We believe the phased purchase of a 26.17% stake in Gemfields by mining holding company Assore International Holdings should be regarded as a vote of confidence in Gemfields’ value proposition. Despite recent share price appreciation, the current price remains more than 30% below our DCF sum-of-the-parts valuation of ZAR4.69/share. Strong results, including US$23.1m at the July/August commercial quality emerald auction, reflect a strong coloured gemstone market. H1 results saw EBITDA of US$43.5m
Companies: Gemfields Group Limited
Last week, Gemfields reported a very strong first half, with EBITDA OF $43.5m and PAT of $23.8m. This led to strong free cash generation (June net cash $28.7m), which Gemfields should add to in the Q4 auctions and support growth capex and a potential dividend payment in FY22.
We have raised our FY21 revenue forecast from US$161m to $203m. Having previously been concerned that COVID would affect the second half auctions, the success of August’s emerald auction, alongside strong outlook statemen
Companies: ARB FEN GML STX SCE
Last week, Gemfields published results of its commercial quality emerald auction. Revenues were US$23.1m, a record for a commercial quality emerald auction. As impressive was the new record average price of US$6.61/carat, which bodes well for future pricing and reflects strong demand for the product. FY21 auction revenues now stand at US$113.4m with two more auctions planned for 4Q21.
Although we didn’t expect such strong revenues from this auction, we keep our FY21 revenue estimate unchanged
Gemfields’ balance sheet is in excellent health despite the pandemic. With FY21 auction revenues of US$90m already booked, Gemfields is planning three auctions in the second half. Demand and prices remain strong (April’s auctions achieved record average ruby prices) although the COVID situation in India, Thailand and Singapore could result in auction disruption. We assume the commercial quality emerald auction goes ahead during 3Q and that two higher-value auctions planned for 4Q are smaller (vo
What’s cooking in the IPO kitchen?
Bridgepoint Group to float on the Premium Segment of the Main Market. Bridgepoint is the leader in middle market investing, with a global reach that leverages its strong pan-European footprint and Bridgepoint's ability to deploy meaningful amounts of client capital across several well established strategies. Raising £300m. Timing TBA.
HydrogenOne Capital Growth to IPO on the Premium Segment of the Main Market. HGEN is targeting a raise of £250m. First London
Companies: ABDX ARCM JAY ESYS EVG GML KRS ORPH ORCP PMG
As travel restrictions prevented customers travelling to auctions, Gemfields turned to a series of mini-auctions to sell rough rubies and emeralds. These generated US$58.9m from ruby sales and US$31.4m from emeralds this year making the ‘mini’ in mini-auctions appear misplaced. Not only does the US$90.3m in sales shore up the balance sheet, but the prices achieved point to strong customer demand for Gemfields’ stones.
Bushveld Minerals* (BMN LN) – Union urges return to work as unofficial stoppage at Vametco
Caledonia Mining* (CMCL LN) – Blanket mine Q1 gold production
Empire Metals* (EEE LN) – Results highlight progress at Eclipse gold project and nearing of completion on sale of Bolnisi copper project
Gemfields (GEM LN) – Kagem emerald auction
Greatland Gold (GGP LN) – Initial drilling at Scallywag
Petropavlovsk (POG LN) – NED appointment
Power Metal Resources* (POW LN) – Option extension at Australi
Companies: GML CMCL BMN EEE GGP POG POW SAV SHG
Aura Energy* - (AURA LN) – Half-year results and project updates
Condor Gold* (CNR LN) – Progress of infill drilling at La India
Conroy Gold & Natural Resources (CGNR LN) – New zinc anomaly on the Longford-Down Massif
Gemfields (GEM LN) – 2020 results show extent of the damage inflicted by the Covid19 pandemic
IronRidge Resources* (IRR LN) – High-grade gold intersections at Zaranou
Vast Resources* (VAST LN) – Updated Baita Plai mine plan
Companies: AEE GML CNR CGNR VAST IRR
Anglo Asian Mining* (AAZ LN) BUY – H2/20 exploration work returns exciting results at Gedabek CA
Bushveld Minerals* (BMN LN) - Strong Buy 31p – Vanadium prices rise as new demand meets tight supply
Gemfields (GEM LN) – Resumption of operations at Kagem and Montepuez after a year of disrupted production and sales
GoldStone Resources* (GRL LN) – Exercise of warrants raises £1.2m
Power Metal Resources* (POW LN) – Portfolio update
Strategic Minerals* (SML LN) – Continued access to Cobre confir
Companies: GML AAZ BMN GRL POW SML
Although Gemfields has been unable to hold full gemstone auctions since February, successful November and December emerald mini-auctions generated US$10.8m in sales. Full in-person auctions are planned for March 2021 if travel restrictions lift by then. Gemfields has taken steps to preserve cash, including keeping both mines suspended, and we now forecast end 2020 net debt of US$11.6m (from US$10.5m previously).
Bacanora Lithium (BCN LN) – Ganfeng exercises option to increase investment in Sonora Lithium project | Chaarat Gold* (CGH LN) - BUY – Production guidance reiterated after Armenia/Azerbaijan agree to a ceasefire | Endeavour Mining (EDV CN) – Q3 report declares first dividend as board mull London listing | Gemfields (GEM LN) – Sale process for SPM | Panthera Resources (PAT LN) – Bido field exploration plans | Serabi Gold* (SRB LN) – Q3 results hint that worst impact of Covid19 may be over with pr
Companies: BCN CGH EDV GML PAT SRB VASTN
Crimson Tide (TIDE): Corp Growing long-term subscription revenues | Gemfields (GEM): Corp 1H20 results | Trackwise Designs (TWD): Corp Production contract with EV manufacturer
Companies: GML TWD TIDE
Gemfields has provided an update on the impact of COVID-19 on its business. Mining remains suspended at both MRM and Kagem and will not resume before the end of September and October, respectively. The company hopes to hold its first auctions since February in December, but that remains subject to uncertainty given travel restrictions. Gemfields ended June with cash of US$53.6m and net cash of US$9.3m, which, together with cost-cutting measures, positions it well to continue to weather the storm
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Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
Phoenix copper today announces an update on its deep drilling program below the proposed Empire oxide open pit resource and into the deeper sulphide zone. Phoenix is roughly 1/4 the way through a 4,500m drilling programme and has once again shown that high-grade zones of copper, zinc and lead sulphide mineralisation exist, nearly always associated with gold and/or silver and often with elevated concentrations of tungsten and molybdenum.
Companies: Phoenix Copper Ltd. (United Kingdom)
Savannah today announces that it is amicably terminating its JV arrangement with Rio Tinto over the Mutamba Minerals Sands project in Mozambique. Savannah has been paid $9.5m (which translates into 0.4p/sh) in cash to relinquish the 20% it has earned in the project and will cease all activity in country. All staff will transfer to Rio Tinto.
Companies: Savannah Resources Plc
Across a broader market sell off EQTEC have shown resilience and is trading at 1.55p, above its placing in May, up 25% from one month ago.
Companies: EQTEC PLC
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What’s cooking in the IPO kitchen?
Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
Jubilee today announce the full year results for FY 2021 ending in June 21. It was a year of continued progress with revenues up 143% to £133m (from FY 2020), adjusted PBT up 324% to £52m and eps up 93% to 1.8p/sh – an extraordinary year – but still only the beginning of the progression in our view. Continued developments in South Africa have led to a fully flexible chrome and chrome tailings solution at Inyoni. Supply from a wide variety of sources (Run-Of-Mine, new tailings from own operati
Companies: Jubilee Metals Group PLC
SolGold (“SOLG”) has published the first partial assay results from its drilling programme at the Varela target on the Rio Amarillo concession, 35km from the flagship Cascabel project. Hole 1 has been assayed to a depth of 1,052m, revealing an intercept of 72m @ 2.16 g/t Au from 639.7m, including 24m @ 5.77 g/t Au. More interestingly assay results are pending from 1,052m to 1,708.1m (EOH) where free gold and porphyry mineralisation have been identified. Intersections of porphyry style mineralisa
Companies: SolGold Plc
West Newton planning update
Companies: Union Jack Oil Plc
Trinity has received FDP approval from the Ministry of Energy and Energy Industries (MEEI) for the Phase 1 development of the Galeota licence. The submitted development plan has the potential to add additional peak production of c4,000 bopd; however more recent modelling suggests that intra-year peak production could be significantly higher, up to 7,000 bopd. Whilst the current development concept comprises the installation of a low-cost eight well platform (Echo), we note that Trinity is also w
Companies: Trinity Exploration & Production Plc
European gas prices are never far away from the headlines at the moment, although Parkmead’s results to end-June did not capture this surge in prices – that is yet to come. Parkmead is well placed to benefit from the current strength in European gas prices, while the potential for another commodity super-cycle suggests there is further progress to come on its major GPA oil project. A strong net cash position also puts it in the driving seat for potential acquisitions.
Companies: Parkmead Group PLC
Shanta Gold (AIM: SHG), the East Africa-focused gold producer has today announced a drilling update on its West Kenya Project (WKP) based on its Phase 2 drilling program which aims to infill 17 modelled zones across both Isulu and Bushiangala deposits up to 450-500m below surface. The Company has also reported drilling results from a regional exploration target, Ramula, where assays have been received from the first of 12 holes drilled, as part of the resource drill-out programme, totalling 451m
Companies: Shanta Gold Limited
Savannah Resources has sold its interest in the Mozambique mineral sands project (Mutamba) to JV partner Rio Tinto for $9.5m in cash. The payment has already been made to one of Savannah’s UK subsidiaries.
Given Barroso’s importance and capital requirements over the coming months, we view this as very good news. It allows management to dedicate all its time to Barroso and reduces future SAV equity dilution. Despite the strong lithium price and exceptional performance of ASX and TSX lithium sto
Atlantic Lithium* (ALL LN) – Shareholders approve demerger of gold assets
Castillo Copper (CCZ LN) – Extension of options to acquire the Litchfield and Picasso lithium projects
Cornish Lithium (Private) – $18m funding package secured from TechMet
Hochschild (HOC LN) – Shares rise as government appears to back away from closure plans
Hummingbird Resources (HUM LN) – Updated mineral reserves extend Yanoflila LOM and delivers maiden estimate at Kouroussa
Phoenix Copper* (PXC LN) – Deep drilli
Companies: HOC HUM PXC PREM CCZ ALL
Q3 2021 results; new Romania drilling planned
Companies: Serinus Energy plc
AfriTin Mining (AIM: ATM), the Namibian tin producer has today announced the execution of the NAD 90 million (GBP 4.5 million) lending facility from Standard Bank Namibia Ltd to fund the expansion of the Uis Phase 1 processing plant increasing the capacity of the tin circuit from 80tph to 120tph.
Companies: AfriTin Mining Ltd.