Avesoro Resources (formerly Aureus Mining) (ASO LN) – 2017 guidance | DiamondCorp (DCP LN) Suspended – Hiccup in business rescue plan
Firestone Diamonds (FDI LN) – Liqhobong construction complete and first diamond sale expected in early February | Petropavlovsk (POG LN) Hold – Valuation under review – 2016 production and 2017 guidance | Rainbow Rare Earths Ltd – to be listed on the Standard List on Monday – Rainbow raises $8m for Gakara highgrade rare earths mine in Burundi | Stratex International (STI LN) – Exploration update on Goldstone’s Homase/Akrokerri project in Ghana
Companies: AUE DCP FDI POG ORR
ASA Resource Group* (ASA LN) – Freda Rebecca lawsuit | Avesoro Resources (formerly Aureus Mining) (ASO LN) – Update on project debt repayment schedule. | Golden Star Resources (GSC CN) – Guiding towards a 31% to 44% gold production increase in 2017 | Strategic Minerals* (SML LN) – Appointment of exploration manager | Tertiary Minerals* (TYM LN) – Evaluating acquisition opportunities | ZincOx (ZOX LN) SUSPENDED – Sale of remaining interest in the Korea Recycling Plant
Companies: ASA GSC SML TYM ZOX AUE
Avesoro Resources (formerly Aureus Mining) (ASO LN) – Update on project debt repayment schedule. | Condor Gold (CNR LN) – Exploration identifies new potential targets in the La India district | Hochschild Mining (HOC LN) – Protests lead to temporary stoppage at Pallancata | Petropavlovsk* (POG LN) – FY16 production target revised down to 415-430koz at $700/oz TCC
Companies: AUE CNR HOC POG
Asiamet Resources (ARS LN) – Raising £2m to complete BKM feasibility study | Aureus Mining (AUE LN) – Completion of US$76m fund-raising and name change. | Berkeley Energia (BKY LN) – Land acquisitions to accelerate development of the Salamanca uranium project | Golden Star Resources (GSR CN) – Wassa underground – drilling results | Hummingbird Resources (HUM LN) – US$55m debt facility for Yanfolila development | Ortac Resources* (OTC LN) – Andiamo Exploration update highlights new joint venture value | Peak Resources (PEK AU) – Peak selects site in Tees Valley, UK for Rare Earth Refinery
Companies: ARS AUE BKY GSC HUM PEK OTC
Amur Minerals* (AMC LN) – Access road update | Aureus Mining (AUE LN) – Q3 Operational update | DiamondCorp (DCP LN) Suspended – Lace Diamond mine closed as storm causes production level to flood | Caledonia Mining (CMCL LN) – Looking for a 20% increase in gold production in 2017. | Metals Exploration* (MTL LN) – Equity placement | Serabi Gold (SRB LN) – Record Q3 gold production and increased 2016 guidance | Strategic Minerals* (SML LN) – Exploration of Australian gold and nickel projects
Companies: AMC AUE DCP CAL MTL SMC SRB
We look at some recent smaller company mine start-ups. Some have been impeccably managed, with projects coming in ahead of schedule and on or under budget. Others have suffered teething problems before settling down whereas a few have fallen seriously short of expectations and have required substantial refinancing.
Companies: APF ATYM AUE BKY CAML FDI GEMD GEM HZM NCCL PAF PDL SHG WTI WLF
ANGLO AMERICAN PLC | AUREUS MINING INC | IRONRIDGE RESOURCES LIMITED | METMINCO LTD | NORICUM GOLD LIMITED
Companies: AAL AUE MNC IRR NMG
Airlander | Aureus Mining | Kefi Minerals
Companies: AUREUS MINING KEFI Minerals Plc
Parkmead Group (PMG): Initiation of coverage – History repeating itself (BUY) | Utilitywise* (UTW): A year of delayed growth but improved cash flow (CORP) | Ideagen* (IDEA): A strong bond is formed (CORP) | Lok’nStore* (LOK): Growing footprint (CORP) | Sound Energy (SOU): Tendrara – first flow test achieved (BUY) | Aureus Mining (AUE): Q2 operating results (U/R)
Companies: PMG UTW IDEA LOK SOU AUE
Aureus Mining (AUE LN) | BHP Billiton (BLT LN) | Kibo Mining (KIBO LN) | Petra Diamonds (PDL LN) | Strategic Minerals (SML LN)
Companies: AUE KIBO PDL SML BHP
Aureus Mining (AUE LN) | Mkango Resources* (MKA LN) | Ormonde Mining* (ORM LN) | Scotgold Resources (SGZ LN)
Companies: AUE MKA SGZ ORM
We look at lithium – outlook, demand and supply. The metal is currently the subject of an astonishing level of hype, although massive near-term demand growth does appear to be real, driven principally by the growth in demand for electric and hybrid electric vehicles. We conclude that while demand is expected to grow rapidly, several substantial new sources of supply are scheduled to start producing in the near future with much more to follow. Currently known lithium reserves and resources are sufficient to power around nine billion cars – there is no shortage. We therefore see little need for prices to remain at present elevated levels for much longer.
Companies: APF ACP ATYM AUE CAML FDI GEMD GEM HZM NCCL PAF PDL SHG WTI WLF
Telecom Plus: Customer quality step change (BUY) | Aureus Mining: Refinancing, debt standstill and change of management (U/R)
Companies: Telecom Plus Plc AUREUS MINING
Aureus Mining (AUE LN) | Glencore (GLEN LN) | W Resources (WRES LN) | Trans-Siberian Gold (TSG LN)
Companies: AUE GLEN WRES TSG
Amur Minerals* (AMC LN) | Aston Bay Holdings (BAY CN) | Aureus Mining (AUE LN) | IRC LTD (HK1029) Petropavlovsk* (POG LN) | Karelian Diamonds (KDR LN)
Companies: AMC BAY AUE 1029
Research Tree provides access to ongoing research coverage, media content and regulatory news on AUREUS MINING.
We currently have 63 research reports from 4
Technical review and operational update
Companies: Hurricane Energy Plc
For this Monthly, we are delighted that Rooney Nimmo and 24Haymarket have allowed us to reproduce a recent report they jointly published, entitled An analysis of UK exits (2015-2019), which provides a granular analysis by sector of the activity in our dynamic private companies world. We hope you find the insights of interest.
Companies: AVO AGY ARBB ARIX CLIG ICGT NSF PCA PIN PXC PHP RECI SCE TRX SHED VTA
In the midst of another attempted takeover by stealth, Petropavlovsk PLC (LSE: POG) announced their trading results for H1 2020 which leaves them on track to deliver one of their best years ever, operationally and financially, with more to come in 2021. This is down to the perseverance, skillset and hard work of the workforce out in the Amur Region and their CEO Dr Pavel Maslovskiy, who has staked his reputation on the successful build out of the POX plant. Any corporate raider (and shareholder alike) should realise, whether it be Vekselberg or UGC, that without the support of Dr Maslovskiy you won’t win the hearts and minds of the workforce essential for the smooth running of the organisation. Meanwhile, the gold price has run through $1,900/oz; clearly a positive for this leveraged business. Incorporating this and the results into our modelling delivers a new Target Price of 50p and the set of financials shown in the right-hand column.
Companies: Petropavlovsk Plc
Companies: JSE HUR RDSA
Jubilee Metals successfully processes chrome tailings in South Africa to produce chrome concentrate and PGMS. It also owns the commissioned Sable copper refinery at Kabwe in Zambia and is looking to build a zinc-lead treatment plant at Kabwe next to the Sable refinery to process old tailings from the Kabwe mine. Today Jubilee announces that it has secured access rights to process 2Mt of Run-Of-Mine material grading in excess of 2% copper in Zambia with the potential to add a further 2.5Mt of tailings – Project “Roan”; an as yet an undisclosed project location in Zambia. This material will be upgraded at the “Roan” site with the concentrate shipped off to Jubilee's Sable Refinery to produce copper cathode. Initial target is set at 10kt contained copper/yr from Roan, and Jubilee hopes to begin production in 4 months' time with full production reached in 8 months – advanced preparations have been made, plans drawn up and discussion with equipment manufacturers already accomplished – Jubilee is ready to hit the ground running.
Companies: Jubilee Metals Group Plc
Hargreaves’ FY20 results are very solid indeed. As previously reported, the only noticeable impact from COVID was in the slippage of Blindwells’ land sales, which were due to conclude during the lockdown period. Site activity has resumed and sales remain on track to conclude in the current year. A final dividend of 4.5p has been declared and the outlook statement is measured but confident. We reintroduce forecasts today, effectively reinstating our pre-COVID expectations. Hargreaves is well positioned to deliver a period of significant, renewed growth with the prospect of a double digit dividend yield from FY22 as HRMS profits are distributed.
Companies: Hargreaves Services Plc
Centamin (CEY LN) – H2 profits rise 280% as company maintains 2020 production guidance | Chaarat Gold* (CGH LN) - BUY– H1/20 production in at 27koz with FY20 guidance reiterated at 55koz, Tulkubash
funding closure on course for YE20 | Edenville Energy* (EDL LN) – Rukwa coal operations restart | Pensana Rare Earths (PRE LN) – Final drilling results from Longonjo | Serabi Gold* (SRB LN) – Extension to drawdown period for the convertible loan | Versarien (VRS LN) - Launch of graphene enhanced protective face mask
Companies: CEY CGH EDL PRE SRB VRS
United has announced that it has successfully negotiated an 18 month extension to its Walton Morant licence, offshore Jamaica, in what could be a pivotal moment for the Company. United will assume a 100% working interest, and will complete a work programme to further de-risk the high-graded Colibri prospect ahead of a drill-or-drop decision in 2022. We view the award of the Walton Morant licence as a huge endorsement of the United team and its capabilities to operate a frontier, deepwater licence. We increase our risked valuation of the Colibri prospect to US$68.3m or 7.1p per share and our Company valuation to US$162.2m or 17p per share. Unrisked, our valuation of the Colibri prospect increases to US$752.7m or 78.7p, underlining its potential. We set our price target in line with our risked NAV at 17p, a 507% premium to the current share price, and reiterate our BUY recommendation.
Companies: United Oil
The stock is up 6% at pixel time, which shows rather good prowess from management, as it also cut (for good) the dividend in half. As investors swallow the bitter pill, the low-carbon shift (and promises of higher valuations) make it easier to digest. Also helping was a decent cash generation in this quarter, thanks to BP’s trading unit.
Companies: BP Plc
Civil works have started at Europa’s Wressle oil field, keeping the project on track for start-up in H2 2020 when it will more than double production and materially boost cash flow. This project is not only economically attractive, but it will also underpin Europa’s pursuit of additional exploration and development opportunities.
Companies: Europa Oil
Caspian Sunrise announced a capital raise of £1.0M at 2.75p to accelerate the repayment of its trade creditor positions. We note the company had previously announced its relatively tight working capital position following the switch to export status at the MJF structure in 2019, the impact of the measures taken to combat the Covid-19 virus and weakness in crude oil prices. The company indicated that the capital raised allows its trade creditor position to be brought into balance and that another capital raise is not expected in the current financial year and probably not all.
Companies: Caspian Sunrise Plc
Although acute market volatility translated into an H1 bonanza for trading, Glencore’s COVID-19 vulnerability came to the fore as industrial reported losses, and sizeable impairments were recognised. Moreover, the 2020 dividends were suspended to expedite deleveraging.
As market uncertainties are expected to persist, trading’s performance cushion should be maintained, and provide valuable time for industrial to revert to normalcy. Remember, as most commodity prices have recovered back to / beyond pre-COVID-19 levels, and production restrictions are easing, industrial should witness gradual improvements.
Companies: Glencore Plc
GeoPark (GRPK US)C; Target price US$20: Cash tax reduction and high impact drilling– The only item of interest in the 2Q20 financials was the fact that GeoPark did not pay any cash tax in 2Q20 (we were carrying a payment of US$40 mm). This explains why the cash balance at the end of June was so much higher than we expected at the time of the 2Q20 operating update in July). This also reflects important positive changes in Colombia. First, US$20-25 mm cash taxes in 2020 have been deferred to 2021 leaving only US$15-20 mm due in 2H20. In addition, Colombia is accelerating the reimbursement of income tax credits. GeoPark has already collected US$15 mm in July that will offset the remaining 2H20 cash tax. Overall in 2020, the company could potentially obtain a total refund of US$25 mm of income tax (out of which US$15 mm is firm and collected in July) plus US$15-20 mm of VAT. The key wells to focus on in 2H20 will be the 1-2 wells to be drilled at CPO-5 (GeoPark WI: 30%). While these wells are expected to increase production, they will also allow the company to start derisking the exploration upside associated with the block. The first well will be a development/appraisal well in Indico where the oil water contact has not been encountered yet. The second well is an exploration well at Aguila targeting the same play concept. The share price continues to trade at ~45% discount to our Core NAV of ~US$19 per share. Overall there could be 350-700 mmboe gross prospective resources across its Llanos blocks (including CPO-5). Our target price of US$20 per share reflects our ReNAV and attributes only ~US$1 per share to exploration. It represents over 100% upside to the current levels.
IN OTHER NEWS
Frontera Energy (FEC CN): 2Q20 results | Gran Tierra (GTE LN/US/CN): 2Q20 results | i3 Energy (I3E LN): Acquisition of Canadian assets and £30 mm funding | Maha Energy (MAHA-A SS): Production update in Brazil | Parex Resources (PXT CN): 2Q20 results
Pharos Energy (PHAR LN): Licence extension in Vietnam and RBL confirmation
bp (BP LN): 2Q20 results and change of strategy | Hurricane Energy (HUR LN): Technical update in the UK | Neptune Energy: Discovery in Norway | Spirit Energy: Dry hole in Norway
MIDDLE EAST AND NORTH AFRICA
Genel Energy (GENL LN): 1H20 results
Kosmos Energy (KOS US/LN): 2Q20 results | San Leon Energy (SLE LN): Acquires 10% Interest In new Nigerian oil export system | Vaalco Energy (EGY LN/US): 2Q20 results
EVENTS TO WATCH NEXT WEEK
10/08/2020: Diversified Gas & Oil (DGOC LN) – 2Q20 results
11/08/2020: JKX Oil & Gas (JKX LN) – 2Q20 results
13/08/2020: Africa oil (AOI CN/SS) – 2Q20 results
Companies: BP/ FEC GENL GPRK I3E PXT PHAR HUR KOS MAHAA EGY
Salt Lake Potash has received commitments to raise A$15m through the placement of unsecured zero-coupon Convertible Notes to Equatorial Resources (ASX:EQX) and institutional investors. The Convertible Notes have been structured as deferred equity with zero coupon and mandatory conversion into equity at the lower of 45c/share or a 5% discount to any future equity raising of at least A$10m. These funds will enable Salt Lake Potash to continue to develop Lake Way to the project schedule through July as they finalise debt financing. Plant practical completion and first SOP sales remain on schedule for the March 2021 quarter. The debt financing process in its final stages and with an agreement expected to be executed within weeks.
Companies: Salt Lake Potash Ltd.
HSP has announced positive results this morning, with a 30% increase in underlying EPS (continuing) for the year to May ‘20. Underlying PBT declined; however the prior year included land sales which did not recur in FY2020A. Stripping these out, profits were ahead YoY. Net debt rose marginally to £28.1m (prior year: £24.5m), largely on the back of accelerated mining activities (positive weather conditions) and delays to the sale of Blindwells, where the company had invested £8m; and is expected to remain steady during the coming year as the group continues to invest in Specialist Earthworks (with a switch to mainly leasing debt on HS2 plant funding). Having deferred the interim dividend on the back of Covid-19, the Board is now reinstating the dividend with a 4.5p payment in respect of the final DPS, reflecting the forward visibility it now feels it has. Given this forward visibility, we would also expect forecasts to be restored to the market in the near future, these having previously been withdrawn.