Under pressure H1, but better than Rusal

Despite expected weakness in the Metals segment (evident in Rusal’s results), EN+ reported somewhat better – although still weak – H1 results. Power provided a valuable cushion with this segment’s standalone deleveraging also helping to reduce the group-level obligations. While the challenges in Metals may take a bit longer to subside (completely), EN+ has reliable support from the Power segment. Overall, a well-balanced business proposition but one that continues to be disregarded by the market

Weak 2022 results, but survival instinct remains intact

Although En+’s 2022 results were weaker than expected, they were far from a complete disaster. Besides aluminium’s post-war gains (albeit capped due to cost challenges), the firm’s power proposition was an added advantage. While it is difficult to predict a normalisation calendar for En+ (and other Russian miners), it remains a critical natural resources/energy firm and, hence, should sooner or later see its underlying virtues being acknowledged by markets.

Strong H1 results, despite serious geo-political risks

En+ has reported strong H1 results, with healthy contributions from both segments – where pricing dynamics were very strong. Although, the impact of disrupted upstream operations in Aluminium was evident. Nevertheless, the fact that the firm’s geographic sales exposure to western markets was ‘largely’ steady, despite serious geo-political risks, was a promising signal. Overall, despite near-term price normalisation risks, given the promising long-term focus market dynamics, En+ remains an attrac

Exceptional 2021 results; various uncertainties ahead, but partly-cushioned by energy proposition

On the back of promising focus markets, En+ reported impressive 2021 results. Deleveraging momentum was sustained. With market dynamics becoming even more favourable, after the Ukraine-Russia war outbreak, the firm should have benefited in a big way. However, considering the challenges/risks due to En+’s Russian lineage, the way forward remains uncertain. Although ownership of domestically-focused energy division is a valued cushion. Add on top the indirect stake in Nornickel (via Rusal), En+ re

A multi-faceted green proxy

With aluminium on course to re-attain its past glory, hydropower demand and, hence, pricing witnessing strong and sustainable tailwinds, and Nornickel remaining a fortified proposition, En+ is set for a major re-rating. Even though re-emerging COVID-19 risks have rekindled some macro risks, the firm remains a beneficiary of near sacrosanct / less vulnerable focus market fundamentals. Hence, we initiate coverage with a ‘BUY’ recommendation.

NextSource Materials - Initiation

NextSource is uniquely positioned to build a leading vertically integrated position, ex China, in the supply of Lithium-ion battery anode material which is essential for the Energy Transition. The company is commissioning phase 1 of its world-class Molo graphite mine in Madagascar and is in the final permitting process for its first Battery Anode Facility (BAF) to be located in Mauritius. The company is backed by Vision Blue, established by Sir Mick Davis, former CEO of Xstrata. On our calculat

Falcon Oil & Gas - Funding a Multi TCF Resource

Falcon has raised gross proceeds of US$8.9m via a placing and subscription at a price of 6p/share and the granting of overriding royalty interests. The net proceeds, together with Falcon’s existing cash resources (cUS$4.3m) will be used to fund Falcon’s net share of 2024 capex (cUS$9m) associated with the 40MMscf/d Shenandoah South Pilot Project, including the drilling, stimulation, and flow testing of two 10,000ft horizontal wells. The funds will also enable Falcon to fund its share of the cost

Initiation of Coverage - Critical raw materials for Europe’s green transition

Beowulf is advancing a portfolio of projects in Europe focussed on metals and minerals that are critical to enabling the continent’s transition to a greener economy. Awareness of Europe’s over-reliance on external supply sources for such vital raw materials is driving growing political support for ‘home-grown’ projects. Beowulf is strategically positioned to leverage this fast-evolving trend – its Kallak project in Sweden holds potential to deliver high-quality iron ore to lower the carbon-inten

Morning Note – 22 April 2024

Morning Note – 24 April 2024

Sintana Energy Inc. (TSX-V: SEI): Constrained test rate of 14 mboe/d at Mopane-1X. 10+ bn boe in place confirmed.

• Multiple tests over multiple zones in multiple horizons were run at the Mopane-1X exploration well. The flows achieved during the well test reached the maximum allowed limits of 14 mboe/d. The flow rate was constrained by the size of the available surface facilities. • The AVO-1 horizon encountered at Mopane-1X and Mopane-2X are in the same pressure regime, suggesting that the entire area (8 km diameter) between the two wells is connected. Overall, in the Mopane complex alone, and before dril

Touchstone Exploration+ (TXP, House Stock at 44p) - Closing of expanded bank facilities

LIBERUM: Ferrexpo: Production triples

Jubilee Metals - Operational Update Q3 FY2024

Jubilee today reports its Q3 and third quarter operational results from its expanding operations in Zambia (copper) and South Africa (chrome and PGM). South Africa is on a growth trajectory with record chrome production of 409kt in the quarter (Q2 FY2024 381kt) and a monthly record in March of 145kt and production YTD of 1.13Mt (0.94Mt). Jubilee is well underway to its annual target capacity of 2,1Mt/yr especially with the new 300kt/yr chrome plant at Thutse expected to be operational in August

SP Angel Morning View: Gold prices slide following profit taking as traders look to US data

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

Hybridan Small Cap Feast - 24 April 24

24th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

Transition to Mining Operator

Adriatic Metals has announced their transition from mining contractor to mining operator at Rupice. The transition is expected to continue to benefit the development and productivity rates being achieved at Rupice mine, as well as result in cost efficiencies and improved HSE standards. The company has also announced a short-term loan facility with Orion of $25m, that is drawable at the option of the company in Q3/4 this year.

Alien Metals - Hancock Project, Mining Lease Granted

Alien today reports intraday that the Western Australian Government has granted a mining licence for the Hancock iron ore project for a 21-year term. The granting of the mining licence is the latest milestone delivered by Alien as it advances the project towards development and production.

I3 Energy (I3E LN) - Canada royalty assets sale

I3 has announced the sale of the majority of its royalty interests in Canada, for US$24.8m cash. This allows the company to fully repay amounts drawn on its debt facility and create a working capital surplus, giving I3 significant additional funding flexibility going forward