Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on NEOMETALS LTD. We currently have 2 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
VSA Battery Market Recharge
23 Mar 16
Lithium stocks have doubled and doubled again over the past 18 months as reports of US$12,000/t lithium carbonate spot purchases have spread from China with demand growing strongly on the back of rising electric vehicle sales. Although the fundamentals of the lithium market remain attractive, in our view, we believe that stocks now appear expensive and we expect a correction following such a sharp rally. Valuations now reflect the upper end of spot price reports, however, the spot market reflects only a small portion of annual transactions and we expect annual pricing negotiations between the majors to result in more modest increases YoY to around US$8-9,000/t for lithium carbonate and US$9-10,000/t for lithium hydroxide in 2016. Furthermore, recent transactional activity demonstrates clearly the divergence between fair value and current market valuations.
VSA Battery Supply Chain Report
07 Jan 16
Proponents of battery technology have long decried its slow development when compared to the exponential growth of microchip processing capacity over the past few decades. However, a massive increase in the number of devices that require batteries, with exciting new growth sectors such as electric vehicles and renewable energy storage, has delivered significantly larger amounts of global investment into the sector. Last year, Gordon Moore, co-founder of Intel, said ‘I see Moore's Law dying here in the next decade or so’. As the sun is perhaps setting on Moore’s Law, are batteries about to get their own moment in the spotlight? In this report, we utilise the expertise across the VSA research team to produce an overview of the battery supply chain, from raw material mining to end use, highlighting the various ways in which investors can gain exposure to this important trend.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.