Altus Strategies* (ALS LN) – BUY, Target 115p – 5,000m trenching programme launched at the Laboum Gold Project, Cameroon | Arc Minerals* (ARCM LN) – Annual report describes transformational year for Arc as it focusses on Zambian copper prospects | BlueRock Diamonds (BRD LN) – Third quarter figures highlight substantial improvement in volume and grade | Keras Resources* (KRS LN) – Progress in Togo and Utah | Power Metal Resources* (POW LN) – Launch of website galley | Shanta Gold (SHG LN) – West Kenya Scoping Study confirms attractive project economics | Yamana Gold (AUY LN) – Admission to London’s Official List
Companies: ALS ARCM BRD KRS POW SHG
Altus Strategies* (ALS LN) - BUY – 115p – Drilling at the Lakanfla Gold Project commenced | Aura Energy* - (AURA LN) – Progress on Mauritanian gold and base-metals projects | Caledonia Mining* (CMCL LN) – Agreement to assess Government-owned mining opportunities in Zimbabwe | Castillo Copper (CCZ LN) – Re-interpretation of Eldorado prospect in Queensland | Rockfire Resources (ROCK LN) – Drilling results from Plateau project in northern Queensland | SolGold* (SOLG LN) – First hole at Cacharposa prompts Solgold to plan an extended drilling campaign | Power Metal Resources* (POW LN) – Project Portfolio Update | Strategic Minerals* (SML LN) – Redmoor scoping study update
Companies: ALS ROCK SOLG POW SML
Altus Strategies* (ALS LN) – BUY – 115p – Tabakorole resource climbs 54% with a 20% increase in grades | Amur Minerals* (AMC LN) – Interims Ariana Resources* (AAU LN) – Interim results and 2020 guidance | Bluejay Mining* (JAY LN) – Interims highlight ilmenite offtake agreements, licensing progress and low operating costs | BlueRock Diamonds (BRD LN) – Pit expansion combined with new capacity and recovery of larger stones to lead significant increase in diamond production | Bushveld Minerals* (BMN LN) – BUY – 45.7p – Production sharing agreement with Orion financing Phase III expansion at Vametco with notes to refurbish Vanchem | Chaarat Gold* (CGH LN) – BUY – 57p – Kapan operations update | Orosur Mining* (OMI LN) – Agnico Eagle joins Newmont at Anza | SolGold* (SOLG LN) – Delivery of Alpala PFS delayed by Covid19 restrictions | Tertiary Minerals* (TYM LN) – Progress report on Nevada exploration and MB Fluorspar project | Tri-Star Resources* (TSTR LN) – To be suspended pending publication of annual results
Companies: ALS AMC AAU JAY BRD BMN CGH SOLG TYM TSTR
Altus Strategies* (ALS LN) 67p, Mkt Cap £47m – Cote d’Ivoire gold projects sale and NSR agreement signed | Ferro-Alloy Resources (FAR LN) 8.63p Mkt Cap £28m – £500,000 share issue and Astana bond issue to upgrade power supply | Ormonde Mining* (ORM LN) 0.8p, Mkt Cap £3.3m – Conducting diligence on a potential acquisition | Panther Metals (PALM LN) 11.5p, Mkt Cap £5.7m – Multiple geophysical targets identified at Big Bear gold project | Phoenix Copper* (PXC LN) 56.5p, Mkt Cap £33.5m – Further drilling results from the Empire open-pit site and Red Star prospect | SolGold* (SOLG LN) – 26.3p, Mkt cap £550.2m – Drilling underway at Porvenir | Sunrise Resources (SRES LN) 0.3p Mkt Cap £10.1m – CS Project receives air quality operating permit
Companies: ALS FAR ORM PALM PXC SOLG SRES
Ariana Resources* (AAU LN) – Kiziltepe remains on track amid strong metal prices | Altus Strategies* (ALS LN) - BUY – 100p – Interims | Galantas Gold (GAL LN) – Q2/H1 results reports that a strategic review of the future of the Omagh mine is underway | Ganfeng Lithium (002460 SHE) – Ganfeng Lithium reports difficult first-half | IronRidge Resources* (IRR LN) – IronRidge joins European Battery Alliance | Power Metal Resources* (POW LN) – Geophysics helps refine targets at Molopo Farms | Sunrise Resources (SRES LN) – Closing of £250,000 broker option completes £1m fundraising | URU Metals* (URU LN) – Drilling planned for the Zebediela project in South Africa
Companies: AAU ALS 002460 IRR POW SRES URU
Altus Strategies* (ALS LN) BUY – 100p – General Counsel appointment | Antofagasta (ANTO LN) – Earnings dip in H1/20 on weaker copper prices, 6.2c interim dividend announced | Edenville Energy* (EDL LN) – Rukwa wash plant resumes operations | Oriole Resources (ORR LN) – Directors award themselves share options | Power Metal Resources* (POWLN) – Australian gold JV operational update | Talga Resources (TLG LN) – A$10m placement
Companies: ALS ANTO EDL ORR POW
Altus Strategies* (ALS LN) – BUY – 100p - Royalty and project generator with 1Moz of gold in Africa | BHP (BHP LN) –– Iron ore makes up 64% of EBITDA in FY 2020 results | Eurasia Mining* (EUA LN) – Eurasia limits funding to US$10m | KAZ Minerals (KAZ LN) – Interims: production guidance reiterated, 4USc dividend declared | Pure Gold Mining (PUR LN) – Anglogold Ashanti increases its stake in the Company to 16% exercising $5m worth of warrants | Sunrise Resources (SRES LN) – Mine Reclamation and Air Quality Permit issued
Companies: ALS BHP EUA KAZ SRES
Altus Strategies is a dual listed (AIM and TSX-V) Africa focused project and royalty generator with a portfolio of 20 prospective mineral projects diversified across seven commodities and six countries (Mali, Cameroon, Cote d’Ivoire, Ethiopia, Morocco and Liberia). The Company has an inventory of 1Moz of gold resource in Mali with several active JV and royalty agreements. The Altus business model delivers a cost-efficient structure to advance and de-risk multiple exploration projects, by partnering with third parties for the more capital intensive drilling and development programmes. Altus retains performance milestone and royalties on its projects that generate income from as well as retaining equity upside to the value of discoveries.
Companies: Altus Strategies PLC
Altus Strategies* (ALS LN) – High grade drilling results at Tabakorole | Anglo American (AAL LN) – Ends contract DMC Mining Services for the Woodsmith polyhalite mine shaft | Bezant Resources (BZT LN) –– Completes acquisition of Hope copper-gold project in Namibia | Dark Horse Resources (DHR AU) – Dark Horse to progress JORC resource at Tampere gold project in Finland | Petropavlovsk (POG LN) – Interim CEO and Chairman of the Board appointments | Pure Gold (PUR LN) – Development works resume | Rambler Metals and Mining* (RMM LN) – Working capital funding secured | Vast Resources* (VAST LN) – Metallurgical work points to high grade copper and zinc concentrates production potential at Baita | Versarien* (VRS LN) – Versarien receives £1.96m as first instalment from UK Innovate fund
Companies: ALS AAL BZT POG POG RMM VAST VRS
Alien Metals (UFO LN) – Employs Canadian broker in hunt for joint venture partner for Mexican project | Altus Strategies* (ALS LN) – EIA approved at the JV ready Agdz silver/copper project, Morocco | Arc Minerals* (ARCM) – Arc reports sale of Sturec gold project in Slovakia | Empire Metals (EEE LN) – Empire signs option to acquire 75% of the Eclipse gold mining license near Kalgoorlie | Galileo Resources (GLR LN) – Starting exploration on the Kalahari Copper Belt | Horizonte Minerals (HZM LN) – Araguaia debt financing
Companies: UFO ALS ARCM EEE GLR HZM
Altus Strategies* (ALS LN) – High grade gold mineralisation intersected at Tabakorole | Anglo Asian Mining* (AAZ LN) BUY Target 209p – H1 exploration update | Chaarat Gold* (CGH LN) BUY Target raised to 58p (from 51p) – Earnings update | Glencore (GLEN LN) – Record marketing performance shores up H1 results despite Covid19 pressures | Jubilee Metals Group (JLP LN) – Additional copper tailings in Zambia | Kavango Resources (KSZ LN) – Petrology report confirms further similarities between the Kahalari Sutre Zone and the Norilsk nickel system in Russia | Vast Resources* (VAST LN) – Drilling at Baita Plai returns high grade results
Companies: ALS AAZ CGH GLEN JLP KAV VAST
Alba Minerals (ALBA LN) – Bulk sampling at Clogau St David mine | Altus Strategies* (ALS LN) – Diba PEA delivers $81m NPV10% (after tax) | Antofagasta (ANTO LN) – 2020 Maintaining production and cost guidance despite Covid19 | Bluejay Mining (JAY LN) BUY - Target 20p – Offtake agreement for up to 70% of Dundas Ilmenite production | Edenville Energy* (EDL LN) – ILTL $1m loan agreement and Rukwa update | Jangada Mines (JAN LN) – Drilling results from Goela | Kodal Minerals* (KOD LN) – Results highlight progress at Bougouni lithium and other gold projects | OXIS Energy* - Private – OXIS Energy agrees with Texas Aircraft Manufacturing to develop new electric aircraft
Companies: ALBA ALS ANTO JAY EDL JAN KOD
Altus Strategies* (ALS LN) – >400koz mineral resource at Diba gold project | Beowulf Mining* (BEM LN) – Grab sampling results from Madjan Peak in Northern Kosovo | Cora Gold* (CORA LN) – H1/20 exploration update | Eramet (ERA PA) – Eramet to sell Aubert & Duval subsidiary | Hochschild Mining (HOC LN) – Immaculada mine suspends operations as Covid19 hits S American mines | Kazatomprom (KAP LN) – Extension of reduced uranium operational activity due to pandemic-related risks
Companies: ALS BEM CORA CORA HOC
Altus Strategies* (ALS LN) 31.5p, Mkt Cap £22.1m – Sale and royalty agreement on Cote d’Ivoire gold properties | Arc Minerals* (ARCM) - Drilling starts at new Fwiji target in Western Zambia | Caledonia Mining* (CMCL LN) 1280, Mkt Cap £138.3m – Increased quarterly dividend | Oriole Resources (ORR LN) 0.35p, Mkt cap £2.6m – Drilling underway at Senala gold project | Phoenix Copper* (PXC LN) 29p, Mkt Cap £16.2m – Empire mine metallurgical results
Companies: ALS ARCM CMCL ORR PXC
Research Tree provides access to ongoing research coverage, media content and regulatory news on Altus Strategies PLC.
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Cenkos’s first half results demonstrated the benefits of its flexible operating model and strength of its client relationships. While challenges related to COVID-19 are set to continue, Cenkos’s focus is on growth companies and its fund-raising year-to-date has had a greater emphasis on corporates financing M&A and growth opportunities rather than for defensive purposes. This should prove more sustainable although, as always, the timing of transactions in the encouraging pipeline reported remains uncertain.
Companies: Cenkos Securities plc
Avation is a lessor of 46 commercial aircraft to a diversified airline client base. This morning, the group has released results for the 12-months to 30 June 2020, which illustrate the challenges faced by its customer base as a result of Covid-19, as well as the corrective actions taken by the Board that have resulted in profitability being maintained in the year as a whole. Loan repayment deferrals of c.$24.4m were obtained in the period, in comparison to $13.1m short-term rent deferrals being granted to airline customers and thus emphasising management's focus on liquidity during an unprecedented period for global airlines. Avation again reports that it is currently reviewing alternatives in relation to the 6.5% senior notes due in May 2021. Whilst at this point our forecasts remain under review, and near term challenges remain across the industry, we believe that demand for aircraft from lessors such as Avation will increase in time as a result of airlines being even more reliant upon aircraft leasing firms due to the retirement of older aircraft during 2020 in combination with much weaker balance sheets that are unable to support direct aircraft purchases.
Companies: Avation PLC
Record’s Q221 trading update confirmed that its new $8bn dynamic hedging mandate has started and that, prior to this, assets under management equivalent (AUME) expanded by 4% in the quarter. The group continues to work on developing new products and is deploying technology to enhance its ability to deliver these and existing products cost effectively.
Companies: Record plc
Primary Health Properties (LON:PHP) is a real estate investment trust (REIT) that holds a portfolio of 510 primary health facilities in the UK (92% of the portfolio by value) and Ireland (8%). The business model is to manage the properties for rental income and to grow the portfolio over time. The
Companies: PHP PP51 PHPRF
Cenkos Securities plc has terminated coverage of Record Plc. Our previous recommendation (BUY) and forecasts can no longer be relied upon.
Please contact Cenkos for further information.
What’s new: Today’s trading update reveals 17% rise in assets under management (AuM), double digit revenue growth, and an increasing operating margin as the business scales. The outlook is positive. Highlights are:
12.6% rise in 1H Group Revenues to £11.0m (1H last year: £9.7m);
21.9% rise in 1H adj operating profit to £5.0m (1H last year: £4.1m);
17.4% rise over 6 months in AUM to £7.8bn on 30 September 2020,
n.b. From 31 March 2020 the WMA balanced index rose 11.6% to 4510;
- Market movements added 12.5% to AUM (i.e. Tatton outperformed WMA);
- 1H net inflows of £328.1bn were 4.9% of opening AUM (i.e. c 10% annualised net inflows);
3.0% rise in Paradigm Mortgage Services member firms to 1,591
2.5% rise in Paradigm Consulting member firms
Interims will be announced on Wednesday, 18 November 2020
Companies: Tatton Asset Management Plc
Following on quickly from its impressive full year results, these interim results confirm that our confidence for growth in the Program Management business was not misplaced.Contracted Premium increased 95% YoY (and 12% ahead of December 2019) to $925m –a stone's throw away from the $1bn 2020 guidance set in 2018. At the same time, Gross Written Premium (GWP) grew 42.6% to £247.2m, resulting in Economic EBITDA turning positive, at £0.8m compared to a loss of £0.3m in 1H19
Companies: Randall & Quilter Investment Holdings Ltd.
As expected following the US banks’ releases, Barclays’ third quarter results saw a sharp reduction in provisions build-up while the emergence of delinquencies has been delayed by the State’s supporting measures. Management continues to expect a reduction in the cost of risk next year. It remains to be seen if this guidance is capable of withstanding new lockdowns or a no-deal Brexit.
Companies: Barclays PLC
Tatton has reported an in-line H1 financial performance: revenue totalled £11.0m (vs N+1Se £10.9m) and £5.0m adj. EBIT (50% N+1S FY21e). AuM grew by 3.4% to £7.8bn as net inflows continued throughout H1 (+£328m) – a positive performance given the backdrop. Paradigm, particularly in Mortgages, has been resilient post-lockdown. Having delivered 50% of our earnings forecast for FY21e, there is potential for upside. However, we leave our forecasts unchanged and a margin for safety as we remain alive to potential external risks/volatility.
The most pleasing aspect of Tatton’s trading update for the six months ending 30 Sep 2020 (H1 2021) was how robust its fundamental offering to clients (financial advisers) has proven to be in highly uncertain market conditions. It continued to attract strong net inflows into its asset management business while also growing its base of IFA consulting and mortgage services clients. The prospect of beating our previous FY21 forecasts looks promising. Longerterm growth prospects also look strong. We do, however, remain wary of the potential impact of further large market dips. For now, we maintain our fundamental valuation of 300p per share but see room for significant upside on that mark if Tatton continues to deliver.
ANGLE plc (AGL.L): Acceptance of FDA submission | Feedback plc (FDBK.L*): Partnership agreement | Open Orphan (ORPH.L): Human Challenge Study Model contract with UK Government
Companies: AGL FDBK ORPH
The interims confirmed that Covid-19 was minimally disruptive operationally in H1 20 and, ironically, may have improved both of R&Q’s divisions’ mediumterm trading outlooks. As the pandemic and other industry events have generated significant losses for insurers, they have created the current ‘hardening’ market driving demand for Legacy and Program Management.
John Laing Group (JLG) has announced the sale of its Australian wind farm assets for A$285m (£157m), a valuation described as a ‘small uplift’ to book value. This news is significant for two reasons: 1) it provides some reassurance that the book value of JLG’s renewable assets is now relatively conservative; and 2) accounting for about a third of its renewable portfolio, the disposal represents material progress on JLG’s strategy to exit this market. We make no change to our numbers ahead of the company’s Q3 trading statement expected next week.
Companies: John Laing Group Plc
NextEnergy Solar Fund has low operating costs, low finance costs and has consistently delivered generation outperformance. We estimate that it can sustain its current level of dividend with an electricity price well below today’s price. The shares show the lowest NAV premium of all the UK renewable yieldcos and the highest yield.
Companies: Nextenergy Solar Fund
Whilst there are some bright spots, such as payments companies, which are beneficiaries of the shift to online shopping, fears about the potential impact of COVID-19 have hit valuations across much of the financial sector. The fall in Polar Capital Global Financials Trust’s (PCFT’s) NAV reflects this situation.
Companies: Polar Capital Global Fincls Trust