19 Jul 2019 20:01:00 +0100 https://www.miningcapital.com/companies/news/224226/enertopia-expects-lithium-test-results-in-early-august-receives-short-term-loan-224226.html Enertopia expects lithium test results in early August; receives short-term loan https://www.miningcapital.com/companies/news/224226/enertopia-expects-lithium-test-results-in-early-august-receives-short-term-loan-224226.html Fri, 19 Jul 2019 15:17:00 +0100 https://www.miningcapital.com/companies/news/224219/sirius-minerals-launches-us500mln-bond-to-fund-development-of-huge-fertiliser-mine-224219.html Sirius Minerals launches US$500mln bond to fund development of huge fertiliser mine https://www.miningcapital.com/companies/news/224219/sirius-minerals-launches-us500mln-bond-to-fund-development-of-huge-fertiliser-mine-224219.html Fri, 19 Jul 2019 13:40:00 +0100 https://www.miningcapital.com/companies/news/224217/constantine-metals-resources-files-prelimiary-economic-assessment-on-palmer-project-224217.html Constantine Metals Resources files prelimiary economic assessment on Palmer project https://www.miningcapital.com/companies/news/224217/constantine-metals-resources-files-prelimiary-economic-assessment-on-palmer-project-224217.html Fri, 19 Jul 2019 13:30:00 +0100 https://www.miningcapital.com/companies/news/224152/japan-gold-gets-its-hands-on-prospective-togi-goldfield-224152.html Japan Gold gets its hands on prospective Togi Goldfield https://www.miningcapital.com/companies/news/224152/japan-gold-gets-its-hands-on-prospective-togi-goldfield-224152.html Fri, 19 Jul 2019 13:18:00 +0100 https://www.miningcapital.com/companies/news/224215/rnc-minerals-names-mining-executive-paul-andre-huet-as-interim-ceo-after-former-chief-steps-down-224215.html RNC Minerals names mining executive Paul Andre Huet as interim CEO after former chief steps down https://www.miningcapital.com/companies/news/224215/rnc-minerals-names-mining-executive-paul-andre-huet-as-interim-ceo-after-former-chief-steps-down-224215.html Fri, 19 Jul 2019 12:35:00 +0100 https://www.miningcapital.com/columns/jackhammer/31082/gold-at-new-six-year-high-as-fed-members-tease-markets-and-middle-east-tensions-remain-high-31082.html Gold at new six year high as Fed members tease markets and Middle East tensions remain high https://www.miningcapital.com/columns/jackhammer/31082/gold-at-new-six-year-high-as-fed-members-tease-markets-and-middle-east-tensions-remain-high-31082.html Fri, 19 Jul 2019 12:14:00 +0100 https://www.miningcapital.com/companies/news/224175/pure-gold-mining-shines-with-closing-of-c475-million-in-financing-led-by-billionaire-investor-eric-sprott-224175.html Pure Gold Mining shines with closing of C$47.5 million in financing led by billionaire investor Eric Sprott https://www.miningcapital.com/companies/news/224175/pure-gold-mining-shines-with-closing-of-c475-million-in-financing-led-by-billionaire-investor-eric-sprott-224175.html Fri, 19 Jul 2019 11:30:00 +0100 https://www.miningcapital.com/companies/news/224211/mgx-minerals-subsidiary-mgx-renewables-approved-to-list-on-the-canadian-securities-exchange-224211.html MGX Minerals subsidiary MGX Renewables approved to list on the Canadian Securities Exchange https://www.miningcapital.com/companies/news/224211/mgx-minerals-subsidiary-mgx-renewables-approved-to-list-on-the-canadian-securities-exchange-224211.html Fri, 19 Jul 2019 11:28:00 +0100 https://www.miningcapital.com/companies/news/224210/kore-potash-bosses-dip-into-their-own-pockets-as-part-of-us13mln-financing-224210.html Kore Potash bosses dip into their own pockets as part of US$13mln financing https://www.miningcapital.com/companies/news/224210/kore-potash-bosses-dip-into-their-own-pockets-as-part-of-us13mln-financing-224210.html Fri, 19 Jul 2019 11:00:00 +0100 https://www.miningcapital.com/companies/stocktube/14142/metalla-royalty-and-streaming-set-up-for-success-after-growing-portfolio-to-43-assets-14142.html Metalla Royalty and Streaming set up for success after growing portfolio to 43 assets https://www.miningcapital.com/companies/stocktube/14142/metalla-royalty-and-streaming-set-up-for-success-after-growing-portfolio-to-43-assets-14142.html Fri, 19 Jul 2019 10:30:00 +0100 Metalla Royalty and Streaming (CVE:MTA-OTCQB: MTAFF) President and CEO Brett Heath joined Steve Darling from Proactive Investors Vancouver to provide an update on what has been a very busy past few months.

Heath Telling proactive about the assets they have in their portfolio, the price and gold and where he feels it's headed and what shareholders should be looking forward to in the months ahead.

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https://www.miningcapital.com/companies/news/224208/ecr-minerals-sees--vote-of-confidence--from-service-providers-224208.html ECR Minerals sees 'vote of confidence' from service providers https://www.miningcapital.com/companies/news/224208/ecr-minerals-sees--vote-of-confidence--from-service-providers-224208.html Fri, 19 Jul 2019 10:22:00 +0100 https://www.miningcapital.com/companies/news/224204/bluerock-diamonds-sells-122-carat-diamond-for-us105000-224204.html Bluerock Diamonds sells 12.2 carat diamond for US$105,000 https://www.miningcapital.com/companies/news/224204/bluerock-diamonds-sells-122-carat-diamond-for-us105000-224204.html Fri, 19 Jul 2019 09:02:00 +0100 https://www.miningcapital.com/companies/news/224203/van-elle-shares-slip-on-another-profit-warning-224203.html Van Elle shares slip on another profit warning https://www.miningcapital.com/companies/news/224203/van-elle-shares-slip-on-another-profit-warning-224203.html Fri, 19 Jul 2019 08:12:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/31079/vsa-capital-market-movers---lake-resources-31079.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/31079/vsa-capital-market-movers---lake-resources-31079.html Fri, 19 Jul 2019 08:03:00 +0100

VSA Morning Miner, 19/07/19

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 (LON:TTAU) has announced that it is preparing a submission for the Australian Federal Government R&D Tax Incentive Scheme and that it has been approved to participate for the 2018/2019 tax year. Given TTAU’s use of innovative and advanced new technology particularly in relation to deep penetrating geophysical techniques as well as working closely with universities to redefine the regional geological model the company has benefited significantly from the scheme in the past which provides a 43.5% cash rebate on all qualifying technical expenditure. Since inception Signature Gold, now TTAU, has reclaimed A$2.5m.

Although the quantum of the claim is being prepared for submission and the outcome is not yet known the company has indicated that it intends to utilise any funding received to advance the Mt Cassidy project with diamond drilling beyond the 15 historical holes that have been drilled. It is thought that a shallow porphyry target is present given structural alterations and geochemistry supportive of IRGS structures.

Funding support which is non-dilutive is of particular benefit to exploration companies and given the successful claims in the past we anticipate that TTAU will continue to benefit.
We reiterate our Speculative Buy recommendation.

 

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https://www.miningcapital.com/companies/news/224199/acacia-mining-agrees-to-offer-from-parent-barrick-gold-224199.html Acacia Mining agrees to offer from parent Barrick Gold https://www.miningcapital.com/companies/news/224199/acacia-mining-agrees-to-offer-from-parent-barrick-gold-224199.html Fri, 19 Jul 2019 07:15:00 +0100 https://www.miningcapital.com/companies/news/224198/landlord-giant-grainger-sees-limited-effect-from-sadiq-khans-london-rental-market-overhaul-224198.html Landlord giant Grainger sees limited effect from Sadiq Khan’s London rental market overhaul https://www.miningcapital.com/companies/news/224198/landlord-giant-grainger-sees-limited-effect-from-sadiq-khans-london-rental-market-overhaul-224198.html Fri, 19 Jul 2019 07:05:00 +0100 https://www.miningcapital.com/companies/news/224189/cardinal-resources-on-track-with-namdini-gold-project-feasibility-study-224189.html Cardinal Resources on track with Namdini Gold Project feasibility study https://www.miningcapital.com/companies/news/224189/cardinal-resources-on-track-with-namdini-gold-project-feasibility-study-224189.html Fri, 19 Jul 2019 06:26:00 +0100 https://www.miningcapital.com/companies/news/224185/jindalee-resources-confirms-high-lithium-recoveries-with-lower-acid-consumption-224185.html Jindalee Resources confirms high lithium recoveries with lower acid consumption https://www.miningcapital.com/companies/news/224185/jindalee-resources-confirms-high-lithium-recoveries-with-lower-acid-consumption-224185.html Fri, 19 Jul 2019 05:43:00 +0100 https://www.miningcapital.com/companies/news/224186/hardey-resources-finds-high-grade-gold-in-rock-chip-sampling-at-cheela-plains-224186.html Hardey Resources finds high-grade gold in rock chip sampling at Cheela Plains https://www.miningcapital.com/companies/news/224186/hardey-resources-finds-high-grade-gold-in-rock-chip-sampling-at-cheela-plains-224186.html Fri, 19 Jul 2019 05:16:00 +0100 https://www.miningcapital.com/companies/news/224053/bardoc-gold-confirms-zoroastrian-potential-at-namesake-project-in-wa-goldfields-224053.html Bardoc Gold confirms Zoroastrian potential at namesake project in WA Goldfields https://www.miningcapital.com/companies/news/224053/bardoc-gold-confirms-zoroastrian-potential-at-namesake-project-in-wa-goldfields-224053.html Fri, 19 Jul 2019 04:46:00 +0100 https://www.miningcapital.com/companies/news/224184/st-george-mining-placement-attracts-new-investor-in-moho-resources-224184.html St George Mining placement attracts new investor in Moho Resources https://www.miningcapital.com/companies/news/224184/st-george-mining-placement-attracts-new-investor-in-moho-resources-224184.html Fri, 19 Jul 2019 04:38:00 +0100 https://www.miningcapital.com/companies/news/224183/altech-chemicals-nominees-approved-for-appointment-to-yag-management-board-224183.html Altech Chemicals nominees approved for appointment to YAG management board https://www.miningcapital.com/companies/news/224183/altech-chemicals-nominees-approved-for-appointment-to-yag-management-board-224183.html Fri, 19 Jul 2019 03:31:00 +0100 https://www.miningcapital.com/companies/news/224181/st-george-mining-expands-nickel-copper-exploration-after-securing-3-million-224181.html St George Mining expands nickel-copper exploration after securing $3 million https://www.miningcapital.com/companies/news/224181/st-george-mining-expands-nickel-copper-exploration-after-securing-3-million-224181.html Fri, 19 Jul 2019 02:02:00 +0100 https://www.miningcapital.com/companies/news/224182/emmerson-resources-maintains-speculative-buy-recommendation-from-hartleys-224182.html Emmerson Resources maintains Speculative Buy recommendation from Hartleys https://www.miningcapital.com/companies/news/224182/emmerson-resources-maintains-speculative-buy-recommendation-from-hartleys-224182.html Fri, 19 Jul 2019 01:51:00 +0100 https://www.miningcapital.com/companies/news/224180/canyon-resources-in-trading-halt-ahead-of-capital-raising-news-224180.html Canyon Resources in trading halt ahead of capital raising news https://www.miningcapital.com/companies/news/224180/canyon-resources-in-trading-halt-ahead-of-capital-raising-news-224180.html Fri, 19 Jul 2019 01:40:00 +0100 https://www.miningcapital.com/companies/news/224178/danakali-primed-to-execute-world-class-colluli-sulphate-of-potash-project-224178.html Danakali primed to execute world-class Colluli Sulphate of Potash Project https://www.miningcapital.com/companies/news/224178/danakali-primed-to-execute-world-class-colluli-sulphate-of-potash-project-224178.html Fri, 19 Jul 2019 01:08:00 +0100 https://www.miningcapital.com/companies/news/224177/galena-mining-drills-25-lead-and-516-gt-silver-at-abra-224177.html Galena Mining drills 25% lead and 516 g/t silver at Abra https://www.miningcapital.com/companies/news/224177/galena-mining-drills-25-lead-and-516-gt-silver-at-abra-224177.html Fri, 19 Jul 2019 01:00:00 +0100 https://www.miningcapital.com/companies/news/224174/alto-metals-chairman-buys-600000-worth-of-shares-224174.html Alto Metals chairman buys $600,000 worth of shares https://www.miningcapital.com/companies/news/224174/alto-metals-chairman-buys-600000-worth-of-shares-224174.html Thu, 18 Jul 2019 23:09:00 +0100 https://www.miningcapital.com/companies/news/224030/chase-mining-plans-quebec-drilling-campaign-kick-off-at-lorraine-224030.html Chase Mining plans Quebec drilling campaign kick-off at Lorraine https://www.miningcapital.com/companies/news/224030/chase-mining-plans-quebec-drilling-campaign-kick-off-at-lorraine-224030.html Thu, 18 Jul 2019 22:25:00 +0100 https://www.miningcapital.com/companies/news/224173/global-atomic-corporation-boosts-indicated-resource-sees-significant-upgrade-224173.html Global Atomic Corporation boosts indicated resource; sees significant upgrade https://www.miningcapital.com/companies/news/224173/global-atomic-corporation-boosts-indicated-resource-sees-significant-upgrade-224173.html Thu, 18 Jul 2019 21:26:00 +0100 https://www.miningcapital.com/companies/news/224170/noble-capital-markets-sets-outperform-rating-and-150-price-target-on-great-panther-mining-shares-224170.html Noble Capital Markets sets outperform rating and $1.50 price target on Great Panther Mining shares https://www.miningcapital.com/companies/news/224170/noble-capital-markets-sets-outperform-rating-and-150-price-target-on-great-panther-mining-shares-224170.html Thu, 18 Jul 2019 20:53:00 +0100 https://www.miningcapital.com/companies/news/224167/pure-gold-mining-the-red-lake-mine-developer-brings-in-c475-million-in-financing-224167.html Pure Gold Mining, the Red Lake mine developer, brings in C$47.5 million in financing https://www.miningcapital.com/companies/news/224167/pure-gold-mining-the-red-lake-mine-developer-brings-in-c475-million-in-financing-224167.html Thu, 18 Jul 2019 20:14:00 +0100 https://www.miningcapital.com/companies/news/224147/gold-resource-corp-reiterates-full-year-production-guidance-for-mexican-mines--as-it-reports-2q-numbers-224147.html Gold Resource Corp reiterates full year production guidance for Mexican mines as it reports 2Q numbers https://www.miningcapital.com/companies/news/224147/gold-resource-corp-reiterates-full-year-production-guidance-for-mexican-mines--as-it-reports-2q-numbers-224147.html Thu, 18 Jul 2019 16:19:00 +0100 https://www.miningcapital.com/companies/news/224145/fura-gems-bids-farewell-to-board-member-scott-moore-224145.html Fura Gems bids farewell to board member Scott Moore https://www.miningcapital.com/companies/news/224145/fura-gems-bids-farewell-to-board-member-scott-moore-224145.html Thu, 18 Jul 2019 15:22:00 +0100 https://www.miningcapital.com/companies/news/224161/carube-copper-reveals-new-gold-anomaly-at-nova-scotia-project-224161.html Carube Copper reveals new gold anomaly at Nova Scotia project https://www.miningcapital.com/companies/news/224161/carube-copper-reveals-new-gold-anomaly-at-nova-scotia-project-224161.html Thu, 18 Jul 2019 15:05:00 +0100 https://www.miningcapital.com/companies/news/224142/mawson-resources-hails-drill-results-from-fifth-prospect-discovered-at-giant-rajapalot-project-224142.html Mawson Resources hails drill results from fifth prospect discovered at giant Rajapalot project https://www.miningcapital.com/companies/news/224142/mawson-resources-hails-drill-results-from-fifth-prospect-discovered-at-giant-rajapalot-project-224142.html Thu, 18 Jul 2019 15:03:00 +0100 https://www.miningcapital.com/companies/news/224162/erris-resources-pleased-to-have-centerra-as-a-partner-224162.html Erris Resources pleased to have Centerra as a partner https://www.miningcapital.com/companies/news/224162/erris-resources-pleased-to-have-centerra-as-a-partner-224162.html Thu, 18 Jul 2019 15:01:00 +0100 https://www.miningcapital.com/companies/news/219505/mawson-resources-seeing-results-as-it-bids-to-expand-flagship-resource-in-mining-hotspot-finland-219505.html Mawson Resources seeing results as it bids to expand flagship resource in mining hotspot Finland https://www.miningcapital.com/companies/news/219505/mawson-resources-seeing-results-as-it-bids-to-expand-flagship-resource-in-mining-hotspot-finland-219505.html Thu, 18 Jul 2019 14:54:00 +0100 https://www.miningcapital.com/companies/news/224156/grapheneca-inks-pact-with-apis-cor-to-disrupt-the-construction-industry-with-3d-printers-224156.html GrapheneCA inks pact with Apis Cor to disrupt the construction industry with 3D printers https://www.miningcapital.com/companies/news/224156/grapheneca-inks-pact-with-apis-cor-to-disrupt-the-construction-industry-with-3d-printers-224156.html Thu, 18 Jul 2019 14:10:00 +0100 https://www.miningcapital.com/companies/news/224146/xanadu-mines-board-members-show-confidence-with-share-purchases-224146.html Xanadu Mines board members show confidence with share purchases https://www.miningcapital.com/companies/news/224146/xanadu-mines-board-members-show-confidence-with-share-purchases-224146.html Thu, 18 Jul 2019 12:12:00 +0100 https://www.miningcapital.com/companies/news/224140/lake-resources-extends-high-grade-lithium-brine-zone-discovered-at-cauchari-project-within-lithium-triangle-224140.html Lake Resources extends high-grade lithium brine zone discovered at Cauchari project within Lithium Triangle https://www.miningcapital.com/companies/news/224140/lake-resources-extends-high-grade-lithium-brine-zone-discovered-at-cauchari-project-within-lithium-triangle-224140.html Thu, 18 Jul 2019 10:54:00 +0100 https://www.miningcapital.com/companies/news/224138/bellevue-gold-sitting-on-one-of-the-highest-grade-gold-projects-to-be-found-anywhere-in-the-world-224138.html Bellevue Gold sitting on one of the highest grade gold projects to be found anywhere in the world https://www.miningcapital.com/companies/news/224138/bellevue-gold-sitting-on-one-of-the-highest-grade-gold-projects-to-be-found-anywhere-in-the-world-224138.html Thu, 18 Jul 2019 10:32:00 +0100 https://www.miningcapital.com/companies/news/224136/tally-launches-physical-gold-backed-bank-account-224136.html Tally launches physical gold-backed bank account https://www.miningcapital.com/companies/news/224136/tally-launches-physical-gold-backed-bank-account-224136.html Thu, 18 Jul 2019 10:00:00 +0100 https://www.miningcapital.com/companies/stocktube/14132/archer-exploration-forges-ahead-with-advanced-materials-in-human-health-and-builds-relationship-with-german-biotech-14132.html Archer Exploration forges ahead with advanced materials in human health and builds relationship with German Biotech https://www.miningcapital.com/companies/stocktube/14132/archer-exploration-forges-ahead-with-advanced-materials-in-human-health-and-builds-relationship-with-german-biotech-14132.html Thu, 18 Jul 2019 08:53:00 +0100 Archer Exploration Ltd (ASX:AXE) chief executive officer Dr Mohammad Choucair updates Proactive Investors on exciting work the company is working on in advanced materials in the human health side of the business.

While recent updates have been on Archer’s ground breaking quantum computing projects, the company also has big developments on new materials, tying in the three verticals of quantum computing, human health and reliable energy.

A new relationship is being forged with a German Biotech company, and the work of a patent is underway, with hopes of a patent registration in February.

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https://www.miningcapital.com/companies/stocktube/14131/shanta-gold-moves-into-second-half-with--strong-balance-sheet-and-operations--14131.html Shanta Gold moves into second half with 'strong balance sheet and operations' https://www.miningcapital.com/companies/stocktube/14131/shanta-gold-moves-into-second-half-with--strong-balance-sheet-and-operations--14131.html Thu, 18 Jul 2019 08:14:00 +0100 Shanta Gold PLC's (LON:SHG) Eric Zurrin tells Proactive London's Andrew Scott production in the first half-year totalled 42,230 ounces - up 11% on a year ago.

Looking ahead to the second half of the year he's expecting more on-mine and regional exploration results, the launch of the Singida IPO and hopefully some movement on the US$25mln VAT receivable.

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https://www.miningcapital.com/companies/news/224128/exploration-success-adds-gloss-to-strong-production-at-hochschild-mining-224128.html Exploration success adds gloss to strong production at Hochschild Mining https://www.miningcapital.com/companies/news/224128/exploration-success-adds-gloss-to-strong-production-at-hochschild-mining-224128.html Thu, 18 Jul 2019 08:11:00 +0100 https://www.miningcapital.com/companies/news/224127/south32-shares-drop-on-fourth-quarter-update-224127.html South32 shares drop on fourth quarter update https://www.miningcapital.com/companies/news/224127/south32-shares-drop-on-fourth-quarter-update-224127.html Thu, 18 Jul 2019 08:07:00 +0100 https://www.miningcapital.com/companies/stocktube/14130/bluerock-diamonds-team-on-profit-expectations-and-kareevlei-resource-potential-14130.html BlueRock Diamonds team on profit expectations and Kareevlei resource potential https://www.miningcapital.com/companies/stocktube/14130/bluerock-diamonds-team-on-profit-expectations-and-kareevlei-resource-potential-14130.html Thu, 18 Jul 2019 08:06:00 +0100 BlueRock Diamonds PLC's (LON:BRD) Mike Houston and Gus Simbanegavi caught up with Proactive's Andrew Scott while in London soon after the release of the miner's second quarter update.

Grades and production from the Kareevlei diamond mine in South Africa hit a record in the period.

They're expecting the firm to move into profit in the second half of the year with the focus thereafter being how to increase production to the optimum level.

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https://www.miningcapital.com/companies/news/224121/scotgold-resources-trims-portugal-licence-to-focus-on-cononish-224121.html Scotgold Resources trims Portugal licence to focus on Cononish https://www.miningcapital.com/companies/news/224121/scotgold-resources-trims-portugal-licence-to-focus-on-cononish-224121.html Thu, 18 Jul 2019 07:27:00 +0100 https://www.miningcapital.com/companies/news/224115/anglo-american--broadly-on-track--to-meet-full-year-production-targets-224115.html Anglo American "broadly on track" to meet full-year production targets https://www.miningcapital.com/companies/news/224115/anglo-american--broadly-on-track--to-meet-full-year-production-targets-224115.html Thu, 18 Jul 2019 07:09:00 +0100 https://www.miningcapital.com/companies/news/224118/centamin-eyes-production-upside-in-second-half-224118.html Centamin eyes production upside in second half https://www.miningcapital.com/companies/news/224118/centamin-eyes-production-upside-in-second-half-224118.html Thu, 18 Jul 2019 06:58:00 +0100 https://www.miningcapital.com/companies/news/224117/shanta-gold-to-ipo-singida-in-second-half-of-the-year-224117.html Shanta Gold to IPO Singida in second half of the year https://www.miningcapital.com/companies/news/224117/shanta-gold-to-ipo-singida-in-second-half-of-the-year-224117.html Thu, 18 Jul 2019 06:57:00 +0100 https://www.miningcapital.com/companies/news/224109/sunrise-resources-chairman-increases-shareholding-224109.html Sunrise Resources chairman increases shareholding https://www.miningcapital.com/companies/news/224109/sunrise-resources-chairman-increases-shareholding-224109.html Thu, 18 Jul 2019 06:30:00 +0100 https://www.miningcapital.com/companies/news/224107/kavango-receives-assay-results-from-ditau-prospect-224107.html Kavango receives assay results from Ditau prospect https://www.miningcapital.com/companies/news/224107/kavango-receives-assay-results-from-ditau-prospect-224107.html Thu, 18 Jul 2019 06:19:00 +0100 https://www.miningcapital.com/companies/news/224105/chase-mining-director-buys-another-lot-of-shares-on-market-224105.html Chase Mining director buys another lot of shares on-market https://www.miningcapital.com/companies/news/224105/chase-mining-director-buys-another-lot-of-shares-on-market-224105.html Thu, 18 Jul 2019 06:02:00 +0100 https://www.miningcapital.com/companies/news/224103/volt-resources-enters-trading-halt-ahead-of-capital-raising-bunyu-graphite-development-ongoing-224103.html Volt Resources enters trading halt ahead of capital raising, Bunyu graphite development ongoing https://www.miningcapital.com/companies/news/224103/volt-resources-enters-trading-halt-ahead-of-capital-raising-bunyu-graphite-development-ongoing-224103.html Thu, 18 Jul 2019 05:32:00 +0100 https://www.miningcapital.com/companies/stocktube/14128/southern-gold-strikes-bonanza-grades-at-deokon-gold-silver-discovery-in-south-korea-14128.html Southern Gold strikes ‘bonanza’ grades at Deokon gold-silver discovery in South Korea https://www.miningcapital.com/companies/stocktube/14128/southern-gold-strikes-bonanza-grades-at-deokon-gold-silver-discovery-in-south-korea-14128.html Thu, 18 Jul 2019 05:05:00 +0100 Southern Gold Limited (ASX: SAU) managing director Simon Mitchell updates Proactive Investors on a gold-silver discovery in South Korea that has returned ‘bonanza’ grade results.

The outcrop and float assays are from the project’s April–June 2019 field program, with assays returning a peak of 32.4 g/t gold and 1,095 g/t silver in outcrop and 53.9 g/t gold and 6,240 g/t silver in float.

Mitchell says the results vindicate the company’s project generation work undertaken in South Korea to date.

Maiden diamond drilling will commence as soon as possible.

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https://www.miningcapital.com/companies/news/224098/west-wits-mining-desktop-study-highlights-exploration-potential-of-mt-cecelia-224098.html West Wits Mining desktop study highlights exploration potential of Mt Cecelia https://www.miningcapital.com/companies/news/224098/west-wits-mining-desktop-study-highlights-exploration-potential-of-mt-cecelia-224098.html Thu, 18 Jul 2019 04:30:00 +0100 https://www.miningcapital.com/companies/news/224100/de-grey-mining-raising-22-million-to-fund-indee-gold-acquisition-and-further-exploration-224100.html De Grey Mining raising $22 million to fund Indee Gold acquisition and further exploration https://www.miningcapital.com/companies/news/224100/de-grey-mining-raising-22-million-to-fund-indee-gold-acquisition-and-further-exploration-224100.html Thu, 18 Jul 2019 04:09:00 +0100 https://www.miningcapital.com/companies/news/224097/oklo-resources-exercises-option-to-acquire-stake-in-mali-gold-project-224097.html Oklo Resources exercises option to acquire stake in Mali gold project https://www.miningcapital.com/companies/news/224097/oklo-resources-exercises-option-to-acquire-stake-in-mali-gold-project-224097.html Thu, 18 Jul 2019 03:07:00 +0100 https://www.miningcapital.com/companies/news/224094/australian-vanadium-will-use-positive-assay-results-for-upgraded-resource-estimate-224094.html Australian Vanadium will use positive assay results for upgraded resource estimate https://www.miningcapital.com/companies/news/224094/australian-vanadium-will-use-positive-assay-results-for-upgraded-resource-estimate-224094.html Thu, 18 Jul 2019 02:41:00 +0100 https://www.miningcapital.com/companies/news/224095/cobalt-blue-to-apply-processing-technology-in-tests-at-gemc-project-224095.html Cobalt Blue to apply processing technology in tests at GEMC project https://www.miningcapital.com/companies/news/224095/cobalt-blue-to-apply-processing-technology-in-tests-at-gemc-project-224095.html Thu, 18 Jul 2019 01:54:00 +0100 https://www.miningcapital.com/companies/news/224093/comet-resources-hires-specialist-to-explore-for-more-graphite-from-the-air-224093.html Comet Resources hires specialist to explore for more graphite from the air https://www.miningcapital.com/companies/news/224093/comet-resources-hires-specialist-to-explore-for-more-graphite-from-the-air-224093.html Thu, 18 Jul 2019 01:41:00 +0100 https://www.miningcapital.com/companies/news/224092/altech-chemicals-launches-project-equity-strategy-to-advance-hpa-project-224092.html Altech Chemicals launches project equity strategy to advance HPA project https://www.miningcapital.com/companies/news/224092/altech-chemicals-launches-project-equity-strategy-to-advance-hpa-project-224092.html Thu, 18 Jul 2019 01:23:00 +0100 https://www.miningcapital.com/companies/news/224090/metalla-royalty-and-streaming-provides-portfolio-update-224090.html Metalla Royalty and Streaming provides portfolio update https://www.miningcapital.com/companies/news/224090/metalla-royalty-and-streaming-provides-portfolio-update-224090.html Thu, 18 Jul 2019 00:25:00 +0100 https://www.miningcapital.com/companies/news/224091/resources--energy-group-drills-21-metres-at-711-gt-gold-potential-for-large-deposit-224091.html Resources & Energy Group drills 21 metres at 7.11 g/t gold, potential for large deposit https://www.miningcapital.com/companies/news/224091/resources--energy-group-drills-21-metres-at-711-gt-gold-potential-for-large-deposit-224091.html Thu, 18 Jul 2019 00:19:00 +0100 https://www.miningcapital.com/companies/stocktube/14126/perseus-mining-highlights-golden-milestones-for-june-quarter-14126.html Perseus Mining highlights golden milestones for June quarter https://www.miningcapital.com/companies/stocktube/14126/perseus-mining-highlights-golden-milestones-for-june-quarter-14126.html Wed, 17 Jul 2019 23:47:00 +0100 Perseus Mining managing director and CEO Jeff Quartermaine speaks to Proactive Investors about the latest quarterly update with gold production reaching more than 64,000 ounces.

“This has meant half yearly production figures of 131,269 ounces are well above the guidance range we gave to the market,” he says.

“We continue to deliver on the promises we make to the market.”

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https://www.miningcapital.com/companies/news/224088/australian-mines-receives-oversubscriptions-in-spp-secures-58-million-224088.html Australian Mines receives oversubscriptions in SPP, secures $5.8 million https://www.miningcapital.com/companies/news/224088/australian-mines-receives-oversubscriptions-in-spp-secures-58-million-224088.html Wed, 17 Jul 2019 22:50:00 +0100 https://www.miningcapital.com/companies/stocktube/14123/equinox-gold-corp-is-well-financed-well-managed-and-producing-gold-from-two-projects-14123.html Equinox Gold Corp is well financed, well managed, and producing gold from two projects https://www.miningcapital.com/companies/stocktube/14123/equinox-gold-corp-is-well-financed-well-managed-and-producing-gold-from-two-projects-14123.html Wed, 17 Jul 2019 18:31:00 +0100 Equinox Gold Corp (CVE:EQX) CEO Christian Milau sat down with Steve Darling from Proactive Investors Vancouver to discuss the origins of the company and its relationship with mining industry legend Ross Beaty.

Milau also talked about their projects including the Aurizona Gold Mine in Brazil that has just started to pour gold.  

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https://www.miningcapital.com/companies/news/224086/energy-fuels-casts-its-eyes-on-uranium-and-vanadium-as-it-continues-to-bolster-its-projects-224086.html Energy Fuels casts its eyes on uranium and vanadium as it continues to bolster its projects https://www.miningcapital.com/companies/news/224086/energy-fuels-casts-its-eyes-on-uranium-and-vanadium-as-it-continues-to-bolster-its-projects-224086.html Wed, 17 Jul 2019 17:30:00 +0100 https://www.miningcapital.com/companies/news/224084/global-energy-metals-teams-up-with-australian-junior-to-study-metal-recovery-potential-at-millennium-project-224084.html Global Energy Metals teams up with Australian junior to study metal recovery potential at Millennium project https://www.miningcapital.com/companies/news/224084/global-energy-metals-teams-up-with-australian-junior-to-study-metal-recovery-potential-at-millennium-project-224084.html Wed, 17 Jul 2019 16:41:00 +0100 https://www.miningcapital.com/companies/news/224085/berkwood-resources-gearing-up-to-be-busy-on-the-ground-at-lac-gueret-south-graphite-project-224085.html Berkwood Resources gearing up to be busy on the ground at Lac Gueret South graphite project https://www.miningcapital.com/companies/news/224085/berkwood-resources-gearing-up-to-be-busy-on-the-ground-at-lac-gueret-south-graphite-project-224085.html Wed, 17 Jul 2019 14:15:00 +0100 https://www.miningcapital.com/companies/news/224075/shining-some-light-on-the-uranium-market-224075.html Shining some light on the uranium market https://www.miningcapital.com/companies/news/224075/shining-some-light-on-the-uranium-market-224075.html Wed, 17 Jul 2019 13:10:00 +0100 https://www.miningcapital.com/companies/stocktube/14120/red-rock-resources-excited-about-potential-of-its-battery-metal-assets-14120.html Red Rock Resources excited about potential of its battery metal assets https://www.miningcapital.com/companies/stocktube/14120/red-rock-resources-excited-about-potential-of-its-battery-metal-assets-14120.html Wed, 17 Jul 2019 12:49:00 +0100 Red Rock Resources PLC's (LON:RRR) Andrew Bell tells Proactive London they're making progress with key assets in the Democratic Republic of Congo and Kenya.

Work to assess old drill core's been the focus of much of the recent work at the Musonoi joint venture asset, which is adjacent to Glencore's Katanga Mining assets.

The work's the first part of a process of validating the results from historic drilling to announce a JORC Resource.

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https://www.miningcapital.com/companies/news/224072/ximen-mining-makes-first-drawdown-under-alumina-partners-deal-to-the-tune-of--c250000-224072.html Ximen Mining makes first drawdown under Alumina Partners deal to the tune of C$250,000 https://www.miningcapital.com/companies/news/224072/ximen-mining-makes-first-drawdown-under-alumina-partners-deal-to-the-tune-of--c250000-224072.html Wed, 17 Jul 2019 12:32:00 +0100 https://www.miningcapital.com/companies/news/224069/thor-explorations-granted-30-day-extension-on-us15m-placing-224069.html Thor Explorations granted 30 day extension on US$15M placing https://www.miningcapital.com/companies/news/224069/thor-explorations-granted-30-day-extension-on-us15m-placing-224069.html Wed, 17 Jul 2019 12:03:00 +0100 https://www.miningcapital.com/companies/news/221150/arc-minerals-might-have-hit-major-copper-prospect-at-cheyeza-221150.html Arc Minerals might have hit major copper prospect at Cheyeza https://www.miningcapital.com/companies/news/221150/arc-minerals-might-have-hit-major-copper-prospect-at-cheyeza-221150.html Wed, 17 Jul 2019 11:01:00 +0100 https://www.miningcapital.com/companies/news/224050/arc-minerals-hits-more-good-copper-grades-at-cheyeza-224050.html Arc Minerals hits more good copper grades at Cheyeza https://www.miningcapital.com/companies/news/224050/arc-minerals-hits-more-good-copper-grades-at-cheyeza-224050.html Wed, 17 Jul 2019 10:16:00 +0100 https://www.miningcapital.com/companies/news/224058/fresnillo-slumps-as-it-cuts-2019-production-guidance-224058.html Fresnillo slumps as it cuts 2019 production guidance https://www.miningcapital.com/companies/news/224058/fresnillo-slumps-as-it-cuts-2019-production-guidance-224058.html Wed, 17 Jul 2019 10:08:00 +0100 https://www.miningcapital.com/companies/news/224054/bhp-inches-up-as-better-than-expected-petroleum-production-outweighs-drop-in-copper-and-iron-224054.html BHP inches up as better than expected petroleum production outweighs drop in copper and iron https://www.miningcapital.com/companies/news/224054/bhp-inches-up-as-better-than-expected-petroleum-production-outweighs-drop-in-copper-and-iron-224054.html Wed, 17 Jul 2019 08:46:00 +0100 https://www.miningcapital.com/companies/news/224055/ariana-resources-mining-at-near-record-levels-at-kiziltepe-224055.html Ariana Resources mining at near record levels at Kiziltepe https://www.miningcapital.com/companies/news/224055/ariana-resources-mining-at-near-record-levels-at-kiziltepe-224055.html Wed, 17 Jul 2019 08:32:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/31071/vsa-capital-market-movers---columbus-energy-resources-31071.html VSA CAPITAL MARKET MOVERS - Columbus Energy Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/31071/vsa-capital-market-movers---columbus-energy-resources-31071.html Wed, 17 Jul 2019 08:27:00 +0100

Columbus Energy Resources: SWP Maiden Voyage

For the full report. please click here.  

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Columbus Energy Resources (LON:CERP) has announced its intention to drill a low cost well in early Q3 2019 with a second well likely to follow soon after. Each likely to take two to three weeks to complete and are located within CERP’s wholly owned licenses on the highly prospective South West Peninsula (SWP). We highlight the high chances of success for these exploration wells of 45% and 65%. One initial target indicates a mean prospective resources of 66mmbbls and our analysis suggest a NAV of US$81m with the potential to deliver near term and transformational growth which could be largely funded internally based on management guidance.

Private Petroleum License

YTD oil prices have traded broadly within a narrow range of US$50-60/bbl bar a brief break out in April. This price range is uniquely challenging due to Trinidad’s Supplemental Petroleum Tax (SPT) which has hampered CERP’s workover programme on its established production base. As a consequence, we have reduced our near-term assumptions to a more modest growth trajectory and assume 650bopd for 2019F (plus 20% YoY). However, the terms of exploring the SWP are far more attractive and a renegotiated private petroleum license held over the Bonasse field includes very attractive commercial terms for the initial 10mmbbls recoverable resource meaning the economics of producing from the SWP are significantly more attractive than at CERP’s IPSCs.

CO2 Injection Progressing

CERP’s partner on the Inniss Trinity field Predator Oil and Gas (LON:PRD) announced that a Certificate of Environmental Clearance (CEC) has been received by CERP (the Operator) paving the way for final permitting and field preparations for CO2 enhanced oil recovery testing in Q3 2019. PRD has announced that the recoverable Contingent Resource is estimated at between 5.3mmbbls to 8.9mmbbls (6.8mmbbls best estimate) and PRD has the right to purchase the CERP subsidiary which owns the field for US$4.2m up until 31 December 2019.

Recommendation and Target Price

In addition to strengthening the underlying production base towards a sustainable operating position it has taken two years of preparation to get to this point to ensure that CERP shareholders are positioned to receive maximum benefit from exploration success on the SWP. Now with three major and near-term drivers for value creation; SWP drilling, CO2 injection and a new country entry with a discovered onshore development opportunity we believe that CERP is well positioned for a significant rerating through H2 2019.

We reiterate our Buy recommendation and adjust our target price to 21.6p.

 

 

 

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https://www.miningcapital.com/companies/news/224048/galliford-try-shares-gain-as-it-expects-profit-to-meet-market-forecasts-224048.html Galliford Try shares gain as it expects profit to meet market forecasts https://www.miningcapital.com/companies/news/224048/galliford-try-shares-gain-as-it-expects-profit-to-meet-market-forecasts-224048.html Wed, 17 Jul 2019 07:53:00 +0100 https://www.miningcapital.com/companies/news/224046/asiamet-shines-as-it-receives-key-permit-for-bkm-copper-project-224046.html Asiamet shines as it receives key permit for BKM copper project https://www.miningcapital.com/companies/news/224046/asiamet-shines-as-it-receives-key-permit-for-bkm-copper-project-224046.html Wed, 17 Jul 2019 07:53:00 +0100 https://www.miningcapital.com/companies/stocktube/14112/terrax-minerals-begins-phase-one-drilling-on-yellowknife-gold-city-project-14112.html TerraX Minerals begins Phase One drilling on Yellowknife Gold City Project https://www.miningcapital.com/companies/stocktube/14112/terrax-minerals-begins-phase-one-drilling-on-yellowknife-gold-city-project-14112.html Tue, 16 Jul 2019 17:49:00 +0100 TerraX Minerals (CVE:TXR-OTC-TRXXF) President and CEO David Suda sat down with Steve Darling from Proactive Vancouver to talk about their aggressive drilling program this summer at their Yellowknife City Gold Project. Phase one of that drilling is now underway.

Suda telling Proactive where they are drilling and what other work will be happening on the site as well.

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https://www.miningcapital.com/companies/stocktube/14110/europa-metals-team-discuss-drill-campaign-and-latest-hole-tod-23-at-toral-project-14110.html Europa Metals team discuss drill campaign and latest hole TOD 23 at Toral project https://www.miningcapital.com/companies/stocktube/14110/europa-metals-team-discuss-drill-campaign-and-latest-hole-tod-23-at-toral-project-14110.html Tue, 16 Jul 2019 14:43:00 +0100 The team at Europa Metals Ltd (LON:EUZ) update on the current drill programme at Toral in Spain as hole TOD 23 commenced into the high grade area of the lead, zinc and silver project.

Discussing developments are director Laurence Read, senior geologist Luis Perez and mining engineer Jesus Montero who's also the COO of Europa Iberia.

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https://www.miningcapital.com/companies/stocktube/14095/it-has-a-rich-history-and-bright-future-proactive-investors-talks-red-lake-ontario-mining-14095.html It has a rich history and bright future. Proactive Investors talks Red Lake, Ontario mining https://www.miningcapital.com/companies/stocktube/14095/it-has-a-rich-history-and-bright-future-proactive-investors-talks-red-lake-ontario-mining-14095.html Tue, 16 Jul 2019 11:30:00 +0100 Proactive Investors Vancouver talked with two well know CEO's about one of the most prolific mining districts in Canada. Red Lake, Ontario. Chris Taylor from Great Bear Resources (CVE: GBR) and Darin Labrenz, CEO of Pure Gold (CVE: PGM) both have successful projects and talked about the history and the future of Red Lake. 

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https://www.miningcapital.com/companies/stocktube/14096/proactive-investors-takes-closer-look-at-red-lake-ontario-mining-district-14096.html Proactive Investors takes closer look at Red Lake, Ontario Mining District. https://www.miningcapital.com/companies/stocktube/14096/proactive-investors-takes-closer-look-at-red-lake-ontario-mining-district-14096.html Tue, 16 Jul 2019 11:01:00 +0100 Proactive Investors Vancouver talked with two well know CEO's about one of the most prolific mining districts in Canada. Red Lake, Ontario. Darin Labrenz, CEO of Pure Gold (CVE: PGM) and Chris Taylor from Great Bear Resources (CVE: GBR) both have successful projects and talked about the history and the future of Red Lake.

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https://www.miningcapital.com/companies/stocktube/14106/european-metals--keith-coughlan-discusses-significant-potential-partnership-with-cez-14106.html European Metals' Keith Coughlan discusses significant potential partnership with CEZ https://www.miningcapital.com/companies/stocktube/14106/european-metals--keith-coughlan-discusses-significant-potential-partnership-with-cez-14106.html Tue, 16 Jul 2019 10:59:00 +0100 European Metals Holdings Ltd's (LON:EMH) managing director Keith Coughlan caught up with Proactive London's Andrew Scott following the news they've secured a €2mln convertible loan from CEZ Group - one of Central and Eastern Europe's largest power utilities.

Coughlan says the successful outcome of the due diligence process could see CEZ become European Metals' largest shareholder and co-development partner for the Cinovec lithium-tin project through conversion of the convertible note and subsequent additional investment.

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https://www.miningcapital.com/companies/stocktube/14105/ariana-resources-looking-at-potential-multi-million-ounce-system-at-salinbas-14105.html Ariana Resources looking at potential multi-million ounce system at Salinbas https://www.miningcapital.com/companies/stocktube/14105/ariana-resources-looking-at-potential-multi-million-ounce-system-at-salinbas-14105.html Tue, 16 Jul 2019 10:30:00 +0100 Ariana Resources PLC's (LON:AAU) Kerim Sener tells Proactive London's Andrew Scott they've seen positive drill results from the Salinbas gold project in  Turkey.

Sener says drilling encountered Salinbas-type mineralisation in several holes, in an area between the known Salinbas deposit and the Ardala porphyry system.

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https://www.miningcapital.com/companies/stocktube/14101/bardoc-gold-extends-zoroastrian-deposit-with-further-high-grade-gold-results-14101.html Bardoc Gold extends Zoroastrian deposit with further high-grade gold results https://www.miningcapital.com/companies/stocktube/14101/bardoc-gold-extends-zoroastrian-deposit-with-further-high-grade-gold-results-14101.html Tue, 16 Jul 2019 05:00:00 +0100 Bardoc Gold Ltd (ASX: BDC) chief executive officer Robert Ryan updates Proactive Investors on new high-grade gold assay results that extend the Zoroastrian deposit at its 100%-owned Bardoc Gold Project in WA.

The results of up to 91.9 g/t gold confirm mineralisation continues at depth with a high-grade component of 582.4 g/t. 

Ryan says the company drilled three holes in the region earlier this year as part of a diamond drilling program, returning outstanding results.

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https://www.miningcapital.com/companies/stocktube/14100/vrx-silica-upgrades-arrowsmith-north-silica-resource-strikes-new-deal-with-china-14100.html VRX Silica upgrades Arrowsmith North silica resource, strikes new deal with China https://www.miningcapital.com/companies/stocktube/14100/vrx-silica-upgrades-arrowsmith-north-silica-resource-strikes-new-deal-with-china-14100.html Tue, 16 Jul 2019 04:39:00 +0100 VRX Silica Ltd (ASX:VRX) managing director Bruce Maluish updates Proactive Investors on the mineral resource upgrade at its Arrowsmith North Project, boosting the resource estimate from around 200 to around 771 million tonnes of silica sand.

The company has also recently announced a new deal with CSG Holding Co Ltd (China Southern Glass or CSG), the largest architectural glass manufacturer in China.

The agreement is to form a strategic alliance with the company’s Muchea Silica Sand Project which is 50 kilometres north of Perth.

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https://www.miningcapital.com/companies/stocktube/14099/artemis-signs-binding-agreement-to-acquire-100-of-rincon-resources-14099.html Artemis signs binding agreement to acquire 100% of Rincon Resources https://www.miningcapital.com/companies/stocktube/14099/artemis-signs-binding-agreement-to-acquire-100-of-rincon-resources-14099.html Tue, 16 Jul 2019 03:43:00 +0100 Artemis Resources Ltd (ASX:ARV) executive director Edward Mead updates Proactive Investors on the company’s binding share sale and purchase agreement to acquire 100% of Rincon Resources Ltd.

The acquisition will include the rights to three highly prospective projects and will expand Artemis’ holding within the Paterson Province to 1,140 square kilometres, making it one of the largest landholders in the region.

Rincon’s acquisition will be subject to due diligence, a further 23% acceptance of Rincon shares and Artemis shareholder approval, for a total sum of $2.7 million (shares plus performance payouts).

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https://www.miningcapital.com/companies/stocktube/14098/energy-fuels-commends-president-trump-s-decision-to-review-domestic-uranium-supply-solution-14098.html Energy Fuels commends President Trump's decision to review domestic uranium-supply solution https://www.miningcapital.com/companies/stocktube/14098/energy-fuels-commends-president-trump-s-decision-to-review-domestic-uranium-supply-solution-14098.html Mon, 15 Jul 2019 20:33:00 +0100 Energy Fuels Inc (TSE:EFR) (NYSEMKT:UUUU) CEO Mark Chalmers tells Proactive Investors that the Colorado-based uranium-mining company is pleased with President Donald Trump's decision to commence a new review of the domestic nuclear fuel supply chain.

In a written memo, Trump said he did not agree with a US Department of Commerce investigation that found uranium imports could hurt US national security. However, he wrote the findings "raise significant concerns," and in light of this, was ordering a deeper review. Chalmers says Energy Fuels is looking forward to participating in finding a solution.

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https://www.miningcapital.com/companies/stocktube/14094/global-energy-metals-sees-a-bight-future-for-cobalt-as-demand-for-ev-s-rises-14094.html Global Energy Metals sees a bight future for Cobalt as demand for EV's rises https://www.miningcapital.com/companies/stocktube/14094/global-energy-metals-sees-a-bight-future-for-cobalt-as-demand-for-ev-s-rises-14094.html Mon, 15 Jul 2019 15:13:00 +0100 Global Energy Metals (CVE:GEMC) President and CEO Mitchell Smith shared, with Proactive Investors, his thoughts on the Cobalt market and where he feels the price is headed in the future. He also talked about the glaring needs in the sector including where future supply needs to come from. 

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https://www.miningcapital.com/companies/stocktube/14090/greatland-gold-identifies-numerous-high-priority-targets-at-paterson-range-east-14090.html Greatland Gold identifies numerous high-priority targets at Paterson Range East https://www.miningcapital.com/companies/stocktube/14090/greatland-gold-identifies-numerous-high-priority-targets-at-paterson-range-east-14090.html Mon, 15 Jul 2019 12:04:00 +0100 Greatland Gold PLC's (LON:GGP) Gervaise Heddle tells Proactive London's Andrew Scott they've identified a number of high-priority exploration targets at Paterson Range East after conducting a aeromagnetic survey over the licence area.

Paterson Range East is about 25 kilometres north of GGP's  Havieron gold-copper prospect in Western Australia.

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https://www.miningcapital.com/companies/stocktube/14088/kavango-resources-looks-to-farm-out-ditau-as-it-focuses-on-the-kalahari-suture-zone-14088.html Kavango Resources looks to farm-out Ditau as it focuses on the Kalahari Suture Zone https://www.miningcapital.com/companies/stocktube/14088/kavango-resources-looks-to-farm-out-ditau-as-it-focuses-on-the-kalahari-suture-zone-14088.html Mon, 15 Jul 2019 11:50:00 +0100 Kavango Resources PLC's (LON:KAV) Mike Moles chats to Proactive London's Andrew Scott following the announcement they've acquired a new prospecting licence adjacent to the existing Ditau licence in Botswana.

The new licence covers an area of 916.4 square kilometres to the south west of the current licence.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/31064/vsa-capital-market-movers---egdon-resources-31064.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/31064/vsa-capital-market-movers---egdon-resources-31064.html Mon, 15 Jul 2019 08:07:00 +0100

VSA Morning Flow Test, 15/07/19

Click here for PDF version

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


Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has provided an update on the Biscathorpe 2 well following revised petrophysical analysis. Previously it was reported that oil shows were present in the Dinantian but the primary Westphalian sandstone target was interpreted as water wet. However, the revised data following the additional testwork has demonstrated oil shows in the Westphalian as well. In the Dinantian the results indicated hydrocarbon saturations in excess of 50% but the presence of oil in both intervals suggests proximity to an effective petroleum system and confirms the ongoing potential within the license area.

Applied Petroleum Technology Limited (APT) carried out analysis on five samples from the Westaphalian and 15 from the Dinantian confirming the presence of oil in the former and a significant column of good quality in the latter with a full suite of gases from methane to pentane (C1 to C5 and nC5). The column at the top of the Dinantian appears to extend 35m from 1,980m to 2,015m depth with possible additional hydrocarbons below 2,133m. The results from the analysis were compared to the nearby analogue field, Keddington, which produces from the Westphalian demonstrating favourable results. All hydrocarbons appeared to be non-biodegraded with APIs of 35° and 33-34° for the Westphalian and Dinantian respectively.  

These updated results confirm that although absent at the Biscathorpe 2 location there is likely a significant effective petroleum system in near proximity thereby validating EDR’s strategy to continue to assess the license potential through a possible sidetrack and reprocessing of the existing 3D seismic data. We continue to believe that the license offers significant potential which is not fully reflected in EDR’s current price given our Biscathorpe valuation of 3.5p/sh. Whilst in the near term the key catalyst is likely to be the additional results from Springs Road, this announcement highlights the ongoing positive progress being made elsewhere within EDR’s portfolio of conventional as well as unconventional assets.

We reiterate our Buy recommendation and 39p target price.     

 

 

 

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https://www.miningcapital.com/companies/stocktube/14078/we-want-to-enfranchise-the-local-community-with-crowdfunding-says-cornish-lithium-s-wrathall-14078.html We want to enfranchise the local community with crowdfunding says Cornish Lithium's Wrathall https://www.miningcapital.com/companies/stocktube/14078/we-want-to-enfranchise-the-local-community-with-crowdfunding-says-cornish-lithium-s-wrathall-14078.html Fri, 12 Jul 2019 13:51:00 +0100 Jeremy Wrathall, Cornish Lithium PLC’s chief executive, says that has already been huge interest by members of the local community looking to investing the company.

Cornish Lithium today launched a crowdfunding campaign through Crowdcube to raise £1mln for drilling its sites in Cornwall.

“We are a UK company and we want a UK crowd invested in this project,” he told Proactive.

“We want to enfranchise the local community.”

The government is aware this country needs raw material for the coming electric vehicles revolution and the best source of lithium in the UK is in Cornwall.

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https://www.miningcapital.com/columns/jackhammer/31062/a-rate-cut-from-the-fed-is-now-on-the-cards-but-it-almost-certainly-wont-be-enough-for-mr-trump-31062.html A rate cut from the Fed is now on the cards, but it almost certainly won’t be enough for Mr Trump https://www.miningcapital.com/columns/jackhammer/31062/a-rate-cut-from-the-fed-is-now-on-the-cards-but-it-almost-certainly-wont-be-enough-for-mr-trump-31062.html Fri, 12 Jul 2019 11:59:00 +0100 https://www.miningcapital.com/companies/stocktube/14074/grade-issues-resolved-at-blanket-mine-says-caledonia-mining-cfo-learmonth-14074.html Grade issues resolved at Blanket Mine says Caledonia Mining CFO Learmonth https://www.miningcapital.com/companies/stocktube/14074/grade-issues-resolved-at-blanket-mine-says-caledonia-mining-cfo-learmonth-14074.html Fri, 12 Jul 2019 11:32:00 +0100 Caledonia Mining PLC (LON:CMCL) expects to complete the sinking of its new central shaft at the Blanket mine in Zimbabwe within two weeks.

That is despite electricity outages affecting the country and hampering progress said Mark Learmonth, Caledonia’s chief financial officer.

Equipping and readying the new shaft will take a year, he added.

Once finished,  annual production will rise from an estimated 53-56,000oz this year to 80,000oz.

Higher dividends will follow as more cash is generated said Learmonth, who added grade issues at the mine had been resolved and it is on track to hit this year's production target.

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https://www.miningcapital.com/companies/stocktube/14073/mountain-province-diamonds--in-good-shape-in-a-very-tough-market--14073.html Mountain Province Diamonds 'in good shape in a very tough market' https://www.miningcapital.com/companies/stocktube/14073/mountain-province-diamonds--in-good-shape-in-a-very-tough-market--14073.html Fri, 12 Jul 2019 08:48:00 +0100 Mining Capital's Alastair Ford discusses Mountain Province Diamonds (TSE:MPVD)(NASDAQ:MPVD) and their Gahcho Kué mine in Canada’s Northwest Territories.

''This company looks in relatively good shape in a very tough market and I think that's something investors might do well to keep an eye on if they've got room for a medium term outlook in their investment portfolio''.

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https://www.miningcapital.com/companies/stocktube/14071/hexagon-resources-graphite-scoping-study-a-highlight-for-june-quarter-14071.html Hexagon Resources graphite scoping study a highlight for June quarter https://www.miningcapital.com/companies/stocktube/14071/hexagon-resources-graphite-scoping-study-a-highlight-for-june-quarter-14071.html Fri, 12 Jul 2019 04:34:00 +0100 Hexagon Resources (ASX:HXG) managing director Mike Rosenstreich tells Proactive Investors that the completion of a scoping study on the development of a standalone advanced graphite purification processing plant (GPPP), was a highlight in its June quarterly report.

He also detailed the company’s 80% ownership and investment in US-based Charge Minerals as another highlight, as he heads off to the US to pursue further progress on Hexagon’s graphite projects.

The company’s closing cash position for the quarter was $4.20 million.

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https://www.miningcapital.com/companies/stocktube/14070/legend-mining-signs-agreements-with-creasy-and-independence-to-boost-value-in-fraser-range-14070.html Legend Mining signs agreements with Creasy and Independence to boost value in Fraser Range https://www.miningcapital.com/companies/stocktube/14070/legend-mining-signs-agreements-with-creasy-and-independence-to-boost-value-in-fraser-range-14070.html Fri, 12 Jul 2019 01:52:00 +0100 Legend Mining Limited (ASX:LEG) managing director Mark Wilson updates Proactive Investors on the signing of transformational joint venture agreements with super prospector Mark Creasy's Creasy Group Pty Ltd, and Independence Group NL (ASX:IGO), in farm-in deals aimed at unlocking more discoveries in WA's prolific Fraser Range.

The company says it’s a win, win, win, with transformational agreements to raise $9.8 million at 3.6 cents per share in place, to enter into the new JVs related to its Rockford Project in the Fraser Range

Separately, Legend Mining has also signed a new JV agreement with Creasy Group over two Fraser Range tenements.

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https://www.miningcapital.com/companies/stocktube/14051/berkwood-resources-mobilizes-crews-to-start-surface-sampling-on-lac-gueret-14051.html Berkwood Resources mobilizes crews to start surface sampling on Lac Gueret https://www.miningcapital.com/companies/stocktube/14051/berkwood-resources-mobilizes-crews-to-start-surface-sampling-on-lac-gueret-14051.html Thu, 11 Jul 2019 12:11:00 +0100 Berkwood Resources (CVE:BKR) President and CEO Tom Yingling sat down with Steve Darling from Proactive Investors Vancouver to share details, the company has sent crews to their Lac Gueret project in Quebec to start surface sampling.

Yingling telling Proactive why they decided to do this and what he means when he says they have the heart and veins in their project.

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https://www.miningcapital.com/companies/stocktube/14061/bellevue-gold-reveals-further-high-grade-upgrade-at-flagship-gold-project-14061.html Bellevue Gold reveals further high-grade upgrade at flagship gold project https://www.miningcapital.com/companies/stocktube/14061/bellevue-gold-reveals-further-high-grade-upgrade-at-flagship-gold-project-14061.html Thu, 11 Jul 2019 10:47:00 +0100 Bellevue Gold Ltd's (ASX:BGL) Steve Parsons caught up with Proactive's Andrew Scott after announcing a further high-grade resource upgrade at their project in Western Australia.

The latest update incorporates the recent Viago North and Tribune North strike extensions which are in the Bellevue Main Lode hanging wall.

The upgrade represents a 25% increase in global tonnes, a 17% increase in contained gold metal and only a 5% reduction in global grade.

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https://www.miningcapital.com/companies/stocktube/14060/europa-metals-successfully-hits-target-zone-at-toral-with-second-hole-14060.html Europa Metals successfully hits target zone at Toral with second hole https://www.miningcapital.com/companies/stocktube/14060/europa-metals-successfully-hits-target-zone-at-toral-with-second-hole-14060.html Thu, 11 Jul 2019 09:46:00 +0100 Europa Metals Ltd's (LON:EUZ) Laurence Read updates from onsite at their Toral project in Spain to discuss the ongoing drill programme.

He says they've completed a second hole and have begun to drill a third.

Read adds the second hole is the first in the campaign to successfully exceed the 750m target depth, with the core now sent off to a laboratory for assay.

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https://www.miningcapital.com/companies/stocktube/14056/northern-minerals-on-track-to-be-most-significant-dysprosium-producer-outside-china-14056.html Northern Minerals on track to be most significant dysprosium producer outside China https://www.miningcapital.com/companies/stocktube/14056/northern-minerals-on-track-to-be-most-significant-dysprosium-producer-outside-china-14056.html Thu, 11 Jul 2019 03:15:00 +0100 Northern Minerals (ASX: NTU) managing director and CEO George Bauk tells Proactive Investors the company is forging ahead with plans to become the first significant producer of dysprosium outside China.

Its flagship Browns Range project at Halls Creek, WA, is on its way to full-scale operation and is currently at bankable feasibility study level.

Dysprosium is a heavy rare earth (HRE) ingredient largely used in magnets, and is becoming increasingly important in the electric car revolution.

Northern Minerals has big ambitions in its five year plan to become one of the biggest dysprosium players in the global market.

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https://www.miningcapital.com/companies/stocktube/14054/rimfire-pacific-mining-outlines-new-focus-and-exploration-potential-for-sorpresa-14054.html Rimfire Pacific Mining outlines new focus and exploration potential for Sorpresa https://www.miningcapital.com/companies/stocktube/14054/rimfire-pacific-mining-outlines-new-focus-and-exploration-potential-for-sorpresa-14054.html Thu, 11 Jul 2019 00:14:00 +0100 Rimfire Pacific Mining (ASX:RIM) managing director and chief executive officer Craig Riley, and consulting geologist Michael Love update Proactive Investors, on a new focus and exploration potential in the South and North prospect areas of the Sorpresa project at Fifield, central NSW.

The company continues to forge ahead with its dual strategy aimed at discovering a large gold or copper/gold system in the historical geographically interesting regional area, and monetising the Sorpresa gold and silver resource.

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https://www.miningcapital.com/companies/stocktube/14052/alkane-resources-set-to-add-to-golden-bounty-at-tomingley-14052.html Alkane Resources set to add to golden bounty at Tomingley https://www.miningcapital.com/companies/stocktube/14052/alkane-resources-set-to-add-to-golden-bounty-at-tomingley-14052.html Wed, 10 Jul 2019 23:35:00 +0100 Alkane Resources Ltd (ASX:ALK) managing director Nic Earner updates Proactive Investors on a significant near-mine exploration target defined at the Tomingley Gold Operations (TGO) in Central West NSW.

This target is between 15.8 and 23.8 million tonnes at a grade ranging between 1.7 to 2.2 g/t gold, across three primary prospects, Roswell, San Antonio and El Paso, with a cumulative strike length of 2,500 metres.

Drilling is already underway and Alkane intends to continue testing this highly prospective area near the operating mine with further drilling over an approximate 12 month timeframe.

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https://www.miningcapital.com/companies/stocktube/14048/great-bear-continues-to-show-impressive-numbers-in-the-hinge-zone-of-dixie-14048.html Great Bear continues to show impressive numbers in the Hinge zone of Dixie https://www.miningcapital.com/companies/stocktube/14048/great-bear-continues-to-show-impressive-numbers-in-the-hinge-zone-of-dixie-14048.html Wed, 10 Jul 2019 19:12:00 +0100 Great Bear Resources (CVE: GBR) President and CEO Chris Taylor sat down with Steve Darling from Proactive Investors Vancouver to discuss their latest drill results from the Dixie Project in Red Lake, Ontario.

Taylor bringing results from 11 of their most recent drill holes and what these latest findings are telling them about what is next.

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https://www.miningcapital.com/companies/stocktube/14044/signs-point-to-buffalo-being-a--really-interesting--exploration-target-says-bezant-s-laurence-read-14044.html Signs point to Buffalo being a 'really interesting' exploration target says Bezant's Laurence Read https://www.miningcapital.com/companies/stocktube/14044/signs-point-to-buffalo-being-a--really-interesting--exploration-target-says-bezant-s-laurence-read-14044.html Wed, 10 Jul 2019 14:57:00 +0100 We are building a really interesting picture about a potentially sizeable exploration target at Buffalo in Zambia says Bezant Resources PLC’s (LON:BZT) Laurence Read.

We have been able to do a lot of work cheaply and without drilling, he says.

Analysis of exposed ore from artisanal mining, historic data and its own samples suggest the structure at Buffalo is open at depth and along the current strike.

The IOGC region in Zambia has also been overlooked due to the huge finds elsewhere in the country, he believes, which is also a reason for optimism.

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https://www.miningcapital.com/companies/stocktube/14036/bulls-bears-and-brokers-martin-place-securities-barry-dawes-on-gold-outlook-for-july-14036.html Bulls, Bears and Brokers: Martin Place Securities’ Barry Dawes on gold outlook for July https://www.miningcapital.com/companies/stocktube/14036/bulls-bears-and-brokers-martin-place-securities-barry-dawes-on-gold-outlook-for-july-14036.html Wed, 10 Jul 2019 01:07:00 +0100 Martin Place Securities executive chairman Barry Dawes speaks to Proactive Investors about the unprecedented record trading volume in June with many gold stocks having strong gains.

Dawes notes the strong performance of gold stocks in the US overnight.

“They are suggesting the gold price won’t pull back much at all,” he says.

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https://www.miningcapital.com/companies/stocktube/14030/medallion-resources-takes-major-step-forward-as-they-start-search-for-pilot-plant-site-14030.html Medallion Resources takes major step forward as they start search for pilot plant site https://www.miningcapital.com/companies/stocktube/14030/medallion-resources-takes-major-step-forward-as-they-start-search-for-pilot-plant-site-14030.html Tue, 09 Jul 2019 17:13:00 +0100 Medallion Resources ((CVE:MDL-OTCPK: MLLOF) President and CEO Don Lay sat down with Steve Darling from Proactive Investors Vancouver to chat about the company seeking third party proposals to advance its development of a North American rare-earth extraction plant.

Lay telling Proactive where they are looking for and what type of jurisdiction would be the best for this type of processing.

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https://www.miningcapital.com/companies/stocktube/14027/jindalee-resources-execs-on-the-ground-as-it-gets-ready-to-drill-at-mcdermitt-lithium-project-in-the-us-14027.html Jindalee Resources execs on the ground as it gets ready to drill at McDermitt Lithium Project in the US https://www.miningcapital.com/companies/stocktube/14027/jindalee-resources-execs-on-the-ground-as-it-gets-ready-to-drill-at-mcdermitt-lithium-project-in-the-us-14027.html Tue, 09 Jul 2019 13:34:00 +0100 Jindalee Resources Ltd (ASX:JRL) Managing Director Pip Darvall tells Proactive Investors the company's drilling program at the McDermitt Lithium Project in the southwestern part of the United States is all set to begin in July.

Darvall talks through the planned drill program, and says the company is looking to see if the deposit can be expanded laterally, and further at depth. Darvall says the company, which has a partnership with Michigan Technological University, has a large ground position of 30 square kilometers at the property, with an exploration target of up to 780 million tonnes of mineralized lithium sediments.

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https://www.miningcapital.com/columns/jackhammer/31054/its-a-strange-world-beowulf-mining-is-now-worth-two-and-a-half-times-as-much-as-condor-gold-31054.html It’s a strange world: Beowulf Mining is now worth two and a half times as much as Condor Gold https://www.miningcapital.com/columns/jackhammer/31054/its-a-strange-world-beowulf-mining-is-now-worth-two-and-a-half-times-as-much-as-condor-gold-31054.html Tue, 09 Jul 2019 11:00:00 +0100 https://www.miningcapital.com/companies/stocktube/14023/greatland-gold-s-gervaise-heddle-details-drill-programme-at--key--black-hills-project-14023.html Greatland Gold's Gervaise Heddle details drill programme at 'key' Black Hills project https://www.miningcapital.com/companies/stocktube/14023/greatland-gold-s-gervaise-heddle-details-drill-programme-at--key--black-hills-project-14023.html Tue, 09 Jul 2019 10:39:00 +0100 Greatland Gold PLC's (LON:GGP) Gervaise Heddle speaks to Proactive London's Andrew Scott after announcing they'd begun a drill programme at the Black Hills gold project, in the Paterson region of Western Australia.

It is the first drill programme at Black Hills and it will comprise a total of 20 holes.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/31051/vsa-capital-market-movers---dekeloil-31051.html VSA CAPITAL MARKET MOVERS - DekelOil https://www.miningcapital.com/columns/vsa-capital-market-movers/31051/vsa-capital-market-movers---dekeloil-31051.html Tue, 09 Jul 2019 08:12:00 +0100

VSA Morning Agri Comment, 09/07/19

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DekelOil# - Cashew Project Construction

Côte d'Ivoire agricultural company DekelOil Public Limited (LON:DKL) has begun construction of its cashew processing project at Tiebissou in central Côte d'Ivoire, which is due to become its second operational agricultural project in-country.

  • Construction expected to take 12 months, with first processing of smallholder-produced cashews expected in June 2020.
  • DKL holds 37.8% of the project with an option to acquire a further 17.0% to take it to c.55%.
  • Project will employ approximately 300 employees once operational.
  • The cashew project will be exempt from corporation tax for a 10-year period and exempt from 75% of this tax for the subsequent five years. It also has a full exemption from customs duties for all imported materials during the construction phase, which should save c.€350k. These benefits are in-line with a new tax code in the country. DKL’s existing palm oil project was built on the old tax code, which included a 13-year full corporation tax exemption and a 40% customs exemption for imported materials.

VSA Comment

DKL’s FY 2018 demonstrated the risk of being exposed to one agricultural commodity. Therefore, we believe that diversification into the cashew sector is a shrewd one that should help the company deal with any subsequent difficult years in its palm oil business.

With construction now underway, we look forward to first production next June. Although this represents the end of the cashew season in Côte d'Ivoire, DKL will be stockpiling cashews from smallholders in the months prior to opening for subsequent processing by the facility.

Assuming DKL exercises its option to gain a c.55% stake in the project, we estimate that the project could deliver an attributable profit of €2.2m by 2022 to the group.

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

Plant Health Care

11.23

6.50

0.25

+4.0%

Salt Lake Potash

100.51

41.00

1.50

+3.8%

DekelOil

10.74

3.05

0.05

+1.7%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Harvest Minerals

10.04

5.40

(0.30)

-5.3%

Devro

344.62

206.50

(8.50)

-4.0%

Anglo-Eastern Plantations

182.92

461.50

(10.50)

-2.2%

 

 

 

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https://www.miningcapital.com/companies/stocktube/14014/bluerock-diamonds-pleased-with-recovery-in-second-quarter-with-record-production-14014.html BlueRock Diamonds pleased with recovery in second quarter with record production https://www.miningcapital.com/companies/stocktube/14014/bluerock-diamonds-pleased-with-recovery-in-second-quarter-with-record-production-14014.html Mon, 08 Jul 2019 14:36:00 +0100 BlueRock Diamonds PLC's (LON:BRD) Mike Houston spoke with Proactive London's Andrew Scott after reporting they'd achieved record grades and production from the Kareevlei diamond mine in South Africa.

Some 3,516 carats were produced after the amount of tonnes processed in its second quarter rose 130% to 78,759 tonnes at a grade of 4.46 carats per tonne (cpht).

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https://www.miningcapital.com/columns/vsa-capital-market-movers/31050/g3-exploration-refocusing-on-core-expertise-31050.html G3 Exploration: Refocusing on Core Expertise https://www.miningcapital.com/columns/vsa-capital-market-movers/31050/g3-exploration-refocusing-on-core-expertise-31050.html Mon, 08 Jul 2019 13:47:00 +0100

G3 Exploration: Refocusing on Core Expertise

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Having successfully brought blocks GSS and GCZ into commercial production in 2010 and with gross sales of 5.7BCF delivering net profit of US$10.3m achieved in 2018 G3 Exploration (G3E LN) is now well placed to refocus on its core expertise of CBM development and exploration. G3E previously announced its intention to spin out the producing assets via a dividend in specie pending a trade sale or IPO. Currently held for sale at a value of US$390m we see this as the primary catalyst for the shares as this will enable repayment of outstanding debt as well as providing development capital for the remaining core development blocks.

Accelerated Programme to Near Term Production

G3E’s core asset base after the dividend in specie will be the remaining six blocks which like GSS and GCZ are partnered with CNOOC and PetroChina under long standing and attractive PSCs. The near term focus is likely to be on blocks GGZ and GSN, the latter of which is adjacent to the currently producing blocks. With a recapitalisation achievable through the sale of the producing assets we believe that commercial production could be achieved rapidly and we anticipate peak net production of 5.4BCF and 3.1BCf respectively from these development blocks indicating the potential for significant annual cashflow. G3E applies the LiFaBriC drilling technology, which enables a sustained period of peak production which means that at GGZ we anticipate at least five years of free cash flow in excess of US$25mpa.

Broader CBM Opportunities

Although the strategic rationale for CBM in China remains compelling given import dependency of over 40% for natural gas and an ongoing shift from coal for power generation which will see China’s use of coal for primary energy consumption fall from over 60% in 2012 to less than a third by 2050, we see the potential for CBM opportunities beyond China for G3E.

The company has committed to entering a new geography and we see opportunities in terms of gas to power projects in Africa as well as exploiting uneconomically mineable coal seams in jurisdictions such as the UK as possibilities. G3E’s primary drilling technique involves no injection of chemicals and a minimal surface print meaning a limited environmental impact whilst producing natural gas; the key bridge fuel over the coming decades, in our view.

Recommendation and Target Price

We initiate coverage with a BUY recommendation and target price of 98p.

 

 

 

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https://www.miningcapital.com/companies/stocktube/14015/blackstone-minerals-kicks-off-maiden-drilling-and-geophysics-at-flagship-nickel-project-14015.html Blackstone Minerals kicks off maiden drilling and geophysics at flagship nickel project https://www.miningcapital.com/companies/stocktube/14015/blackstone-minerals-kicks-off-maiden-drilling-and-geophysics-at-flagship-nickel-project-14015.html Mon, 08 Jul 2019 12:53:00 +0100 Blackstone Minerals Ltd (ASX:BSX) managing director Scott Williamson speaks to Proactive's Andrew Scott soon after announcing the start of diamond drilling and geophysics at their Ta Khoa Nickel Project in Northern Vietnam.

The Ta Khoa Nickel Project sits 160 kilometres west of Hanoi and includes an existing modern nickel mine - Ban Phuc.

He says they're aiming aim to deliver a maiden shallow disseminated sulphide resource at Ban Phuc in the coming months.

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https://www.miningcapital.com/companies/stocktube/14010/analyst-points-to--looming-shortage--of-copper-projects-with-demand-set-to-rise-14010.html Analyst points to 'looming shortage' of copper projects with demand set to rise https://www.miningcapital.com/companies/stocktube/14010/analyst-points-to--looming-shortage--of-copper-projects-with-demand-set-to-rise-14010.html Mon, 08 Jul 2019 12:15:00 +0100 Roskill analyst Jonathan Barnes discusses with Proactive London's Andrew Scott his copper demand outlook report through to 2035.

''Asia is where 60-70% of the total demand is coming from and we see that demand growing by 50% from current levels ... so by the time we get out to 2035 three quarters of total copper use is going to be in Asia.

''If the copper miners don't invest now then there's a risk you might see a big spike in prices which can be very harmful''.

''We could see another period of very high copper prices causing substitution losses in vulnerable applications''.

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https://www.miningcapital.com/companies/stocktube/14008/milestone-for-rockfire-resources-as-it-reports-maiden-resource-for-lighthouse-project-14008.html Milestone for Rockfire Resources as it reports maiden resource for Lighthouse project https://www.miningcapital.com/companies/stocktube/14008/milestone-for-rockfire-resources-as-it-reports-maiden-resource-for-lighthouse-project-14008.html Mon, 08 Jul 2019 10:52:00 +0100 Rockfire Resources PLC's (LON:ROCK) David Price speaks to Proactive London's Andrew Scott soon after announcing a maiden gold resource of 51,000 ounces at its Lighthouse licence in Queensland, Australia.

Drilling at two prospects at Lighthouse has indicated an inferred resource of 1.35mln tonnes at 1.18g per tonne of gold.

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https://www.miningcapital.com/companies/stocktube/14002/paladins-ceo-discusses-the-sale-of-kayelekera-and-prioritising-langer-heinrichs-restart-14002.html Paladin’s CEO discusses the sale of Kayelekera and prioritising Langer Heinrich’s restart https://www.miningcapital.com/companies/stocktube/14002/paladins-ceo-discusses-the-sale-of-kayelekera-and-prioritising-langer-heinrichs-restart-14002.html Mon, 08 Jul 2019 01:16:00 +0100 Paladin Energy Ltd (ASX: PDN) chief executive officer Scott Sullivan updates Proactive Investors on the sale of its 85% interest in the Kayelekera uranium mine in Malawi to Hylea Metals Ltd (ASX:HCO) subsidiary Lotus Resources Limited.

Sullivan says it was a very well-considered sale with the company’s primary focus being its tier one and flagship asset Langer Heinrich in Namibia.

The sale of Kayelekera frees up cash for the company to further invest in Langer Heinrich.

“We’ve got a lot of work underway,” he says.

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https://www.miningcapital.com/columns/jackhammer/31047/whither-south-africa-can-ramaphosa-turn-the-ailing-ship-around-31047.html Whither South Africa? Can Ramaphosa turn the ailing ship around? https://www.miningcapital.com/columns/jackhammer/31047/whither-south-africa-can-ramaphosa-turn-the-ailing-ship-around-31047.html Fri, 05 Jul 2019 10:51:00 +0100 https://www.miningcapital.com/companies/stocktube/13995/cornish-lithium-mulls-crowdfunding-to-finance-further-exploration-13995.html Cornish Lithium mulls crowdfunding to finance further exploration https://www.miningcapital.com/companies/stocktube/13995/cornish-lithium-mulls-crowdfunding-to-finance-further-exploration-13995.html Fri, 05 Jul 2019 08:52:00 +0100 Mining Capital's Alastair Ford tells Proactive London's Andrew Scott Cornish Lithium is actively considering raising its next round of exploration finance via CrowdCube.

If they go ahead and raise around £1mln through the platform they'll become the first UK-based mining company to raise funds in this manner.

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https://www.miningcapital.com/companies/stocktube/13992/musgrave-minerals-begins-drilling-at-newly-acquired-mainland-prospect-13992.html Musgrave Minerals begins drilling at newly acquired Mainland Prospect https://www.miningcapital.com/companies/stocktube/13992/musgrave-minerals-begins-drilling-at-newly-acquired-mainland-prospect-13992.html Fri, 05 Jul 2019 01:58:00 +0100 Musgrave Minerals (ASX:MGV) managing direct Robert Waugh updates Proactive Investors on the initial drilling program which is underway at the Mainland Prospect within the company's Cue Gold Project in WA.

About 1,500 metres of reverse circulation drilling will be carried out to test three new high priority targets as well as high-grade basement mineralisation below a series of existing historical gold prospects.

“Mainland is an area we picked up earlier this year and it’s a really exciting prospect for us,” he says.

“We can see our resources growing in this area.”

Waugh notes that results should be released in about four weeks.

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https://www.miningcapital.com/companies/stocktube/13991/ximen-mining-preparing-for-summer-drill-program-at-kenville-gold-mine-in-nelson-bc-13991.html Ximen Mining preparing for summer drill program at Kenville Gold Mine in Nelson, B.C. https://www.miningcapital.com/companies/stocktube/13991/ximen-mining-preparing-for-summer-drill-program-at-kenville-gold-mine-in-nelson-bc-13991.html Thu, 04 Jul 2019 19:21:00 +0100 Ximen Mining (CVE:XIM) President and CEO Chris Anderson sat down with Steve Darling from Proactive Investors Vancouver to share news the company is embarking on their summer drilling program at the historic Kenville Gold Mine.

Anderson talked about how much they plan on drilling and the interesting way they came up with the locations to put the drills.

 

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https://www.miningcapital.com/companies/stocktube/13990/ggx-gold-going-star-wars-to-model-their-flagship-property-gold-drop-13990.html GGX Gold going Star Wars to model their flagship property Gold Drop https://www.miningcapital.com/companies/stocktube/13990/ggx-gold-going-star-wars-to-model-their-flagship-property-gold-drop-13990.html Thu, 04 Jul 2019 19:01:00 +0100 GGX Gold Corp (CVE:GGX-OTCQB: GGXXF) President George Sookochoff joined Steve Darling in the Vancouver studio of Proactive Investors to discuss the company drilling a high-priority geophysical target at its Gold Drop property in the Greenwood mining camp.

Sookochoff talked about the unique way they identified their drill target with the help of the "StarGate II"

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https://www.miningcapital.com/companies/stocktube/13987/sandfire-offer-for-mod-resources-a--transformational-deal--for-metal-tiger-13987.html Sandfire offer for MOD Resources a 'transformational deal' for Metal Tiger https://www.miningcapital.com/companies/stocktube/13987/sandfire-offer-for-mod-resources-a--transformational-deal--for-metal-tiger-13987.html Thu, 04 Jul 2019 12:35:00 +0100 Michael McNeilly, chief executive of Metal Tiger Plc (LON:MTR), discusses the opportunity for MTR following the news last week around the recommended offer from Sandfire Resources Ltd (ASX:SFR) for MOD Resources (ASX:MOD)(LON:MOD).

MTR holds a substantial stake in MOD, having converted its stake in a joint venture directly into shares.

Metal Tiger’s interests in MOD and assets related to the joint venture that are set to be realised by the Sandfire offer have a combined total value of £23.2mln.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/31040/vsa-capital-market-movers---dekeoil-31040.html VSA CAPITAL MARKET MOVERS - DekeOil https://www.miningcapital.com/columns/vsa-capital-market-movers/31040/vsa-capital-market-movers---dekeoil-31040.html Thu, 04 Jul 2019 08:49:00 +0100

VSA Morning Agri Comment, 04/07/19

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DekelOil# - H1 2019 Production Update

Côte d'Ivoire agricultural company DekelOil Public Limited (DKL LN)# has announced a production update for H1 2019.

  • Fresh Fruit Bunches (FFB) Collected: 131,917t, +37% YoY (H1 2018: 96,195t)
  • Crude Palm Oil (CPO) Production: 28,934t, +30% YoY (H1 2018: 22,242t)
  • CPO Sales: 26,702t, +20% YoY (H1 2018: 22,271t)
  • Average CPO Selling Price: €505/t, -8% YoY (H1 2018: €549/t)

VSA Comment

Following a difficult FY 2018, DKL’s production levels in H1 2019 have recovered significantly. In fact, H1 2019 was a record in terms of CPO production and FFB collection at the mill, surpassing H1 2016’s 123,157t of FFB collected and 28,550t of CPO produced. It is also worth noting that YoY production growth rates accelerated considerably in Q2, highlighting the exceptional nature of the lower peak season yields last year (FFB production - Q1 2019: +17% YoY; Q2 2019: +71% YoY, CPO production - Q1 2019: +10% YoY; Q2 2019: +62% YoY).

During the period DKL continued its strategy of buying external palm kernels for processing to more fully utilise its kernel crushing facility. This allowed the production of almost 1,900t of palm kernel oil and 2,525t of palm kernel cake during the period. Unfortunately, as with the CPO price, PKO pricing remains depressed, recording a YoY decrease of 34% in H1 to €589/t. The premium of the PKO price over the CPO price has now shrunk from more than 40% in each of the past three years to just 17% in H1 2019.

Despite a recorded average selling price for CPO in H1 of €505/t, -8% YoY, DKL did manage to achieve a premium over the European CPO price of 9.4% in Q1 and 6.5% in Q2, demonstrating the strength of demand for CPO in the country. Unfortunately, global CPO prices have remained lower than we were hoping for this year with potential planting delays for the US soybean crop, increasing domestic consumption in South East Asia, and a widening soybean oil/CPO price premium, providing a degree of bullish support amid a myriad of more bearish factors lead by the US/China trade war.   

Looking forward, there is improvement clearly to be had in terms of DKL’s CPO extraction rate, which increased slightly in Q2 to 22.0% from 21.85% in Q1 but remains below its average extraction rate since inception of 22.7%. The company also has a significant number of kernels to be processed and CPO stock of 3,000t, which should boost its results in the upcoming low season.

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

Devro

369.65

221.50

9.50

+4.5%

Camellia

292.77

10,600.00

400.00

+3.9%

Avon Rubber

419.45

1,384.00

34.00

+2.5%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Kropz

 

16.00

(2.00)

-11.1%

Agriterra

1.34

6.33

(0.48)

-7.0%

Origin Enterprises

576.26

458.88

(18.72)

-3.9%

 

 

 

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https://www.miningcapital.com/companies/stocktube/13980/emmerson-resources-finalises-sale-of-warrego-mill-13980.html Emmerson Resources finalises sale of Warrego Mill https://www.miningcapital.com/companies/stocktube/13980/emmerson-resources-finalises-sale-of-warrego-mill-13980.html Thu, 04 Jul 2019 04:10:00 +0100 Emmerson Resources (ASX:ERM) managing director Rob Bills updates Proactive Investors finalising the sale of the Warrego Mill in the Northern Territory.
 
Final payment from Territory Resources of $300,000 wraps up the sale and transfer of the mill and mining lease.
 
“This has been a vision for Emmerson for quite a while and it’s finally happened,” he says. 
 
Bills also updates the market on commissioning of the Edna Beryl Gold Mine, which is one of Australia’s highest-grade gold mines, and bonanza gold results of up to 158 g/t from Mauretania.
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https://www.miningcapital.com/companies/stocktube/13979/bryah-resources-reveals-substantial-manganese-results-13979.html Bryah Resources reveals substantial manganese results https://www.miningcapital.com/companies/stocktube/13979/bryah-resources-reveals-substantial-manganese-results-13979.html Thu, 04 Jul 2019 01:59:00 +0100 Bryah Resources Ltd (ASX:BYH) managing director Neil Marston updates Proactive Investors on recent manganese results obtained from drilling at its Brumby Creek prospect in WA. 
 
Marston notes drilling hit mineralisation at surface and just under the surface with widths of up to 15 metres and manganese grades in the mid 20% range with highs over 30%.
 
“It’s looking like a fresh discovery for us and has confirmed what we thought was good potential for that area to yield some tonnes,” he says.
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https://www.miningcapital.com/companies/stocktube/13978/chase-mining-updates-the-market-on-canadian-operations-13978.html Chase Mining updates the market on Canadian operations https://www.miningcapital.com/companies/stocktube/13978/chase-mining-updates-the-market-on-canadian-operations-13978.html Wed, 03 Jul 2019 23:26:00 +0100 Chase Mining Corporation Ltd (ASX:CML) director Martin Kavanagh updates Proactive Investors on recent key company announcements, particularly regarding its Canadian nickel-copper project.

Among work undertaken this year is a VTEM survey over the Lorraine and ADZ project areas with the company having received preliminary survey data.

Kavanagh and the company’s executive chairman Leon Pretorius recently returned from a visit to the project areas where a meeting was held with the Long Point First Nation Community.

In a positive move, First Nation locals are submitting a quote to undertake some of the road and bridge construction for the project.

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https://www.miningcapital.com/companies/stocktube/13968/mountain-province-ceo-details-exploration-potential-of-its-gahcho-ku-project-13968.html Mountain Province CEO details exploration potential of its Gahcho Kué project https://www.miningcapital.com/companies/stocktube/13968/mountain-province-ceo-details-exploration-potential-of-its-gahcho-ku-project-13968.html Wed, 03 Jul 2019 09:37:00 +0100 Stuart Brown, president and chief executive of Mountain Province Diamonds (TSE:MPVD)(NASDAQ:MPVD) tells Proactive London's Andrew Scott they're a mature mid-tier producer alongside De Beers, their joint venture partner, with their flagship mine in Canada.

''We're in our third year of full production now having opened in 2016 ''.

''The mines going well, we're hitting all our expected targets and producing the carats we expected to produce''.

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https://www.miningcapital.com/companies/stocktube/13964/tinka-resources-releases-positive-pea-for-ayawilca-zinc-project-13964.html Tinka Resources releases positive PEA for Ayawilca Zinc Project https://www.miningcapital.com/companies/stocktube/13964/tinka-resources-releases-positive-pea-for-ayawilca-zinc-project-13964.html Wed, 03 Jul 2019 05:38:00 +0100 Tinka Resources Limited (CVE:TK) chief executive officer Graham Carman updates Proactive Investors on positive results from the Preliminary Economic Assessment for its Ayawilca Zinc Zone project in central Peru.

Carman says the company was very pleased with the long-awaited results based on a mid-sized underground mining case of 5,000 tonnes per day and relatively modest initial capital.

“This is a fantastic result with $363 million NPV at 8% discount and an IRR of 27% which we believe is a robust project,” he says.

The project is based in one of the world’s most prolific polymetallic belts and is among the best new zinc development projects in the Americas.

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https://www.miningcapital.com/companies/stocktube/13963/peninsula-energy-awaits-uranium-decision-from-us-president-trump-13963.html Peninsula Energy awaits uranium decision from US President Trump https://www.miningcapital.com/companies/stocktube/13963/peninsula-energy-awaits-uranium-decision-from-us-president-trump-13963.html Wed, 03 Jul 2019 04:58:00 +0100 Peninsula Energy Limited (ASX:PEN) chief executive officer Wayne Heili tells Proactive Investors that an important Section 232 Uranium mining decision is expected later this month from US President Trump that could have a substantial impact on the company.

The US Department of Commerce has completed and submitted its report to the White House on the investigation into the effects of uranium imports on national security.

The remedies proposed were to preserve US national security and to help the domestic uranium mining industry recover from years of low pricing.

Heili says Peninsula Energy is looking forward to the President’s response to provide more certainty for the company’s future direction

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https://www.miningcapital.com/companies/stocktube/13962/azumah-resources-confirms-high-grade-underground-mineral-resource-at-bepkong-deposit-13962.html Azumah Resources confirms high-grade underground mineral resource at Bepkong deposit https://www.miningcapital.com/companies/stocktube/13962/azumah-resources-confirms-high-grade-underground-mineral-resource-at-bepkong-deposit-13962.html Wed, 03 Jul 2019 04:49:00 +0100 Azumah Resources Limited (ASX:AZM) managing director Stephen Stone updates Proactive Investors on the high-grade mineral resource at the Bepkong deposit in Ghana, West Africa and the scoping study planned for later this month.

Stone says the maiden resource of 2.4 million tonnes grading 3.59g/t gold for more than 280,000 ounces doubles the company’s resource.

“This deposit is still open ended at depth…we are confident this will add juicy dollars to our bottom line,” he says.

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https://www.miningcapital.com/companies/stocktube/13960/k2fly-achieves-record-quarter-to-cap-off-strong-fy19-performance-13960.html K2Fly achieves record quarter to cap off strong FY19 performance https://www.miningcapital.com/companies/stocktube/13960/k2fly-achieves-record-quarter-to-cap-off-strong-fy19-performance-13960.html Wed, 03 Jul 2019 00:38:00 +0100 K2Fly Ltd (ASX: K2F) chief executive officer Brian Miller updates Proactive Investors on a record quarterly performance for the financial year ending June 30, raising invoices of almost $1.5 million, a 52% increase compared to the same period of 2018.

 

Miller says the company was up around $1.6 million for invoicing for the financial year, which has now reached almost $4.2 million - an increase of more than 62%.

 

The company’s recent acquisition of RCubed is also tracking well.

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https://www.miningcapital.com/companies/stocktube/13959/american-battery-metals-reveals-positive-findings-from-geophysical-report-on-railroad-valley-project-13959.html American Battery Metals reveals positive findings from geophysical report on Railroad Valley project https://www.miningcapital.com/companies/stocktube/13959/american-battery-metals-reveals-positive-findings-from-geophysical-report-on-railroad-valley-project-13959.html Tue, 02 Jul 2019 18:30:00 +0100 American Battery Metals Corporation (OTCMKTS:ABML) CEO Doug Cole tells Proactive Investors the Nevada focused battery metals explorer has a "huge and undefined reservoir" which has been found at its Railroad Valley project.

While talking about the first geophysical survey at Railroad Valley, Cole adds that the Nevada-based company says the key now is to pinpoint three spots to drill its production wells.

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https://www.miningcapital.com/companies/stocktube/13955/royal-road-minerals-increases-exploration-assets-in-colombia-with-anglogold-acquisition-13955.html Royal Road Minerals increases exploration assets in Colombia with AngloGold acquisition https://www.miningcapital.com/companies/stocktube/13955/royal-road-minerals-increases-exploration-assets-in-colombia-with-anglogold-acquisition-13955.html Tue, 02 Jul 2019 14:48:00 +0100 Royal Road Minerals Ltd (CVE:RYR) CEO Timothy Coughlin tells Proactive Investors the junior explorer has closed on the acquisition of a portfolio of Colombian assets from AngloGold Ashanti Limited (NYSE:AU).

Coughlin explains how the new acquisition significantly increases the company's portfolio of high-potential exploration assets and provides numerous options for joint ventures in Colombia.

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https://www.miningcapital.com/companies/stocktube/13951/arc-minerals--zambia-drill-results--exceeding-expectations--13951.html Arc Minerals' Zambia drill results 'exceeding expectations' https://www.miningcapital.com/companies/stocktube/13951/arc-minerals--zambia-drill-results--exceeding-expectations--13951.html Tue, 02 Jul 2019 12:05:00 +0100 Arc Minerals Ltd (LON:ARCM) executive chairman Nick von Schirnding tells Proactive London's Andrew Scott recent drilling at the Cheyeza East prospect has intersected 25 metres grading 1.05% copper, including 1.7% copper over 9.3 metres.

He adds that an additional hole drilled 200 metres to the south also shows significant mineralisation.

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https://www.miningcapital.com/companies/stocktube/13949/trans-siberian-gold-a--high-yield-stock--with-ambitions-to-become-mid-tier-producer-13949.html Trans-Siberian Gold a 'high yield stock' with ambitions to become mid-tier producer https://www.miningcapital.com/companies/stocktube/13949/trans-siberian-gold-a--high-yield-stock--with-ambitions-to-become-mid-tier-producer-13949.html Tue, 02 Jul 2019 08:34:00 +0100 Trans-Siberian Gold plc's (LON:TSG) Alexander Dorogov and Eugene Antonov introduce the producer and developer to Proactive London.

In 2018 they posted record production of 46,053 oz and revenue of $59.8mln.

TSG's the 100% owner of the high grade producing Asacha gold mine and licence holder for the Rodnikova deposit in Kamchatka.

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https://www.miningcapital.com/companies/stocktube/13943/gold-road-resources-produces-first-gold-bars-from-nation-s-newest-gold-project-13943.html Gold Road Resources produces first gold bars from nation's newest gold project https://www.miningcapital.com/companies/stocktube/13943/gold-road-resources-produces-first-gold-bars-from-nation-s-newest-gold-project-13943.html Tue, 02 Jul 2019 04:23:00 +0100 Gold Road Resources Ltd (ASX:GOR) managing director and CEO Duncan Gibbs updates Proactive Investors on a major milestone for the company with first gold bars poured at the flagship Gruyere Gold Project in Western Australia.

 

Three gold bars were produced in total.

 

“We produced more than 1,100 ounces in that initial pour and in the current gold market that gold is worth a little over $2 million,” he says.

 

The company expects Gruyere to produce 75,000 to 100,000 ounces of gold this year.

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https://www.miningcapital.com/companies/stocktube/13941/grapheneca-advances-its-modular-graphene-container-system-for-large-scale-customers-13941.html GrapheneCA advances its modular graphene container system for large-scale customers https://www.miningcapital.com/companies/stocktube/13941/grapheneca-advances-its-modular-graphene-container-system-for-large-scale-customers-13941.html Mon, 01 Jul 2019 15:15:00 +0100 GrapheneCA's head of business development, David Robles, tells Proactive Investors the privately-held graphene producer has developed a modular graphene production process for large scale, industrial use.

Robles says the company's Mobile Graphene Container System simplifies the graphene production process, requiring only a water source and power. He adds that there are 'promising' off-take agreements with customers in place.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/31030/vsa-capital-market-movers---bacanora-lithium-31030.html VSA CAPITAL MARKET MOVERS - Bacanora Lithium https://www.miningcapital.com/columns/vsa-capital-market-movers/31030/vsa-capital-market-movers---bacanora-lithium-31030.html Mon, 01 Jul 2019 10:57:00 +0100

VSA Morning Miner, 01/07/19

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Bacanora Lithium (LON:BCN)

Bacanora Lithium (BCN LN) announced late on Friday that it had signed an Investment Agreement and Offtake Agreement with Ganfeng Lithium in line with the terms previously announced. The agreement remains subject to final government approval in China, however, we believe that given Ganfeng’s previous track record in executing overseas transactions that there is only limited risk that this would now not be approved. Timing for completion is guided to the end of July 2019 and will mark a major step forward for BCN in terms of derisking the project financing.

As we have stated previously Ganfeng’s expertise in lithium processing and production as well as position as an industry leader provides significant advantages for BCN. We believe that Ganfeng’s contribution to EPC finalisation as well as access to Chinese equipment manufacturers could result in reduced capex for the Sonora project, from an initial US$420m, whilst the input of a dedicated team into the project and plant commissioning process further decreases the execution risk of ramp up beyond the already substantial benefit of the pilot plant.

The terms of the initial agreement are that Ganfeng will take a 29.99% stake  for £14.4m (US$18.2m) in BCN alongside a project level investment of 22.5% for £7.6m (US$9.6m). Ganfeng will have the right to appoint one director to each of BCN and the project level company with the option to increase its project level interest to 50% within 24 months based on market pricing. Ganfeng will also have offtake rights to 50% of stage one lithium production and up to 75% of stage two lithium production. Capacity for stage one and two is 17.5ktpa and 35ktpa of lithium carbonate respectively.

Ganfeng has indicated that it intends to cornerstone the project financing after this initial agreement and we believe that the combination of technical and financial support should give investors significant comfort over project financing and commissioning. The shares have now close to doubled since our initiation and we believe that Ganfeng have been attracted to the Sonora project’s key fundamentals of low operating costs and the genuine capability to produce battery grade lithium rapidly and consistently.

We reiterate our Buy recommendation and 114p target price.   


Oliver O'Donnell, CFA, Natural Resources & China | T: +44 (0)20 3617 5180 | E: oodonnell@vsacapital.com
Paul Renken, Geologist | T: +44 (0)20 3005 5011 | E: prenken@vsacapital.com

VSA Capital Research | T: +44 (0)20 3005 5000 | E: research@vsacapital.com

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https://www.miningcapital.com/companies/stocktube/13925/blackrock-gold-finds-new-east-west-vein-system-at-silver-cloud-project-in-nevada-13925.html Blackrock Gold finds new east-west vein system at Silver Cloud project in Nevada https://www.miningcapital.com/companies/stocktube/13925/blackrock-gold-finds-new-east-west-vein-system-at-silver-cloud-project-in-nevada-13925.html Fri, 28 Jun 2019 18:09:00 +0100 Blackrock Gold (CVE:BCR) CEO Andrew Pollard joined Steve Darling from Proactive Investors Vancouver to discuss a new vein system they have located on their Silver Cloud Property. The vein system is running east to west.

Pollard also talked about what this means for the project going forward and what they plan on doing next.

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https://www.miningcapital.com/companies/stocktube/13922/kincora-copper-starts-drilling-program-at-bronze-fox-project-in-mongolia-13922.html Kincora Copper starts drilling program at Bronze Fox project in Mongolia https://www.miningcapital.com/companies/stocktube/13922/kincora-copper-starts-drilling-program-at-bronze-fox-project-in-mongolia-13922.html Fri, 28 Jun 2019 14:47:00 +0100 Kincora Copper (CVE:KCC) President and CEO Sam Spring skyped into Proactive Investors Vancouver to bring news the company is drilling on their project in Mongolia. Spring saying it is an aggressive program with multiple rigs going 18,000 metres.

Spring talks about the targets for their drills and the scope of the project.

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https://www.miningcapital.com/companies/stocktube/13921/regency-mines-bring-new-talent-on-board-13921.html Regency Mines bring new talent on board https://www.miningcapital.com/companies/stocktube/13921/regency-mines-bring-new-talent-on-board-13921.html Fri, 28 Jun 2019 14:04:00 +0100 Regency Mines PLC (LON:RGM) has appointed executive director Scott Kaintz as chief executive director and appointed a former investment banker, Nigel Burton, as non-executive chairman. Both men talk to Proactive London and explain to investors what the chief focus for Regency will be now.
The new board of directors will consist of Scott Kaintz, Nigel Burton, and non-executive directors Ewen Ainsworth and Andrew Bell.
Nigel Burton, who has more than 30 years of experience in operational and financial management, has taken on the chairman's role. Andrew Bell resigned as chairman and chief executive officer in January but will remain on hand as a non-exec company advisor going forward. "Some time in the making, these board changes constitute the next of several steps placing Regency on a sustainable long-term development pathway," said Kaintz.

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https://www.miningcapital.com/columns/jackhammer/31028/renewable-power-generation-beat-coal-in-april-in-the-us-which-is-a-harbinger-of-things-to-come-31028.html Renewable power generation beat coal in April in the US, which is a harbinger of things to come https://www.miningcapital.com/columns/jackhammer/31028/renewable-power-generation-beat-coal-in-april-in-the-us-which-is-a-harbinger-of-things-to-come-31028.html Fri, 28 Jun 2019 11:54:00 +0100 https://www.miningcapital.com/companies/stocktube/13917/gold-lithium-and-rare-earths-spikes-with-al-ford-of-mining-capital-13917.html Gold, Lithium and Rare Earths spikes with Al Ford of Mining Capital https://www.miningcapital.com/companies/stocktube/13917/gold-lithium-and-rare-earths-spikes-with-al-ford-of-mining-capital-13917.html Fri, 28 Jun 2019 10:15:00 +0100 Mining Capital's Alistair Ford talks to Proactive Investors about the movers and shakers just below the surface explaining which two pertinent geo-political factors go some way to explaining the current gold price spike.
News here too on Rare Earth movements and a spot on how the electric vehicle revolution means more lolly for Lithium producers and investors.

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https://www.miningcapital.com/companies/stocktube/13916/archer-exploration-completes-first-stage-assembly-of-nanoscale-qubit-processor-13916.html Archer Exploration completes first-stage assembly of nanoscale qubit processor https://www.miningcapital.com/companies/stocktube/13916/archer-exploration-completes-first-stage-assembly-of-nanoscale-qubit-processor-13916.html Thu, 27 Jun 2019 23:43:00 +0100 Archer Exploration Limited (ASX:AXE) chief executive officer Dr Mohammad Choucair speaks to Proactive Investors about how the company has assembled the first components of a prototype qubit processor (chip).
 
The exciting development is part of Archer’s pioneering quantum technology 12QC project.
 
The chip forms the basis of patents exclusively licensed to Archer Exploration from the University of Sydney.
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https://www.miningcapital.com/companies/stocktube/13915/base-resources-executive-discusses-mineral-sands-market-after-global-conferences-13915.html Base Resources executive discusses mineral sands market after global conferences https://www.miningcapital.com/companies/stocktube/13915/base-resources-executive-discusses-mineral-sands-market-after-global-conferences-13915.html Thu, 27 Jun 2019 22:41:00 +0100 Base Resources Limited (ASX:BSE) general manager of marketing Stephen Hay speaks to Proactive Investors about the minerals sands market in light of recent  attendance at industry conferences in New York and China.
 
Hay notes the key theme for the titanium feedstock market is that supply constraints are supporting a very positive price environment, while the zircon market has stabilised after being on the backburner for a while due to global economic uncertainty.
 
Hay also spoke about why restricted ilmenite supply is coming out of India and Vietnam and the impact of this on local supply.
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https://www.miningcapital.com/companies/stocktube/13912/minera-alamos-receives-permit-to-start-advancing-santana-project-in-mexico-13912.html Minera Alamos receives permit to start advancing Santana project in Mexico https://www.miningcapital.com/companies/stocktube/13912/minera-alamos-receives-permit-to-start-advancing-santana-project-in-mexico-13912.html Thu, 27 Jun 2019 20:17:00 +0100 Minera Alamos (CVE:MAI) President Doug Ramshaw joined Steve Darling from Proactive Investors to discuss the Company receiving a permit for a change of land use to allow the Company to construct mining and processing facilities at the Santana project area.

Ramshaw telling Proactive the next step for the project now that they have the backing of the environmental arm of the Mexican government. 

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https://www.miningcapital.com/companies/stocktube/13909/global-energy-metals-takes-full-control-over-millennium-and-mount-isa-cobalt-projects-13909.html Global Energy Metals takes full control over Millennium and Mount ISA cobalt projects https://www.miningcapital.com/companies/stocktube/13909/global-energy-metals-takes-full-control-over-millennium-and-mount-isa-cobalt-projects-13909.html Thu, 27 Jun 2019 17:12:00 +0100 Global Energy Metals (CVE:GEMC:OTCCQ:GBLEF) President and CEO Mitchell Smith sat down with Steve Darling from Proactive Investors Vancouver to talk about the company acquiring from Hammer Metals, their remaining interest, in the Millennium project.

Smith talks about how this is a transformative move for the company and also about their next stage plans. 

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https://www.miningcapital.com/companies/stocktube/13910/japan-gold-corp-starts-drilling-program-at-ohra-takamine-project-in-kyushu-13910.html Japan Gold Corp starts drilling program at Ohra-Takamine project in Kyushu https://www.miningcapital.com/companies/stocktube/13910/japan-gold-corp-starts-drilling-program-at-ohra-takamine-project-in-kyushu-13910.html Thu, 27 Jun 2019 15:28:00 +0100 Japan Gold (CVE:JG-OTCQB:JGLDF) President and CEO John Proust sat down with Steve Darling from Proactive Investors in Toronto with the news the company has started this maiden drilling program at their Ohro-Takamine project in Japan.

Proust explaining what they will be doing and why a decision he made about drill rigs and crews is saving the company money.

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https://www.miningcapital.com/companies/stocktube/13900/greatland-gold-kicks-off-further-exploration-at-its-panorama-project-13900.html Greatland Gold kicks off further exploration at its Panorama project https://www.miningcapital.com/companies/stocktube/13900/greatland-gold-kicks-off-further-exploration-at-its-panorama-project-13900.html Thu, 27 Jun 2019 12:09:00 +0100 Greatland Gold PLC's (LON:GGP) Gervaise Heddle spoke to Proactive London's Andrew Scott as early stage exploration work got underway at their Panorama project in Western Australia.

Field reconnaissance and surface geochemical work will be followed up by a low level aeromagnetic survey covering the entire project area.

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https://www.miningcapital.com/companies/stocktube/13896/power-metal-resources-marks-new--exciting--future-with-three-flagship-projects-13896.html Power Metal Resources marks new 'exciting' future with three flagship projects https://www.miningcapital.com/companies/stocktube/13896/power-metal-resources-marks-new--exciting--future-with-three-flagship-projects-13896.html Thu, 27 Jun 2019 09:36:00 +0100 Power Metal Resources PLC's (LON:POW) Paul Johnson speaks to Proactive London's Andrew Scott following the name change earlier this week.

Johnson says after the restructuring and refinancing earlier this year they've taken some big steps forwards with active operations in Botswana, Cameroon, the Democratic Republic of Congo and Tanzania.

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https://www.miningcapital.com/columns/vsa-capital-market-movers/31023/vsa-capital-market-movers---egdon-resources-31023.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/31023/vsa-capital-market-movers---egdon-resources-31023.html Thu, 27 Jun 2019 08:04:00 +0100

VSA Morning Flow Test, 27/06/19

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Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced the much anticipated results of its Springs Road exploration well which was completed 20% under budget earlier this year. EDR holds a 14.5% interest while IGas (LON:IGAS) is the operator and we have previously highlighted the exploration well as a potential play opener given its central position within the Gainsborough Trough where EDR has a net 82,000 acres of shale exploration acreage. Today’s strong results confirm a major step towards realising that potential.

The vertical exploration well was drilled to a depth of 3,500m intercepting 429m of hydrocarbon bearing shales from the Bowland Shale, Millstone Grit and Arundian Shale. IGAS recovered 147m of core from the Bowland shale starting at c2,100m depth. This was the primary target for drilling and was analysed by Stratum Reservoir. The highlights of those results include:

  • Total Organic Carbon (TOC): 2-7% averaging 3%. Which compares to 2-8% in the Marcellus and a minimum of 2% in the Permian.
  • Average thermal maturity of 464°C.
  • Total porosity of 2-9% averaging 4% compared to 3-13% in the Marcellus and 2-10% in the Permian.
  • Gas content of 24-131scf/ton averaging 71scf/ton versus typical values of 40-150scf/t in the Marcellus. We also highlight that Cuadrilla’s Preston New Road yielded an average of 40scf/ton.
  • Average clay content of c.30 wt.%.

The low clay content means that hydraulic fracturing would likely be effective although this is likely to vary significantly across the reservoir. Higher clay content areas are more ductile and less likely to fracture when stimulated while lower clay content rocks which are more brittle enable to gas to flow more easily when fractured. Although the figure is an average it is lower than we had anticipated which we believe is a further positive.

We attach a high level of significance to the higher gas content compared to the Preston New Road development where Cuadrilla recently completed flow testing. Whilst with gas contents and porosity closely aligned to those of the major commercial shale basins of the US these results imply a major step forward in technically derisking the Gainsborough Trough and demonstrating that it the geological characteristics suitable for economic extraction.

The announcement indicates that IGAS and EDR will provide further detail in the coming quarter as well as providing more detailed comparative data on analogues. At this stage we have provided very high-level generalised statistics from the US which do not reflect the nuances within the basins mentioned, however, we believe that given the results the quality of the host rock within the Gainsborough Trough is clear, in our view.

We maintain that the UK will likely remain dependent on natural gas for a significant portion of its needs over the coming decades. This outlook is supported by the fact that natural gas is the cleanest hydrocarbon based fuel and represents a practical step towards lowering greenhouse gas emissions. Furthermore, the UK is currently reliant on imports for c50% of its gas needs and there is a clear benefit to exploiting domestic energy supplies. These strong results from Springs Road provide significant weight to the argument that the UK Government should re-evaluate its position and actively work to develop this industry.

Having recently completed an open offer which raised £1.9m on a net basis the company is in a strong position underpinned by a significant production uplift in 2019 driving a stronger revenue and earnings outlook YoY. With a strengthened balance sheet EDR is well placed to capitalise on the results from Springs Road as well as to continue to progress other key areas of its portfolio such as Resolution.

Our current target price of 39p is dominated by our shale acreage valuation which accounts for 27p of the total. The market has to date given little credit to this part of EDR’s portfolio, however, we believe that these latest results should drive a significant rerating of the stock particularly as our valuation of US$787/acre was based primarily on transactions for shale acreage which had only been modestly derisked. More advanced acreage typically trades closer to and in excess of US$2,000/acre. We note that EDR acquired much of its acreage for US$200/acre or less.

We reiterate our Buy recommendation and 39p target price.

 

 

 

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https://www.miningcapital.com/companies/stocktube/13894/fyi-resources-commissioning-high-purity-alumina-pilot-plant-13894.html FYI Resources commissioning high purity alumina pilot plant https://www.miningcapital.com/companies/stocktube/13894/fyi-resources-commissioning-high-purity-alumina-pilot-plant-13894.html Thu, 27 Jun 2019 05:57:00 +0100 FYI Resources Limited (ASX:FYI) managing director Roland Hill updates Proactive Investors on the commissioning of the high purity alumina (HPA) pilot plant at Kewdale, Western Australia.

Hills says the plant is crucial in the development of the Cadoux Kaolin Project and he is happy with the way the project is progressing.

The company also recently announced a capital raising for about $811,000, through the issue of 16.22 million shares at 5 cents per share.

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https://www.miningcapital.com/companies/stocktube/13893/salt-lake-potash-to-begin-bfs-at-lake-way-sop-project-13893.html Salt Lake Potash to begin BFS at Lake Way SOP Project https://www.miningcapital.com/companies/stocktube/13893/salt-lake-potash-to-begin-bfs-at-lake-way-sop-project-13893.html Thu, 27 Jun 2019 01:46:00 +0100 Salt Lake Potash Limited (ASX: SO4) chief executive officer Tony Swiericzuk speaks to Proactive Investors about a bankable feasibility study (BFS) which is underway at the Lake Way Sulphate of Potash (SOP) Project.

This follows a scoping study, which he says produced very strong results and financials supporting the project.

The company has also recently commenced a commercial scale SOP Evaporation process at Lake Way within the Goldfields Salt Lake Project.

Pumping has started and harvest salts are expected to emerge by the first quarter of 2020.

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https://www.miningcapital.com/companies/stocktube/13892/k2fly-acquires-rcubed-to-boost-resources-and-reserves-saas-offering-13892.html K2fly acquires RCubed to boost resources and reserves SaaS offering https://www.miningcapital.com/companies/stocktube/13892/k2fly-acquires-rcubed-to-boost-resources-and-reserves-saas-offering-13892.html Wed, 26 Jun 2019 23:40:00 +0100 K2fly (ASX: K2F) chief commercial officer Nic Pollock updates Proactive Investors on the recent acquisition of resource and reserves software solution, RCubed to strengthen its reach in the resources sector.
 
“Going forward our strategy is to increase our software business which attracts higher growth and higher margins,” he says. 
 
The digital solutions company is also set to pay $450,000 cash in the next three years for Prodmark assets.
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https://www.miningcapital.com/companies/stocktube/13886/fireweed-zinc-get-back-to-work-with-big-plans-for-the-summer-at-macmillan-pass-13886.html Fireweed Zinc get back to work with big plans for the summer at MacMillan Pass https://www.miningcapital.com/companies/stocktube/13886/fireweed-zinc-get-back-to-work-with-big-plans-for-the-summer-at-macmillan-pass-13886.html Wed, 26 Jun 2019 16:49:00 +0100 Fireweed Zinc (CVEFWZ) President and CEO Brandon Macdonald joined Steve Darling from Proactive Investors Vancouver to inform investors about their summer work program that has just started.

Macdonald talked about the drilling they are playing on Tom North and the RC drilling and Geo sampling work as well. 

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https://www.miningcapital.com/companies/stocktube/13885/telson-mining-finding-great-results-with-channel-sample-results-from-tahuehueto-13885.html Telson Mining finding great results with channel sample results from Tahuehueto https://www.miningcapital.com/companies/stocktube/13885/telson-mining-finding-great-results-with-channel-sample-results-from-tahuehueto-13885.html Wed, 26 Jun 2019 16:38:00 +0100 Telson Mining (CVE:TSN) President Ralph Shearing join Steve Darling from Proactive Investors Vancouver on Skype from Zurich to talk about the latest results from theTahuehueto Project.

Telson telling Proactive that the El Perdido zone northeast has exposed new and continuous mineralization that may add new resources. Shearing also talked about the work they plan on doing next.

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https://www.miningcapital.com/companies/stocktube/13879/kodal-minerals-updates-on-further-exploration-as-bougouni-development-progresses-13879.html Kodal Minerals updates on further exploration as Bougouni development progresses https://www.miningcapital.com/companies/stocktube/13879/kodal-minerals-updates-on-further-exploration-as-bougouni-development-progresses-13879.html Wed, 26 Jun 2019 13:02:00 +0100 Kodal Minerals PLC's (LON:KOD) CEO Bernard Aylward tells Proactive London's Andrew Scott they've encountered pegmatite mineralisation in key targets during further drilling at the Bougouni lithium project in southern Mali.

The exploration programme has focussed on the Marigo prospect and the Mafele concession.

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https://www.miningcapital.com/companies/stocktube/13877/ra-international-reports-on--encouraging--year-as-it-secures-new-9mln-contract-13877.html RA International reports on 'encouraging' year as it secures new $9mln contract https://www.miningcapital.com/companies/stocktube/13877/ra-international-reports-on--encouraging--year-as-it-secures-new-9mln-contract-13877.html Wed, 26 Jun 2019 12:25:00 +0100 RA International's (LON:RAI) Andrew Bolter speaks to Proactive London following the announcement they'd secured a new $9mln government contract.

It's a three year deal with an unnamed government and will see the firm deliver construction and facilities management services.

The news coincided with a trading update in which they've described the year so far as being 'encouraging' with further progress made in line with their strategy of bidding for larger contracts across its three service channels.

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https://www.miningcapital.com/companies/stocktube/13873/galantas-gold-anticipating-further-production-increases-in-third-quarter-13873.html Galantas Gold anticipating further production increases in third quarter https://www.miningcapital.com/companies/stocktube/13873/galantas-gold-anticipating-further-production-increases-in-third-quarter-13873.html Wed, 26 Jun 2019 07:37:00 +0100 Galantas Gold Corp's (LON:GAL) Roland Phelps tells Proactive London they're expecting to book approximately US$460,000 in concentrate sales for the second quarter of the year.

A second shift was added to the processing plant operations, as planned, early in the second quarter of 2019.

An expansion to three shifts is planned for the third quarter.

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https://www.miningcapital.com/companies/stocktube/13871/great-western-exploration-forges-ahead-with-gold-and-copper-prospects-13871.html Great Western Exploration forges ahead with gold and copper prospects https://www.miningcapital.com/companies/stocktube/13871/great-western-exploration-forges-ahead-with-gold-and-copper-prospects-13871.html Wed, 26 Jun 2019 03:16:00 +0100 Great Western Exploration Limited (ASX:GTE) managing director Jordan Luckett updates Proactive Investors on the oversubscribed capital raising to advance drilling at the Yandal West Gold Project.

Luckett says work will be focused on expanding gold zones that were discovered at Yandal as well as assessing the vanadium potential at its Yerrida Project.

“We have a busy six months ahead,” he says.

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https://www.miningcapital.com/companies/stocktube/13869/yandal-resources-outlines-capital-raising-to-accelerate-exploration-13869.html Yandal Resources outlines capital raising to accelerate exploration https://www.miningcapital.com/companies/stocktube/13869/yandal-resources-outlines-capital-raising-to-accelerate-exploration-13869.html Tue, 25 Jun 2019 23:24:00 +0100 Yandal Resources Limited (ASX:YRL) managing director Lorry Hughes speaks to Proactive Investors about the new rights issue to shareholders to raise around $2.9 million. 
 
Hughes says this puts the company in a great position when the gold market is flying high. 
“We’ve got fantastic projects and have received fantastic encouragement,” he says. 
 
“We’ve got new results to come and we’ve nearly finished our infill drill program – all that leads to generating our main resource probably around August.” 
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https://www.miningcapital.com/companies/stocktube/13868/cervantes-corporation-highlights-wa-soil-sampling-results-13868.html Cervantes Corporation highlights WA soil sampling results https://www.miningcapital.com/companies/stocktube/13868/cervantes-corporation-highlights-wa-soil-sampling-results-13868.html Tue, 25 Jun 2019 23:12:00 +0100 Cervantes Corporation Limited (ASX:CVS) Collin Vost updates Proactive Investors on recent soil sampling results obtained from the Abbotts and Primrose gold projects in WA's Murchison region. 
 
Vost says the soil sampling at Abbotts highlights potential shear zones running from the south into the project area and is further evidence of the gold potential of the project.
 
“We think this is going to turn into a very valuable asset,” he says.
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https://www.miningcapital.com/companies/stocktube/13854/strategic-minerals-raises-890000-to-help-close-redmoor-purchase-13854.html Strategic Minerals raises £890,000 to help close Redmoor purchase https://www.miningcapital.com/companies/stocktube/13854/strategic-minerals-raises-890000-to-help-close-redmoor-purchase-13854.html Tue, 25 Jun 2019 09:56:00 +0100 Strategic Minerals PLC's (LON:SML) John Peters speaks to Proactive London's Andrew Scott after announcing they'd raised £890,000 of new capital via a share placing.

The proceeds will be used primarily to close the purchase of shares in Cornwall Resources and to provide working capital for the Leigh Creek copper mine project.

Peters adds that he believes the US$4.06mln owed to the company by the major Cobre client is imminent and could be received at any time.

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https://www.miningcapital.com/companies/stocktube/13853/thor-mining-to-test-previous-pilot-mountain-drill-samples-for-gold-13853.html Thor Mining to test previous Pilot Mountain drill samples for gold https://www.miningcapital.com/companies/stocktube/13853/thor-mining-to-test-previous-pilot-mountain-drill-samples-for-gold-13853.html Tue, 25 Jun 2019 09:31:00 +0100 Thor Mining PLC's (LON:THR) Mick Billing tells Proactive London's Andrew Scott they're to send drilling samples from its Pilot Mountain tungsten project back to the lab to see whether they contain gold.

Billing also updates on lab tests which have affirmed the good tungsten grades from their drilling programme at Bonya in Northern Territory, Australia.

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https://www.miningcapital.com/companies/stocktube/13847/shefa-gems-completes-exploration-efforts-at-its-kishon-mid-reach-zone-2-13847.html Shefa Gems completes exploration efforts at its Kishon Mid-Reach Zone 2 https://www.miningcapital.com/companies/stocktube/13847/shefa-gems-completes-exploration-efforts-at-its-kishon-mid-reach-zone-2-13847.html Tue, 25 Jun 2019 07:52:00 +0100 Shefa Gems Ltd's (LON:SEFA) James Campbell caught up with Proactive London's Andrew Scott after announcing they'd completed the excavation of four new bulk samples and one mini bulk sample from target gravel horizons in the Kishon Mid-Reach Zone 2 in Israel.

The new collected samples, with a total weight of 2,255 tonnes, have been transported for treatment and analysis to the company's operational site in Akko.

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https://www.miningcapital.com/companies/stocktube/13849/ggx-gold-corp-working-towards-acquiring-phoenix-project-in-grand-forks-bc-13849.html GGX Gold Corp working towards acquiring Phoenix Project in Grand Forks, B.C. https://www.miningcapital.com/companies/stocktube/13849/ggx-gold-corp-working-towards-acquiring-phoenix-project-in-grand-forks-bc-13849.html Mon, 24 Jun 2019 15:51:00 +0100 GGX Gold Corp (CVE:GGX) President Geroge Sookochoff sat down with Steve Darling from Proactive Investors Vancouver to talk about why he decided to come out of semi-retirement to become President of GGX.

Sookochoff also talked about what he is planning for the rest of the year including an acquisition of a project very well known to him. 

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https://www.miningcapital.com/companies/stocktube/13848/mandalay-resources-expecting-busy-year-on--projects-in-australia-and-sweden-13848.html Mandalay Resources expecting busy year on projects in Australia and Sweden https://www.miningcapital.com/companies/stocktube/13848/mandalay-resources-expecting-busy-year-on--projects-in-australia-and-sweden-13848.html Mon, 24 Jun 2019 15:15:00 +0100 Mandalay Resources (TSX-MND) President and CEO Dominic Duffy joined Steve Darling from Proactive Investors Vancouver to discuss the latest progress on two of their projects. Duffy discussing Costerfield in Australia and Bjorkdal in Sweden.

Duffy telling Proactive what work they have completed and how busy they will be the rest of the year with lots of exploration and drilling.

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https://www.miningcapital.com/companies/stocktube/13844/w-resources-firmly-focused-on-la-parrilla-ramp-up-to-design-capacity-13844.html W Resources firmly focused on La Parrilla ramp up to design capacity https://www.miningcapital.com/companies/stocktube/13844/w-resources-firmly-focused-on-la-parrilla-ramp-up-to-design-capacity-13844.html Mon, 24 Jun 2019 10:20:00 +0100 W Resources PLC's (LON:WRES) Chairman Michael Masterman updates Proactive London's Andrew Scott on developments on the ground at their flagship La Parrilla project in Spain and the work towards commissioning the jig and mill plant.

Elsewhere , they've recently signed a contract for haulage and crushing services at its Régua tungsten mine in Northern Portugal.

Plus at São Martinho a trial mining application submitted in September last year's progressing through the regulatory process, while a review by mining consultant SRK to finalise an increased resource estimate is due to finish next month.

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https://www.miningcapital.com/companies/stocktube/13843/bfs-confirms--quality-and-scale--of-orion-minerals--prieska-project-13843.html BFS confirms 'quality and scale' of Orion Minerals' Prieska project https://www.miningcapital.com/companies/stocktube/13843/bfs-confirms--quality-and-scale--of-orion-minerals--prieska-project-13843.html Mon, 24 Jun 2019 10:05:00 +0100 Orion Minerals Ltd's (ASX:ORN) Errol Smart talks Proactive London's Andrew Scott through the just-released BFS (Bankable Feasibility Study) on its Prieska Project in the Northern Cape region of South Africa.

Smart's delighted with the results of it which he says confirm the project's quality and scale and put the company firmly on track to become a major new South African base metal producer.

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https://www.miningcapital.com/companies/stocktube/13835/if-you-haven-t-heard-of-graphene-grapheneca-tells-you-why-it-s-amazing-13835.html If you haven't heard of Graphene, GrapheneCA tells you why it's amazing! https://www.miningcapital.com/companies/stocktube/13835/if-you-haven-t-heard-of-graphene-grapheneca-tells-you-why-it-s-amazing-13835.html Fri, 21 Jun 2019 14:42:00 +0100 GrapheneCA Head of Business Development David Robles dropped by the Vancouver studio of Proactive Investors to discuss the technology company that is integrating graphene into the real world using their own environmentally friendly production process.

Robles telling Proactive about the company's revenue streams and when they are expecting to be profitable.

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https://www.miningcapital.com/companies/stocktube/13827/renaissance-gold-is-in-a-strong-financial-position-with-a-busy-year-ahead-13827.html Renaissance Gold is in a strong financial position with a busy year ahead https://www.miningcapital.com/companies/stocktube/13827/renaissance-gold-is-in-a-strong-financial-position-with-a-busy-year-ahead-13827.html Fri, 21 Jun 2019 10:32:00 +0100 Renaissance Gold (CVE:REN) President and CEO Bob Felder joined Steve Darling from Proactive Investors Vancouver to provide an update on their operations. Felder talks about their projects and what work has been done. He also chatted about exploration opportunities.

Felder also telling Proactive about their numerous earn in opportunities and how that has put them in a strong financial position.
 

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https://www.miningcapital.com/companies/stocktube/13830/-perfect-timing--for-resolute-mining-as-it-dual-lists-in-london-13830.html 'Perfect timing' for Resolute Mining as it dual lists in London https://www.miningcapital.com/companies/stocktube/13830/-perfect-timing--for-resolute-mining-as-it-dual-lists-in-london-13830.html Fri, 21 Jun 2019 08:56:00 +0100 Mining Capital's Alastair Ford describes the timing of Resolute Mining Ltd's (ASX:RSG) (LON:RSG) dual listing in London as 'perfect' as it coincides with the gold price hitting a five year high.

The LSE listing is expected to raise the gold producer’s profile in global investment markets and support the company’s growth plans.

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https://www.miningcapital.com/companies/stocktube/13829/mining-capital-s-alastair-ford-talks-european-metals-and-lithium-hydroxide-13829.html Mining Capital's Alastair Ford talks European Metals and Lithium Hydroxide https://www.miningcapital.com/companies/stocktube/13829/mining-capital-s-alastair-ford-talks-european-metals-and-lithium-hydroxide-13829.html Fri, 21 Jun 2019 08:46:00 +0100 Mining Capital's Alastair Ford discusses European Metals Holdings Ltd (LON:EMH) and how they've now demonstrated a capability to produce lithium hydroxide.

Ford says a new type of battery is now entering into the picture, the 811 and that these require lithium hydroxide as their main input rather than the more standard lithium carbonate used elsewhere.

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https://www.miningcapital.com/companies/stocktube/13820/globex-mining-stake-in-gold-project-in-bateman-bay-looks-promising-after-drilling-13820.html Globex Mining stake in Gold Project in Bateman Bay looks promising after Drilling https://www.miningcapital.com/companies/stocktube/13820/globex-mining-stake-in-gold-project-in-bateman-bay-looks-promising-after-drilling-13820.html Thu, 20 Jun 2019 15:38:00 +0100 Globex Mining (CVE:CBG) President and CEO Jack Stoch joined Steve Darling from Proactive Investors Vancouver to talk about their 3 percent stake in a company called Chibougamau Independent Mines Inc.  This company was granted permits to continue drilling, this time on the C-3 Copper/Gold Zone.

Stoch also told Proactive about another play the company has made, this time in the Skanadium sector. He talks about what this is and just how lucrative it can be.
 

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https://www.miningcapital.com/columns/jackhammer/31011/gold-price-soars-on-dovish-fed-pronouncements-and-middle-east-uncertainty-31011.html Gold price soars on dovish Fed pronouncements and Middle East uncertainty https://www.miningcapital.com/columns/jackhammer/31011/gold-price-soars-on-dovish-fed-pronouncements-and-middle-east-uncertainty-31011.html Thu, 20 Jun 2019 10:51:00 +0100 https://www.miningcapital.com/companies/stocktube/13815/highfield-resources-secures-environmental-permit-as-flagship-potash-project-advances-13815.html Highfield Resources secures environmental permit as flagship potash project advances https://www.miningcapital.com/companies/stocktube/13815/highfield-resources-secures-environmental-permit-as-flagship-potash-project-advances-13815.html Thu, 20 Jun 2019 09:37:00 +0100 Highfield Resources Ltd (ASX:HFR) CEO Peter Albert speaks to Proactive London's Andrew Scott after securing an environmental permit for their flagship Muga potash project in Spain.

Albert says the key priorities for them now is securing the mining concession and the permits needed to take the project into construction.

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https://www.miningcapital.com/companies/stocktube/13812/shanta-gold-reports-best-drill-results-in-15-years-from-bauhinia-creek-13812.html Shanta Gold reports best drill results in 15 years from Bauhinia Creek https://www.miningcapital.com/companies/stocktube/13812/shanta-gold-reports-best-drill-results-in-15-years-from-bauhinia-creek-13812.html Thu, 20 Jun 2019 08:21:00 +0100 Shanta Gold Limited's (LON:SHG) Eric Zurrin talks Proactive London's Andrew Scott through what he's described as exceptional grades from their latest drilling campaign at New Luika in south-western Tanzania.

Shanta's been drilling at Bauhinia Creek on the New Luika gold mine and has intersected high-grade mineralisation over significant widths

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https://www.miningcapital.com/columns/jackhammer/30996/gold-pushes-past-us1350-as-fed-doves-combine-with-iran-hawks-to-bring-in-the-buyers-30996.html Gold pushes past US$1,350 as Fed doves combine with Iran hawks to bring in the buyers https://www.miningcapital.com/columns/jackhammer/30996/gold-pushes-past-us1350-as-fed-doves-combine-with-iran-hawks-to-bring-in-the-buyers-30996.html Fri, 14 Jun 2019 11:18:00 +0100 https://www.miningcapital.com/columns/jackhammer/30976/the-gold-price-soars-as-the-fed-changes-tack-and-rate-cuts-loom-30976.html The gold price soars, as the Fed changes tack and rate cuts loom https://www.miningcapital.com/columns/jackhammer/30976/the-gold-price-soars-as-the-fed-changes-tack-and-rate-cuts-loom-30976.html Fri, 07 Jun 2019 11:15:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30965/vsa-capital-market-movers---nulegacy-gold-30965.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30965/vsa-capital-market-movers---nulegacy-gold-30965.html Tue, 04 Jun 2019 08:35:00 +0100

VSA Morning Miner, 04/06/19

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NuLegacy Gold (CVE:NUG)

NuLegacy Gold (NUG CN) has provided an update in relation to its planned exploration programme for 2019. Despite making significant progress towards generating encouraging and prospective new targets, the additional depth of the targets under the Eocene basalt cover means higher drilling costs. Given the size of the new targets and the amount of drilling that would be required NUG believe that it would be more effective to progress discussions with potential JV or merger partners rather than looking to finance a programme at multi year lows.

This comes as a disappoint given our recent expectation that drilling was due to commence imminently, however, our fundamental view that the Red Hill property is potentially host to attractive large scale and high-grade mineralisation remains unchanged.

We reiterate our Speculative Buy recommendation.

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30964/vsa-capital-market-movers---egdon-resources-30964.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30964/vsa-capital-market-movers---egdon-resources-30964.html Tue, 04 Jun 2019 08:33:00 +0100

VSA Morning Flow Test, 04/06/19

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Egdon Resources (LON:EDR)

Egdon Resources (LON:EDR) has announced the results of its underwritten Open Offer of 43,330,803 Open Offer Shares, which was initially announced on 15 May 2019.  EDR has received valid acceptances and excess applications from Qualifying Shareholders for a total of 31,200,612 Open Offer Shares. The company’s largest shareholder Petrichor Holdings Coöperatief U.A. has agreed to subscribe for the remaining 12,130,191 Open Offer Shares. Net proceeds from the Open Offer amount to £1.9 million and will be used to advance the company’s exploration and appraisal programme at the Gainsborough Trough and Resolution Gas Discovery.

At a General Meeting held on 3 June, shareholders voted in favour of approving a waiver granted by the Panel on Takeovers and Mergers of any requirement for Petrichor to make a general offer to shareholders of the company as a result of increasing its holding beyond 29.9%. Petrichor’s new holding is 33.99%.

EDR announced earlier this year the publication of an updated resource at Resolution demonstrating Contingent Resources of up to 389BCF and average Contingent Resources of 231BCF. The company is progressing discussions with potential partners for the acquisition of 3D seismic. Furthermore, full results from Springs road are expected in the coming weeks whilst strong production was maintained into April with the recent production update showing average production in 4mo18 of 238bopd.

We believe the success of the Open Offer, underpinned by support from EDR’s strategic shareholders Petrichor and Premier Oil (LON:PMO) demonstrates their confidence in the company’s asset base and the potential of the shale industry in the UK despite recent negative sentiment.
Following the issue of the Open Offer Shares, the Company will have 303,315,625 Ordinary Shares in issue and we have adjusted our year end forecast cash position to £3.3m.

We reiterate our Buy recommendation but reduce our target price by 14% to 39p to reflect the increase in share capital.

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30961/vsa-capital-market-movers---central-asia-metals-30961.html VSA CAPITAL MARKET MOVERS - Central Asia Metals https://www.miningcapital.com/columns/vsa-capital-market-movers/30961/vsa-capital-market-movers---central-asia-metals-30961.html Mon, 03 Jun 2019 14:16:00 +0100

Central Asia Metals#: Sasa Site Visit

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We recently visited Central Asia Metals (CAML LN) Sasa mine in North Macedonia. CAML have now been operators for over 18 months maintain strong margins and cashflow in 2018 with US$103m revenue and US$71m EBITDA. The site visit allowed us to see how the asset has been absorbed into the wider group, particularly in light of the ongoing Life of Mine review which is seeking to conclude whether additional value can be realised through optimising operational performance.

Sasa Life of Mine Review

As previously announced CAML is undertaking a holistic Life of Mine review of Sasa to better understand whether changes to operational practices and a deeper understanding of the ore body will enable efficiency gains and an increase to the potential realisable value. The first step of this was an updated resource statement which included an increase in lead and zinc grades as well as the conversion of 17% of Golema Reka into the higher Indicated category. The operational review will seek to understand amongst other things whether gains can be made by increasing plant throughput from 805kt in 2018 to nameplate capacity of 850ktpa.   

Recommendation and Target Price

Since our April update, the shares have pulled back 11% as US China tensions have reignited causing base metal prices to retreat through Q2 2019. While optimistic a resolution can be found we previously highlighted that the final stages would likely be the most contentious.

With leading cost metrics versus peers and trading on a significant dividend yield of 7% we continue to believe that CAML is attractively valued, and the recent pullback offers a buying opportunity. Furthermore, we believe that CAML is capable of enhancing Sasa’s operating practice to directly benefit earnings, however, the results and extent are as yet unclear. This does offer potential upside risk to our earnings outlook which is unchanged.

We reiterate our Buy recommendation and target price of 300p which implies 36% upside and 44% on a total return basis.

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30957/vsa-capital-market-movers---columbus-energy-resources-30957.html VSA CAPITAL MARKET MOVERS - Columbus Energy Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30957/vsa-capital-market-movers---columbus-energy-resources-30957.html Mon, 03 Jun 2019 08:11:00 +0100

VSA Morning Flow Test, 03/06/19

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Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (CERP LN) has announced full year results for 2018 demonstrating operational progress through improved financial results. Revenue of £7.6m was up 58% YoY as higher Trinidad production of 541bopd, up 47% YoY, significantly offset the closure of the Spanish operations. This was, however, complicated by the range bound oil price environment around the Special Petroleum Tax (SPT) threshold meaning royalties paid by CERP increased 88% YoY to £2.2m with revenue 12% below our estimate.

As a result of stronger revenues and careful cost management, CERP achieved gross profit of £1.45m, up from £0.08m YoY. As previously indicated, there were a number of one off charges in relation to the closure of the Spanish Operations along with post acquisition costs in relation to Steeldrum totalling £1.47m. Consequently, CERP achieved a net loss of £2.7m, narrowed from £5m in 2017 marginally higher than our estimate of £2.4m which included more conservative assumptions for the one off costs.

As a result of the operational improvements and stronger top line, CERP, was in a position to weather these one off issues and finished the year with a cash position of £1.2m having substantially reduced its debt position to just £0.3m. Capital spending of £1m was modestly lower than £1.7m in 2017. This highlights, in our view, the benefit to shareholders of the prudent operational strategy designed to cope with the challenges of the SPT in a range bound oil price environment in which simply raising production might result in higher net expenditure.  

CERP has highlighted that when the WTI oil price exceeds US$50.01/bbl an 18% sales tax is payable (the SPT) at the end of each quarter. This also takes into allowance capital spending but whilst the oil price is in a range of US$49.95/bbl and US$61.00/bbl the benefits of raising production are tightly aligned to the company’s capital spending. Q1 2019 was also affected by this with an average WTI price of US$54.83/bbl, however, the closure of the refinery in Trinidad simplified the regional supply chain and CERP received a small premium to WTI in Q1 2019 rather than a modest discount. It is not clear yet whether this is part of a sustainable change in the pricing environment given the substantial changes to the oil industry in Trinidad.  

We believe that with the significant progress made in 2018, CERP is now well placed to deliver on major milestones in 2019. We have previously highlighted the plan to drill the South West Peninsula, due in H2 2019, where despite the significant potential, given the more favourable fiscal terms of production it would only require a modest discovery to transform the company’s earnings profile. Furthermore, CERP is also making additional progress with enhanced oil recovery projects.

At Goudron, the waterflood pilot programme is due to continue after pressure communication was achieved between wells GY-665 and GY-667 following injection rates of up to 960bwpd and cumulative injection of 104,000 barrels. GY-209 is set to be converted to support the GY-664 well this year.       
Workovers were carried out across Inniss Trinity, Cory Moruga, South Erin and Bonasse and site preparations are underway for the CO2 injection programme at Inniss Trinity. While at Icacos CERP as of January 2019 now has operational control of the asset.
 
With ongoing remedial and optimisation across CERP’s now diversified production base there are a number of smaller opportunities to enhance profitability in 2019 and we believe that the strengthening of the producing asset base is central to supporting the major objectives for 2019 including the SWP well and advancing the M&A strategy.
 
We reiterate our Buy recommendation and 21.4p target price.  

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30956/chinas-economic-growth-in-serious-peril-as-the-us-continues-to-ratchet-up-the-pressure-30956.html China’s economic growth in serious peril as the US continues to ratchet up the pressure https://www.miningcapital.com/columns/jackhammer/30956/chinas-economic-growth-in-serious-peril-as-the-us-continues-to-ratchet-up-the-pressure-30956.html Fri, 31 May 2019 10:45:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30948/vsa-capital-market-movers---dekeloil-30948.html VSA CAPITAL MARKET MOVERS - DekelOil https://www.miningcapital.com/columns/vsa-capital-market-movers/30948/vsa-capital-market-movers---dekeloil-30948.html Thu, 30 May 2019 08:46:00 +0100

VSA Morning Agri Comment, 30/05/19

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DekelOil: Equity Finance for Cashew Project

West African agricultural company DekelOil Public (LON:DKL) has announced a €1m investment into its investee company Pearlside Holdings from Hong Kong-based existing investor Concordia Corporation to assist with the development of its cashew processing project at Tiebissou in Côte d’Ivoire.

  • Concordia has increased its stake in Pearlside to 32.9% for a €1m investment at a €6m pre-money valuation.
  • DKL’s stake in the project will reduce to 37.8% from 43.8% as a result of the financing (with a partial conversion of a short-term bridge loan made to Pearlside from DKL during the transaction offsetting a small part of the dilution).
  • DKL has retained its option to secure a majority stake in the project with a call option over an additional 17% of shares in place.
  • First production from the facility remains on track for H1 2020. The cashew season starts in Côte d’Ivoire in February and runs to June. The project will stockpile nuts during the start of this period until the facility becomes operational.

VSA Comment

Existing project investor Concordia has increased its stake in the Tiebissou cashew project to c32.9% at the same nominal valuation that DKL made its own investment last December. However, due to DKL issuing shares at a premium to acquire its stake, its effective deal valuation was lower (c€4.2m). This additional investment further endorses the value of the project and will permit the drawdown of the already-agreed development loans.
 
We now estimate the project could deliver an additional c€2.2m in attributable profit to DKL by 2022 (assuming the option over the additional 17% is exercised).

Following the increased trading volume in the company’s shares last week we also note last night’s TR-1 announcement detailing the acquisition of c.13m shares (c.3.7% of shares outstanding) by a New York-based high net worth investor. This supports our thesis that the company is fundamentally undervalued at its current share price.   

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

Harvest Minerals

11.71

6.30

0.20

+3.3%

Kore Potash

18.55

2.15

0.05

+2.4%

DekelOil Public

10.57

3.00

0.05

+1.7%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Equatorial Palm Oil

3.47

0.97

(0.10)

-9.3%

Sirius Minerals

745.46

15.54

(0.66)

-4.1%

REA Holdings

66.23

163.50

(4.00)

-2.4%

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30942/vsa-capital-market-movers---nulegacy-gold-30942.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30942/vsa-capital-market-movers---nulegacy-gold-30942.html Tue, 28 May 2019 13:09:00 +0100

NuLegacy Gold#: Exploration Update and Management Changes

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Ready to Commence 2019 Drill Programme

As previously stated NUG has shifted its 2019 focus towards the Western area of its license area anticipating a strengthening of the hydrothermal Carlin system down dip, however, following the management changes NUG has further refined its targeting for 2019 drilling. This Western area has previously been avoided due to cover by Eocene basalts, however, CSAMT surveys and drilling in late 2018 confirmed the presence of the favourable limestone host rocks beneath this cover. Late snowfall has slightly delayed the planned start date for drilling although is anticipated to commence as soon as conditions improve.  

Management Changes

In April 2019 NUG announced a series of changes with James Anderson stepping back from his position as CEO to a non-executive Director role having been in post since 2012. The subsequent board and management reshuffle brings to the fore NUG’s most experienced ex-Barrick Gold (ABX US) personnel into more active roles including Ed Cope and Charles Weakly who will now be leading the running of the exploration programmes. Alex Davidson, (also ex-ABX) moves to Chairman while Albert Matter, a founding Director of NUG, returns to the role of CEO. 

Focus on Fourmile Lookalike and Western Targets

The interpretation of CSAMT surveys along with surface mapping has generated two key new targets, a Fourmile lookalike and the Rift Anticline. NUG’s Fourmile lookalike, which has yet to be drilled, has been previously referred to as East VIO and has shown up as a zone of high resistivity on last year’s CSAMT survey. NUG’s exploration team, having worked at Barrick Gold’s (ABX US) Fourmile, have likened the geophysical pattern to the initial findings at Fourmile (where an initial 0.7mnoz resource at 19g/t Au has now been defined). Two further targets have been identified within the Western area as well as a reinterpretation of the Serena zone where NUG achieved its 2018 breakthrough results.

Recommendation and Target Price

With the major reinterpretation and relogging work having yielded best ever results in 2018, NUG is now looking to capitalise on these results with its most experienced regional geologists now taking a more active role in the exploration strategy.

We reiterate our Speculative Buy recommendation.

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30937/us-and-european-pmi-numbers-make-far-more-waves-that-uk-prime-ministers-resignation-30937.html US and European PMI numbers make far more waves that UK Prime Minister’s resignation https://www.miningcapital.com/columns/jackhammer/30937/us-and-european-pmi-numbers-make-far-more-waves-that-uk-prime-ministers-resignation-30937.html Fri, 24 May 2019 11:57:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30926/vsa-capital-market-movers---bacanora-lithium-30926.html VSA CAPITAL MARKET MOVERS - Bacanora Lithium https://www.miningcapital.com/columns/vsa-capital-market-movers/30926/vsa-capital-market-movers---bacanora-lithium-30926.html Mon, 20 May 2019 08:19:00 +0100

VSA Morning Miner, 20/05/19

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Bacanora Lithium (LON:BCN)

Bacanora Lithium (BCN LN) has announced a proposed strategic investment by Ganfeng Lithium, China’s largest lithium producer and the third largest globally. The transaction includes investment at the project and corporate level for a total value of £21.96m (US$27.8m) at an equivalent price of 25p/sh, in line with the recent share price. This investment by one of the industry majors confirms our view of the attractive economic and technical potential of the project as well as highlighting the ongoing need for the majors to secure additional production capacity given the strong demand backdrop.

The corporate level investment of £14.4m for 57.6m shares at 25p/sh. also gives Ganfeng the right to a Board position as well as pre-emption rights on new equity issuance. The project level investment into a subsidiary of BCN gives Ganfeng the right to acquire 22.5% of the project for £7.56m (equivalent to a 25p/sh. valuation) and the option to acquire up to 50% within 24 months of the initial investment based on market valuations at the time of exercise. The project level investment also provides the right to appoint a Director to the Board of the project level company.

In addition, Ganfeng on completion of the strategic investment will receive exclusive offtake rights to purchase 50% of all lithium products for stage 1 (100% capacity of 17.5ktpa) as well as an option to increase to 75% of all lithium production at Stage 2 (100% capacity of 35ktpa). All production is to be purchased at market prices.

Our prior valuation assumption had incorporated the potential dilution from strategic funding at 50p/sh. Updating our model to reflect this strategic investment and proposed reduction in BCN’s interest at the project level results in a 13% reduction in our target price to £1.00/sh.

With Ganfeng’s support as a cornerstone investor we believe that BCN is now well placed to secure the remaining project financing. We had previously assumed around US$180m would be required in equity given the existing RK Mining debt facility (US$150m) notwithstanding commitments from other strategics such as Hanwa for US$25m.

Although we remain convinced that the pilot plant in Hermosillo acts as a major derisking factor in the BCN investment case we believe that Ganfeng’s support in the finalisation of the EPC engineering contract, the implementation of the plant design and construction as well as project commissioning should provide investors with significant additional comfort given Ganfeng’s expertise in the sector.

We reiterate our Buy recommendation although reduce our target price to £1.00/sh. to reflect the proposed strategic transaction.

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30925/vsa-capital-market-movers---bacanora-lithium-30925.html VSA CAPITAL MARKET MOVERS - Bacanora Lithium https://www.miningcapital.com/columns/vsa-capital-market-movers/30925/vsa-capital-market-movers---bacanora-lithium-30925.html Mon, 20 May 2019 08:19:00 +0100

VSA Morning Miner, 20/05/19

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Bacanora Lithium (LON:BCN)

Bacanora Lithium (BCN LN) has announced a proposed strategic investment by Ganfeng Lithium, China’s largest lithium producer and the third largest globally. The transaction includes investment at the project and corporate level for a total value of £21.96m (US$27.8m) at an equivalent price of 25p/sh, in line with the recent share price. This investment by one of the industry majors confirms our view of the attractive economic and technical potential of the project as well as highlighting the ongoing need for the majors to secure additional production capacity given the strong demand backdrop.

The corporate level investment of £14.4m for 57.6m shares at 25p/sh. also gives Ganfeng the right to a Board position as well as pre-emption rights on new equity issuance. The project level investment into a subsidiary of BCN gives Ganfeng the right to acquire 22.5% of the project for £7.56m (equivalent to a 25p/sh. valuation) and the option to acquire up to 50% within 24 months of the initial investment based on market valuations at the time of exercise. The project level investment also provides the right to appoint a Director to the Board of the project level company.

In addition, Ganfeng on completion of the strategic investment will receive exclusive offtake rights to purchase 50% of all lithium products for stage 1 (100% capacity of 17.5ktpa) as well as an option to increase to 75% of all lithium production at Stage 2 (100% capacity of 35ktpa). All production is to be purchased at market prices.

Our prior valuation assumption had incorporated the potential dilution from strategic funding at 50p/sh. Updating our model to reflect this strategic investment and proposed reduction in BCN’s interest at the project level results in a 13% reduction in our target price to £1.00/sh.

With Ganfeng’s support as a cornerstone investor we believe that BCN is now well placed to secure the remaining project financing. We had previously assumed around US$180m would be required in equity given the existing RK Mining debt facility (US$150m) notwithstanding commitments from other strategics such as Hanwa for US$25m.

Although we remain convinced that the pilot plant in Hermosillo acts as a major derisking factor in the BCN investment case we believe that Ganfeng’s support in the finalisation of the EPC engineering contract, the implementation of the plant design and construction as well as project commissioning should provide investors with significant additional comfort given Ganfeng’s expertise in the sector.

We reiterate our Buy recommendation although reduce our target price to £1.00/sh. to reflect the proposed strategic transaction.

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30923/king-of-all-it-surveys-the-dollar-sweeps-all-before-it-30923.html King of all it surveys: the dollar sweeps all before it https://www.miningcapital.com/columns/jackhammer/30923/king-of-all-it-surveys-the-dollar-sweeps-all-before-it-30923.html Fri, 17 May 2019 11:59:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30899/vsa-capital-market-movers---columbus-energy-resources-30899.html VSA CAPITAL MARKET MOVERS - Columbus Energy Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30899/vsa-capital-market-movers---columbus-energy-resources-30899.html Mon, 13 May 2019 08:26:00 +0100

VSA Morning Flow Test, 13/05/19

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Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (LON:CERP)  has announced it has been granted a Private Petroleum Licence for the Bonasse Licence Area in the South West Peninsula of Trinidad.  The licence, which includes the Bonasse field is granted by the Trinidad Ministry of Energy and Energy Industries and formally recognises that Columbus has the right to exploit any oil and gas in the licenced area. Having previously announced that a well location had been chosen this is an important step in terms of regulatory clearance and confirms that the well will be drilled in 2019.

CERP is undertaking the necessary pre-drill activities to commence drilling in Q3 2019 and this continues to be one of the key catalysts for the stock.  Drilling does however remain subject to obtaining Governmental approval; however, the grant of the Private Petroleum Licence is an important step towards this.

The granted licence has a term of 20 years and can be renewed upon an application by the Company for further periods of 20 years. As part of the requirements of the licence, the minimum work obligation includes the workover of three existing wells, with the addition of the drilling of one well in 2019. This confirms that the exploration of the SWP will commence in 2019,  funded by existing cash resources which is a major step, in our view, in the development of CERP.

We reiterate our Buy recommendation and 21.4p target price.

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30897/vsa-capital-market-movers---tectonic-gold-30897.html VSA CAPITAL MARKET MOVERS - Tectonic Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30897/vsa-capital-market-movers---tectonic-gold-30897.html Mon, 13 May 2019 08:19:00 +0100

VSA Morning Miner, 13/05/19

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Tectonic Gold (LON:TTAU)

Tectonic Gold (LON:TTAU) has announced that it has restructured the previously announced alluvial diamond mining joint venture with VAST Mineral Sands Pty Ltd and has taken a 100% economic interest in the diamond mining contract. VAST remains a partner via the equity consideration in TTAU and has a production royalty contract (3% on gross diamond sales). VAST continues to have a significant local presence given its broader local interests in mineral sands and will be able to provide additional support as a result.

As of May 1 2019, TTAU has operational control of the VAST land mining contract and the rationale for the transaction continues to be utilising cash flows derived from diamonds to fund gold exploration at the company’s core Australian gold exploration assets. Equipment leases and the onsite mining team have now been transferred to TTAU. In addition, TTAU will reimburse VAST for provision of ongoing support and provision of rehabilitation, security and health and safety services given their significant local presence.

Initially production is anticipated at a run rate of 950 carats per month with a second phase to ramp up to 1,500 carats per month. TTAU is in discussions with equipment lease finance providers whilst initial bulk sampling indicated grade and average stone size in excess of expectations.

We reiterate our Speculative Buy recommendation.

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30895/deal-or-no-deal-either-way-the-market-may-be-getting-ready-to-move-on-30895.html Deal or no deal? Either way, the market may be getting ready to move on https://www.miningcapital.com/columns/jackhammer/30895/deal-or-no-deal-either-way-the-market-may-be-getting-ready-to-move-on-30895.html Fri, 10 May 2019 10:35:00 +0100 https://www.miningcapital.com/columns/jackhammer/30878/americas-economy-is-powering-away-but-in-other-ways-the-nation-is-increasingly-divided-30878.html America’s economy is powering away, but in other ways the nation is increasingly divided https://www.miningcapital.com/columns/jackhammer/30878/americas-economy-is-powering-away-but-in-other-ways-the-nation-is-increasingly-divided-30878.html Fri, 03 May 2019 11:19:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30853/vsa-capital-market-movers---egdon-resources-30853.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30853/vsa-capital-market-movers---egdon-resources-30853.html Mon, 29 Apr 2019 08:11:00 +0100

VSA Morning Flow Test, 29/04/19

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Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has provided an update on the planning inquiry for its Wressle site in North Lincolnshire. Planning consent was refused in late 2018 and the company as previously announced intend to appeal the decision. A public inquiry for the appeal will now be heard on 5 November 2019 and will likely last for up to six days. The case will be presented by a QC and with support from the Council own professional planning officer which highlights the strength of the revised application and the company continue to believe they have fully satisfied the requirements at a local and national level and therefore have a strong case.

There has also been newsflow on the unconventional side with the acquisition of Third Energy’s onshore business, Third Energy Onshore Limited. This includes the unconventional gas site at Kirby Misperton, KM8, where in 2016 the company received approval from North Yorkshire County Council to frac, test and produce for up to nine years. Although the valuation has not been disclosed, the acquisition by a subsidiary of Alpha Energy, a US oil and gas player demonstrates ongoing interest in UK shale by strategic players. The acquisition comes despite the current regulatory framework which earlier held back Cuadrilla’s recent testing while environmental protests in London have highlighted the misunderstood nature of the industry’s potential.

We also note the resignation of Natascha Engel over the weekend, from her position as the UK’s shale gas commissioner citing paralysis of central government despite nominally supportive central policies. We highlight Engel’s argument that the 0.5ML threshold for the traffic light system is “ridiculously low” and is based on “myths and scare stories”. Furthermore, one of the key advantages of natural gas is the lower level of emissions compared to other forms of energy. This therefore represents a practical and effective compromise whilst infrastructure for energy storage is developed and rolled out to make renewables viable. Indeed, despite the advances in the renewable sector gas is expected to continue to form around a third of primary energy demand in the UK in 2035.

We reiterate our Buy recommendation and 45.2p target price.

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30851/does-the-current-weakness-in-the-gold-price-represent-a-buying-opportunity-30851.html Does the current weakness in the gold price represent a buying opportunity? https://www.miningcapital.com/columns/jackhammer/30851/does-the-current-weakness-in-the-gold-price-represent-a-buying-opportunity-30851.html Fri, 26 Apr 2019 10:38:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30830/vsa-capital-market-movers---colombus-energy-resources-30830.html VSA CAPITAL MARKET MOVERS - Colombus Energy Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30830/vsa-capital-market-movers---colombus-energy-resources-30830.html Thu, 18 Apr 2019 08:38:00 +0100

VSA Morning Flow Test, 18/04/19

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Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (CERP LN)# has provided Q1 2019 quarterly operational update demonstrating significant progress in progressing the SWP exploration programme with a well location chosen for Q3 2019 and advanced discussion in relation to the acquisitive growth strategy in South America.

Production for the quarter averaged 602 bopd, up 20% YoY, but down 10% QoQ to an average of 670 bopd. Although Q4 2018 had been impacted by severe weather conditions in the last quarterly update we highlighted management’s focus on producing profitable barrels. Given the production contracts under which CERP operates and relationship between the contracts, Special Petroleum Tax (SPT) and the relationship to benchmark oil prices CERP is now demonstrating this strategy effectively, in our view.     Price variation in the WTI US$50-60/bbl range is particularly important in this regard given the taxation thresholds.

In order to avoid negative impacts from this step change in taxation CERP reduced well work activity to a single workover rig being used continuously in Q1 2019 compared to up to four units being operated in Q4 2018. Gross revenues were therefore down 14% QoQ to US$2.78m (Q4 2018:US$3.23m), partly due to reduced production and a 3.3% decrease in realised sales price from operations in Q1 2019 at US$55.67 (US$57.58/bbl in Q4 2018).

However, we highlight two crucial points from this quarter; despite the decline in production and lower revenues CERP increased operating cashflow 8% QoQ to US$0.4m demonstrating the effectiveness of the strategy. Secondly, with peak production of 1,000 bopd achieved in late January and production exceeding 860 bopd on three occasions during the quarter this indicates that under more favourable economic conditions the option to increase production remains intact. Technical progress was also made with regard to the waterflood programme.

As a consequence, cash at the end of the quarter decreased to US$2.06m (Q4 2018: US$2.60m) while the Lind debt facility reduced to US$0.26m (Q4 2018: US$0.40m.  The Lind US$3.25 million loan facility which was established in July 2018, expired in early January 2019 without any drawdown as expected.

South West Peninsula

Operations in the South West Peninsula (SWP) have progressed with detailed technical studies providing information to conduct an exploratory drilling programme in the region and a well site has been identified for Q3 2019. The SWP has identified over 12 shallow and deep prospects ranging in size from 20mmbbl up to 400mmbbl with the potential for stacked vertical targets. The drilling programme will be funded from available resources and is intended to commence in Q3 2019, subject to receiving Government approvals. We previously highlighted the beneficial rig access arising from the Steeldrum acquisition which is partly why the well cost can be funded from existing cash resources. The first well will test the Middle Cruse, covered by existing environmental permits and technical consultants are supporting management with finalising preparations for the initial hole and ongoing campaign. We highlight that whilst the IPSC at Goudron has hampered recent performance, one of this management teams initial successes was to renegotiate the relevant contracts enabling more attractive returns arising from exploration success.

At the Inniss-Trinity CO2 project, the company continued to work with the relevant Trinidad authorities and partner Predator Oil & Gas (PDR LN).  Following the receipt of approval for conduct of the CO2 Enhanced Oil Recovery pilot project from Heritage Petroleum Company, PRD will commence first injections in late Q2 2019 or early Q3 2019, subject to the receipt of the remaining regulatory approvals. 

Acquisitive Growth Strategy

The company remains committed to sourcing additional M&A opportunities and CERP is in exclusive discussions for the award of a concession in a South American country, following a tender process.  The company reports the potential opportunity would involve a low cost discovered onshore oilfield in an established hydrocarbon province and management expects to be able to follow up with further detail in mid-2019. 

Although absolute production numbers have perhaps disappointed in Q1 2019, the positive QoQ impact on financials underpins our confidence in the near-term production strategy. With exploration at SWP now approaching, where the potential is significantly greater than the existing production assets, this indicates near term catalysts for the shares as this represents the realisation of the broader strategy that management has been laying the groundwork for in recent months.

We reiterate our Buy recommendation and 21.4p target price.

 

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30825/vsa-capital-market-movers---central-asia-metals-2018-full-year-results-30825.html VSA CAPITAL MARKET MOVERS - Central Asia Metals: 2018 Full Year Results https://www.miningcapital.com/columns/vsa-capital-market-movers/30825/vsa-capital-market-movers---central-asia-metals-2018-full-year-results-30825.html Wed, 17 Apr 2019 08:04:00 +0100

Central Asia Metals#: 2018 Full Year Results

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Robust Full Year Financials

Central Asia Metals (CAML LN) having delivered on production guidance for 2018 released robust full year results underpinned by the low cost base of the group. Revenue of US$192m was up 88% YoY while Kounrad unit costs of US$0.54/lb were up 4% YoY, in line with our forecast. Sasa unit costs were 5% higher YoY. The stronger top line and low cost base meant EBITDA was up 88% YoY to US$125m. Net income from continuing operations was up 48% YoY and with EPS up 8% YoY to 31 cents per share highlighting the accretive nature of the transaction. The full year dividend of 14.5p/sh. was 5% ahead of our estimate.

Ongoing Strong Free Cash Flow Generation

We anticipate copper output of 13.4kt in 2019 with lead and zinc production of 29.4kt and 22.5kt. Although we anticipate modest inflationary pressure from higher power and pumping costs at Kounrad and rising zinc treatment charges at Sasa we expect margins to remain strong with EBITDA of US$120m in 2019. With capital expenditure expected to drop to US$11.2m following the completion of the tailings facility at Sasa, in H1 2019, levered FCF is likely to increase 15% YoY in 2019F to US$84.6m enabling a dividend of 15.7p.sh.

Sasa Mine Review

Having integrated Sasa, management is now focused on enhancing the operational efficiencies via a life of mine review covering all aspects of operations. The first step of this was an updated resource statement which included an increase in lead and zinc grades as well as the conversion of 17% of Golema Reka into the higher Indicated category. This confirms the mine’s current 19 year life although drilling new areas in 2019 offers upside potential to the current resource.   

Reccomendation and Target Price

Although the shares are up 14% YTD, trading on a dividend yield of 6% and at a 12% discount to peers this highlights the ongoing value opportunity and we expect FCF generation to continue to increase in 2019F and 2020F.

We reiterate our Buy recommendation although adjust our target price to 300p which implies 21% upside and 28% on a total return basis.

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30814/copper-price-strength-could-lie-ahead-with-upside-for-juniors-as-supply-struggles-to-keep-up-with-demand-30814.html Copper price strength could lie ahead with upside for juniors, as supply struggles to keep up with demand https://www.miningcapital.com/columns/jackhammer/30814/copper-price-strength-could-lie-ahead-with-upside-for-juniors-as-supply-struggles-to-keep-up-with-demand-30814.html Fri, 12 Apr 2019 10:33:00 +0100 https://www.miningcapital.com/columns/vsa-capital-market-movers/30802/vsa-capital-market-movers---morning-agri-comment-090419-30802.html VSA CAPITAL MARKET MOVERS - Morning Agri Comment, 09/04/19 https://www.miningcapital.com/columns/vsa-capital-market-movers/30802/vsa-capital-market-movers---morning-agri-comment-090419-30802.html Tue, 09 Apr 2019 08:18:00 +0100

VSA Morning Agri Comment, 09/04/19

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DekelOil# - Q1 Production & Sales Update

Côte d'Ivoire agricultural company DekelOil Public Limited (LON:DKL) has announced a production update for Q1 2019.

  • Fresh Fruit Bunches (FFB) Collected: 69,340t*, +16.5% YoY (Q1 2018: 59,531t)
  • Crude Palm Oil (CPO) Production: 14,921t, +9.7% YoY (Q1 2018: 13,605t)
  • CPO Extraction Rate: 21.8% (Q1 2018: 22.7%)
  • CPO Sales: 12,009t, -12.7% YoY (Q1 2018: 13,758t)
  • Average CPO Selling Price: €520/t, -5.1% YoY (Q1 2018: €548/t)

*1,050t of this total was not processed during quarter.

VSA Comment

Following last year’s disappointing harvest levels, we were hopeful of increased FFB volumes in H1. DKL has now confirmed this is indeed the case for Q1 at least, which was the second highest ever Q1 in terms of FFB collected (c.4% below FY 2017). DKL reports that its market share remained stable during the period, supporting the forecasted climate-based recovery in production levels across the region, as opposed to any market share gain. 

Encouragingly, commentary from management suggests this trend will continue into Q2. Having produced 8,637t of CPO in Q2 2018, we are hopeful of a significantly improved result this year and look forward to confirmation of this when the company releases its FY 2018 results in June.

DKL recorded a lower extraction rate than normal in the quarter due to lower levels of oil content in the FFB delivered to its mill, a trend which management believes was also seen by local competitors.    

Based on our quarterly tracking data, we believe DKL carried over c.3,600t of CPO into Q2 (c.€2m of revenues at the average Q1 selling price). Indeed, DKL confirms in this morning’s update that sales of 2,240t, for which cash was received during the quarter before customer collection had occurred, were recognised shortly after the period end. Including these sales in the Q1 figures would have delivered a c.1% increase in CPO sales compared with a similarly adjusted Q1 2018 figure, as opposed to the c.13% decrease reported.

It is also positive to note that DKL reports that the price paid to smallholders for FFB is normalising. This was a significant issue last year, as competition from mills was high, as a result of the lower harvest. With more normal trading conditions, this suggests the company’s gross margin is back at the mid-to-high 20s, which the company recorded in each of FY 2015, FY 2016 and FY 2017.

With FFB collection and CPO production accounting for c.40% of FY production historically, DKL appears to be trading c.3% off our FY 2019 FFB harvest forecast (177,441t) and c.9% off our FY 2019 CPO production forecast (40,102t) at this point. However, we are hopeful that a more normalised extraction rate and a stronger Q2 can move this run-rate back towards our forecasts. 

Impressively, for the ninth quarter in a row DKL has achieved an average selling price in-line with, or at a premium to the European benchmark CPO price. We remain bullish on CPO pricing for 2019 given that efforts to increase biodiesel consumption in South East Asia are now finally starting to have an impact on domestic consumption levels (and can now be seen in the data). In Indonesia, implementation of B30 (30% palm-based biodiesel blended with traditional diesel) has now been brought forward to start towards the end of this year.

Successful implementation of B30 could add an extra 3-4 million tonnes to the country’s domestic consumption levels, offsetting a large proportion of the total palm oil consumed in the EU for biofuel. Even if the EU does phase out palm oil as a feedstock for biodiesel by 2030, alternative sources of edible oil will need to be found to replace this, leaving a gap elsewhere, which the lowest cost edible oil, palm oil, would logically replace.

In addition, we believe that due to the massively underreported african swine fever outbreak in China, demand for soymeal will reduce and thus reduce the amount of soybean oil ‘by-product’ that is produced from the crushing of soybeans for animal feed. This should also be bullish for the edible oil pricing complex in the near-to-medium term and perhaps encourage additional Chinese purchases of palm oil as a result.

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

Harvest Minerals

12.73

6.85

0.50

+7.9%

Sirius Minerals

1,059.19

22.08

1.08

+5.1%

DekelOil

11.63

3.30

0.10

+3.1%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Devro

304.07

182.20

(3.60)

-1.9%

Wynnstay Group

57.91

293.00

(4.50)

-1.5%

Cranswick

1,456.16

2,818.00

(36.00)

-1.3%

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30795/donald-trump-takes-aim-at-the-fed-once-again-but-its-politics-not-economics-thats-at-the-forefront-of-his-thinking-30795.html Donald Trump takes aim at the Fed once again, but it’s politics, not economics that’s at the forefront of his thinking https://www.miningcapital.com/columns/jackhammer/30795/donald-trump-takes-aim-at-the-fed-once-again-but-its-politics-not-economics-thats-at-the-forefront-of-his-thinking-30795.html Fri, 05 Apr 2019 11:32:00 +0100 https://www.miningcapital.com/columns/jackhammer/30774/how-much-does-the-inversion-of-the-yield-curve-really-matter-30774.html How much does the inversion of the yield curve really matter? https://www.miningcapital.com/columns/jackhammer/30774/how-much-does-the-inversion-of-the-yield-curve-really-matter-30774.html Fri, 29 Mar 2019 12:24:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30769/vsa-capital-market-movers---egdon-resources-plc-30769.html VSA CAPITAL MARKET MOVERS - Egdon Resources plc https://www.miningcapital.com/columns/vsa-capital-market-movers/30769/vsa-capital-market-movers---egdon-resources-plc-30769.html Thu, 28 Mar 2019 09:17:00 +0000

VSA Morning Flow Test, 28/03/19

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Egdon Resources Plc (LON:EDR

Egdon Resources plc (EDR LN) has reiterated an update by the operator IGAS Energy plc (IGAS LN), regarding the Springs Road-1 (SR-01) well in which it holds a 14.5% interest.

IGAS reports that SR-01 reached a total depth of 3,500 meters and encountered the intended targets, the Bowland Shale, the Millstone Grit and the Arundian Shales.  As previously reported on 11 March 2019, preliminary analysis showed a hydrocarbon bearing shale of over 250 meters was encountered within the upper and lower Bowland Shale.  Further significant quantities of gas were observed in the Millstone Grit, Arundian Shale and lower Bowland Shale.

Petrophysical and core analysis is currently being conducted and are due for completion results are expected in Q2 2019. These results have broader significance for EDR which holds a net 82,000 acres in the Gainsborough Trough. Positive results from Springs Road would open up the play providing a catalyst for a potential rerating of the shares which remain deeply undervalued, in our view. Our conservative valuation approach based on prior transactions for UK shale US$787/acre results in a risked NAV/sh. value for the Gainsborough Trough exposure of 5.9p/sh out of our total EDR shale acreage valuation of 13.5p/sh. This, in our view, is clearly not reflected in the current share price.

We reiterate our Buy recommendation and 46.7p target price.

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30749/feds-dovish-stance-on-rates-provides-short-term-boost-but-could-be-storing-up-significant-trouble-longer-term-30749.html Fed’s dovish stance on rates provides short-term boost, but could be storing up significant trouble longer-term https://www.miningcapital.com/columns/jackhammer/30749/feds-dovish-stance-on-rates-provides-short-term-boost-but-could-be-storing-up-significant-trouble-longer-term-30749.html Fri, 22 Mar 2019 10:48:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30741/vsa-capital-market-movers---bacanora-lithium-30741.html VSA CAPITAL MARKET MOVERS - Bacanora Lithium https://www.miningcapital.com/columns/vsa-capital-market-movers/30741/vsa-capital-market-movers---bacanora-lithium-30741.html Thu, 21 Mar 2019 09:31:00 +0000

VSA Morning Miner, 21/03/19

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Bacanora Lithium (LON:BCN)

We note the update in relation to Zinnwald and Deutsche Lithium (50% owned by Bacanora Lithium (BCN LN)) where an additional exploration license of 42km2 has been granted to the company. The initial license area of just 2.56km2 along with an additional 2.95km2 at Falkenhaim, 5km away, means this is a significant expansion in the project area since this license area surrounds entirely the existing licenses.
Based on the previously defined resource of 757kt contained lithium carbonate equivalent we attributed a value of £38m using a peer based EV/resource metric implying 10p/sh.  A feasibility study remains on track for Q2 2019 and exploration of the additional license area could result in an extension of mine life to that defined in the FS. Given the proximity of the licenses and the reported geological similarity given historic workings for tin, tungsten and lithium across both areas there is potential for this to be fulfilled, in our view.

BCN is planning to produce a lithium fluoride product at Zinnwald, which is one of the most valuable lithium products with recent pricing indicated at around US$22,000/t and could be used by the local German chemical industry.

We also note the announcement in relation to recent price volatility and the changes to the share register prompted by investment strategy revisions at Blackrock and Capital Group. With this technical selling now indicated to be complete we expect stronger support for the stock ahead from a trading perspective. However, the fundamentals of the stock remain unchanged with Sonora remaining a highly attractive asset which is deeply undervalued, in our view.

We reiterate our Buy recommendation and 115p/ sh. target price.

Please click here for our initiation note.
 

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30727/gold-and-copper-sectors-alive-and-kicking-other-miners-playing-catch-up-30727.html Gold and copper sectors alive and kicking, other miners playing catch-up https://www.miningcapital.com/columns/jackhammer/30727/gold-and-copper-sectors-alive-and-kicking-other-miners-playing-catch-up-30727.html Fri, 15 Mar 2019 12:24:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30722/vsa-capital-market-movers---redt-energy-placing-and-strategic-review-30722.html VSA CAPITAL MARKET MOVERS - redT energy, Placing and Strategic Review https://www.miningcapital.com/columns/vsa-capital-market-movers/30722/vsa-capital-market-movers---redt-energy-placing-and-strategic-review-30722.html Thu, 14 Mar 2019 15:04:00 +0000

redT energy#: Placing & Strategic Review, 14/03/19

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redT energy#: Placing & Strategic Review

redT energy (LON:RED), an energy storage solutions company, has announced a Strategic Review to explore all options available to fund the business. To support this process the company has conditionally raised £940,000 at 2p with an associated Open Offer to raise up to a further £2.26m.

The Placing and Open Offer are conditional on shareholder approval at a General Meeting, which is expected to occur on 3 April 2019, and the fundraise is subject to a minimum of £1.5m being raised in aggregate across the Placing and Open Offer.

Several operational updates have also been announced:

  • CEO Scott McGregor will be stepping down from the Board of Directors but will remain with the business to run operations.
  • Non-Executive Director Neil O’Brien will move to Executive Chairman to lead the Strategic Review process, replacing Jeff Kenna, who will become a Non-Executive Director.
  • Major cost-cutting programme has been implemented with the average monthly cash spend moving below £0.5m a month.
  • A non-binding MoU has been signed for the sale of its US biogas management business for US$1m (expected to close in Q2 2019).
  • A purchase agreement has been signed for 72 tank units (c.5MWh) for a large UK grid project (delivery across 2019 and 2020) with a redesigned German grid project now submitted to potential financers for review. First Gen3 machine awaiting delivery to Anglian Water site. 32 Gen2 tank units delivered to sites in Australia, Thailand, Botswana and the UK since October 2018.
  • Heads of Terms partnership agreement signed with a major European energy company to offer a fully-financed, solar PV plus energy storage product to UK C&I customers, targeting the deployment of 100MW of solar PV and 60MWh of storage over the next three years.
  • Company has adopted a more conservatively weighted sales pipeline, which now totals £145m (from £188m in mid-December).

Research Coverage Suspended

Given the company has now entered a Strategic Review process, we have suspended our research coverage on the stock.


Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Biffa

538.8

215.5

9.50

+4.6%

Symphony Environmental Technologies

9.3

6.0

0.25

+4.3%

ITM Power

71.9

22.2

0.70

+3.3%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

CAP-XX

17.8

5.5

(0.35)

-6.0%

Dialight

152.3

468.0

(22.00)

-4.5%

Proton Power Systems

51.6

8.0

(0.25)

-3.0%


 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30719/vsa-capital-market-movers---m2-cobalt-30719.html VSA CAPITAL MARKET MOVERS - M2 Cobalt https://www.miningcapital.com/columns/vsa-capital-market-movers/30719/vsa-capital-market-movers---m2-cobalt-30719.html Thu, 14 Mar 2019 10:04:00 +0000

VSA Morning Miner, 14/03/19

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M2 Cobalt (CVE:MC

M2 Cobalt (CVE:MChas provided an update on the exploration programme from late 2018, recent corporate activity and the programme for 2019 which includes up to 6,000m of drilling.

Assays have now been received, in full, for the 2,027m diamond drilling programme completed in late 2018. Drilling was focused at Kilembe with seven holes covering 1,056m. These holes intercepted sulphide mineralisation in the form of sphalerite, galena and chalcopyrite albeit with no major intersections, however, the results have provided important data for the next step. Four holes were also drilled at Bombo, the ultramafic target, covering 839m which also intercepted sulphide mineralisation. At the Waraji target, in the Bujagali license area, rig issues and timing around Christmas meant that just 131m were drilled meaning only a limited dataset was received.

The merger with Jervois Mining (JRV AU) is making firm progress and shareholder approval is now indicatively above 50.3%. M2 has also fulfilled its commitments required for the drawdown of a US$3m working capital facility from JRV. A shareholder vote to approve the merger is planned for early-mid May 2019 but the funds may be drawn down immediately.

The funds will be used to further M2’s exploration with an additional 3,000m of drilling at Waraji and Nile and a further 3,000m subject to additional IP geophysics. The results from the IP work will be used to better identify suitable follow up targets. Furthermore, M2 will commence a systematic geophysical and geochemical sampling programme on the license areas acquired in late 2018 as well as over a broader area at Kilembe in line with the Phase 1 work programme previously carried out.

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30713/vsa-capital-market-movers---colombus-energy-30713.html VSA CAPITAL MARKET MOVERS - Colombus Energy https://www.miningcapital.com/columns/vsa-capital-market-movers/30713/vsa-capital-market-movers---colombus-energy-30713.html Wed, 13 Mar 2019 09:34:00 +0000

VSA Morning Flow Test, 13/03/19

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Columbus Energy (LON:CERP)

Columbus Energy Resources (CERP LN) has provided an update regarding its Inniss-Trinity Incremental Production Service Contract (IPSC). Following the receipt of approval for conduct of the CO2 Enhanced Oil Recovery pilot project from Heritage Petroleum Company, Predator Oil and Gas (PRD LN) will commence first injections in Q2 2019, subject to the receipt of the remaining regulatory approvals.  

Inniss Trinity has been identified as being a suitable reservoir for CO2 injection and Trinidad’s ammonia production plants mean a potential easily available source of CO2. Due to the differing oil API’s and structural nature of the reservoirs across Trinidad CO2 injection has only been considered at certain reservoirs. The pilot project will, however, provide important data as to the viability of this alternative process and positive results could potentially unlock significant value at Inniss Trinity as well as other similar reservoirs in Trinidad.  

CERP has an interest in Inniss Trinity through its fully owned subsidiary FRAM Exploration (Trinidad) Limited. Through the agreement and as previously announced if the project is successful, Predator has the option to purchase FRAM for US$4.2m and is funding the pilot project.

We reiterate our Buy recommendation and 21.4p target price.

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30703/vsa-capital-market-movers---egdon-resources-30703.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30703/vsa-capital-market-movers---egdon-resources-30703.html Mon, 11 Mar 2019 09:20:00 +0000

VSA Morning Flow Test, 11/03/19

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Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced positive results from the Springs Road 1 well where it has a 14.5% interest. The drilling has demonstrated over 250m of hydrocarbon bearing shales including the Upper and Lower Bowland shales as well as the Millstone Grit sequence. Significant gas indications within these shale sections have also been noted. This means that each of the key drilling targets were successfully intercepted although drilling is ongoing indicating the potential for further targets to be intercepted within the deeper sequences. Petrophysical analysis and core analysis is now being carried out which is due to be completed in Q2 2019.

EDR holds 82,000 net acres in the Gainsborough Trough and these initial results confirm the viability of the company’s strategy, in our view. The results indicate the potential for significant prospective resources at Springs Road and potentially in the wider EDR license area. These licenses are focused on the central areas of the Gainsborough Trough therefore differing from IGas’ (IGAS LN) strategy which includes Tinker Lane on the margins of the play.

Our valuation attributes 13.5p/sh. to EDR’s shale acreage highlighting the undervalued nature of the shares currently, however, we see this announcement as a significant step towards derisking the shale assets.

We reiterate our Buy recommendation and 46.7p target price.

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30699/chinas-growth-was-larger-than-the-entire-australian-economy-last-year-but-how-good-really-is-that-30699.html China’s growth was larger than the entire Australian economy last year, but how good really is that? https://www.miningcapital.com/columns/jackhammer/30699/chinas-growth-was-larger-than-the-entire-australian-economy-last-year-but-how-good-really-is-that-30699.html Fri, 08 Mar 2019 11:33:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30680/vsa-capital-market-movers---egdon-resources-30680.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30680/vsa-capital-market-movers---egdon-resources-30680.html Mon, 04 Mar 2019 09:30:00 +0000

VSA Morning Flow Test, 04/03/19

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Egdon Resources (LON:EDRN)

Egdon Resources (EDR LN) has provided an update on operations for H1 FY 2019 ending January 2019 and the interim results are scheduled to be announced on 9 April 2019. The update indicates that EDR is on track to meet its operational guidance which indicate a significant uptick in production in FY 2019 and a consequent benefit to the earnings outlook.

Production from the Ceres gas field, Keddington and Fiskerton Airfield was 30,026boe, with an average of 164boepd, up 67% YoY and in line with guidance. Total production during January 2019 amounted to 238 boepd again in line with expectations for a further increase in output in H2 FY 2019 and we maintain our full year production forecast average of 210boepd.

EDR reports strong progress at its unconventional assets in particular at Springs Road where EDR has a 14.5% carried interest alongside operator Igas (IGAS LN).  Drilling operations at Springs Road in the Gainsborough Trough shale play are progressing faster than expected and IGAS has indicated that the well has encountered shales including the Bowland Shale, at c.2,200 m as well as the Millstone Grit sequence where read through from Tinker Lane indicates preliminary gas concentrations. Results are due to follow.

As reported in February 2019, preliminary analysis of the Biscathorpe indicated the Basal Westphalian Sandstone target was poorly developed in the drilling location and the expected thickening of the reservoir did not occur as expected. However, because potential remains elsewhere, the prospect will now be considered for further appraisal when the new well data is incorporated into a subsurface model. 

EDR are currently in third-party discussions relating to the introduction of an industry partner to fund the planned 3D seismic and appraisal drilling on the Resolution gas discovery. We currently await the results from an independent competent persons report (CPR).

With a significantly strengthened earnings outlook on the back of higher production the outlook for EDR remains positive, in our view. Furthermore, with Springs Road results upcoming we see additional near term catalysts based on a rerating of the company’s share acreage valuation.

We reiterate our Buy recommendation and target price of 46.7p.

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30678/the-usa-may-be-about-to-embark-on-a-cat-and-mouse-struggle-for-control-of-africas-commodities-30678.html The USA may be about to embark on a cat and mouse struggle for control of Africa’s commodities https://www.miningcapital.com/columns/jackhammer/30678/the-usa-may-be-about-to-embark-on-a-cat-and-mouse-struggle-for-control-of-africas-commodities-30678.html Fri, 01 Mar 2019 12:13:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30676/vsa-capital-market-movers---nulegacy-gold-30676.html VSA CAPITAL MARKET MOVERS - NuLegacy Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30676/vsa-capital-market-movers---nulegacy-gold-30676.html Fri, 01 Mar 2019 10:12:00 +0000

NuLegacy Gold#: Go West!

For the full report, please click here. 

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Aggressive Step Out Success

While in 2018 NuLegacy Gold (CVE:NUG) demonstrated a large body of continuous mineralisation in the Iceberg / Serena zones, NUG has now shifted its focus towards identifying the high grade core of what is now clearly an extensive CTGD system of gold mineralisation. NUG’s most recent drilling stepped out 1,200m (3,900ft) west of the Serena zone towards the Northern Nevada Rift intercepting amongst other intercepts modest gold mineralisation of 3.1m at 0.39g/t. This intercept although not high grade confirmed that mineralisation extends down dip to the West within the same structures and Wenban 5 host rock.  

8,700m Drill Programme; West is Best

NUG following a systematic relogging of existing core and the results from late 2018 has made major steps forward in its exploration targeting process. In 2019 through a 20 hole 8,700m (28,500ft) programme NUG will test prospects to the west of its prior drilling testing the deeper Eocene CTGD host rocks which as demonstrated by recent CSAMT results lie beneath Miocene basalt cover. NUG will continue to target the angled fault structures identified in 2018 as key to hosting high grade mineralisation and with the 2018 success from the westerly SR18-02C (22.1m at 6.59g/t Au) it is thought the mineralisation system strengthens down dip to the West, an area which has largely been previously ignored due to the basalt cover.

Nevada Remains Core to Enlarged Barrick Gold

Despite an uptick in sentiment towards gold stocks on the back of dovish Fed activity and a rally in the gold price up to a ten month high of US$1,341/oz and now up 2% YTD. However, the landmark merger between Barrick Gold (ABX US) and Randgold Resources has resulted in underperformance for NUG and its regional peer group as investors await the results of a strategic overview. We believe that the recent bid by ABX for Newmont Mining (NEM US) demonstrates Nevada’s importance to the majors’ growth strategies, however, it is by no means a done deal.  

Recommendation and Target Price

In 2019 we expect NUG to build on the major breakthroughs in its understanding of the Red Hill geology with a work programme focused on identifying the high-grade core of the substantial discovered system of mineralisation discovered to date.

We reiterate our Speculative Buy recommendation.



 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30674/vsa-capital-market-movers---lake-resources-30674.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30674/vsa-capital-market-movers---lake-resources-30674.html Fri, 01 Mar 2019 09:42:00 +0000

VSA Morning Miner, 01/03/19

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Lake Resources (ASX:LKE)

Lake Resources (LKE AU) announced yesterday the finalisation of a funding package of up to A$5m with an initial tranche of A$1.65m structured as a convertible note with a conversion price equivalent to 90% of the 20-day VWAP. Interest is charged at 15% per annum compounded quarterly and paid in cash in advance.

The funds will be used to advance the Kachi PFS as well as additional drilling at Cauchari. In 2018 LKE announced a maiden resource of 4.4mnt LCE at 211mg/l Li, one of the largest projects globally and have been advancing innovative techniques with partner Lilac Solutions as to how to extract lithium more efficiently. The PFS at Kachi will consider traditional evaporation extraction techniques alongside Lilac Solutions’ ion exchange extraction techniques, the potential benefits of which have been highlighted by recent unseasonably heavy rainfall in the Andes. This is likely to provide support for lithium prices in 2019 as dilution in the evaporation ponds of incumbent producers reduces lithium output in the near term. Successful implementation of the Lilac Solutions technique would sidestep this issue while also limiting the groundwater impact.

With Albemarle (ALB US) recently reporting higher prices in Q4 2018 along with weather related production disruption we believe that the strong fundamentals we have previously argued are now being more clearly reflected. Delays to supply ramp ups caused by project financing hiccoughs on the back of weak market sentiment only serve to strengthen those fundamentals and we believe this backdrop provides a strong setting for a broad-based rerating of the sector in 2019.

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

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30650/us-china-trade-talks-look-like-going-right-to-the-wire-30650.html US-China trade talks look like going right to the wire https://www.miningcapital.com/columns/jackhammer/30650/us-china-trade-talks-look-like-going-right-to-the-wire-30650.html Fri, 22 Feb 2019 11:46:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30645/vsa-morning-miner---tectonic-gold-30645.html VSA Morning Miner - Tectonic Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30645/vsa-morning-miner---tectonic-gold-30645.html Fri, 22 Feb 2019 09:42:00 +0000 Tectonic Gold (LON:TTAU)

 

Tectonic Gold (LON:TTAU) has provided an update its Mt Cassidy project close to Specimen Hill in Queensland, Australia. 15 historic holes had been drilled at shallow depth intercepting gold mineralisation while geochemical analysis was supportive of the theory that the area was host to IRGS style mineralisation. Historic mining had encountered gold bearing veins of up to 15g/t Au.

Over the past year TTAU has been conducting additional exploration at Mt Cassidy which comes under its Federal Government supported R&D programme. This work has been conducted in collaboration with the Centre of Ore Deposit Excellence Studies (CODES). The findings of systematic geological mapping and rock chip sampling demonstrate the likely presence of both VHMS style zinc, gold, silver mineralisation as well as epizonal to epithermal IRGS gold, silver mineralisation.

Rock chip samples yielded grades of up to 30g/t gold, however, the research has demonstrated that the local geological history is somewhat complex with significant deformation of the IRGS system overlain by a large shear system. TTAU is now planning to use the same deep penetrating advanced geophysics techniques, successful used at Specimen Hill, to aid in targeting a drill programme. Following the recently announced transaction we highlight that Queensland remains a core focus of TTAU.

We reiterate our Speculative Buy recommendation. 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30639/vsa-daily-flow-test---egdon-resources-30639.html VSA Daily Flow Test - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30639/vsa-daily-flow-test---egdon-resources-30639.html Thu, 21 Feb 2019 09:17:00 +0000

VSA Morning Flow Test, 21/02/19

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Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced the completion of drilling at Biscathorpe to a depth of 2,133m reaching the Dinantian limestone. The Biscathorpe 2 (B2) well was intended to test the theory that the reservoir thickened down dip from Biscathorpe 1 (B1), however, this has not proven to be the case. Drilled to the north west of B1 it is now thought that the thickening may occur to the north and north east of B1.

Although a number of porous sandstone reservoir intervals were encountered in the shallower Westphalian sequences where B1 intercepted the reservoir at B2 these are thought to be water wet. The Dinantian carbonate below the Westphalian sandstone did yield 99m of oil shows demonstrating proximity to an effective petroleum reservoir.

Consequently, EDR will now need to remodel the subsurface model and to reflect a more conservative outlook we have adjusted our model from the mean estimate of 14mmboe resources to the P50 estimate of 7.3mmboe. This results in a 3.2p reduction in our target price and an updated Biscathorpe valuation of 3.5p versus 6.7p previously.

Although this result is a disappointment for EDR the market has previously factored in little of the upside potential for Biscathorpe and we see the correction as an overreaction. Furthermore, there remain a number of potential catalysts including Springs Road, where rapid progress is being made, Resolution and also the significantly improved near term earnings profile arising from the Ceres well which was brought back online in late 2018. This, as we have previously stated, suggests that EDR is likely to be profitable in the current financial year and we view the overcorrection as a buying opportunity with the stock now at the bottom of its recent trading range despite an outlook that remains positive.

We reiterate our Buy recommendation although reduce our target price by 6% to 46.7p.

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30622/vsa-capital-market-movers---tectonic-gold-30622.html VSA CAPITAL MARKET MOVERS - Tectonic Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30622/vsa-capital-market-movers---tectonic-gold-30622.html Mon, 18 Feb 2019 09:05:00 +0000

VSA Morning Miner, 18/02/19

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Tectonic Gold (LON:TTAU)

Tectonic Gold (TTAU LN) has announced an agreement with VAST Mineral Sands to acquire an interest in diamond mining concessions in South Africa. TTAU will gain a 50% economic interest for US$650k paid in TTAU shares at a price of 2.2p/sh a significant premium to the current share price of 0.5p and a 10% premium to the listing price in June 2018. TTAU has indicated that it is likely to require additional working capital to fully fund the venture and the enlarged group although the diamond concession is targeting immediate cashflows. TTAU intends to use cashflows to fund ongoing exploration at its core Australian gold exploration projects.

VAST, a private South African company, has interest in minerals sands and diamond concessions. The Alexkor concession into which TTAU is acquiring an interest overlies an 80km stretch of beach in north western South Africa. The Alexkor mine is owned by the SA Government and VAST has a ten-year concession to mine the beach areas as well as process the tailings and slimes from the Alexkor mine which has operated since 1928. This is a free dig operation with no drilling or blasting required. With regard to the tailings VAST has an agreement to dig and process the tailings with revenues after treatment costs and royalties split 80/20 between VAT and Alexkor.

VAST intends to commence alluvial mining of the beach area close to the Orange River, a well-known area for alluvial diamond extraction. De Beers borders the concession to the south at its Kleinzee operations. VAST anticipates contained diamond resources in the concession of around 500kct with an indicative average value of US$450/ct. Production is targeted at an initial 900ct per month.

 

 

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https://www.miningcapital.com/columns/jackhammer/30618/uncertainty-and-fear-return-to-stalk-the-corridors-of-central-banks-and-parliaments-in-europe-30618.html Uncertainty and fear return to stalk the corridors of central banks and parliaments in Europe https://www.miningcapital.com/columns/jackhammer/30618/uncertainty-and-fear-return-to-stalk-the-corridors-of-central-banks-and-parliaments-in-europe-30618.html Fri, 15 Feb 2019 12:42:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30605/vsa-morning-miner---bacanora-lithium-30605.html VSA Morning Miner - Bacanora Lithium https://www.miningcapital.com/columns/vsa-capital-market-movers/30605/vsa-morning-miner---bacanora-lithium-30605.html Wed, 13 Feb 2019 09:26:00 +0000

VSA Morning Miner, 13/02/19

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Bacanora Lithium (LON:BCN)

Bacanora Lithium (BCN LN) has announced interim results for H1 2018 ending December 2018. An operating loss of US$4.4m versus US$3.3m in the prior year was largely due to higher SG&A as headcount on site increased given the advanced nature of the project. As previously announced BCN received significant commitments for funding in the period with RK Mine Finance committing US$150m in debt and conditional equity commitments of US$65m and US$25m respectively from the State General Reserve Fund of Oman (SGRF) and BCN’s offtake partner Hanwa. With the first drawdown from the RK facility undertaken BCN now has a cash position of US$20.5m and borrowings of US$19.3m.

This facility has enabled BCN to make further progress in advancing the development of the Sonora project with ongoing work on the EPC and detailed design of the kiln and crystallisers; key stages in the flowsheet. In addition, acquisition of land makes site access easier at construction while further progress with environmental permissions was also made during the period.

The final funding package continues to be the main outstanding hurdle for BCN, however, we believe that the project is fundamentally viable with robust economics and a proven flowsheet as demonstrated by the successfully operating pilot plant. This has been validated by the funding and offtake partners committed to date and we highlight how rare it is to gain such a broad range of expert backers in a junior resources company.

At Zinnwald, BCN remains on track for a feasibility study in Q2 2019 having achieved a 30% increase in an NI 43-101 compliant resource to 125kt contained lithium. BCN also confirmed battery grade lithium fluoride of 99% can be produced from the resource.

Although the weakness in the lithium equity space has persisted into 2019 the fundamentals continue to be strong with EV sales continuing to strengthen and the pipeline of lithium ion battery manufacturing plants continuing to grow. Strategic investors remain active in the space with Albemarle’s (ALB US) US$1.15bn acquisition of the Wodgina spodumene project in WA and Tianqi’s acquisition of a minority interest in SQM (SQM US). Reports of recent heavy rainfall in the Andes, however, may cause near term disruption to brine producers causing near term pricing increases and support for lithium equities.

We reiterate our Buy recommendation and 115p target price.

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30594/vsa-morning-miner---tectonic-gold-30594.html VSA Morning Miner - Tectonic Gold https://www.miningcapital.com/columns/vsa-capital-market-movers/30594/vsa-morning-miner---tectonic-gold-30594.html Mon, 11 Feb 2019 09:13:00 +0000

VSA Morning Miner, 11/02/19

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Tectonic Gold (LON:TTAU)

Tectonic Gold (TTAU LN) has announced results from its Stage 1, 1,500m drill programme at Specimen Hill. The primary aim of this drilling was to confirm the viability of exploration methodology including the use of modern geophysics techniques such as Sub Audio Magnetics and DIAS – 3D IP technology. The results which have intercepted gold mineralisation in the known shallow epithermal vein style mineralisation have confirmed this along with porphyry style mineralisation intercepted at depth. TTAU previously announced that porphyry style mineralisation was intercepted from 230m.

Highlights from the programme include:

  • 0.8m at 1.23g/t Au, 151g/t Ag and 153g/t Te from 14m,
  • 0.9m at 2.15g/t Ag, 0.31g/t Ag and 9.79g/t Te from 6.3m,
  • 1m at 8.25g/t Au, 1.37g/t Ag and 19.95g/t Te from 80.2m
  • 1.6m at 5.79g/t Au, 20.76g/t Ag and 3.27g/t Te from 90.4m including 0.25m at 35.2g/t Au, 37.2g/t Ag and 15.15g/t Te from 90.4m.

 
These shallow epithermal results are not the primary target for TTAU which is targeting large scale porphyry targets at depth. Indeed, the most encouraging aspect from these results is the presence of porphyry indicator elements within the assays including high grades of molybdenum, tellurium, silver and copper. With the follow up stage 2 programme of 7,500m being planned we expect TTAU to begin to explore the larger scale targets at depth now that the initial drilling has confirmed the viability of the exploration techniques.

We reiterate our Speculative Buy recommendation.

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30591/global-economic-picture-darkening-as-europe-slows-and-us-china-talks-stagger-on-30591.html Global economic picture darkening, as Europe slows and US-China talks stagger on https://www.miningcapital.com/columns/jackhammer/30591/global-economic-picture-darkening-as-europe-slows-and-us-china-talks-stagger-on-30591.html Fri, 08 Feb 2019 13:17:00 +0000 https://www.miningcapital.com/columns/jackhammer/30565/gold-up-the-dollar-down-sentiment-shaky-30565.html Gold up, the dollar down, sentiment shaky https://www.miningcapital.com/columns/jackhammer/30565/gold-up-the-dollar-down-sentiment-shaky-30565.html Fri, 01 Feb 2019 12:44:00 +0000 There’s much to ponder about the global economy, following the Fed’s latest decision to leave interest rates on hold. Associated Fed commentary took on an even more cautious than it did at the end of last year, and looking around the reasons aren’t hard to find.

The US economy continues strong enough, but in the wider world the picture is less rosy. The German economy continues to send out mixed signals, the Italian economy is now officially in recession, the British economy is likely to be pitched into months if not years of chaos within the next month, and the Chinese economy is slowing too.

Indeed, the latest data from China, the Caixin PMI survey, which was released the day after the Fed decision, has shown that Chinese manufacturing activity is at its lowest level for three years.

Overall, the broad consensus is that China’s economic growth will ring in at 6% this year, but it’s not hard to find pessimists who think it will be lower.

Either way, domestic demand can only insulate the US from the rest of the world for so long, and it’s the prospect of a hit on exports, overseas investments and global financial flows generally that is giving the Fed pause.

This new caution, somewhat paradoxically, has given a certain amount of cheer to equity markets. If the coupon on cash stays low, equity yields look comparably more attractive, so investors pile in and push up prices.

The corresponding effect on the US dollar is to render it weaker against the standard basket of foreign currencies, something Donald Trump has been desirous of in his efforts to creative a favourable environment for exports, and the pricing of those exports. But of course if overseas demand collapses, a few points this or that way on the dollar won’t end up making much difference.

Already we’re seeing the effects of all this on the commodity markets.

In the first place, gold has gone through the US$1,300 mark and looks in no mood to give up that ground. Analysts have suddenly started talking about the next upward inflexion points for gold, rather than the refrain of downside risk that we’d have for a couple of years now.

Silver too has been moving upwards, stimulated additionally by a new narrative that supply may become constrained. Here, the thinking is that large scale miners have been focussing much more on gold in recent years, because of the greater margins on offer, and that major new silver projects are now becoming thin on the ground. At the same time demand for use in industrial applications continues to rise.

Copper’s ticked up a bit in recent weeks, as the heavy selling at the end of December has now abated, but it’s still down by around 10% on this time last year. Zinc’s down by 25% on a year ago, while nickel’s down by around 8%.

It could be that the recent upticks in all these base metals represent the start of a broader trend of rising prices. But given the uncertain economic backdrop that seems unlikely.

Nor is it simply a case of dollar weakness causing all boats to rise. The index known as the DXY, which measures the dollar against a basket of currencies, registered a decline in the dollar’s value of slightly less that US2cents from its December high.

Gold, by contrast is up by around 8% over the same period, and is showing every inclination of going higher.

And against this backdrop of weakening sentiment the US-China trade negotiations drag on, and optimism about the outcome waxes and wanes depending on who in particular is being quoted in the press, and what kind of pressure they are attempting to bring to bear.

Expect a successful outcome of these talks to deliver a significant short-term fillip to markets, including to commodity prices. But in the longer-term, the wider context of the slowing global economy will continue to bear down on prices.

There’s no recession on the horizon yet. But just don’t expect the good times to start rolling either. For the US, this may be as good as it gets. For the rest of the world, it looks as though this economic cycle has already peaked.

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30559/vsa-capital-market-movers---anglo-african-agriculture-30559.html VSA CAPITAL MARKET MOVERS - Anglo African Agriculture https://www.miningcapital.com/columns/vsa-capital-market-movers/30559/vsa-capital-market-movers---anglo-african-agriculture-30559.html Thu, 31 Jan 2019 15:59:00 +0000

VSA Morning Agri Comment, 31/01/19

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Anglo African Agriculture#: Update

Anglo African Agriculture (LON:AAAPhas released a update on its business and corporate activities.

  • Dynamic Intertrade, its wholly-owned South African spice trading business, delivered a positive EBITDA for the year-ended 31 October 2018, compared with a loss of c.£400k in the year before.
  • Significant YoY improvement in EBITDA at its 46.8%-owned agricultural products trading subsidiary, Dynamic Intertrade Agri, which should enable a positive contribution from associate on its FY 2018 P&L (from a loss of c.£10k in FY 2017).
  • Kenyan Port Authority approval has been received for construction of an LPG facility on land owned by privately-owned Comarco in the port of Mombasa. As a reminder AAAP has an option to acquire this land for nominal consideration should its 2-year 12-15% US$1m loan made in November 2018 not be repaid. Comarco will generate both base rental and usage income from the LPG facility operator and should increase the amount of associated logistics opportunities available to the group.  
  • “The Company continues to work with Comarco to help develop its future which the Board believes will bring additional value to AAAP.”
  • Full-year results expected mid-February 2019

Risers and Fallers (Last Close)

Risers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

Agriterra

1.81

8.50

0.50

+6.3%

Anglo-Eastern Plantations

219.59

554.00

17.00

+3.2%

Obtala

26.08

6.25

0.15

+2.5%

 

Fallers

Market Cap (£m)

Last Close (£p)

Price Movement (£p)

% Chg

DekelOil

12.86

3.65

(0.15)

-3.9%

Carr's Group

151.92

165.25

(3.50)

-2.1%

Devro

262.01

157.00

(2.80)

-1.8%

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30555/vsa-morning-miner---shefa-yamim-30555.html VSA Morning Miner - Shefa Yamim https://www.miningcapital.com/columns/vsa-capital-market-movers/30555/vsa-morning-miner---shefa-yamim-30555.html Thu, 31 Jan 2019 12:03:00 +0000 Shefa Yamim (LON:SEFA)

 

Shefa Yamim (LON:SEFA) has announced the latest and final results from its most recent bulk sampling programme on Zone 2 of the Kishon Mid Reach project. A total of 2,909t were collected across five samples of basal gravels with an overall grade of 135.3cpht across all gemstone types including garnet and spinel. The grade of sapphires, Carmel sapphire, rubies, moissanite and hibonite across the bulk samples was 10.37cpht across this series of samples.

SEFA intend to carry out further bulk sampling in Q2 2019 with three further samples from zone 2. We also expect additional near term newsflow from the release of the Technical Economic Evaluation Report which is likely to give insight into potential capital and operating costs and the company is therefore continuing to make progress towards trial mining.

In addition, SEFA is making progress on the marketing front. SEFA reports jeweller, Yossi Harari, is close to finalising a collection of unique 24k gold pieces incorporating gemstones from Shefa Yamim.

We reiterate our Speculative Buy recommendation.     

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30549/vsa-capital-market-movers---dekeloil-public-q4-production-update--cashew-acquisition-30549.html VSA Capital Market Movers - DekelOil Public#: Q4 Production Update & Cashew Acquisition https://www.miningcapital.com/columns/vsa-capital-market-movers/30549/vsa-capital-market-movers---dekeloil-public-q4-production-update--cashew-acquisition-30549.html Thu, 31 Jan 2019 11:05:00 +0000 On 10 January Côte d'Ivoire agricultural company DekelOil Public Limited (LON:DKL) announced its production update for Q4 2018. At the end of 2018 it also announced that it was taking a 43.8% equity stake in the 10,000tpa (expandable to 30,000tpa) Tiebissou cashew processing project in Cote d'Ivoire, having previously owned an option over the project.
2018 Production in-line with VSA Forecasts

Although Q4 production was not as high as we had hoped it might be following the +15% YoY increase seen in Q3, DKL’s FY 2018 fresh fruit bunch (FFB) collection (146,036t) and crude palm oil (CPO) production (33,077t) figures were in-line with our forecasts. With palm kernel oil (PKO) sales and palm kernel cake (PKC) sales significantly higher than we had estimated, and DKL achieving a premium over the European benchmark CPO price in H2, we believe our previous financial forecasts for FY 2018 were too conservative (revenue of c€20m and net loss of c€3m) and have adjusted accordingly.

Although never guaranteed, in agriculture low production years are often followed by high production years. We are therefore hopeful that H1 2019 will be a positive one for DKL. Recent CPO price increases, if sustained, could also help deliver an improved financial performance in FY 2019.

Strong Start to 2019 for Crude Palm Oil Prices

CPO prices have increased early in 2019 as perceived progress in the China/US trade talks and weather worries in South America have lifted the edible oil complex. More specific to palm oil, we are now entering the low production season in South East Asia and there are signs that demand is picking up from key consuming countries. On the bearish side, the gasoil to palm oil premium has disappeared, reducing the attractiveness of palm-based biodiesel, just as Indonesia and Malaysia implement increased blending mandates.

Recommendation and Target Price

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

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https://www.miningcapital.com/columns/jackhammer/30536/markets-are-becoming-hyper-sensitive-to-us-china-trade-talks-as-interest-rate-worries-fade-30536.html Markets are becoming hyper-sensitive to US-China trade talks, as interest rate worries fade https://www.miningcapital.com/columns/jackhammer/30536/markets-are-becoming-hyper-sensitive-to-us-china-trade-talks-as-interest-rate-worries-fade-30536.html Fri, 25 Jan 2019 11:53:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30533/vsa-capital-market-movers---egdon-resources-30533.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30533/vsa-capital-market-movers---egdon-resources-30533.html Fri, 25 Jan 2019 10:37:00 +0000

VSA Morning Flow Test, 25/01/19

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Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced that its appeal against the refused planning application at the Wressle site has been successful. This will extend the existing planning consent until January 24 2020 providing EDR with sufficient time to submit an appeal to enable the company to develop the Wressle oilfield.

This appeal to develop the site is likely to be lodged in the coming week and having, in our view, fully addressed the reasons highlighted by the Planning Inspector for initial refusal we believe EDR is well placed given the support from expert planning officers and independent third parties.

We reiterate our Buy recommendation and 50p target price.

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30525/vsa-capital-market-movers---central-asia-metals-30525.html VSA CAPITAL MARKET MOVERS - Central Asia Metals https://www.miningcapital.com/columns/vsa-capital-market-movers/30525/vsa-capital-market-movers---central-asia-metals-30525.html Thu, 24 Jan 2019 11:40:00 +0000

Central Asia Metals#: Q4 2018 Operations Update

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2018 Production Ahead of Estimates

Central Asia Metals (LON:CAML) beat our full year production estimates across copper, lead and zinc owing to continued strong operational performance. Copper production of 3.36kt in Q4 2018, up 8% YoY meant full year production of 14kt, in line with 2017 production, at the top end of full year guidance and 2% ahead of our forecast. Sasa zinc production of 5.8kt in Q4 2018 was up 8% YoY resulting in 2018 output of 22.53kt, up 4% YoY and ahead of our forecast by 1%. Lead production of 7.40kt was flat YoY meaning 29.39kt through 2018 although down 2% YoY was 2% ahead of our forecasts.

Guidance for 2019 Implies Continued Robust Output

CAML has provided 2019 guidance broadly in line with our existing forecasts. At Kounrad guidance of 12.5-13.5kt for 2019 is 0.5kt lower than 2018 and 2% lower than our prior estimate of 13.75kt. This is due to the higher contribution from the Western dumps in 2019 (c70%). At Sasa guidance for zinc and lead output is unchanged from 2018 at 22-24kt and 28-30kt respectively. We anticipate 2019 production of 28.6kt lead and 22.2kt of zinc.

Rising Free Cash Flow Generation

Despite a reduction in 2018 forecasts reflecting weaker commodity prices in H2 2018 we have reduced our revenue, EBITDA and net income estimates by 3%, 5% and 8% to US$198m, US$122m and US$50m respectively. Net income continues to reflect a one-off legacy tax charge meaning our 2018F dividend estimate is reduced to 13.85p/sh. However, lower capital spending and a continued low cost base imply a 33%increase in FCF to US$88m in 2019F.

Recommendation and Target Price

Trading on a dividend yield of 6% highlights the ongoing value opportunity and we expect the shares to outperform as FCF generation continues to increase in 2019 and 2020.

We reiterate our Buy recommendation and target price of 309p which implies 33% upside and 40% on a total return basis.

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30511/vsa-capital-market-movers---egdon-resources-30511.html VSA CAPITAL MARKET MOVERS - Egdon Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30511/vsa-capital-market-movers---egdon-resources-30511.html Tue, 22 Jan 2019 09:25:00 +0000

VSA Morning Flow Test, 22/01/19

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Egdon Resources (LON:EDR)

Egdon Resources (EDR LN) has announced that the Springs Road well operated by IGas (IGAS LN) has successfully spudded. EDR holds a 14.5% interest in the license are which forms a core part of its shale portfolio in the Gainsborough Trough of around 82,000 acres. This well targeting the centre of the play is the first which will provide modern data on shale and tight gas targets in this play.

This is the second well in IGAS current Gainsborough trough exploration programme, although the first in which EDR has held an interest. Although only a vertical exploration well positive results could potentially open up the wider play.

We reiterate our Buy recommendation and 50p target price.
 

 

 

 

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https://www.miningcapital.com/columns/vsa-capital-market-movers/30510/vsa-capital-market-movers---m2-cobalt-30510.html VSA CAPITAL MARKET MOVERS - M2 Cobalt https://www.miningcapital.com/columns/vsa-capital-market-movers/30510/vsa-capital-market-movers---m2-cobalt-30510.html Tue, 22 Jan 2019 09:23:00 +0000

VSA Morning Miner, 22/01/19

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M2 Cobalt (CVE:MC)

M2 Cobalt (MC CN) and ASX listed Jervois Mining (JRV AU) have announced a friendly at market merger to be completed as a Plan or Arrangement whereby JRV will acquire all of the outstanding share capital of M2. Each common share of M2 will be exchanged for one common share of JRV giving an implied offer price of C$0.262/sh for JRV shares and C$0.247/sh. for M2 based on the 10 day VWAP ending 21 January 2019. This results in pro forma ownership of the enlarged entity of 77.9% for existing JRV holders and 22.1% M2 holders. In addition JRV has provided a convertible bridging loan of C$3m to support M2 during the process; the terms of the loan indicate a 15%pa interest rate with a strike of C$0.245/sh.  

The transaction remains subject to regulatory approval and the new BoD of the enlarged group will consist of three JRV directors and one M2. JRV has a board consisting of former Glencore Xstrata executives whose recent focus has been on the Nico Young nickel cobalt project in New South Wales on which a JORC compliant resource of 167.8mnt at 0.59% Ni and 0.06% Co has been defined. A PFS to confirm the viability of a heap leach flowsheet is being finalised currently which is anticipated to demonstrate a low capital intensity project.

We have highlighted the scale of the anomalies that have been discovered by M2 in Uganda to date as well as the geological similarities between Uganda and the DRC. Given the scale of the advanced project in JRV’s portfolio this suggests that the JRV management team has recognised the potential for Uganda as the next major cobalt district and we believe that a combination of M2’s in country experience and JRV’s commercial and development expertise could see that realised.     

 

 

 

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https://www.miningcapital.com/columns/jackhammer/30501/how-slow-can-china-go-30501.html How slow can China go? https://www.miningcapital.com/columns/jackhammer/30501/how-slow-can-china-go-30501.html Fri, 18 Jan 2019 12:10:00 +0000 https://www.miningcapital.com/columns/vsa-capital-market-movers/30488/vsa-capital-market-movers---lake-resources-30488.html VSA CAPITAL MARKET MOVERS - Lake Resources https://www.miningcapital.com/columns/vsa-capital-market-movers/30488/vsa-capital-market-movers---lake-resources-30488.html Thu, 17 Jan 2019 09:05:00 +0000

VSA Morning Miner, 17/01/19

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Lake Resources (ASX:LKE

Lake Resources (LKE AU) has provided an update on its Cauchari projects in Argentina. LKE owns 100% of the licenses adjacent to those of more advanced projects which have demonstrated high grades and strong flow rates to date with the latest results from peers of up to 611mg/l Li. LKE’s drilling programme is designed to demonstrate that the lithium bearing brine horizons proven on these licenses extends into those of LKE.

LKE has confirmed that the sandy horizons which contain the high grades in adjacent license areas extend into LKE’s license area. However, high fluid pressure downhole has prevented LKE from reaching the target horizons for the initial holes so far for brine sampling. This is indicative of the high flow rates mentioned. With adjusted drilling methods now being utilised LKE believe they can now obtain the necessary samples.

Although LKE shares and those across the lithium space have been particularly weak in the past few months we note the acquisition of LSC Lithium (LSC CN) which confirms the ongoing strategic importance of lithium. LSC had amassed an acreage of around 149,000ha with total contained resources of around 2.62mnt LCE. On the basis of the license areas it is the only other junior of comparable size to LKE, however, on a contained LCE basis its resources were spread over multiple projects also in Argentina. At 4.4mnt LCE in one location so far LKE is perhaps more attractive in that respect. The valuation on a EV/resource basis of approximately US$14/t is a significant premium to LKE’s current US$4/t highlighting the ongoing value opportunity.

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

 

 

 

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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

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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/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/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.


Risers and Fallers (Last Close)

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% Chg

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Fallers

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Last Close (£p)

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% Chg

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+/-

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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/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/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/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/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/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

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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/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

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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/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/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/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

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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