As anticipated, Lightstream has received an initial order from the Court of Queen’s Bench of Alberta under CCAA granting the Company protection from its creditors until October 26, 2016. The Company’s proposed sales process has also been approved, which paves the way for Lightstream’s secured noteholders to make its previously agreed upon credit bid, which we expect will be ~$1,350 mm. Should the credit bid be the successful bid, both unsecured noteholders and shareholders will leave the proces
Companies: LIGHTSTREAM RESOURCES
Impact: Negative, as the result of a CCAA sales process has a high probability of leaving equity holders with zero residual value. Lightstream has formally entered into a CCAA sales process after failing to meet conditions under its recapitalization agreement related to litigation commenced by holders of the Company's US$254 mm of unsecured notes. The initial CCAA hearing will be on September 26, 2016. Once the CCAA process has officially commenced, we expect there will be a bidding time frame o
Lightstream reported quarterly results that came in ahead of our expectations on cash flow and production. The results and minor positive changes to our proforma estimates will continue to be overshadowed by the leviathan that is the Company’s ongoing recapitalization transaction. Subsequent to the earnings release the Company announced it has gained the requisite interim order to authorize the individual special meeting of all stakeholders to approve the recapitalization arrangement. These meet
Impact: Neutral. Quarterly results came in ahead of our expectations, though in light of the Company's ongoing recapitalization transaction we view the relevance of the results as minimal.
Lightstream has entered into an arrangement agreement that will attempt to formalize the proposed recapitalization transaction announced on July 13, 2016.
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly rev
Companies: AAV ARX BTE BNP CPG ERF POU PEY PGF PWT PSK VII TOU VET WCP BNE CJ CR DEE JOY KEL LTS NVA PPY PNE RRX RMP SRX SGY TET ATU CKE GXE IKM LXE MQL PRQ SPE SKX TVE TVETF YO
Lightstream, with support of an ad hoc committee representing a majority of its secured noteholders, has announced a recapitalization proposal which would eliminate the Company’s notes in exchange for equity. If successful, current shareholders would hold 2.25% of the recapitalized entity. If the proposal is unsuccessful, there would be an attempt to satisfy the Company’s obligations through an asset sale, which would leave minimal residual equity value. With continuing uncertainty and a number
Impact: Negative. A deferral of interest payments adds to mounting short-term obligations including a $120 mm shortfall on the Company's credit facility. Potential for a debt-to-equity swap to alleviate the debt issue would result in massive dilution for current shareholders.
Impact: Neutral. Quarterly results that were slightly below our thinking will remain overshadowed by pending debt repayment issues.
Lightstream announced 1Q16 results that were in line on a production basis but behind on cash flow as a result of weaker than expected price realizations. Production guidance for 1H16e has been revised upwards by 2% at the mid-point though will become more gas biased given an increased weighting from high impact Falher wells. No development spending is planned for 2Q16. The Company is currently in the process of seeking financing alternatives to meet both a junior debt interest payment obligatio
Lightstream’s credit facility has been cut from $550 mm to $250 mm in its semiannual borrowing base review. There is currently $371 mm outstanding under the facility, implying an overdrawn balance of ~$121 mm. A 90 day cure period has commenced where this shortfall must be addressed or the Company will trigger a default event.The Company continues to investigate various strategies to alleviate this liquidity
issue, including alternate first lien financing, asset sales, and restructuring alterna
The Company is over-drawn by $121 mm on its re-determined credit facility and will have 90 days to remediate the deficiency.
With this publication we briefly summarize our projections for 1Q16e quarterly results for the Junior E&P (Intermediate, Mid & Small Cap) segments of our coverage universe
Companies: AAV ARX BTE BNP CPG ERF POU PEY PGF PSK VII TOU VET WCP BNE CJ CR DEE JOY KEL LTS LRE NVA PPY PNE RRX RMP SRX SGY TET ATU CKE GXE IKM LXE ROAOF MQL RE SPE SKX TVE TVETF YGR YO
With this publication we highlight various metrics and statistics forthcoming from yearend reserve books for our Domestic E&P coverage universe (Integrateds, Large Cap, Oilsands, Intermediate, Mid Cap, and Small Cap). Similar charts for YE2014 reserves can be found in our Statistical Package dated April 7, 2015.
Companies: AAV ARX BTE BNP CPG ERF POU PEY PGF PWT VII TXP VET WCP BNE CJ KEL LTS LRE NVA PPY PNE RRX RMP SRX SGY TET ATU BXO CKE GXE IKM LXE MQL SKX TVE TVETF YGR YO
With Lightstream’s 4Q15 production figure previously disseminated in the mid- February reserve and budget update (Facts dated February 12, 2016), the focus of this release was cash flow that was 8% shy of expectations. Between $16 mm of anticipated spending earmarked for 1H16e, and negative cash flow in the range of $20 mm over this period, we forecast net debt moving dangerously higher. In the context of its normal course spring bank line review, we suspect the Company’s excess financial liqui
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Given the stellar performance of PGM prices, it is no surprise that Sylvania have achieved another record quarter with EBITDA of $58.7m and cash balance increasing 52% to $102.1m. Annualising this past quarter, the stock trades on a ridiculously cheap EV/EBITDA of 1.5x. Production of 17.4koz was inline with expectations and guidance of 70koz for the year remains in place. We remain very comfortable on rhodium on a five-year view (see here) and expect the abnormal cashflows to continue (30% FY22
Companies: Sylvania Platinum Ltd.
Thor Mining (Thor) provides investors with exposure to a wide range of commodities in two safe jurisdictions (the USA and Australia). We see Thor's priority projects as its In-situ Recovery (ISR) projects in South Australia and its shovel-ready Molyhil tungsten project in Northern Territory. Short term, we expect news from exploration and drilling at its Ragged Range gold project in Western Australia and drilling in its uranium projects in Colorado – either of which could be transformational f
Companies: Thor Mining PLC
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor
Companies: ADME RTC SAV DFCH HUW TEG ANIC KOO MIRI SPSY
Following on from our previous report we wanted to explore the potential value of the Jade, Topaz and Pearl prospects in the event of success. We explore a potential three stage approach to the drilling of the three identified prospects within Block 29/11. Phase 1 involves success at Jade, which in the event of a commercial discovery would see our risked valuation of Jade increase from 9.7p to 41.2p. Phase 2 involves success at Topaz, which in the event of a commercial discovery would see our ri
Companies: Empyrean Energy PLC
Not much of note in Touchstone’s Q1 results, although the oil price recovery has spurred increased workover activity on its mature base oil business, stabilising production. Cash resources remain strong and Touchstone has significant remaining headroom on its credit facility, which alongside existing cash flows should cover this year’s work programme. Our risked-NAV and price target fall slightly, by 4% to 157p/sh, due primarily to lower net cash balances, but the impending Royston exploration w
Companies: Touchstone Exploration Inc
Planned maintenance downtime at Vametco offset a solid performance at Vanchem as Q1 2021 vanadium production fell by 22% and 29% versus Q1 and Q4 of 2020, to 688t. Vametco is showing better stability post restart, but mindful of ongoing workstreams to maintain this, and of ramp-up risks attached to the Vanchem refurbishment, Bushveld now expects full-year production to come in towards the lower end of its 4,100-4,350t guidance range. We still envisage overall improved output this year, which in
Companies: Bushveld Minerals Limited
AUCTUS ON FRIDAY: EGY US/LN, PEN NO, PTAL LN/TAL CN, TETY SS, VLU LN/VLE CN, ALV CN, AOI CN/SS, CNE CN, CNE LN, CPI CN, ENQ LN, GKP LN, HRB LN, HUR LN, IGAS LN, KOS US/LN, NOR NO, OKE NO, SENX LN, TXP LN/CN
Vaalco Energy (EGY US/LN)C; Target price of £3.80 per share: Removing oil price risk in 2021 - 1Q21 cashflow was negatively impact by a ~US$12 working capital movement that should be reversed on the upcoming period given that the c
Companies: AOI ALV CNE CNE CNE ENQ HUR KOS PEN PEN TAL SEN TETY TETY TXP EGY VLE
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
Companies: AMYT ARBB BPC BAG BVC BEG BONH BLVN BRSD CML CWK CRPR EYE ECHO FDM FAR FA/ GPH GSF HUW INSE JDG KAPE KP2 MACF MPAC MNZS NESF NBI OTMP OBD PREM QFI RUA SCS SEN SOS SUR TON TOU TXP TGL TCN UEM VLS WYN
Bacanora Lithium (BCN LN) – Potential offer from Ganfeng
Lucara Diamonds (LUC CN) – Reports healthiest diamond market for 5 years
Pasofino Gold (VEIN CN) – C$9m equity raise
Power Metal Resources* (POW LN) – New corporate presentation
Rambler Metals and Mining* (RMM LN) – 2021 Q1 results and progress of recovery plan
Rio Tinto (RIO LN) – Battery-grade lithium produced at California plant
Companies: LUC VEIN BCN POW RMM RIO
• The 7D well has been put on production at 3,700 bbl/d during the first 10 days of production and has averaged 4,550 bbl/d during the past three days. The well took only 33 days to drill at a cost of US$8.6 mm (7% below the US$9.2 mm estimate).
• During the last three days, Bretana oil field production has averaged approximately 11,100 bbl/d. Two wells, representing 1,200 bbl/d, are currently shut in awaiting increased water injection pump enhancements, suggesting an overall well production ca
Companies: PetroTal Corp.
InfraStrata has conditionally raised £10.3m in a placing (with potential for up to a further £4.1m through an open offer) to support delivery of a transformational £26.5m fabrication contract with Saipem. This project validates management's vision for the company, and paves the way for future fabrication contracts. With the substantial pipeline of opportunities being targeted (c£1.7bn), alignment to structural growth drivers that are underpinned by government policy, and the credibility provided
Companies: InfraStrata plc
European Metals Holdings (EMH) yesterday provided a further update on its resource drilling programme at Cinovec; the nineteen hole drill program is to define blocks of resource for the first 5 years of mining within the Cinovec-South area and to convert the resource from Indicated to the Measured category. Seventeen holes have been completed with results reported by EMH to be in line, or better, than modelled. Of the six holes reported today, there were some intercepting significant tin miner
Companies: European Metals Holdings Limited
Oil posted a gain this week as expectations for growing economic activity in nations from the US to Europe fuelled optimism around stronger summer demand. Futures in New York advanced 2.1% this week in the first back-to-back weekly increase since early March. Fuel sales in the UK rose to the highest since the pandemic again, and in the US, refineries are running at their highest rate since the pandemic began as they gear up for the summer driving season.
Crude's advance this week comes amid s
Companies: FO 88E DEC EME GTC TRIN UOG
Canyon Resources (CAY AU) – Minim Martap bauxite project mineral resource upgrade (Altus Strategies is invested in Canyon Resources)
Marvel Gold (MVL AU) A$0.05, Mkt Cap A$27m – Chilalo Graphite Project spin out (Altus Strategies holds a JV agreement with Marvel Gold)
Metal Tiger (MTR LN) – Drilling Commenced at KML copper project
Serabi Gold* (SRB LN) – Drilling confirms lateral and depth extensions to mineralisation at Palito
Companies: ALS SRB MTR CAY MVL
Q1 2021 results
Companies: Serinus Energy plc